Montgomery County Considering Real Property Tax Increase
Montgomery County’s County Executive Isiah Leggett released his proposed FY17 budget on March 15. Notably, the proposed budget includes a real property tax increase. Members with concerns about the budget, especially the proposed real property tax increase, should contact Nicola Whiteman, firstname.lastname@example.org.
Real Property Tax Rate Increase: The proposed FY17 budget assumes a property tax rate of $1.0264 per $100 of assessed value which is 3.94 cents above the current rate. The proposed increase exceeds charter limits thus requiring unanimous council approval. With the proposed tax increase, real property tax revenues would be 8.8% above charter limits. The County Executive is relying on Maryland state law that permits an increase where the additional revenues are dedicated for education.
Impact of Wynne Case: The County asserts the increase is due in part to the Wynne case. Estimated Revenue loss to the County from Wynne: (1) FY17 - $76 million (County is seeking a $50 million cap); and (2) FY18 - $76 million.