On Wednesday, county councilmembers voted unanimously to reject a proposed income tax increase.
“This year was not the year for an income tax increase,” said Councilmember Natali Fani-González. “It should have never been on the table — this year… next year I look forward to talking about it.”
The vote came the day after Councilmembers and school leaders announced a new plan to pass the Montgomery County Public Schools (MCPS) budget without a tax increase. After the announcement, community members were still able to testify on the tax increase proposed by County Executive Marc Elrich to fund the county’s budget.
Here’s what some of the participants had to say:
“We pay sales tax, real estate tax, income tax, gasoline tax, utility tax, internet, cell phone tax, car emissions fees, inheritance and estate tax, toll road fees, refuse tax, alcohol, cannabis and tobacco tax, grocery taxes now, mattress tax, car purchase tax, EV tax, and more,” Mary Jane Perraut, a 64-year resident of Montgomery County, said during the council public hearing Tuesday. “And once these taxes are added, they’re never repealed. And 1.1% increase doesn’t seem like that much, but it just has this cumulative effect on a real estate tax. And also our assessments keep going up.”
“This tax increase is a very small increase as has been noted, but I think what passing it would do would signal that at your earliest convenience, this county is eager and almost insatiable in their desire to tax us,” said MCPS alum George Hernandez.
“Despite what we may have put off for temporary time, we do need you to think in the long term that right now we can’t absorb any of the increases in taxes, whether they’re property or income at the business level or residential,” said Stephanie Helsing, President and CEO of the Greater Silver Spring Chamber of Commerce.
County Chief Administrative Officer Rich Madaleno, testifying on behalf of County Executive Marc Elrich, said Elrich supports the new plan that leaders announced Tuesday morning, but “still believes for the long-term interest of the county and our fiscal stability, making this change in the income tax is still important.”
Dustin Jeter, MCPS alum and teacher, said, “I know this marginal tax increase will help us, and a goal without a plan is just a wish. I don’t think we should continue kicking the can down the road. I think we should actually come up with a long-term plan and solution for how we can fund not just this budget but many budgets down the road.”
Montgomery County Education Association (MCEA) President David Stein testified that with the announcement of the new plan, “it is clear” there is a solution for next year’s school budget with or without the tax increase. But he added, “We remain convinced that a tiny increase in the income tax rate is a sacrifice that our residents are willing to make to fund the myriad of needs our county faces.”
Related Post:
Council ‘Develops Path Forward’ to Fund School Budget Without Increasing Taxes
