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Montgomery County council approves straw vote for progressive income tax, removes homeowner offset for FY27
Summary
Council members voted a straw adoption of the Government Operations committee’s proposal — amended by Vice President Miriam Balcon — to replace a flat 3.2% county income tax with a three‑bracket progressive schedule starting Jan. 1, 2027, and to set the Income Tax Offset Credit to $0, a change staff says would generate one‑time resources for capital projects but would reduce long‑term revenue.
The Montgomery County Council on May 8 took a straw vote to advance a progressive county income tax structure for calendar-year 2027 and approved, as amended, the Government Operations committee recommendation to set the Income Tax Offset Credit (ITOC) to $0.
Council Vice President Miriam Balcon moved the amendment, changing the two lower brackets from the GO committee’s recommendation: the 0–$50,000 band would be taxed at 2.7% (up from 2.5%), and the $50,001–$150,000 band at 3.0% (up from 2.8%); the top band (over $150,000) remains 3.3%. Chair Keith Stewart presented the GO committee recommendation to reject the executive’s flat 3.3% income tax increase and instead adopt a progressive structure beginning Jan. 1, 2027.
Finance staff member Smith told the council the county’s current flat rate is 3.2% and that state law…
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