FY2026 Proposed Operating and Capital Budgets

FY2026 Proposed Budget Introduction

County Tax Rates

Hotel Rental Tax Hotel Rental is an excise tax on hotel charges for sleeping accommodations for a period not exceeding 90 consecutive days. Frederick County’s hotel rental tax rate for FY2026 is 5.0%. Per section 1-8-166 of the County Code, after administrative costs, the remainder is given to the Tourism Council. This tax is recorded and tracked in the Hotel Room Rental Tax Fund. Other taxes charged in Frederick County include: x Local – MD 911 Fee (recorded in the General Fund) x MD Security Interest Filing Fee (recorded in the General Fund) x Sales Tax – is assessed and collected by the State on cannabis sales and a portion is passed through to the County

Note: Agriculture Transfer Tax is a pass-thru from the State and is not a tax levied by the County (recorded in the Agricultural Preservation Fund)

Taxes by Fund Table:

FUND Governmental Funds

TAX:

Parks Acquisition/Development School Construction

Electric Lighting Districts Housing Initiatives

General Fund

Agricultural Preservation Grants 3 3

Hotel Room Rental Tax

Property Tax Income Tax

3 3

Recordation Tax Hotel Rental Tax Local-MD 911 Fee

3 3

3 3 3

3

3 MD Security Interest Filing Fee 3 Sales Tax (pass-thru)

3

Transfer Tax (pass-thru)

3

25