OC Today-Dispaatch FEBRUARY 23, 2024
STUBBORNLY LOCAL, EQUALLY INDEPENDENT
Sign up now for new daily newsletter to debut soon. — Page 8
PRICELESS
Rank and file back closing seasonal program Many Ocean City police officers began their careers here as summer cops, and while they credit that for what they learned, they agree the time for change has arrived. — Page 20 GREENWAYS
CHARLENE SHARPE/OC TODAY DISPATCH
Scott Fox of Mead & Hunt, right, talks to a South Point resident about the development of the Worcester County Greenways Master Plan during a public input meeting Feb. 20 at the Berlin library. Story on page 16.
Blueprint for Maryland’s Future
County faces hard choices School program panel says commissioners have tough decisions ahead Although county government is ahead of other counties in funding parts of the state-mandated overhaul of public education, it needs to play catchup fast in other areas to keep pace with the state
plan’s timeline. That, says the board overseeing the program’s implementation, could require the county to cut funding in other areas to cover the cost of what they need to do. — PAGE 56
YOUR COMMUNITY Opera award winner: Soprano Katerina Burton, a 2012 graduate of Stephen Decatur High School, captured a top prize in a New York singing competition. – PAGE 57
Foster homes needed: The county Department of Social Services has just six foster care facilities and needs more now.— PAGE 54
Rotary donation: The Ocean City-Berlin Rotary Club recently bought blankets and hygiene kits for two local nonprofits. — PAGE 63
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OC Today-Dispatch
FEBRUARY 23, 2024
FEBRUARY 23, 2024
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OC Today-Dispatch
What is Constant Yield? And why you might want to know about it By Stewart Dobson Editor
A
s town and county governments move from preliminary work in their annual budget-building processes to assigning priorities to their possible spending, the deciding factor in their discussions will be money — how much they have and how they might get more. These conversations will then turn to property taxes, the greatest and most politically sensitive source of local government revenue in this county since no one likes paying more taxes as a matter of principle. Two-thirds of Worcester County government’s general fund revenue comes from property taxes, while these same taxes constitute 41% of Ocean City’s general fund in-
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come and 37% of Berlin’s. Because this revenue is the dominant factor in town and county budgets, any shift in the state’s assessment of properties in these districts could have a significant impact on government spending and taxpayers ... depending on the tax rate these governments impose. This is where something known as the Constant Yield Tax Rate enters the picture. §§§ Trying to understand the state’s Constant Yield Tax Rate requires one thing: stop calling it the Constant Yield Tax Rate. Instead, refer to it as the Do Nothing Tax Rate, the Status Quo Tax Rate or the Same Tax Bill Rate, because that’s what it is: a number the state Department of Assessments and Taxation calculates to show property owners what their local and county tax rates would be if their governments decided to collect roughly the same tax revenue in the fiscal year ahead as they did the year before. The state sets this number based on the
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annual increase or decrease in the total assessed value of real estate in a specific district, with the Do Nothing Rate functioning like a counterbalance on a seesaw. If the tax base goes up, the Do Nothing Rate goes down until the seesaw is level. Similarly, if the tax base goes down, as it did in 2009, the Do Nothing Rate moves up proportionately. In both cases, however, the taxpayer would see no change in the amount of taxes paid were the Do Nothing Rate to be applied. For example, let’s say the 2023 assessed value of real property in Town A is $1 million (a ridiculously low number, but we’ll get to that later) and its tax rate is $1 per hundred dollars of assessed value. That value ($1 million) divided by 100 comes to $10,000, which is then multiplied by the tax rate ($1) to produce $10,000 in revenue for Town A. But then, the real property in Town A is reassessed by the state and, because of housing demand and other market circumstances, the state raises the total assessable See DO NOTHING Page 8
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OC Today-Dispatch
FEBRUARY 23, 2024
Mayor: OC rejects wind farm aid handout By Bethany Hooper Associate Editor (Feb. 23, 2024) While some coastal communities in Delaware are considering a benefits package from US Wind that could bring $10 million in financial benefits, Ocean City Mayor Rick Meehan went on record this week to publicly reject a similar offer from the offshore wind company. Earlier this year, five Delaware communities – Henlopen Acres, Rehoboth Beach, Dewey Beach, Bethany Beach and South Bethany – began evaluating a community benefits package from US Wind, the company developing wind projects off the coast. As presented in an agreement, each of the five towns would receive $2 million over a 20-year period, paid in $100,000 increments. The offer was also extended to the
Town of Ocean City, according to a news release issued Wednesday. Meehan, however, said the package came with stipulations that prevented local government officials from speaking out against US Wind’s plans. “I find it unconscionable that any local officials would consider payment to silence their voice on any issue that directly affects their constituents or their community,” Meehan said in the news release. “In December 2023, I received an email from Jeff Grybowski, Chief Executive Officer for US Wind, offering Ocean City the same opportunity that has been extended to the Delaware Beach Towns. My response was, ‘Respectfully the future of the Town of Ocean City cannot be bought and we intend to continue to do what is necessary to protect the interests of our residents, property
owners and future generations.’” For some small coastal communities in Delaware, the benefits package could provide significant funding for long-awaited capital projects. In an interview earlier this year, Henlopen Acres Mayor Joni Reich said potential uses include dredging of the community’s marina and drainage improvements. “The amount of funding being offered is very significant for a town of our size which has an annual budget of $1.1 million,” she said at the time. “If our Commissioners decide to participate in the Agreement, we would determine how to use the funds as part of the regular annual budget process.” While the community benefits package was formally presented to the Delaware Association of Coastal
Towns (ACT), two members – Lewes and Fenwick Island – were not listed on the agreement presented to the public. In September of 2022, the Fenwick Island Town Council voted unanimously to not pay dues toward ACT’s hiring of a consultant to interact with the various offshore wind companies. “Fenwick declined to be involved with hiring a consultant to negotiate a community benefits package with the wind farm companies,” Fenwick Mayor Natalie Magdeburger said in a statement. “We believe as advocates for our community we need to be able to speak freely, openly and without restriction to question the wisdom of moving forward with wind farms off our coast.” US Wind reports the community benefits package includes a stream of annual payments over 20 years, worth $2 million to each town. The payments would begin if and when US Wind begins construction on its MarWin project. The Bureau of Ocean Energy Management is expected to issue a decision to approve or disapprove the company’s plans by the fourth quarter of 2024. “We expect to deliver clean offshore wind power to the Delmarva region for a long time,” Grybowski said in a statement earlier this year. “As a member of this community, we believe it’s important to do what we can to help it thrive. These coastal towns are important to the state of Delaware and beloved by those who enjoy them. US Wind is committed to contributing to their continued health and resilience.”
Inside thiss we ee k Calendar ..............................34 Classifieds ..........................40 Crossword ............................26 Dining Guide ........................32 Editoral/Letters....................62 Entertainment ......................28 Horoscope ............................27 Obituaries ............................65 Police/Crime........................23 Public Notices ......................44 Sports ..................................67 NEWS INQUIRIES: editor@oceancitytoday.net SALES INQUIRIES: sales@oceancitytoday.net CLASSIFIEDS: classifieds@oceancitytoday.net 410-723-6397 Published Fridays by FLAG Publications, Inc. 11934 Ocean Gateway, Suite 6, Ocean City, Md 21842
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OC Today-Dispatch
OVER $46.6 MILLION IN SETTLED REAL ESTATE IN 2023 12207 Coastal Hwy. Suite D • Ocean City, MD 21842 • 410-524-1203
NANCY REITHER-SMITH
#1 AGENT COLDWELL BANKER Realty 2023 Sales Volume, Listings & Closed Units Ocean City and DE Beaches
Realtor® • Licensed in MD & DE Office: 410-524-1203 Direct: 410-723-8574 / Cell: 410-603-5050 Email: nreither@cbmove.com
#1 LISTING AGENT FOR COLDWELL BANKER REALTY OCEAN CITY & DE BEACHES NORTH OC CONDO with DEEDED BOAT SLIP
DIRECT BAYFRONT OCEAN CITY!
204 N HERON DR #2048C OCEAN CITY • $425,000 This beautiful 2BR/2BA condo with deeded boat slip #23 is in Seascape in the fabulous community of Heron Harbour. This larger corner model is rarely available for sale. It has two primary bedrooms each with its own full bath. This condo comes furnished ready for your immediate enjoyment. When you walk in you will fall in love with the floor plan with a townhouse feel. There is an updated kitchen with stainless steel appliances, granite countertops, subway tile backsplash, and white kitchen cabinets. The dining room is directly off the kitchen that flows into a spacious living area. The family room has vaulted ceilings and is a great place for family time and entertaining with friends. This condo has an oversized primary bedroom. The second bedroom is on the next level and has a full bath and oversized closet. There is a full deck off the family room, perfect to enjoy an outdoor meal. There is also an outdoor storage closet off the deck. You will love the deeded boat slip that conveys with the property. Offered with a one-year AHS warranty. Heron Harbour is amenity rich with two outdoor pools, an indoor pool, a kiddie pool, fitness center, social room, sauna, locker room, two Har-Tru tennis courts, sidewalks, and piers. Enjoy your boat, fishing, crabbing, kayaking, and paddle boarding all directly out your back door. You are very close to shopping, restaurants, and the beach. Come take a look before it's SOLD! MDWO2018196
Luxury 5BR/6BA/2HBA Bayfront home with pool hits the market! This luxury home has 145 feet of water frontage with direct bay views and offers southern exposure. As you walk in the front door of this lovely home you will immediately fall in love with the attention to details and upgrades throughout. An elegant foyer with marble flooring greets you as you enter with your eyes drawn to the beautiful Bayfront views and the swimming pool in the courtyard. On the first level you will find a kitchen designed for access in and out to the pool area with plenty of seating and room for entertaining family and friends. Also on the first floor, you will find a Bay front office or playroom for the kids. This home is complete with a home elevator so either take the spiraling stairs to the second level or take the elevator up to the second level.You will be mesmerized by the amazing Bayfront views and endless sunsets this home offers. There are 6 decks off the home for privacy. On the second level you will find a professional chef’s kitchen complete with large center island, high end appliances and plenty of cabinet space adjoining a beautiful, spacious dining room overlooking the bay. The family room is also complete with a gas fireplace for chilly winter nights, making this the perfect home for year-round living or a vacation home. Also, on this floor, you will find a second office, home theater room, or game room. On the third level you will enjoy waking up to the endless water views from your primary bedroom. The primary bath has custom finishes throughout with extensive tile work. The primary bedroom also has a fireplace for romantic evenings and relaxing. Also on this floor are three additional bedrooms, which are spacious and separated nicely from the primary bedroom. This home is over 6000 ft.² and is one of the few Bayfront homes available on the market. So, if you’re looking for a home at the beach, also offering all the thrill of the day with attention to detail look no further. Come take a look at 733 Bradley Rd. today before it’s sold! MDWO2014714
MALLARD LAKES 2BR/2BA HOME OPEN HOUSE SATURDAY 10AM-NOON & SUNDAY 11AM-1PM
38331 BLUEBIRD LANE MALLARD LAKES #368 SELBYVILLE, DE • $379,900 Stunning 2BR/2BA Mallard Lakes home overlooking a pond and just minutes from Fenwick and Ocean City beaches has just been listed. As you walk through the front door, you'll immediately see a room to the left which could be used as a home office with plenty of space for your desk and printer. The hallway is tiled and leads to a beautiful custom kitchen with granite countertops, upgraded cabinets, stainless steel refrigerator, freezer and beverage cooler, and plenty of space to eat at the breakfast bar. An open floor plan allows the kitchen to flow nicely into the family room which has a wood burning fireplace. Off the family room is the Florida room, which is perfect for dining overlooking the water. There's a glass slider that leads to a patio to enjoy summer breezes and the pond views. There is a full bath on this level as well. On the second level there are two spacious bedrooms and another full bath. This would make a great home, second home or investment property. It has been upgraded, shows pride of ownership and is being sold completely furnished. There is also an outside shower and storage closet. This home is in the amenity rich community of Mallard Lakes. There are pools, pickleball and tennis courts, kiddie pools, basketball courts, volleyball courts, shuffleboard, a hot tub, fishing and crabbing pier, and an area for kayaking. Come take a look today before it's SOLD! DESU2056378
MID-TOWN 3BR/3.5 BA RIVENDELL CONDOMINIUM with WATER VIEWS! OPEN HOUSE SATURDAY 11AM-1PM
OCEAN BLOCK MID-TOWN CONDOMINIUM
7704 COASTAL HWY • SANDS #102 OCEAN CITY • $310,000 Come take a look at this spacious 1BR/1BA Ocean Block beauty! This one-bedroom unit is over 700 sq.ft. and is on the ocean block side of coastal highway. This is an elevated building so there's a very nice view from the large deck off the family room. This is your chance to own a slice of Ocean City and make memories that will last a lifetime. As you walk in the front door, you’ll be welcomed by the beautiful dining area and kitchen. The family room flows off the kitchen and provides plenty of room for entertaining. There is a large balcony off the family room with access by a glass slider. The bedroom is very large and can accommodate two queen beds. There is one full bath as well. This condo located midtown Ocean City, close to plenty of restaurants, shops and attractions. Come take a look today and own your slice of Ocean City. This building is professionally managed and has low condo fees. The condo is being sold fully furnished and is ready for your immediate enjoyment. MDWO2015968
RESIDENTIAL LOT
WATERFRONT HOME AT REFUGE DERRICKSON CREEK OPEN HOUSE SATURDAY 12:30-2:30PM
36939 CREEKHAVEN DRIVE SELBYVILLE, DE 19975 • $835,000 Stunning 4BR/4.5 bath home in the Refuge at Derickson Creek hits the market! This meticulously maintained home backs up to the pond, has peek of the Bay and is located approximately three miles from Fenwick Island beach. As you walk through the front door you will immediately see the attention to detail. There is an upgraded kitchen with breakfast bar, Quartz countertops, beautiful tile backsplash, stainless steel appliances and plenty of cabinet space. The kitchen opens into the dining area. Friends and family will enjoy meals there together and will make memories that last a lifetime. The spacious family room, with a beautiful gas fireplace, is off the dining area and is a perfect gathering place for entertaining family and friends. There’s a wonderful, enclosed sunroom with a glass slider to the paver patio deck and beautiful back yard. There’s also a flex room on the first floor that could be used as an office. The primary bedroom suite is located on the first floor and is oversized and has a beautiful full en suite bath. You will enjoy the water views from your primary bedroom. The laundry room is also on the first floor. You will love the first-floor hardwood floors, tile, woodworking, upgraded lighting and upgraded carpet throughout. The hardwood floors continue to the second level. There is a spacious second family room on this level and there are three additional bedrooms all with en suite baths. This is the perfect home for everyone to enjoy. There is a two-car garage, covered front porch, and outside shower. Every room in this house has a view of the pond and a peek of the Bay. The Refuge is an amenity rich community with a large inviting outdoor pool w/separate wading pool for kids, a clubhouse with an exercise/workout room, tennis courts, basketball court, volleyball court and playground. In the Refuge you get to enjoy the scenic views and native wildfowl of Derickson Creek and the Delaware Inland bays. Come take a look today before it's SOLD! DESU2052970
OCEAN 2 BR/2BA CONDO OPEN HOUSE SUNDAY 2-4PM
121 81ST ST UNIT 706 • OCEAN CITY • $815,000 Stunning three-bedroom 3.5 bath condo at the Rivendell hits the market! This beautiful condo is being sold furnished and it's ready for your immediate enjoyment. You’ll be mesmerized by the waterfront views. You can actually watch both the sunrise and the sunset without ever leaving this condo. The kitchen is sure to delight the chef in your family with its granite countertops, custom cabinets and plenty of workspace. Off the kitchen is the family room and dining area where you will enjoy family meals and make memories that last a lifetime. The family room is great for entertaining and has a gas fireplace for chilly times in fall and winter. There’s also a wet bar for relaxing and having cocktails with friends. You can see the Ocean and Bay from the primary bedroom suite and the primary bath is luxurious with a tile Jacuzzi tub, shower and double vanities. The other two bedrooms are spacious as well and each have their own en suite bathroom. There is also a half bath off the family room. There’s a separate laundry room with washer and dryer and plenty of storage. Privacy is ensured with good separation between the primary bedroom and the other two bedrooms. There are large balconies where you can enjoy your morning coffee and a cold drink in the evening. The Rivendell has an indoor pool, outdoor pool and a fitness center, and the Hobbit restaurant is located in the building as well. This condo is located in Midtown on 81st St. and there is a traffic light at the intersection so crossing the street is very easy. There are plenty of stores, restaurants and shops in the area. There is a parking garage and secure access to the building. Come take a look today and make this beautiful property yours. This is a non-rental building so you will make friends and know your neighbors. MLS MDWO2017698
733 BRADLEY ROAD • OCEAN CITY • $3,200,000
NEW WATERFRONT CONDO
1 66TH ST UNIT 101 • OCEAN CITY • $499,900 Stunning 2BR/2BA condo one back from the beach hits the market! This condo is located on 66th street in an ocean block building. The sellers have made many recent upgrades, installing luxury vinyl plank flooring throughout, new microwave, new refrigerator, new stove, new dishwasher, new exterior HVAC unit, toilets and kitchen faucet within the last three years. The decks also were tiled in 2019 and the glass sliders leading to the deck were also replaced within the last five years. This would make a great second home or investment property and is being sold fully furnished and ready for your immediate enjoyment. This is one of the best values at the beach - fully furnished and only one back from the ocean. As you walk through the front door, you will see an inviting living room for entertaining family and friends. There is a dining area off the kitchen with glass sliders leading to a huge covered deck with recently tiled floor. You can hear the waves break from the deck. This is a first floor unit but it's an elevated building so the height off the street is equivalent to a second floor unit. This condo has two large bedrooms and two full baths so there's plenty of room for family and friends. The condo is in walking distance to many restaurants, stores, shops and a supermarket, so once you're here you don’t have to move your car, but the condo is conveniently located to the route 90 bridge, making coming and going a joy. Come take a look today before this amazing property is sold. This condo association is well managed by Mann Properties. MLS MDWO2016172
COMMERCIAL
301 14TH ST #302 • OCEAN CITY • $695,000 Stunning 3-bedroom 3.5 bath luxury condo in Laguna Vista hits the market! As you walk in the front door, you will immediately fall in love with the large open floor plan and coastal decor. The gourmet kitchen features an abundance of cabinets, beautiful tile backsplash, granite countertops and center island with stainless steel appliances. Off the kitchen is a beautiful dining area where you will enjoy meals with family and friends. The dining room flows nicely into the large family area for relaxing and entertaining, and there is a gas fireplace for winter nights. The family room has a glass slider to a covered deck with southern exposure. The famous White Marlin tournament is right next-door, and you have a great view from your balcony. The primary bedroom ensuite is spacious and faces the water as well. There's also a slider off the primary bedroom to the balcony. The other two bedrooms are private as well. There's also a separate entrance to those two bedrooms off the foyer so one of them could serve as a second primary bedroom. The HVAC was just replaced. This condo is well taken care of, and the amenities in the condo building include an indoor heated pool and an open year-round exercise room. The condo is just three blocks to the beach and boardwalk. This well-maintained condo is being sold fully furnished and shows pride of ownership. Come take a look today before it's sold. MDWO2018458
COMMERCIAL
WATERSIDE DRIVE BERLIN • $475,000
34862 WEST LINE RD SELBYVILLE, DE • $3,900,000
Are you looking to build your dream home? Look no further than this beautiful residential lot in the community of South Point Farms. This beautiful building lot is in a prime location on the corner with beautiful bay views. The lot is approximately 2.76 acres and it’s located off 611 in Berlin Maryland. At the entrance of South Point Farms is a public boat ramp and public pier with water access for boating fishing, crabbing, paddle boarding, and kayaking. If you are looking for a peaceful, tranquil location with unbelievable Bay views this is the prime spot. There are multiple world-class golf courses close by and Assateague National and State Park as well for days on the beach. No builder tie in required. Come take a look today and enjoy the good life on South Point Farms! MDWO2014122
32474 LIGHTHOUSE RD SELBYVILLE, DE • $7,900,000
Commercial Site in Prime Location hits the Market! 2.36 acres on the corner of RT 54 and W. Line Rd in Selbyville DE. This location is directly across from Yellowfins Restaurant and shopping center on heavily traveled Rt 54. The location is approximately 3-4 miles to the beaches of Ocean City & Fenwick Island. It has water and 8' sewer main that will supply a hotel, shopping center, office complex, medical center, professional center, etc. Lot is cleared. Buy it Now Before It's SOLD!!! Owner Financing is available. MLS DESU184528
Prime commercial location in Selbyville of 10.09 acres. This is a rare commercial development opportunity on the busy intersection of Lighthouse Sound Rd. (Route 54) and Hudson Rd. There are already many existing new homes surrounding this property and more than 3,200 additional homes are coming soon. This is the perfect location for a shopping center, multiple smaller retail businesses, and/or medical or other professional offices to serve these homes and the entire Selbyville, Bayside, Fenwick, Ocean City area. The Seller will finance up to 70% of the purchase price at 1 percent below the current prime lending rate for up to 5 years. The property is located 8 miles from the beach! DESU2044978
GLEN RIDDLE 4BR 3.5 BA WATERVIEW HOME
10201 TWILIGHT GUN LN BERLIN • $724,900 Stunning 4BR/3.5BA Glen Riddle home on a premier cul-de-sac lot overlooking a pond hits the market! As you walk through the front door you will immediately fall in love with the open floor plan and the hardwood floors. The family room boasts cathedral ceilings and flows nicely into the dining area and kitchen. The kitchen will be sure to delight the chef in your family with Corian countertops and an abundance of cabinets for storage. The dining room flows off the kitchen and has plenty of room to enjoy home-cooked meals with friends. The family room is set up perfectly for entertaining and has a gas fireplace to enjoy in the winter. There is a screened in porch that overlooks a pond, and a deck is off the screened in porch for relaxing in the sun and summer breezes. The luxurious primary bedroom en suite is on the first floor with a beautiful view and walk-in closet. There’s also a second primary bedroom on the first floor which could also be used as an office if you prefer. The second level has a spacious loft area, two additional bedrooms and a Jack and Jill bath. There is a two-car garage and plenty of yard space for kids and dogs to play. This home is in the gated community of Glen Riddle, with amenities including: a fitness center; outdoor pool; clubhouse; boat ramp; marina; tennis courts; two world class golf courses; and Ruth's Chris Steakhouse. The owner has taken great care of this house, and it shows pride of ownership. The furnishings are negotiable. Come take a look today before it’s sold. MDWO2018904
THINKING OF BUYING OR SELLING? LET'S CONNECT TO BEGIN THE PROCESS TODAY! The property information herein is derived from various sources that may include, but not be limited to, county records and the Multiple Listing Service and it may include approximations. Although the information is believed to be accurate, it is not warranted and you should not rely upon it without personal verification. Real estate 2024 Coldwell Banker Real Estate LLC. All Rights Reserved. Coldwell Banker Real Estate LLC fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Operated by agents affiliated with Coldwell Banker Residential Brokerage are independent contractor agents and are not employees of the Company. ©2015 a subsidiary of NRT LLC. Coldwell Banker, the Coldwell Banker logo, Coldwell Banker Previews International and the Previews logo are registered and unregistered service marks owned by Coldwell Banker Real Estate LLC. 10771BALT_07/15
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OC Today-Dispatch
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HMRA pushes for changes to state insuranace legislation Organization pushing to exempt seasonal workers from Md. FAMLI program By Bethany Hooper Associate Editor (Feb. 23, 2024) A local trade organization is seeking changes that could exempt certain seasonal workers from the state’s Family and Medical Leave Insurance program. Last week, the House Economic Matters Committee and the Senate Finance Committee received testimony on a cross-filed bill that will modify the Maryland Family and Medical Leave Insurance (FAMLI) Program. While those in support say the changes will Susan Jones allow for a smooth rollout, officials at the local level continue to share their concerns about the impact the program could have on seasonal employment. “Our recommendation is that J1/H-2B employees should be excluded from the FAMLI Program and thus excluded from paying into this program, just as they are excluded from paying into Social Security and Medicare,” testimony from Susan Jones, executive director for the Ocean City HotelMotel-Restaurant Association, reads. Last year, the Maryland General Assembly approved a bill to implement the Family and Medical Leave Insurance Program, which would set required contributions - divided equally between employees and employers with 15 or more workers - to receive job protection and up to 12 weeks of paid leave for family medical events. And in January, legislators introduced House Bill 571 (cross-filed with Senate Bill 485) to modify some of the program’s provisions related to the payment of contributions, the calculation of the average weekly wage, the submission of claims, and the use of contributions or other funding by the secretary of labor, among other things. During last week’s testimony in front of the House Economic Matters Committee, Del. Lily Qi said the changes came from input provided during stakeholder meetings, which were scheduled following last year’s passage of the FAMLI Program. She said the proposed bill would settle a range of issues. “HB 571 is to further modify the Family and Medical Leave Insurance Program that we passed last year,” she told the committee. “It was a milestone piece of legislation that we should all be very proud of.” Officials told legislators last week they were seeking support of House Bill 571, which makes administrative
changes, clarifications and shifts in the implementation of the program. They said the start date for making contributions would shift from Oct. 1, 2024 to July 1, 2025, while the start date for benefits would move from Jan. 1, 2026 to July 1, 2026. “We have started the program but did not have the staff and budget until the very end of last session,” said Secretary of Labor Portia Wu. “That is the reason we are seeking some additional time to work on the program.” Other changes include the definition of wages and enhanced data privacy and protection. The bill also allows the labor department to issue grants to educate the public on the FAMLI Program. “HB 571 provides the department with additional time and tools needed to implement Family Medical Leave Insurance,” Wu said. “We respectfully request a favorable report.” Legislators last week also received testimony from those who requested amendments to the bill. In a letter to the Economic Matters Committee, Jones shared her support for the program delay, but voiced concerns that the FAMLI Program could hurt Ocean City’s J-1 visa student workers and H2B employees. “From the perspective of the J-1/H2B employee, a contribution is being withheld from employees who likely won’t have the opportunity to apply for the benefit,” she wrote. Jones also shared concerns that the program could lead to fraud. She said instances of fraud were also reported under the Employee Retention Tax Credit, intended to encourage businesses to keep employees on payrolls. “Will Maryland be vetting all foreign doctors’ reports?” she wrote. “If false claims are filed, these exchange visitors could return to their home country and collect up to $1,000 per week for 12 weeks for EVERY job they worked (J-1/H-2B often work for 2 or more employers during their time here) fraudulently claiming Maryland FAMLI funds.” Ultimately, Jones asked the committee to amend House Bill 571 to exempt J-1 and H-2B employees from the FAMLI program. “The way the FAMLI program currently is, an employee could come to work for one day and then go out on FAMLI for 12 or more weeks and the employer will have to protect that job and pay for their benefits, if applicable,” she wrote. “Governor Moore states he wants to make Maryland the best place to start a business, but this plan puts a tremendous burden upon employers. In theory, the FAMLI Program is to help, however, the balance of benefits errs on the side of the employee and ultimately will be detrimental to small businesses unless modifications are made.”
FEBRUARY 23, 2024
OC Today-Dispatch
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OC Today-Dispatch
FEBRUARY 23, 2024
Do nothing rate counters new asssesments Continued from Page 3 value to $1.1 million. If Town A leaves its tax rate unchanged, it would collect $1,000 more in property taxes for a total of $11,000 but that’s where the state’s Do Nothing Rate comes in. Each February, the state notifies all counties and towns what their tax rates would be if they wanted to leave their property tax collections as is. In this instance, the state would inform Town A that it could lower the tax rate to 90.91 cents and still bring in roughly $10,000. That 90.91 cents is the Constant Yield or Do Nothing Rate. Even though the state provides these figures to local governments, their actual purpose is to let property owners know where they and their tax bills stand.
If, for instance, Town A’s elected officials declared, “Good news! We’re leaving the tax rate where it is!” the Do Nothing Rate shows otherwise, since taxpayers whose properties are now valued higher will pay more. If reassessment raises the value of a home in Town A from $100,000 to $110,000, and Town A sticks with its $1 tax rate, the result would be a tax increase of $100, from $1,000 to $1,100. The Do Nothing Rate, however, would show that this higher value could be countered by an equal drop in the tax rate. Obviously, this rate applies to whole towns and counties, and not to individual properties, but the principle is the same. A new wrinkle in the law this year, however, makes finding this Do Nothing number more difficult for
the public. Up until this year, governments had to post the rate in a public notice twice no matter what their tax intentions were. The new law approved by the Maryland General Assembly last year requires one notice, and then only if counties and towns are advertising a public hearing on their intentions to raise their tax rates from the year before. What this means for taxpayers is their tax bills could increase without notice because of a reassessment if local governments leave their tax rates as they stand, or anywhere between them and the Do Nothing Rate. Because of the sharp rise in property values and the corresponding increase in the state’s reassessment of property in the Ocean City tax district, the change in local tax bills
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could be significant. §§§ Worcester County’s Do Nothing Rate, as computed by the state, is 77.07 cents per hundred dollars of assessed value. That means the county could cut 7.4 cents from its current tax rate of 84.5 cents and still collect the $149.5 million it brought in the year before. If it stands pat on its current rate, it would see a revenue gain of $14.4 million, taking its real estate tax receipts from $149.4 million to $163.8 million, according to figures compiled by the state Department of Assessments and Taxation. The same department worksheet shows that the county’s net tax base gained $1.7 billion, going from roughly $17.7 billion in 2023 to $19.4 billion for the new fiscal year. The greatest portion of this increase is because of the surge in property values in the Ocean City tax district, which was reassessed in 2023 for the fiscal year beginning in July. Largely propelled by market demand, the net assessable value of Ocean City real estate leapt by $1.2 billion in this reassessment, from about $9.6 billion to $10.8 billion. Consequently, if the Ocean City Council votes to maintain the current tax rate of 45.26 cents per hundred dollars of assessed value, the city would realize a revenue gain of $5.6 million in the upcoming fiscal year. Its Do Nothing Rate, according to the state, is 40.05 cents, which, if applied to the new tax base would generate $43.2 million in tax income. If, on the other hand, it maintains its current rate of 45.26 cents, it would take in a tax revenue total of $48.9 million. Obviously, election officials in the towns and county can set their tax rates anywhere they want. Because of the major difference between their current and Do Nothing rates, even establishing a rate somewhere between the two would bring in more money. Property owners should be aware See REDUCED Page10
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FEBRUARY 23, 2024
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OC Today-Dispatch
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