Northwood News ♦ December 2008

Proposed Bill Would Give County Employees Special Tax Breaks

The Montgomery County delegation has introduced Bill No. MC 919-09 into the Maryland General Assembly.  This bill would enable the County Council to grant property tax credits and exemptions to County employees.  Specifically, the credit would apply for the first five years after purchase.  In addiction, employees would be exempt from the recordation tax.

In jurisdictions where housing prices are high and government salaries are low, it is often difficult for teachers, police officers, and fire fighters to live where they work.  Employer-assisted housing for government workers is one way to address such a problem.

This bill, however, goes way beyond the concept of affordable housing.  To begin with, the program is not limited to primary residences.  In fact, employees could receive tax credits and exemptions for buying a second home or even for buying rental property as an investment.  Secondly (and even more incredibly), there is no income limit so employees making six-figure incomes would be included.

Finally, the bill includes employees at Montgomery College, MCPS, the Housing Opportunities Commission, WSSC, and M-NCPPC.  Park and Planning, you remember, maintains it is not subject to oversight by the County Executive, the County Council, or the Inspector General by virtue of being a bicounty or state agency.  How can M-NCPPC workers be County employees if they don’t answer to County Government?

Montgomery County is in a worsening budget crisis, yet many County employees are getting monumental raises (roughly eight percent in the current budget and a cumulative increase of about 30 percent for the next three years.)  For this reason (as well as the problems listed above), the Montgomery County Civic Federation passed the following resolution on 10 November 2008:  “Be it resolved, that the MCCF strongly opposes State Bill MC 919-09 and urges our state delegation to withdraw it from further consideration.”   ■