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Montgomery County Council rejects proposed property tax hike, adopts progressive income tax
Summary
Montgomery County Council President Natalie Fanny Gonzalez said the council rejected the executive's proposed property tax increase and approved a progressive income tax structure that eliminated the flat-rate income tax offset credit (ITAC); homeowners were urged to check relief programs and appeal reassessments.
Montgomery County Council President Natalie Fanny Gonzalez said the council rejected the executive's proposed property tax increase and instead adopted a progressive income tax structure to fund schools, public safety and other services.
"Owning a home is one of the biggest investments most of us will ever make," Gonzalez said. She said the council's decision shifts slightly higher taxes to higher-income earners while aiming to leave lower-income residents with larger paychecks.
The council's move required eliminating the flat-rate income tax offset credit, known as the ITAC. Gonzalez said the ITAC "cost the county about $140,000,000 a year to operate and was only available to eligible homeowners who apply for it." The council did not provide a vote tally in these remarks.
Gonzalez stressed that homeowners can still see higher property tax bills even if tax rates do not change because the state of Maryland reassesses property values every three years; she said higher home values are contributing to increases homeowners are seeing now. "Now, it's important to know that your property tax bill can increase even if the tax rate does not," Gonzalez said.
She reminded residents that the county's homestead tax credit and other property tax relief programs remain available and urged people to visit the Montgomery County Department of Finance website to check eligibility. Gonzalez also advised homeowners who disagree with their assessed value that they have the right to appeal through the Maryland Department of Assessment and Taxation.
The remarks closed with Gonzalez offering assistance to residents who need help understanding the changes or applying for relief. The council's statements here summarize policy decisions; detailed vote records and implementation timelines were not specified in the remarks.
For more information, residents were directed to the Montgomery County Department of Finance and the Maryland Department of Assessment and Taxation for appeals and eligibility details.
