Letter to the Editor: Savage Highlands State Park – A viewpoint for local taxpayers to consider

From the start, the Maryland Department of Natural Resources’s purchase of the former Savage River Lodge raised large concerns in the minds of many citizens as to what impact DNR’s ownership would have on Garrett County‘s tax base. Historically, Maryland has compensated each county in the state based upon the amount and use of state land within each county to offset the loss of property tax revenue that counties experience due to state ownership of non-taxable land within their boundaries. The mechanism used by the state is formally referred to by the state as a Revenue Equity Payment, but is referred to in local circles as Payment in Lieu of Taxes. Each year, by Dec. 1, the State Department of Assessment and Taxation, in consultation with DNR, certifies the assessed value of state forests, parks, and wildlife management areas in each county and the total amount to be paid by the state to that county.

I contacted DNR last year and found that the Revenue Equity Payment to Garrett County was $1,738,913.76 for Fiscal Year 2025. I recently contacted DNR for the FY 2026 figure which is $1,749,523.83, representing an increase of $10,610.01. This increase does not seem to factor in inflation on the dollar, which at 1% would have required a payment increase of $17,495 and at 2% an increase of $34,990. Nor does this seem to factor in the value of the former Savage Lodge property, which DNR spent $8.7 million to purchase.

In considering the overall impact of DNR’s purchase of the Lodge property, we should also consider what the Savage River Lodge previously paid Garrett County in terms of property and accommodation taxes. Given that the Savage River Lodge was paying roughly $60k in real property tax revenue and approximately $90k in accommodations tax revenue, the county is losing about $150,000 of revenue annually because of DNR’s purchase.

It seems readily apparent that Garrett County is being short-changed, thus adding to the tax burden on local residents. We would like to think that the creation of a new state park would benefit all the citizens of Maryland. However, DNR seemingly gave no consideration to the impact its purchase of the former Lodge property would have on Garrett County and local taxpayers. Clearly, something must be done to rectify this inequity.

It is my understanding that Del. Jim Hinebaugh Jr., R-Garrett and Allegany, and Senator Mike McKay, R-Garrett, Allegany and Washington, have been actively working to try and get the accommodations tax portion back to Garrett County. Bills have been submitted in both the Maryland House of Delegates and the Maryland Senate. Here is the link to the Senate bill https://mgaleg.maryland.gov/2026RS/bills/sb/sb0209F.pdf.

Nonetheless, it remains to be seen how Savage Highlands State Park will ever be able to compensate for the loss of tax base that DNR foisted on the citizens of Garrett County with its purchase of the former Savage River Lodge. The leadership of DNR clearly indicated in their presentation to the Board of Public Works that this property would generate a million dollars in revenue each year. However, they failed to reveal how much it would cost to generate that million dollars or who would be the beneficiary of their actions. DNR has yet to demonstrate who will truly benefit from their purchase of this property. The park remains closed, and the question remains: When will local citizens see a meaningful return from DNR to compensate for the loss of tax base and what form will that take?

Let’s all ask DNR to answer that question to the satisfaction of area taxpayers.

Mike Gregory is from Grantsville.