Montgomery County Executive Marc Elrich isn’t considering any tax increases for his proposed 2022 fiscal year budget for the Maryland county that’s due out next week.
A county spokesman confirmed Elrich’s proposal, which was revealed during a talk at the County Democratic Party’s District 18 Breakfast Club.
“All things have come together to a place where we can manage” without a tax hike, Elrich said, and income taxes “have not been bad at all.”
Last year at the start of the pandemic, Elrich proposed a 5% property tax increase, which the Montgomery County Council flatly rejected. Instead, it proposed and approved a slight decrease in the weighted average property tax rate.
Elrich did express some concern about potential losses of tax revenue. He pointed out one problem with commercial property taxes.
If a commercial building loses income, he said, they can get a lower tax reassessment. But that lower tax rate is in effect for a few years — even after losing and replacing tenants — which could increase generated income and would not be subject to an adjusted higher rate.
Then there’s Maryland’s Relief Act of 2021: It repeals 2020 and 2021 state and local taxes for stimulus checks that went to individuals who make less than $75,000 or married couples who make less than $100,000 and file jointly.
Elrich said the county could lose a little more than $30 million in tax revenue as a result.
He plans to present his 2022 fiscal year budget proposal on March 15.