Md. Court Upholds Worcester Co. Tax Setoff Program

The Court of Appeals has ruled in favor of Worcester County in a tax set-off case filed by Ocean City.

The town questioned the constitutionality of provisions in the Maryland Tax-Property Article that grant certain counties such as Worcester the ability to deny municipal tax set-off requests. Maryland’s highest court recently held that the law is constitutional.

In lieu of tax differentials or tax set-offs, Worcester County issues grants to Ocean City, Ocean Pines, Berlin, Snow Hill and Pocomoke City each year. Grants to Ocean City come unrestricted as well as restricted to be designated for public safety, tourism and other services.

The County and Ocean City have been attempting to reach an equitable funding system, without negatively impacting taxpayers who live outside of the town’s corporate limits, according to Worcester County government.