Hyattsville City Council Regular Meeting – March 18, 2026: Tax Classification Discussion

The Hyattsville City Council met virtually on March 18, 2026 at 7:04 PM to discuss the Fiscal Year 2027 budget gap and potential modifications to property tax classifications. The meeting, led by Council President Joseph Solomon in the absence of Mayor Robert S. Croslin, focused on a $4.07 million projected gap between revenues and expenditures and explored options to adjust tax rates across different property types. The session concluded at 8:56 PM.

Public Comments & Testimony

• Anita Williams (Ward 4): Expressed concern about high taxes and lack of affordable housing. She also asked whether the City could install a solar farm to offset utility costs.
• Melissa Schweisguth (Ward 5): Urged Council to implement a special tax rate on vacant properties and apartments, citing examples from Mount Rainier and Upper Marlboro. She asked that residential property tax rates not be raised.

Discussion Items

• Treasurer Ron Brooks and Deputy Budget Director Ben Bosch presented the proposed FY27 general fund budget, showing revenues of $32.9 million and expenditures of $36.97 million, creating a $4.07M gap. Personnel costs make up about 66% of expenditures.
• The team outlined a draft ordinance to create seven new property tax classifications (residential subdivision, townhouse, multifamily residential, commercial, industrial, vacant, and non-owner occupied) to allow different tax rates. Currently all real property is taxed at $0.63 per $100 of assessed value.
• Three scenarios were presented to partially close the gap by raising taxes on multifamily, commercial, and industrial properties while holding single-family and townhouse rates flat. For example, raising apartment rates by 15 cents per $100 would yield ~$900,000; commercial by 2 cents yields ~$160,000; industrial by 20 cents yields ~$54,000. A back‑of‑the‑envelope calculation showed that a 1‑cent increase across all categories would generate about $150,000 from residential, $70,000 from townhouses, $60,000 from multifamily, $80,000 from commercial, and <$10,000 from industrial.
• Councilmembers raised several questions and concerns:
  • Councilmember Waszczak asked for historical data on revenue mixture over the past five years and expressed concern that increased taxes on apartments could be passed on to renters, working against the Council's affordable housing goals.
  • Councilmember Schaible shared research showing that three large multifamily properties in Hyattsville were assessed at only 61‑65% of their recent sale prices, arguing these properties are under‑assessed and have frequently appealed their assessments.
  • Councilmember Redmond inquired about the structural nature of the annual gap and whether solving for FY27 would prevent future shortfalls. Staff acknowledged that expenditure growth (especially personnel costs) exceeds revenue growth and that multi‑year strategies are needed.
  • Councilmember Barnes asked about the treatment of vacant properties as subcategories across all classifications and whether other municipalities (like Mount Rainier, Tacoma Park, Frederick) had adopted similar tiered systems.
  • Councilmemmber Haba proposed adding categories for utilities and vacant land, and suggested three subcategories (owner‑occupied, non‑owner‑occupied, vacant) for single‑family, tounhouses, and condos.
  • Councilmember Nesbitt raised the possibility of a small business property tax rate; staff noted that property tax is tied to the asset, not the business, and exploring credits or other mechanisms might be more feasible.
  • Councilmember Strab asked about differentiating short‑term rentals and chronically vacant properties by time horizons.
• Staff clarified the timeline: a first reading of the classification ordinance is targeted for April 13, with a public hearing on May 11. Council President Solomon emphasized that the setting of actual tax rates will occur separately after the ordinance is passed.

Key Outcomes

• No formal votes were taken on tax rates or the ordinance; the discussion was a work session to gather council input.
• Staff will return on March 23 with additional analysis on historical revenue mixtures, impacts on renters, treatment of vacant and non‑owner‑occupied properties, and comparisons with other municipalities.
• Councilmember Nisbett stated he would not support any new expenditures until the budget gap is resolved.
• The meeting adjourned at 8:56 PM via a motion by Councilmember Haba, seconded by Councilmember Schaible, voted unanimously (10‑0, with Mayor Croslin absent).