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Gaithersburg council authorizes manager to execute transportation-impact-tax MOU with Montgomery County
Summary
At its July 21 regular meeting, the Gaithersburg Mayor and City Council authorized the city manager to execute a memorandum of understanding with Montgomery County that aims to resolve a long-running dispute over the use of transportation impact tax revenues generated by projects in the city; the council vote was 4–0 with one abstention.
The Gaithersburg Mayor and City Council on July 21, 2025 authorized the city manager to execute a memorandum of understanding with Montgomery County that settles how transportation impact tax revenue from city projects will be held and spent, a move city officials said will allow the city to begin programming funds for local transportation projects.
The agreement matters because, according to council remarks, the account holding impact-tax revenues from city projects has been dormant amid years of negotiation and now contains what the mayor described as “just over $15,000,000 in it.” The MOU is intended to release funding to projects the city and county agree on; council members said the deal would allow multiple “shovel-ready” transportation, bike and pedestrian projects to move forward.
Mayor Ashman summarized the history: Montgomery County enacted a transportation impact tax in February 2006 to charge new development for transportation impacts, and the county’s ordinance included projects in the cities…
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