Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Montgomery County Council advances amended progressive income tax, moves ITOC to $0 for FY27
Summary
The Montgomery County Council on May 8 straw‑voted to advance a GOP‑committee‑originated progressive income tax package as amended by Vice President Balcom and to set the Income Tax Offset Credit (ITOC) to $0 for FY27, a move meant to cover a near‑term revenue gap and free one‑time funds for capital projects. The measure passed narrowly and a follow‑up work session was scheduled for Tuesday.
The Montgomery County Council on May 8 moved forward with an amended progressive income tax proposal and voted to set the Income Tax Offset Credit (ITOC) to $0 for fiscal 2027, part of a larger effort to close a budget gap without adopting the County Executive’s flat 3.3% increase.
The council’s Government Operations and Fiscal Policy Committee had recommended replacing a flat 3.3% rate with a three‑bracket progressive structure effective Jan. 1, 2027. The committee’s recommended brackets were: 2.5% on the first $50,000 of taxable income; 2.8% on taxable income from $50,001 to $150,000; and 3.3% on income above $150,000. The committee also proposed using the ITOC—currently a property tax credit for eligible owner‑occupied households—as a one‑time offset to cushion the county’s revenue loss.
At the council meeting, Vice President Balcom offered an amendment that adjusted the lower brackets to 2.7% for $0–$50,000 and 3.0% for $50,001–$150,000 while keeping the top rate at 3.3%. "My amendment…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
