Montgomery County budget fight centers on competing tax plans

MONTGOMERY COUNTY, MD. - Montgomery County is facing a sharp budget standoff after the county council rejected County Executive Marc Elrich’s proposed $8 billion budget, which included a 6.3% property tax increase aimed at funding schools, maintaining county services and closing a projected budget gap.

In response, council leadership advanced alternative plans that would shift the county’s tax structure, including a proposed progressive income tax with rates ranging from 2.5% to 3.3%.

Lawmakers are also considering eliminating an income tax offset credit used by many homeowners to reduce their annual property tax burden, according to FOX 5 D.C. reporting. 

What they're saying:

Elrich has strongly opposed the council’s approach, calling it a "con job" and arguing that the changes would ultimately cost homeowners more. He estimates the proposed elimination of the tax credit alone could add nearly $700 per year for some residents, while shifting more of the tax burden onto homeowners rather than commercial properties.

Supporters of the council’s direction say the goal is to modernize and rebalance how the county generates revenue without relying on higher property taxes. They argue the income-based approach would create a more progressive system, though details are still being debated.

Critics, however, say the proposals risk increasing costs for working families and point to broader concerns about government spending.

Some Republicans have argued the county should instead focus on reducing expenditures to balance the budget without raising taxes.