Elrich property tax increase

[Anonymous]

https://www.washingtonpost.com/dc-md-va/2023/03/15/montgomery-county-budget-tax-increase-schools/

10% increase in the property tax "to keep up with inflation"

What world does that guy live in?

"Revenues have been unable to keep up with inflation"

OK but assessment increases alone have dramatically increased the property tax amount for most people.

And since inflation is so high, why do we have to reach into our pocket that is already stretched?

Maybe dont hire Craig Rice to a no show job- there is 200k right there.

[Anonymous]

So a 10% increase in property tax to keep up with inflation but he wants a 3% cap on rent increases?

[Anonymous]

It's absolutely infuriating.

[Anonymous]

It does seem like a big increase. However at the same time, the assessment for my property value is much lower than the actual property value. I have lived in my house for 10 years and I am certain it has increased in value over that time. Yet my property tax assessment is still less than what I originally paid for my house. I don’t understand why they don’t assess a home at least at the value the owner paid for it barring some sort of downturn. They periodically have increased the assessment but it started out more than $100k below the purchase price and it is still about $30k below the price I paid. I think my house is probably worth about $250k more than I paid for it. So I would rather pay the new increase on my current assessment than pay the current tax rate on the actual value of my house.

Paid $500k
Assessed $470k
Current tax rate of $.99 = $4,693 annual county property tax
Proposed increase to $1.09 = $5,123 annual county property tax if new tax rate is applied to current assessment.

Worth $750k
Current tax rate of $.99 = $7,425 annual county tax if assessment matched actual value
Proposed increase to $1.09 = $8,175

Right now I get a county tax credit that reduced my amount by $692. I have a homestead credit as well which I think either gives me the credit or prevents them from increasing the assessment by too much? I don’t really know. So I might not actually ever have to pay that largest amount. But what I wonder, is how much the county could increase its revenue if it just made sure that property assessments were at least as high as the purchase price of the property? That would increase revenue and be less of a shock because as a home buyer I was expecting to pay tax on the value of my house at the purchase price. I have of course accepted these low assessments all these years but the County needs to be more effective about this.

[Anonymous]

Anonymous wrote:It does seem like a big increase. However at the same time, the assessment for my property value is much lower than the actual property value. I have lived in my house for 10 years and I am certain it has increased in value over that time. Yet my property tax assessment is still less than what I originally paid for my house. I don’t understand why they don’t assess a home at least at the value the owner paid for it barring some sort of downturn. They periodically have increased the assessment but it started out more than $100k below the purchase price and it is still about $30k below the price I paid. I think my house is probably worth about $250k more than I paid for it. So I would rather pay the new increase on my current assessment than pay the current tax rate on the actual value of my house.

Paid $500k
Assessed $470k
Current tax rate of $.99 = $4,693 annual county property tax
Proposed increase to $1.09 = $5,123 annual county property tax if new tax rate is applied to current assessment.

Worth $750k
Current tax rate of $.99 = $7,425 annual county tax if assessment matched actual value
Proposed increase to $1.09 = $8,175

Right now I get a county tax credit that reduced my amount by $692. I have a homestead credit as well which I think either gives me the credit or prevents them from increasing the assessment by too much? I don’t really know. So I might not actually ever have to pay that largest amount. But what I wonder, is how much the county could increase its revenue if it just made sure that property assessments were at least as high as the purchase price of the property? That would increase revenue and be less of a shock because as a home buyer I was expecting to pay tax on the value of my house at the purchase price. I have of course accepted these low assessments all these years but the County needs to be more effective about this.

What is a homestead credit?

[Anonymous]

you get what you voted for

[Anonymous]

Anonymous wrote:So a 10% increase in property tax to keep up with inflation but he wants a 3% cap on rent increases?

"The county’s current property tax rate is roughly 98 cents per $100 of assessed value. The proposal seeks to boost the rate to about $1.08."

So let's see.

I own the house I live in. With this increase (from $0.98 cents/$100 of assessed value to $1.08/$100 of assessed value), I would owe the government about $350 more per year on my home.

I also own a rental unit. If I increased the rent by 3%, my tenants would owe me about $700 more per year on their home.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It does seem like a big increase. However at the same time, the assessment for my property value is much lower than the actual property value. I have lived in my house for 10 years and I am certain it has increased in value over that time. Yet my property tax assessment is still less than what I originally paid for my house. I don’t understand why they don’t assess a home at least at the value the owner paid for it barring some sort of downturn. They periodically have increased the assessment but it started out more than $100k below the purchase price and it is still about $30k below the price I paid. I think my house is probably worth about $250k more than I paid for it. So I would rather pay the new increase on my current assessment than pay the current tax rate on the actual value of my house.

Paid $500k
Assessed $470k
Current tax rate of $.99 = $4,693 annual county property tax
Proposed increase to $1.09 = $5,123 annual county property tax if new tax rate is applied to current assessment.

Worth $750k
Current tax rate of $.99 = $7,425 annual county tax if assessment matched actual value
Proposed increase to $1.09 = $8,175

Right now I get a county tax credit that reduced my amount by $692. I have a homestead credit as well which I think either gives me the credit or prevents them from increasing the assessment by too much? I don’t really know. So I might not actually ever have to pay that largest amount. But what I wonder, is how much the county could increase its revenue if it just made sure that property assessments were at least as high as the purchase price of the property? That would increase revenue and be less of a shock because as a home buyer I was expecting to pay tax on the value of my house at the purchase price. I have of course accepted these low assessments all these years but the County needs to be more effective about this.

What is a homestead credit?

Homestead Property Tax Credit

Description

To assist homeowners with the fiscal impact from large assessment increases, the Homestead Property Tax Credit program limits the annual taxable assessment increase to a rate set annually by county resolution between 1% and 10%. This program is administered by the State Department of Assessments and Taxation (SDAT) and applied only to owner-occupied residential dwellings. Note: this credit is not applicable in the first year following the purchase of a new home.

The State of Maryland, Montgomery County, and municipalities in Montgomery County (with the exception of the Town of Kensington which elected 5% effective LY 2006) use a 10% homestead credit which results in any annual assessment growth in excess of 10% to become a credit. For example, if the annual phase-in of assessment growth is 25%, the homestead credit will reflect 15% while the remaining 10% is reflected in taxable assessment growth that year.

In addition to limiting annual growth in taxable assessment for homeowners, the homestead credit spreads out the assessment growth over a longer period of time resulting in a stable revenue flow. Since the cumulative credit can be significant, some taxpayers may still observe growth in taxable assessment during times of weak real estate market conditions as prior year growth is still being phased in.

Authority

Maryland Code: TAX-PROPERTY: TITLE 9. PROPERTY TAX CREDITS AND PROPERTY TAX RELIEF: SUBTITLE 1. STATEWIDE MANDATORY: § 9-105. Homestead property tax credit.

Effective Date

1985

Contact

SDAT in Rockville, MD at [phone] [Call: [phone]]

https://www.montgomerycountymd.gov/finance/taxes/tax_credit_exempt.html#p5

[Anonymous]

Of course.

Democrats in MoCo are incapable of growing the economy and controlling spending. The only solution ever is to raise taxes.

Go look up the entire employment history of virtually everyone running MoCo. They've hardly ever had real jobs in their entire careers and have only worked for the govt, think tanks, or communist activist org fluff. They entirely depend on tax dollars funding their salaries, so of course they want to raise taxes. By 'not keeping up with inflation', they really mean they feel like their own personal salaries aren't keeping up with inflation, therefore raise taxes.

MoCo is turning into Baltimore - huge taxes that will cause the base to flee, flight of businesses due to hostile govt policies, and a downward death spiral where the only solution is to keep raising taxes. R.I.P. MoCo.

[Anonymous]

Anonymous wrote:Of course.

Democrats in MoCo are incapable of growing the economy and controlling spending. The only solution ever is to raise taxes.

Go look up the entire employment history of virtually everyone running MoCo. They've hardly ever had real jobs in their entire careers and have only worked for the govt, think tanks, or communist activist org fluff. They entirely depend on tax dollars funding their salaries, so of course they want to raise taxes. By 'not keeping up with inflation', they really mean they feel like their own personal salaries aren't keeping up with inflation, therefore raise taxes.

MoCo is turning into Baltimore - huge taxes that will cause the base to flee, flight of businesses due to hostile govt policies, and a downward death spiral where the only solution is to keep raising taxes. R.I.P. MoCo.

[Anonymous]

Higher taxes and this place is a mess, filthy streets, old crappy government buildings, awful services, schools continue to decline, crime is out of control,

[Anonymous]

Anonymous wrote:

Anonymous wrote:Of course.

Democrats in MoCo are incapable of growing the economy and controlling spending. The only solution ever is to raise taxes.

Go look up the entire employment history of virtually everyone running MoCo. They've hardly ever had real jobs in their entire careers and have only worked for the govt, think tanks, or communist activist org fluff. They entirely depend on tax dollars funding their salaries, so of course they want to raise taxes. By 'not keeping up with inflation', they really mean they feel like their own personal salaries aren't keeping up with inflation, therefore raise taxes.

MoCo is turning into Baltimore - huge taxes that will cause the base to flee, flight of businesses due to hostile govt policies, and a downward death spiral where the only solution is to keep raising taxes. R.I.P. MoCo.

Fwiw, I didn't intend 'communist activist org', my autocorrect changed it to that when I meant 'community activist org fluff'

[Anonymous]

lol like more money for the schools will fix the problem. our small parochial spends about 7k per pupil and stayed open the whole pandemic while the publics that spend 17k screamed they needed more money for 18 months. money will not fix a broken system.

[Anonymous]

It ends up being a vicious cycle.

Revenue is down (or- Elrich can't control spending). So what do we do? Raise taxes.

People with means vote with their feet to neighboring counties, and VA.

Revenue is down again- and schools are a little worse, and crime is up. So what do we do- raise taxes.

Rinse, repeat.

[Anonymous]

Anonymous wrote:It ends up being a vicious cycle.

Revenue is down (or- Elrich can't control spending). So what do we do? Raise taxes.

People with means vote with their feet to neighboring counties, and VA.

Revenue is down again- and schools are a little worse, and crime is up. So what do we do- raise taxes.

Rinse, repeat.

Exactly. Baltimore.

Revenue is going to keep going down too. The demographics report for the county showed that the number of people in their prime earning years is declining while retirees are skyrocketing. The county can't grow the economy either, so their solution is going to keep raising taxes to plug budget holes. It will make people flee more and more, and MoCo ends up getting Baltimorified where people own $15k property taxes on $400-600k shoebox homes.