The Montgomery County Council’s Government Operations Committee introduced a bill Tuesday aimed at broadening eligibility for the Homeowners Property Tax Credit.
The proposed legislation would expand access to the County’s Supplement to the Homeowners Property Tax Credit (HOTC), a progressive tax benefit managed by Maryland’s Department of Assessments and Taxation (SDAT).
The credit provides relief for lower-income households by reducing their property tax burden.
Bill 3-25, known as the “Homeowners’ Property Tax Credit – County Supplement – Amendments,” seeks to raise the income eligibility for the County Supplement from $60,000 to $75,000 and increase the net worth threshold from $200,000 to $250,000.
The County has the ability to adjust these limits under state law.
“The Homeowners Tax Credit increases stability for our residents, especially seniors on fixed incomes and those who are the most burdened by increasing assessments by helping them stay in their homes,” said Council President Kate Stewart, who chairs the committee. “I appreciate the collaborative work of my colleagues to find an equitable path forward to provide a targeted solution.”
“As property assessments continue to rise across Montgomery County, more homeowners, especially those on fixed or limited incomes, are becoming cost-burdened and in need of relief,” said Councilmember Andrew Friedson. “That’s why I have consistently pushed back against property tax increases amid rising assessments and why I’ve been working on targeted tax relief to help older adults in our community age in place.”
“I’m happy to work alongside my Government Operations Committee colleagues in continuing the work to provide eligible residents a needed property tax credit that would help them to remain in their homes,” Councilmember Sidney Katz said. “This legislation puts them in a better position to have that option available to them.”
The bill also proposes raising the assessed value of homes eligible for the credit from $300,000 to $375,000. Additionally, the credit amounts would be adjusted annually based on the Consumer Price Index.
The legislation also mandates that the County Executive submit an annual report by March 15 detailing program participation for the current tax year.
A public hearing is scheduled for March 4.
