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Committee advances bill to expand Montgomery County homeowners tax credit
Summary
The Government Operations and Fiscal Policy Committee recommended 3-0 that the full council consider Bill 3-25, which raises income and net-worth eligibility and the assessed-value cap for the county supplement to the state homeowners property tax credit and ties the county amounts to inflation.
The Government Operations and Fiscal Policy Committee advanced Bill 3-25, a proposal to expand Montgomery County's supplement to the state homeowners property tax credit, recommending it 3-0 to the full council.
Ms. Wellens, who presented the measure to the committee, said the bill raises combined household income eligibility from $60,000 to $75,000 and increases the net-worth limit from $200,000 to $250,000, excluding the primary dwelling, cash value of life insurance, qualified retirement accounts and tangible personal property. She also said the assessed-value cap on which the credit applies would increase from $300,000 to $375,000.
"The state has a homeowner's tax credit…a number of counties do that, including Montgomery County," Ms. Wellens said, explaining the county supplement aligns with, but can alter, state criteria. She told the committee the Office of Management and Budget estimated the county would pay about $100,000 a year to the state to administer the supplement rather than creating a separate county-run system. The bill would also link the county dollar values to inflation going forward, Ms. Wellens said, noting the county last adjusted supplement limits in 2006.
Council Member Friedson described the proposal as "a significant step forward," saying it targets homeowners on fixed incomes and those who bought homes long ago and now face higher assessments. He said the approach aims to be achievable for the finance department by building on the existing homeowners tax credit (HOTC) structure. A committee member added support while urging the council to revisit limits from time to time despite the inflation adjustment.
The committee acknowledged central staff, including Mr. Ali and members of the finance department, for preparing the analysis and examples in the staff packet. The Government Operations and Fiscal Policy Committee recorded a 3-0 recommendation to forward Bill 3-25 to the full council for consideration.
The committee adjourned and said it would reconvene at 10:30 for a joint committee meeting with Economic Development.
