Hagerstown Delays Property Tax Rate Introduction Amid Resident Concerns and Budget Scrutiny

A decision on Hagerstown’s proposed real property tax rate for fiscal year 2026 was delayed during a May 13 special session, after the City Council declined to formally introduce the ordinance. Although the session included a public hearing on the tax proposal, the ordinance was not slated for adoption at that time. Its introduction, a procedural step toward eventual approval, failed to receive a second, pushing the matter to a later date.

The proposed tax rate of $1.057 per $100 of assessed real property value and $2.643 per $100 for business personal property was expected to generate an additional $2.2 million, primarily to support police and public safety salaries. While city staff emphasized the need for this revenue to sustain services, many residents who spoke during the public hearing raised concerns about the affordability of living in Hagerstown. Several landlords, homeowners, and business owners warned that higher taxes would push housing costs beyond the reach of both tenants and buyers, further straining an already limited housing market.

Councilmember Kristin Aleshire later clarified in an email that the ordinance was only up for introduction, not final passage. Because that step was not completed, the council must now work toward modifying the tax rate and other components of the proposed budget and Capital Improvement Plan (CIP) to arrive at a package that can gain majority support. Aleshire noted that the coming weeks—typically reserved for councilmembers to propose revisions to the staff-developed framework—will now be crucial to reaching a workable agreement before the next fiscal cycle.

The city’s draft FY2026 budget totals nearly $223.7 million across all funds, including a general fund of $71.4 million—a year-over-year increase of 11.8%. Other government funds are expected to decrease, while enterprise funds are set to grow by nearly $18.4 million. With the tax rate ordinance still pending, the overall budget’s adoption remains in limbo. Without agreement on the revenue plan, the city could face delays in implementing next year’s budget, or in a worst-case scenario, a temporary shutdown of city operations.

To address these challenges, a special Mayor & Council work session has been scheduled for Thursday, May 15 at 3 p.m. The meeting will be open to the public, livestreamed on the city’s municipal Facebook and YouTube pages, and broadcast on Antietam Broadband Channel 25. Officials are expected to engage in detailed discussions aimed at amending the draft budget and tax framework in hopes of reaching consensus before the mandated adoption deadline.

Article by multiple RFHC contributors, based upon information from the May 13, 2025 hearings, Hagerstown City Councilmember Kristin Aleshire and the City of Hagerstown.

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