I often hear Rockville residents grumble about property taxes and they often blame the city for taking an unfair share of their hard-earned income. Although property taxes in the City of Rockville have held steady for the last few years, they’ve risen in Montgomery County. From 2007 to 2012, the County Council has increased the tax rate each year–but hardly anyone in Rockville has noticed and put the blame in the right place. In 2007, the property tax rate was 62 cents for every $100 in assessed value, today it’s 72 cents–a 15 percent increase over five years. Businesses were similarly affected through personal property taxes (which is assessed on inventory, manufacturing equipment, etc.), rising from $1.57 to $1.81, a 16 percent increase over five years. No changes at the State of Maryland–it does not assess property taxes.
Why blame the City and not the County? I suspect it’s because residents assume that 100 percent of their property taxes goes to the city in which they live. Actually, each jurisdiction sets its own rates and you’ll see it split out in writing on your annual property tax bill. If you live in Rockville, for every $100 in the assessed value of your property, you pay 72 cents to the county and 29 cents to the city. Today, the median sales price for a house is Rockville is $416,000, so the total annual property tax bill would be $4,227–$3,012 for the county and $1,215 for the city. Montgomery County receives more than twice as much money from you as the City of Rockville–do you feel you get the same proportion of value in return?
It is has been proposed that a person’s recognition that they pay property taxes is directly related to their level of civic engagement (e.g., voting, writing city council, speaking up at public hearings). In other words, a homeowner knows they pay property taxes because they receive an annual bill, so they’re aware that they’re taxpayers and have a say about government. That’s not true about renters, condo owners, or resthome residents, whose property taxes are rolled into their monthly fees or dues, so they’re not as apt to think they’re tax payers and have a stake in government. What do you think?
Tax rates for the last ten years are available from the Maryland State Department of Assessments and Taxation.
Max,
A big part of the problem is that our residents receive a combined tax bill. as a result that don’t realize that the City portions is about 25 % of the total and/or believe that the entire bill is the City’s.
We need the City to get the county to send a separate bill for the City portion of the full property tax bill. in this way, folks may understand more clearly your points about the relative flatness of the City’s property taxes.
I am also concerned about many residents lack of understanding about why they receive separated water and sewer bills. from my experience, many donot understand that the water bill is tied to their individual water usage.
Thanks for easing theirs issue.