For Immediate Release: Friday, February 21, 2020
Two bills pending in Maryland General Assembly would provide a
property tax cut for 97 percent of homeowners in the County and
raise additional revenue to support middle class families
WHAT: Press conference
WHEN: Monday, Feb. 24, 2020 at 11:45 a.m.
WHERE: Third Floor Council Hearing Room, Stella B. Werner Council Office Building, 100 Maryland Ave. in Rockville
WHO:
TOPIC: Councilmember Jawando will discuss his efforts alongside Delegate Julie Palakovich Carr and other Maryland delegates to pass legislation in the Maryland General Assembly that would enable Montgomery County to provide a property tax cut to 97.2 percent of Montgomery County homeowners and raise additional income tax revenue in a progressive manner in order to pay for the increased local share of education funding required under the Kirwan Commission.
House Bill 1276, County Property Tax – Classification of Real Property and Authority to Set Special Rates, would authorize the governing body of a county to set special property tax rates, under certain circumstances, for any subclass of real property that is subject to the county property tax. HB1276 could reduce property tax rates for the 97 percent of homeowners with homes under 5,000 square feet.
Assessing a more progressive property tax rate on houses of 5,000 square feet or greater would yield additional revenue and allow for a commensurate reduction in property tax rates for all of the approximately 336,000 properties in Montgomery County that are below 5,000 square feet. Currently, all homeowners pay the same property tax rate regardless of the type or size of property.
HB1494, County Income Tax – Maximum Rate and Authority to Impose on an Income Bracket Basis, would increase the income tax rate a county may impose on an individual’s Maryland income from 3.2 percent to 3.5 percent and allow the Council to set different rates for different income levels, beginning after Dec. 31, 2021. It is projected that Montgomery County income tax revenues could increase by an estimated $88.4 million annually based on a three-year average, if all households with adjusted gross income over $1,000,000 a year were taxed at a new 3.5 percent rate. This funding could be used to pay for teachers, school buses, textbooks and school buildings.
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Release ID: 20-055