Montgomery County could see a tax hike as County Executive Marc Elrich considers funding strategies to address the region's needs. Last Thursday, Elrich laid out the budgetary road ahead, signaling potential income tax increases to support programs ranging from education to infrastructure. He suggested increasing the county's income tax rate from 3.2% to 3.3%, a shift he describes as a means to fund the county's $7.65 billion operating budget proposal. This announcement, as covered by WUSA9, emphasized reshaping the tax code to invest more significantly in transportation infrastructure, similar to models in D.C. and Northern Virginia.
Elrich initially considered increasing property taxes but has reversed course, favoring an income tax hike as a more progressive alternative, as reported by Maryland Matters. "It’s more progressive and allows us to eliminate the property tax increase altogether," Elrich explained, noting the change aligns with state law that allows counties to raise their income tax rates. This strategy, he says, fully funds the school system's budget request without imposing cuts on critical services. However, Councilmember Andrew Friedson aired reservations on social media about re-taxing workers, especially amid current economic strains.
In addition to fiscal changes, the Montgomery County Council will vote on overriding a veto from Elrich concerning Bill 2-25, a measure aimed at addressing the region's housing crisis. According to MCMedia, this bill aims to transform vacant office spaces into affordable housing—a strategy that has seen support from the council, with an expected veto override. Councilmember Kate Stewart, reflecting on the collaboration and vision shared within the council, said, "We all agree that we have a housing crisis, and we have a responsibility to take action for the residents who live in our community today and future generations."
As mandatory budget reviews continue and an income tax rate resolution is on the table, Stewart hinted at a cautious approach to tax increases, mindful of the broader implications for residents. The outcomes of these financial maneuvers are slated for a sharp spotlight, as Montgomery County‘s taxpayers await the council's final say on the budget next month.
