Press Releases
Montgomery County Executive Marc Elrich Vetoes Bill 2-25
For Immediate Release: Tuesday, April 22, 2025
Montgomery County Executive Marc Elrich vetoed Expedited Bill 2-25, Payment in Lieu of Taxes-Affordable Housing. The bill would automatically eliminate 100% of property taxes for 20 years for certain commercial buildings that are converted or demolished and become residential rental housing.
The bill focuses on office buildings that are half or more than half-empty.
“I am vetoing this bill because it could significantly negatively impact County revenues, adversely affect racial equity and provide excessive tax benefits to developers with no meaningful public benefit,” said County Executive Elrich.
The County Executive sent a memo to the County Council explaining the reasons for his veto and urging them to sustain the veto and take more time to consider the proposals in the bill.
At the press conference, Elrich explained that this bill gives away tax revenues without any evidence that this is necessary.
“We have proof that conversions from commercial to residential are already happening – without any subsidies,” said Elrich.
Elrich was joined at the press conference by representatives of communities from around the County as well as the Montgomery County Government Employees Organization (MCGEO). They agreed that eliminating 100% of the taxes for 20 years did not make good fiscal or community sense.
Speakers included Cheryl Gannon and Alan Bowser, Montgomery County Civic Federation; Lisa Blackwell, MCGEO; Jenny Sue Dunner and Howard Schoenholz, Montgomery County Communities Coalition; Rohit Khanna, Somerset Town councilmember; Lloyd Guerci, Citizens Coordinating Committee on Friendship Heights and Brit Simantov, Kemp Mill Community.
“It is unfortunate that the Council rushed this decision even though its own staff concluded that there were many unanswered questions about the fiscal impact,” said Rohit Khanna, councilmember with the Town of Somerset. “Taxpayers deserve a lot more transparency about how their tax dollars are being spent.”
Residents representing areas like Friendship Heights and Kemp Mill thanked the County Executive for the veto and noted how one-sided the bill is for developers. One example cited the Geico property which sits on several acres but only houses one office building. Critics argue that it would certainly be sold and developed without incentives.
“It is a handout without any showing of need,” said Lloyd Guerci, with the Citizens Coordinating Committee on Friendship Heights, which represents 18 communities south and southwest of Bethesda. “There are many underutilized buildings in the County and this bill chooses winners and losers.”
Simantov noted how disruptive passage of the bill would be in her Kemp Hill neighborhood and within her Jewish community.
“Marc Elrich listened,” said Simantov. “By vetoing Payments In Lieu of Taxes (PILOT), he stood up for us because if PILOT were to pass it would directly threaten our Jewish way of life, disrupting the infrastructure, resources and stability that our families and community institutions depend on."
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Media Contact: Scott L. Peterson 2402558462
Categories: Housing, Tax