Cambridge Backs State Push for New Revenue Structure, Citing Tax Burden on Residents

Cambridge city leaders voted Monday to support state legislation to overhaul how counties and municipalities share revenue, arguing that the current system leaves city residents paying more than their fair share.

Commissioners said the measure could help address long-standing concerns about the tax differential between Cambridge and Dorchester County.

The City Commission adopted a resolution supporting House Bill 1142, which would create a task force to study county and municipal revenue structures across Maryland. The measure has already passed the House and is now headed to the Senate.

Deputy City Manager Brandon Hesson said the resolution is designed to ensure Cambridge has a voice in shaping future state-level policy. 

“The city should adopt this resolution to formally advocate for modernized revenue structures that better reflect the realities of rural municipalities like Cambridge,” Hesson said.

Hesson said current systems are outdated and limit the county’s ability to provide financial relief to municipalities. “Current outdated revenue tools limit Dorchester County’s ability to provide relief, resulting in municipal residents being effectively double-taxed without a fair property tax differential,” he said.

City Manager Glenn Steckman said the issue extends beyond a single bill and reflects broader structural problems. 

“This isn’t just the tax differential,” Steckman said. “It’s looking at every possible way that we can support municipal and county governments with revenues because the systems that are in place are no longer relevant.”

Commissioners said they are already working locally with county officials, but want stronger tools and clarity from the state. Steckman said discussions with the county are ongoing but complex.

“We are looking at things, but this opens up Pandora’s box,” Steckman said. “They are supplying services to us that we don’t always account for, like property tax collection and 911 services, so it’s not as simple as saying this is what you owe us.”

Ward 1 Commissioner Brett Summers said the city still lacks clear data on what the tax differential should be. 

“What I would like to know is what that number should be based on fact,” Summers said. “Then, whether the county agrees to move in that direction is a different question.”

Summers pointed to disparities with nearby communities as part of his concern. “You look at Easton, and their combined tax rate is much lower,” he said. “I just want to know once and for all what that number is.”

Steckman said one option under consideration is bringing in an outside firm to conduct an independent study. He cited examples from other jurisdictions where third-party analyses helped determine appropriate revenue sharing.

“Ocean City brought in a firm that said this is what the county should be giving them,” Steckman said. “That may be something we have to consider so we can get to a factual number.”

Commissioners noted the legislation would not immediately change tax rates but could lay the groundwork for future reforms. The bill would create a task force to examine how revenue is distributed and whether current policies are equitable.

Mayor Lajan Cephas-Bey said the issue is critical for Cambridge residents. “Supporting this bill positions the city to push for solutions that reduce the tax burden on residents while also strengthening the county’s financial stability,” the mayor said.

Cephas-Bey and Commission President Sputty I. Cephas both testified in person in Annapolis in support of the legislation. Commissioners praised that effort and agreed the city should continue advocating at the state level.

Ward 2 Commissioner Shay Lewis-Sisco said the resolution reflects both local and statewide concerns. “These revenue structures are really important,” she said. “This helps ensure Cambridge is part of that conversation moving forward.”

The commission amended the resolution to also support the Senate version of the bill, then unanimously approved it. Officials said the measure ensures Cambridge’s position is formally recorded as lawmakers continue debate in Annapolis.

Regardless of what happens at the state level, Steckman said, the city will continue working with Dorchester County to address the issue locally. “We’re close,” he said. “We’re working on it, but we don’t have the final answer yet.”