Marc Elrich suggests 3.5% property tax hike to support campaign for increased funding

The Montgomery County Executive, Marc Elrich, has recently proposed a 3.5% increase in property taxes not to tackle budget deficits or enhance public services but to finance a robust campaign urging for another tax rise in the following year. Elrich disclosed this plan outside a Bethesda Whole Foods store, emphasizing the need for resources to advocate for increased taxes efficiently. He stressed the importance of investing in securing future revenue through the facilitation of tax hikes.

This decision comes just after a 4.7% property tax increase orchestrated by Elrich two years ago, which he initially described as a rare occurrence. However, he now acknowledges the costly nature of persuading residents to support additional tax increments. Despite concerns raised by the county’s federal employees anticipating layoffs due to federal workforce reductions, Elrich remains committed to his proposal, citing the necessity for a stable revenue flow through property taxes amidst economic uncertainties.

Acknowledging criticisms regarding taxing financially strained residents to finance a tax increase campaign, Elrich justifies his approach as creating a sustainable revenue-generating cycle. Elrich’s strategy involves utilizing taxes to fund campaigns advocating for further tax increments, ultimately yielding more revenue to support future campaigns, thereby forming a self-sustaining financial model over time. This approach has raised doubts among locals, with some contemplating the balancing act between meeting mortgage payments and increased property tax obligations.

In response to rising expenses associated with public awareness initiatives, polling, and campaign materials, Elrich’s office affirms the imperative of next year’s proposed tax increase to cover such costs effectively. Despite the potential to reevaluate tax increments in the future, Elrich humorously affirms the likelihood of continued tax hikes for precautionary reasons.

In a related development, county officials are reportedly exploring a “Homeowner Loyalty Program” where residents surviving consecutive property tax rate hikes without mortgage defaults could receive an “I support Affordable Housing” tote bag, subject to a nominal tote bag fee. This initiative aims to reward residents resilient to repeated tax increases, potentially fostering loyalty towards the county’s property tax policies.