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Takoma Park, Habitat and other speakers urge Montgomery County to expand homeowners’ tax credit eligibility
Summary
At a March 4 public hearing on Bill 3-25, local officials and housing advocates urged the County Council to raise income, asset and assessed-value caps for the county supplemental homeowners’ tax credit and to include an automatic inflation adjustment.
The Montgomery County Council heard public testimony March 4 on Bill 3-25, a proposal to amend eligibility and amounts for the county supplemental homeowners’ property tax credit.
Speakers representing municipal government, nonprofit housing organizations and residents told the council the current program thresholds are out of date and exclude many lower-income homeowners who face rising property tax burdens.
“The current income eligibility thresholds are woefully out of date,” said Maya Talisha Searcy, speaking for the City of Takoma Park, urging changes to income limits, net-worth caps, the assessed-value cap that the credit applies to, and an annual adjustment tied to the consumer-price index so the credit does not erode over time.
Sarah Redinger, vice president of housing and community strategies at Habitat for Humanity Metro Maryland, told the council increasing the income limit, asset cap and maximum assessed value “are critical steps to ensuring that homeowners can afford to stay in their homes.” Redinger said the county’s existing $60,000 income limit and $200,000 net-wealth cap (both cited in testimony as longstanding) have not kept pace with local cost increases.
Why it matters: Testimony highlighted the link between rising assessments, property taxes and housing stability. Neil Teplitz, a Bethesda homeowner, said his property tax rose from about $1,090 in 1987 to $11,100 last year and criticized the county’s 10% annual assessment cap, which he said is higher than neighboring jurisdictions. Speakers stressed both long-term homeowners facing retirement and lower-income owners who do not qualify for the state credit could benefit from county changes.
Details cited in testimony: Witnesses noted 2024 area median income in Montgomery County was about $154,000; testimony referenced 50% AMI thresholds used in eligibility examples ($61,900 for a household of two and $77,350 for a family of four) to illustrate how current county thresholds miss many in need. Testimony also described how rising property taxes increase barriers to homeownership and force some owners to sell.
Support and sponsors: Testimony expressed support for bill sponsors, including Council President Stewart and Councilmembers Friedson and Katz (as named in testimony). Kevin Doxey, president of the Montgomery County chapter of the Military Officers Association of America, said his chapter supports the bill as a measure that could help lower-income veterans.
Process: The council’s Government Operations and Fiscal Policy Committee scheduled a work session on March 13, 2025; material for council consideration was requested by March 6, 2025. No final council vote occurred on March 4.
Ending note: Testimony emphasized that without an annual inflation adjustment the value of the credit will continue to erode, and advocates urged the council to update multiple components of the program in tandem rather than making piecemeal changes.
