New property tax rates set by Harford and Cecil counties and local municipalities took effect Wednesday, and most will actually be lower.

Harford County and the cities of Aberdeen and Havre de Grace reduced the property tax rate for fiscal year 2010. So did Cecil County and the town of Perryville.

Regardless, residents are still going to see their tax bills go up.

County and municipality residents will see an increase in their property tax bill for fiscal year 2010 because the rates are still higher than the constant yield.

Constant yield is the tax rate that would allow the county or city to collect the same amount of property tax revenue as the previous year, taking into account increases that typically occur in property assessments.

Each property tax bill has two components: The tax rate, set by county and municipal governments; and the assessment — a property’s market value as determined by state assessors.

Between 2000 and 2007, assessments climbed because housing prices escalated. Even as real estate sales have slumped, however, many people think their assessments remain too high. Elected officials have been feeling the pressures of that discontent, and the tax rate decreases reflect their concern.

The Harford County Council voted to cut the real estate tax rate 1.8 cents, from 92.6 cents per $100 of assessed value, to 90.8 cents. The cut would amount to a tax savings of about $54 on a $300,000 home.

With a tax rate of 92.6 cents, the county’s projected tax revenues of $254.5 million; after the cut the county expects to take in $249 million, a difference of $5.5 million.

The property tax rate was unanimously approved by the council; however, Councilman Dion Guthrie voted against the $576 million budget for fiscal year 2010.

The $576 million budget is $40 million less than the county council approved in fiscal year 2009.

Cecil County residents can look forward to a two-cent reduction in property taxes, from 96 cents per $100 of assessed value, to 94 cents.

With a tax rate of 94 cents, the county’s projected revenue is $100.3 million, about $3 million less than the county would have received without the property tax cut.

Even with the tax cut, Cecil County is still projected to take in about $5.1 million more in fiscal year 2010 for property taxes than the $95.2 million it received in fiscal year 2009.

Aberdeen was able to reduce the property tax for its residents by 1.25 cents, from 70 cents per $100 of assessed value to 68.75 cents for the fiscal year 2010.

The council approved the rate reduction in a 4-1 vote, with only Councilwoman Ruth Elliott voting against the rate because she said she would like to see the city use the constant yield rate for property taxes, set at 65.4 cents in Aberdeen.

The approved tax rate in Aberdeen will reduce the revenue the city expects from property taxes by $154,000 to $8.28 million, which is still $440,600 more in revenue than it received in fiscal year 2009.

Aberdeen’s new budget calls for general fund operating expenses of $12.4 million and $537,000 in capital expenses.

There is also a $19.8 million enterprise fund budget, including $2.5 million in the water fund, $16.4 million in the sewer fund and $758,830 in the stadium fund.

In Havre de Grace, the city council voted to approve a two-cent reduction in the property tax rate from 63 to 61 cents. That two-cent tax cut equates to $135,000 in revenue Havre de Grace will not be receiving in fiscal year 2010.

The Havre de Grace city commissioners approved a fiscal year 2010 budget of $13.4 million, with Councilmen Fred Cullum and Jim Miller voting against the budget.

The council also approved a marine fund for the Havre de Grace City Yacht Basin at $560,900. For the capital portion of the marine fund, the city has a deficit of $61,800 for debt service.

For the water and sewer enterprise fund, the city has a budget of $70.3 million, with a majority of the funding for enhanced nutrient removal technology at the city’s wastewater treatment plant.

Perryville residents will see a slight decrease in the real estate tax rate for fiscal year 2010 at 35.3 cents per $100 of assessed property value, which is .009 cents less than last year’s rate of 36.2 cents.

The town will also offer a 2 percent reduction on property tax bills for residents who pay in full before July 31.

With the decrease in the tax rate, the town is expected to receive $1.5 million in property taxes, $158,000 more than the town received in fiscal year 2009.

The commissioners also adopted a $15.1 million fiscal year 2010 budget, with $5.5 million in the general fund, $1.5 million in the water fund, $8 million in the sewer fund and $17,000 in the forest conservation fund.

In Port Deposit, residents will not see a change in the property tax rate for fiscal year 2010.

The Port Deposit commissioners voted to keep the tax rate of 55 cents from fiscal year 2009.

The town is anticipated to bring in about $342,500 for fiscal year 2010, which is approximately $11,000 more than the town’s anticipated revenue for fiscal year 2009.

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