PRINCE FREDERICK — Calvert County could join other Maryland counties in cutting property taxes for licensed child care providers, after commissioners on Oct. 20 told staff to start drafting options for a local credit.
A 2025 state law, House Bill 389, lets counties and towns give a property tax credit of up to $10,000 a year to properties used for licensed child care centers and registered family and large family child care homes. The credit cannot exceed the property tax on the part of the property used for child care. The law does not create the credit on its own; each county must pass a local law to offer it.
The Treasurer’s Office identified 95 eligible properties in Calvert after leaving out those that already pay no property tax, such as nonprofits and faith-based programs, Department of Community Resources Director Jennifer Moreland told commissioners. If every eligible property took part, the yearly cost to the county would be about:
| Credit cap | Estimated yearly cost |
|---|---|
| $10,000 | $443,200 |
| $5,000 | $389,300 |
| $3,000 | $275,700 |
Moreland said actual costs tend to run well below those maximums because not every eligible provider applies for optional programs like this.
What providers told the board
Three local owners joined Moreland: Brenda Terrell of Prime Time Children’s Center and Prime Time Youth Activity Center, Sherry Pounds Berry of Sleepy Hollow Daycare, and Julian Pike of Greenhouse Early Learning.
Terrell, who led the providers’ presentation, cited state figures showing how much child care Maryland has lost. Between February 2020 and October 2024, the state lost 1,135 registered family child care providers and 100 child care centers, cutting about 8,461 family child care slots and 3,704 center slots, according to figures she attributed to the Maryland Comptroller. In Calvert, six programs have closed or sold, she said, and providers keep waiting lists while families look outside the county for care.
Property tax is a fixed cost that must be paid regardless of enrollment, the providers said, and the relief could go toward wages, training, supplies and building upkeep. One provider said that after 38 years in business, infant care has never paid for itself, because state staffing ratios and space rules limit how many babies a program can serve. She said programs that serve older children in summer camps help cover those losses.
Asked whether the credit would lower tuition, one provider said it would not be enough to cut tuition, but programs might be able to drop extra charges such as activity or registration fees. Providers also said costs are about to rise again as Maryland’s paid family and medical leave program takes effect, and that state child care scholarships for families are tightening.
Commissioners and providers also pointed to other pressures, including septic inspections and parking requirements for home-based programs.
Where it stands
Commissioners did not vote, but they directed Moreland’s department to build scenarios and develop the details a draft ordinance would need: who qualifies, how much the credit would be, how long it would last and how providers would apply and renew. County staff said they would work with the state’s Office of Child Care to verify each provider’s license every year. Commissioner Catherine Grasso first brought the idea to the department, Moreland said.
County Treasurer Amanda Dolina, whose office ran the cost estimates, told commissioners during public comment that keeping child care in Calvert matters to local families and that the credit could encourage more providers to become licensed, since only licensed providers qualify.
The credit discussion followed directly after a broader work session on property tax relief for homeowners, in which finance staff said each 1-cent cut to the county’s rate would cost about $1.6 million a year. Moreland said she can help present a package that ties together relief for children, seniors and people with disabilities.
Any credit would need a local ordinance and a public hearing before it could take effect. Moreland asked the board to set a preferred cap and any other limits so her office can bring back a draft.
