No Matter Which Way They Spin It, The Math Hits Home
The Montgomery County Council advanced major tax and budget decisions that will impact homeowners, renters, seniors, and working families across Montgomery County. Here’s what happened, in plain English.
1. The Homeowner Tax Credit (ITOC)
What is the ITOC?
The Income Tax Offset Credit (ITOC) is a homeowner tax credit designed to help offset rising County taxes.
For many homeowners, it appears as roughly:
- a $692–$695 credit on their property tax bill.
The credit especially helps:
- seniors on fixed incomes
- working families
- long-time homeowners
- residents facing rising assessments
What Did the Council Do?
The Council moved forward with eliminating the homeowner tax credit as part of the FY27 budget framework.
Councilmembers supporting the broader budget package included:
- Natali Fani-González
- Kate Stewart
- Evan Glass
- Laurie-Anne Sayles
- Marilyn Balcombe
- Dawn Luedtke
Councilmember Andrew Friedson opposed the budget framework and warned the County is creating a growing structural deficit.
The FY27 budget debate exposed growing concerns about rising taxes, homeowner relief elimination, and the County’s long-term financial direction. https://youtu.be/Pqtwmmic46s
What Does This Mean to You?
If you are a homeowner:
You may lose roughly $692 in homeowner tax relief.
If you are a senior on fixed income:
You may feel increased pressure as:
- property assessments rise
- insurance rises
- utility bills rise
- grocery costs rise
If you live along redevelopment corridors:
Many residents are already concerned about:
- displacement
- rising taxes
- housing instability
- speculative redevelopment pressure
Removing homeowner relief while assessments continue climbing may increase financial strain.
Planning Director Jason Sartori stated, those most likely to be displaced will be those on a fixed income https://youtu.be/fuWTElIyEco?si=M9B73ORh2_eXf27C
2. Progressive Income Tax Proposal
What Was Proposed?
Councilmember Natali Fani-González supported a progressive income tax structure that:
- increases taxes on higher earners
- keeps lower rates on the first $150,000 of earned income
Supporters argue this creates a more equitable tax system.
What Does This Mean in Plain English?
The County Council says:
- 95% of residents would pay less compared to County Executive Marc Elrich’s original proposal.
But many residents are asking a different question:
“Will I pay less than I pay today?”
For many households, the answer may still be:
Why? Because:
- the homeowner tax credit is being eliminated
- assessments continue rising
- many residents are already financially stretched
Two things can be true at once:
- the Council reduced one proposed tax increase
AND
- many residents may still pay more overall than they do today
3. MCPS Funding - How Did the County Pay for It?
What Happened?
The County Council approved a budget that adds roughly:
$144 million more for Montgomery County Public Schools (MCPS)
County leaders said the funding was needed to:
- support school operations
- fulfill union agreements
- maintain services
- and avoid major cuts
Most residents support strong schools.
The debate was about: How Was MCPS Funded?
The County used a combination of:
- tax changes
- elimination of the homeowner tax credit
- reserve funds
- one-time funding sources
- and budget shifts
This became one of the biggest points of disagreement during the budget process.
What Did Councilmember Luedtke?
Councilmember Dawn Luedtke publicly criticized the process, saying:
"...I could not support a budget that - because of last-minute changes after weeks of tireless review and public debate - relies so heavily on one-time funding sources to pay for ongoing costs. The result is a projected $293 million shortfall just to match this same level of spending for the next fiscal year.
I believe we have to be honest about the long-term financial challenges facing Montgomery County and the difficult decisions that will follow if we continue down an unsustainable path. My concern is not about whether these priorities matter — they absolutely do — but whether we are putting ourselves in a position to sustain them responsibly in the years ahead." read full statement...https://content.govdelivery.com/accounts/MDMONTGOMERY/bulletins/4177589
What Is a Structural Deficit?
The County now projects a: $293 million structural deficit
That means:
next year’s County leaders could begin the budget process already hundreds of millions short just to maintain the same level of spending.
In plain English:
- recurring expenses are growing faster than reliable recurring revenue
That means future leaders may eventually face:
- more tax increases
- spending cuts
- or both
EPIC’s Position?
EPIC believes residents deserve:
Whether you support or oppose these policies, residents deserve to know:
- what changed
- who supported it
- how it was funded
- and how it may affect their household.
Because informed communities are empowered communities.
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RESCHEDULED
SAVE THE DATE
EPIC Conversations on Taxes with Louis Wilen
Is Your Head Spinning from Everything Happening in Montgomery County - Housing. Taxes. Development deals. Budget battles.
What does it all actually mean for residents?
Louis Wilen is an Olney resident and longtime Montgomery County homeowner known for uncovering a major error in Maryland’s homeowner tax credit system. His research and advocacy led the State of Maryland to issue more than $11 million in refunds to homeowner, primarily in Montgomery County and Baltimore City, after it was discovered that eligible residents had been underpaid through the Homeowners Tax Credit program.
Wilen has become widely recognized for his deep understanding of Maryland property tax policy, homeowner protections, tax credits, and government accountability. He has frequently spoken out on issues involving county taxes, assessments, affordability, and how policy decisions impact residents.
He joins EPIC Conversations to answer questions on the complex world of Montgomery County property taxes.
Date: Tuesday, June 9th
Time: 7:00PM - 8:30PM
Where: Zoom https://us02web.zoom.us/meeting/register/QSl2lkb_Q1-AtMCoH-g-3A
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