LEONARDTOWN, Md. — A proposed amendment to St. Mary’s County’s excise tax ordinance will head to a public hearing next month after a lengthy and often contentious discussion during the Feb. 10 meeting of the County Commissioners.
County Attorney Buffy Giddens presented the proposed amendment, which she described as an administrative clarification to the county’s excise tax ordinance, first adopted in July 2023 after the county’s previous impact fee expired.
“The county attorney’s office is here today to request a public hearing for the amendment to the excise tax ordinance. That is, Article 32, Chapter 267 of the St. Mary’s County Code,” Giddens stated.
The amendment serves two purposes: to clarify that the excise tax applies uniformly throughout the county, including inside municipal boundaries, and to change the timing of collection from the issuance of a building permit to the issuance of a certificate of occupancy.
Giddens emphasized that the proposal does not raise tax rates, alter funding allocations, expand the scope of the tax or create new categories of taxation. She also stressed that the excise tax is a one-time charge tied to new construction, not a recurring tax for existing homeowners.
“It’s important to note that this amendment does not change the tax rates. It doesn’t alter the allocation formulas. It doesn’t expand the policy scope. It doesn’t impose new categories of taxation. And it doesn’t modify the credit structure that was already in existence in the underlying ordinance,” Giddens said, noting that residents not building or significantly modifying property would not be affected.
Commissioners Mike Hewitt and Scott Ostrow spoke in support of advancing the amendment to a public hearing, arguing the change is necessary to ensure fairness across the county. Ostrow said he could not justify a system in which new construction in some parts of the county pays the excise tax while similar development in Leonardtown does not.
“This is not about a money grab. This is about making sure that it is fair and equitable across the county,” Ostrow said.
Other commissioners urged caution, arguing that Leonardtown residents already pay higher local taxes and that cooperation with municipal partners should take precedence. Some suggested negotiating a memorandum of understanding with the town rather than amending the ordinance.
Concerns were also raised about housing affordability and the impact excise taxes can have on small businesses and individual homeowners seeking to build or expand.
Despite differing viewpoints, commissioners agreed that public input was essential before any changes are made. After several procedural motions, the board voted 4-1 to authorize a public hearing on the proposed amendment.
The public hearing is scheduled for Monday, March 10, 2026, at 6:30 p.m., providing residents an opportunity to weigh in on the proposed changes to the excise tax ordinance.
No final decision on the amendment was made, and commissioners said the hearing will help guide any future action.
What Is An Excise Tax And Why Is There An Issue?
An excise tax is a one-time fee charged on specific activities rather than a recurring tax paid every year. In St. Mary’s County, the excise tax applies to new construction or significant changes to a property and is typically paid when a new building is completed and ready for occupancy. The tax is designed to help offset the cost of public services and infrastructure, such as school renovations, that are impacted by growth and development. Existing homeowners who are not building or expanding their properties are not affected.
Currently, the county’s excise tax does not apply to new construction within the Town of Leonardtown due to how the original ordinance was written, which some county commissioners argue is unfair because similar development elsewhere in the county is required to pay the fee.
You can watch the full discussion below at 52:56.
Got a tip or photo? Text us at 888-871-NEWS (6397) or email news@thebaynet.com.
Join The BayNet Membership for exclusive perks and zero ads.
Don’t miss a story—sign up for our newsletter!
How about just banning new construction? Give tax breaks to people that restore/rebuild old structures. We don’t want to be Waldorf.
Buffy? Lol…
Who is the commissioner that said Leonardtown residents pay higher taxes ? Please name them.
So, the Town of Leonardtown residents enjoy Free Schools, Free Law enforcement, Free Fire protection, Free Rescue squad and on and on. St Mary’s county commisioners need to listen up! Election time is coming.