Montgomery County property tax hike proposed in County Executive's $6.8 billion FY-2024 budget

Montgomery County elected officials have raised property taxes on homeowners every year since 2010, except for FY-2015, when a 2014 election-year tax cut delivered a whopping average $12 savings to tax-whipped residents (gee, thanks!). It looks like they are going to do it again for FY-2024, as County Executive Marc Elrich (D) released his proposed budget yesterday, and he suggested the largest property tax hike since FY-2017. The extra payday would go exclusively to Montgomery County Public Schools, whose student performance has only declined as bigger and bigger budgets have been approved for it by the County Council. Money has never been the problem at MCPS, only incompetent leadership since the exit of Superintendent Jerry Weast, a clearly-failed curriculum, and an increasingly-stark lack of student safety and security.

There's an even greater problem about the record $3.2 billion outlay for MCPS in Elrich's budget. Due to the disastrous Maintenance of Effort law, the amount spent on MCPS can never go down from one year to the next. So, even as Elrich himself declares "a mild recession could take place later this year," his budget would lock in a required expenditure of at least $3.2 billion for MCPS in the FY-2025 budget - even if a recession deals a severe blow to County revenue. And we're not even talking about the worrisome situation in the banking sector, which is persisting despite a federal bailout of wealthy billionaires at Silicon Valley Bank earlier this week.

What that would mean, is that savings and cuts would have to be found elsewhere in the budget: police, fire, libraries, road maintenance, etc. And the County Council is already cruising toward a rude fiscal awakening, as it has convinced itself, the local media, and enough voters that its rosy budgets of the last few pandemic years were due to councilmembers' overwhelming talent and skill, and not the overwhelming federal cash that poured into the County to cover COVID-19 losses. That money is now being cut off by Uncle Sam.

You wouldn't know it from reviewing the proposed budget. And from a steep tax hike being proposed, you wouldn't know that a majority of County residents are being hit hard by persistent inflation. Not to mention that, for many County residents - particularly the elderly and others on fixed incomes - the current property tax has become the equivalent of a second mortgage they must pay off on their home.

There are other fanciful ideas in the budget announcement, such as the recent canard pushed by the County political cartel that Montgomery County residents are somehow paying less property taxes than some other jurisdictions. This is false, because the assessments on houses are so much higher in Montgomery County than in those jurisdictions that MoCo residents actually pay more. In reality, Montgomery County has the highest real property tax payments, and the highest total tax and fee burden in the Washington, D.C. region. We pay massive income and piggyback income taxes, real estate transfer taxes, energy taxes, cell phone taxes, rain taxes, and more - many of these being taxes that don't even exist in counties around us. 

Our current tax structure and burden are two of the major reasons for our moribund County economy. Montgomery County's economic growth and strength have been at or near rock bottom in the region for more than a decade, as measured by every relevant federal indicator. No major corporation has relocated its headquarters to Montgomery County in over a quarter century. 

Taxes have also been the major cause for the flight of the rich out of Montgomery County, which caused the County's "Rodeo Drive" of Friendship Heights to crash, leaving behind vacant buildings and empty storefronts. Significantly increasing taxes and spending, as we've done and as is being proposed again here, is a reckless move in this context, and total insanity when you factor in the County's massive debt.

One positive thing Elrich's budget proposes? Providing the funding to restore the Office of the People's Counsel, a lawyer who can represent the people in land use matters. This is long overdue, but we don't need a $6.8 billion budget or a property tax hike to make that happen.

Montgomery County Council proposes property tax hike

The Montgomery County Council is proposing to raise property taxes in the FY-2021 budget. No councilmember has announced this publicly, but the planned tax hike was revealed in a newspaper announcement the Council is required by law to publish before raising taxes.

A 4.5% property tax increase has been proposed. The Council recently criticized County Executive Marc Elrich for proposing a tax increase, but now are proposing one themselves. A public hearing on the tax increase has been scheduled for 1:30 PM on April 21, 2020.

Despite the Maryland Department of Assessments and Taxation's guidelines to allow residents to testify live by telephone, the Council is currently not allowing residents to do so, despite the Council having used videoconferencing to promote themselves this week. Residents may only send written or emailed comments on the tax increase, or recorded audio/video statements, and have been banned from entering the Council Office Building since the coronavirus outbreak began in the county.

No one can yet predict the full economic impact of the coronavirus shutdown, but it certainly will be significant. Raising everyone's tax bills is certainly a bold move amidst a worldwide pandemic and economic collapse.

The Council has raised property taxes every year this past decade except in 2014, when they gave a paltry $12 average tax cut during an election year. In 2016, the Council raised property taxes a whopping 9%, which translated to 10 or 11% for a large number of residents, due to rising assessments. But the tax hike failed to generate the expected revenue. In fact, revenue is now declining, after many wealthy residents fled to lower-tax jurisdictions in the region.

Earlier this year, the Council sought new taxing powers from the Maryland General Assembly. They hope to be able to raise income taxes beyond the current limit allowed, and to add additional property taxes based on what category of property you own.

Montgomery County Republican Party Chair Alexander A. Bush called the proposed tax increase "obscene," noting the flood of unemployment claims being filed by County residents, and the many coronavirus-related business closures. Bush strongly urged the Council to allow testimony by telephone at the public hearing.

Montgomery County Council seeking authority for new property tax, income tax hikes

Montgomery County Councilmember Will Jawando (D - At-Large) will hold a press conference this morning to endorse two bills in the Maryland General Assembly that would broadly increase the Council's ability to hike taxes on property and income. If passed in Annapolis, the new taxing powers would allow the Council to hike property taxes even further on owners of homes 5000 SF or larger, or any subclass of property not specifically excluded in the bill, and to raise the County income tax and set multiple rates based on income. The proposed tax hikes come as County taxpayers are already paying the highest tax rates in history, and as large numbers of wealthy residents continue to flee to lower-tax jurisdictions in the region, resulting in declining revenue for the County as they take their money with them.

Last year, Councilmember Evan Glass (D - At-Large) proposed a "teardown tax," also known as a "McMansion tax." It would have taxed new construction homes that replaced existing homes, and then place an excise tax on the square footage added. The proposal was blasted by homebuilders, many of whom would have been forced out of business by the new taxes. Local media did their darndest to promote Glass and his tax, but rarely told the public that he did not even have the votes on the Council to pass it.

Jawando will endorse a bill today that brings the tax back in a new form - and then some. Applying to homes 5000 SF and larger, it again primarily targets teardown projects, by going after square footage. Jawando claims that 97% of County homeowners own homes less than 5000 SF in size, and promises that they would receive a "property tax cut." However, House Bill 1276 includes no such tax cut. There is also the possibility that the automatic assessment hikes each year would handily eclipse a nominal, tiny "tax cut." In that case, the "97 percent" of homeowners would continue to pay the same high property taxes they are now - and the ongoing annual increases.

The House bill is also much more general then what Jawando's press release would suggest. It could lead to all kinds of new property tax hikes on other kinds of property.

HB 1276 actually would allow the Council to create new, higher property taxes on any subclass of property. The bill appears that it could be used to sneak in the high taxes developers have sought for golf and country clubs that would run them out of business, forcing them to sell their club properties, to open up their vast lands for real estate development. In fact, under the current language, any subclass of property not exempted by the bill could face higher taxes of any amount sought by the Council.

Attorney and activist Robin Ficker
is mobbed by fans outside the
Council Office Building in Rockville

The property tax move is the Council's latest attempt to find an end run around attorney Robin Ficker's successful property tax cap ballot initiative, which requires the Council to vote unanimously to raise property taxes beyond the charter limit. When the Council did last did that, voters responded by voting to pass Ficker's ballot question allowing 12-year term limits on the Council and County Executive.

Ironically, Jawando's press conference is scheduled to take place at 11:45 AM this morning. Fifteen minutes later, at noon, Ficker is expected to deliver 55 lbs. of signed petitions for a new ballot question preventing the Council from passing another 9% property tax hike as they did recently.

But wait, we're not done talking about new taxes!

Jawando will also endorse House Bill 1494, which he claims will allow the County to increase the tax rate on incomes over $1 million a year from 3.2% to 3.5%. The Councilman says such a tax hike on millionaires would raise $88.4 million in new revenue annually.

One must ask, if true, why did the 9% increase of the already-progressive property tax only result in ongoing budget shortfalls each fiscal year since? Revenue is declining, not increasing, under the record-high tax rates now being paid. You can only get so much blood from a stone, especially when that stone has very smart tax advisors on retainer. Some on the Council continue to ignore what their own staff - past and present - has warned them about the impact of overtaxing, and their warnings are borne out in our declining revenue today.

One must also, again, read the actual text of the bill. In fact, under the language in the bill, everyone - that includes you! - could end up paying a higher income tax rate. "But Will Jawando says we won't," someone - likely an obsequious member of the local media or political cartel - might protest. As with the desperate Council attempt to create a Transit Authority last decade, it is key to ignore what the politicians say, and read what the actual bill says.

Under HB 1494, the Council could - for example - hike the income tax of all residents to 3.4%, and of "millionaires" to 3.5%. The bill has no language protecting "non-millionaires" from a higher income tax rate. It only says wealthier residents can't pay a lower tax rate than the people in the brackets under them, and allows the Council to create those brackets.

So even if you think the property tax hike on homes bigger than 5000 SF - and the income tax hike on incomes over $1 million - are good policy, you need to lobby your legislators to actually put those specific provisions into the bill. They aren't there as of this morning.

With no amendments to the text of each bill, both proposals will allow much corrupt mischief by the Council on property taxes, certainly hit local homebuilders and remodeling firms hard financially, and absolutely set up a potential income tax hike for every Montgomery County resident.

Will the proposed tax hikes destroy the Montgomery County economy? Probably not, because the County economy has already been destroyed. The new taxes will simply put a heavier layer of concrete atop the grave of the moribund economic corpse. And will make it all the harder for a future, competent set of new leaders to restore it once we have a free and fair Montgomery County election.

Democrats propose Netflix tax for Montgomery County

Democratic leaders in the Maryland General Assembly are poised to propose a new tax on the highly popular entertainment streaming services used by most Montgomery County residents. The officials announced the proposed tax quietly in a Friday news dump strategically arranged by The Washington Post, whose reporters were aware of the pending tax earlier in the week, another clear example of coordination between the Montgomery County political cartel and the Post.

Subscribers to Netflix, Hulu, Amazon Prime Video, Disney+, Apple TV, and other streaming services could find a hefty tax added to their bill as soon as this year. The Post reports that the new Netflix tax would be one of several new taxes slapped on residents of Montgomery County and the rest of the state to cover a new $6000-per-taxpayer spending hike for public education statewide. Montgomery County is already spending record amounts on public schools, and the County's own recent report shows that the declining school system has only gotten worse for all the high spending.

Now residents' Baby Yoda and You addictions are squarely in the tax crosshairs of the cartel. With property and income taxes at record highs, it is almost impossible for officials to add $6000 in hikes via those taxes. The county is now turning to these sin taxes, similar to those you pay on your cell phone service and the rain that falls in your home's yard, to get the same amount in sneakier ways. You may recall that the County floated a new Trash Tax in 2019, for example.

The Netflix tax will be hard to pass openly, however. Most of their constituents will be furious, and the tax will fall heaviest on young people, the poor and senior citizens - like all of "progressive" Montgomery County's regressive flat taxes.

MoCo Council hikes property taxes, slouches toward bankruptcy in disaster budget

Property tax bills will rise for almost all Montgomery County residents in the coming year, after the Montgomery County Council approved a disastrous $5.8 billion FY-20 budget Thursday. The vote virtually ensures future tax hikes will be necessary, as the Council also went on a spending spree despite starting off with a $208 million shortfall. Increases in spending on Montgomery County Public Schools, already proven to have no impact on student performance despite record-large MCPS budgets this decade, will be a major cause of tax hikes down the road. Once the MCPS budget is raised, state law requires the Council to maintain that level of spending going forward.

The fact that the Council had no qualms about spending even more than MCPS asked for despite that binding maintenance-of-effort state law raises questions of the councilmembers' fitness for office. Councilmembers approved the massive spending on MCPS while knowing that there are only two uncertain sources to pay the additional $16 million, and one of those is a one-time $5 million possible payment from the state for upgrading the County's long-failing 911 system. The other $11 million? LOL - they'll figure it out. And thanks to the law, we now have to give MCPS - the system that has declined in performance even as spending on it has surged - that amount every single year going forward. We already are in the red every single year as far out as the forecasts go as it is. Heckuva job, Brownie!

"The annual [property tax] bill for the average homeowner will increase," the Council's press release on the budget vote acknowledges - while not admitting the real-world dollar value of that increase, which is far more than the "average" cost cited often by the County. That tax hike comes after the Council and County Executive Marc Elrich promised voters they would not raise taxes. 

Bloated and filled with loot for the Montgomery County cartel, the budget maintains the corrupt Council's MO of "managing the decline," and continuing our slow slouch towards Gomorrah. The Council has failed to take a single action on our economic development crisis since taking office last December, forgoing for another year any sensible attempt to increase our revenue from commercial development or attracting major corporate headquarters - something Montgomery County hasn't been able to do for over twenty years. Instead, the County has sunk to rock bottom by every economic development benchmark, even behind tiny counties like Culpeper and Rappahannock. It's humiliating.

Considering the Council has raised property taxes every year except 2014, imagine what will happen when the national economy goes into a recession. We are now in the weakest position ever to confront such an economic challenge. Given the County's massive debt, the much-touted AAA bond rating will be in jeopardy as soon as bad times hit, and we are due for a bust cycle any month now. Remember: we have to maintain this level of MCPS spending and county employee pay hikes every year no matter how bad the revenue picture gets.

With that in mind, it's obvious that while our leaders may be tools, they aren't exactly the sharpest tools in the drawer. But that's the caliber of leadership you end up with when most voters don't bother to research the candidates before voting, and simply go by the party affiliation after the name. We can't go on like this.

Montgomery County Council proposes property tax hike

4.8% tax increase

planned

The Montgomery County Council, contrary to fake news headlines, is planning to raise your property taxes this year. A required legal announcement published by the Council confirms the planned tax hike in black and white, despite County officials' false claims of no increase.

"Notice of a proposed real property tax increase," the legal notice proclaims. "The County Council of Montgomery County proposes to increase real property taxes," it states. Despite annual false claims of "holding the line on property taxes," MoCo property taxes automatically increase due to rising assessments. The only way the Council could fulfill a promise of "holding the line," or "no tax increase," would be to lower the tax rate by the amount required to offset that automatic increase.

According to the Council's required legal statement, the Council "is considering not reducing its real property tax rate enough to fully offset increasing assessments." Instead, the Council is proposing to hike property taxes by 4.8%.

But while the Council is required by law to disclose their planned tax hike in the legal announcement, County officials and their friends in the media have been falsely claiming no tax increase is proposed. "No tax increases in Montgomery County proposed budget," blared a fake headline on WTOP.com. "It’s what residents don’t see in Montgomery County Executive Marc Elrich’s proposed 2020 budget that might impress them the most: no tax increases," the article falsely announced.

The Washington Post's Jennifer Barrios, who never wrote a single article covering the general election County Council At-Large race in 2018 (and unprofessionally didn't even respond to emails during the campaign), tells an even bigger whopper of a lie this morning on the Post website by claiming a tax cut. All three local media statements are entirely false, as these photographs of the actual legal tax hike announcement clearly show.

Fact Check: Because County elected officials and the County cartel-controlled media have told this lie annually for many years, Post fact-checking standards require me to award them the new "Bottomless Pinocchio" rating for those who "repeat a false claim so many times that they are, in effect, engaging in campaigns of disinformation.” 

Montgomery County Council to raise property taxes, after claiming they wouldn't

Remember when I reported that the Montgomery County Council would raise property taxes again this year, despite elected officials' and the local media's claims otherwise? More proof is in. Here is the announcement the County Council is required to print in local newspapers before they can raise your taxes, and it reads, "The County Council of Montgomery County proposes to increase property taxes."

It also details what I had explained: The County's tax scheme deviously increases taxes automatically each year, in an attempt to trick the public into thinking the Council had nothing to do with it. In fact, as the announcement notes, in order to avoid the automatic tax increase, the Council would have to "reduce its real property tax rate enough to fully offset increasing assessments. The proposed budget does not provide such a reduction.

CLICK HERE to learn more about the
County Council candidate who will lower
taxes, and leave more money in YOUR pocket,
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Hence your tax rate for FY-2019 will be 4.1% higher, and the Council will steal an estimated $56,120,926 from their constituents' bank accounts in the coming year, on top of what you payed last year. The Council's historic 2016 8.7% tax hike walloped many County homeowners at effective 9%-10% rates based on their rising home assessments. Councilmembers had falsely claimed the increase was for "education," but student performance and graduation rates have actually continued to decline after the tax hike, as they have throughout the decade.

If you re-elect Helpless Hans Riemer and 3 new equally-controlled At-Large candidates chosen by the MoCo political cartel, wait until you see the tax increase you'll get in 2019, 2020, etc. A better choice would be to vote for Robert Dyer, who will offer a #DyerTaxCut, repealing the 2016 property tax and 2010 energy tax hikes incrementally over 4 years. Riemer's own former chief of staff recently noted that the energy tax hike appeared to have a devastating effect on the net number of new businesses created in Montgomery County this decade. MoCo had a net increase of only 6 new businesses, while D.C. and Fairfax enjoyed a net addition of 3000 new businesses each.