Montgomery Co. executive: No tax hikes proposed for next fiscal year

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.

Ken Duffy

Ken Duffy is a reporter and anchor at WTOP with more than 20 years of experience. He has reported from major events like the 2016 Democratic and Republican National Conventions, 2016 Election Night at Trump Headquarters in Midtown Manhattan and the 2007 Super Bowl in Miami.

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