Editor’s note: This article was delayed due to technical difficulties with the city’s online meeting stream and the need to obtain the official recording from the city.
The Pocomoke City Mayor and Council held a combined closed session and work session on March 19, 2026, focusing primarily on fiscal year 2027 budget planning, including tax rates and property tax abatements.
Bills Approved, Closed Session Held
The meeting began with unanimous approval of the city’s bill list before council entered a closed session. The session was held to consult on potential litigation and to discuss a business or industrial prospect considering locating or expanding in the city.
Tax Rates Likely to Remain Unchanged
During the work session, officials reviewed tax rate scenarios for both owner-occupied and non-owner-occupied properties.
- Keeping the current owner-occupied tax rate would generate approximately $81,956 in additional revenue due to growth in the tax base.
- Reducing the rate would maintain flat revenue compared to the previous year.
For non-owner-occupied properties, a potential rate reduction would result in only about an $18,000 difference in revenue.
Council members expressed consensus to keep both tax rates unchanged at this stage of the budget process.
Officials also noted:
- Property taxes account for roughly 65% of the city’s total revenue
- The city has not increased tax rates in several years
- Ocean City was referenced as having more diversified revenue sources, unlike Pocomoke
Clarification Needed on Property Classifications
Discussion also highlighted confusion surrounding the “non-owner occupied” classification. Officials clarified that the category includes rentals, second homes, and commercial properties, but acknowledged the need for clearer definitions to avoid misunderstanding among residents.
Tax Abatements Face Increased Scrutiny
Council reviewed a list of properties that have received long-standing tax abatements, including:
- Bypass Road, Ocean Highway, and Taylor Avenue properties (not receiving full city services)
- Cypress Knee property (annexed with taxes deferred until development)
- Byrd Road, Jenkins Orchard Road, and Adkins Farm Lane properties (used for sewer line access)
- Unionville Road property (annexed for a well project but not city-owned)
Some members questioned whether properties benefiting from city services should continue receiving abatements.
“If they use our city services… then they should be part of the tax base,” one member stated.
There was also discussion indicating that some properties may need to be removed from the abatement list following review.
Public Hearing Scheduled for April 20
Residents will have an opportunity to weigh in on the issue later this month.
A public hearing is scheduled for Monday, April 20, 2026, at 6:30 p.m. at City Hall to receive input on Resolution No. 2026-R-10, which would approve the abatement of certain property taxes for fiscal year 2026–2027.
According to the public notice, the resolution includes the same categories of properties discussed during the work session, including those along Bypass Road, Ocean Highway, Taylor Avenue, and other annexed or infrastructure-related parcels. The Cypress Knee property would remain tax-free until development, consistent with its annexation agreement.
If approved, the resolution would take effect July 1, 2026.
The resolution is available for public review at City Hall or online through the city’s website. Public testimony is encouraged.
