Montgomery County Executive Isiah Leggett (D) proposed a budget Tuesday that would increase the average residential property tax bill by 8.7 percent — the biggest increase in eight years — to fund a fast-growing school system and replace revenue lost when the Supreme Court ruled last year that Maryland’s income tax system was unconstitutional.
The $5.2 billion operating budget for the fiscal year beginning July 1, which goes to the County Council for consideration, increases government spending by just under 2 percent. It lifts the property tax rate by 3.94 cents per $100 of assessed value, from 98.7 cents to $1.02.
That means that taking into account rising assessments, the owner of an average home valued at $464,000 would pay an additional $325 a year in property taxes — $4,075 instead of $3,750.
Property taxes have remained relatively flat in recent years. Last year, Leggett signaled the likelihood of a significant tax increase, citing sluggish economic growth, potential losses from the income tax case and urgent needs in schools. On Tuesday, he told council members that waiting was no longer an option.
“The budgetary pressures on the County are long-term pressures and can no longer be addressed through short-term fixes,” Leggett said in a letter to Council President Nancy Floreen (D-At Large).