Montgomery County budget fight centers on competing tax plans

The Brief

  • Montgomery County is facing a sharp budget standoff after the county council rejected County Executive Marc Elrich’s proposed $8 billion budget.
  • Council leadership advanced alternative plans that would shift the county’s tax structure, including a proposed progressive income tax with rates ranging from 2.5% to 3.3%.
  • Lawmakers are also considering eliminating an income tax offset credit used by many homeowners to reduce their annual property tax burden.

MONTGOMERY COUNTY, MD. Montgomery County is facing a sharp budget standoff after the county council rejected County Executive Marc Elrich’s proposed $8 billion budget, which included a 6.3% property tax increase aimed at funding schools, maintaining county services and closing a projected budget gap.

In response, council leadership advanced alternative plans that would shift the county’s tax structure, including a proposed progressive income tax with rates ranging from 2.5% to 3.3%.

Lawmakers are also considering eliminating an income tax offset credit used by many homeowners to reduce their annual property tax burden, according to FOX 5 D.C. reporting.

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