Montgomery County Council Scraps $692 Homeowner Tax Credit to Raise $137 Million

3 articles · Updated · montgomerycountymd.gov · May 8

$692 per homeowner will be added back to property tax bills after the Montgomery County Council voted to eliminate the Income Tax Offset Credit, the county’s largest homeowner property tax break.
The council chose that step after setting aside County Executive Marc Elrich’s proposed 6.3-cent property tax rate increase, which he said would have raised $164.4 million dedicated to schools; the council plan raises about $137 million for general purposes.
Elrich argued the change is more regressive because it applies only to homeowners, leaves commercial properties untouched, and costs more than his proposal for 88% of homeowners with properties assessed below $1.09 million.
The dispute lands in the middle of FY27 budget talks, with school funding a central pressure point as county leaders weigh tax changes against demands to avoid deeper cuts to Montgomery County Public Schools.

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