Tag Archives: Property tax

Increased Property Taxes? Who’s to Blame?

For homeowners in Rockville, July brings the annual property tax bill. I’m guessing that most people simply look at the bottom line and grumble that it’s higher than last year, blaming it on the government. But we’re the government, so we can and should tell our elected officials when it’s okay to be taxed and how we want those funds spent. Which elected officials should we blame? That’s where it can get confusing and far too often I’ve seen the wrong people blamed for the actions of others. Indeed, the Rockville Mayor and Council too often is unfairly blamed for high taxes, when it’s usually the fault of the Montgomery County Council. Take a look at the breakdown for my property taxes, which will be roughly equivalent to all other homes in Rockville because we pay the same percentage of taxes according to the assessed value of the property. As you can see in the pie chart, Montgomery County collects nearly two-thirds of the property tax (blue), Rockville about a quarter (orange), and the State of Maryland about ten percent (green). Rockville collects another ten percent for trash and stormwater management (light orange) but Continue reading →

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Are Rockville’s Taxes Going Up, Down, or Staying Flat?

General Fund Revenues by Source, FY 2016 Adopted Budget, City of Rockville, page 9.

General Fund Revenues by Source, FY 2016 Adopted Budget, City of Rockville, page 9.

In elections, taxes are often a hot-button issue and that’s no different in the current Rockville Mayor and Council campaign. Taxes are are the largest source of government revenue and directly affect most residents and businesses, but they aren’t the only source.  For Rockville, those sources include fees, permits, fines, licenses, investments, and overhead. As you can see in the chart from the City’s FY2016 adopted budget, property taxes contribute 51 percent and “Other Gov’t” (which consists of highway user taxes and income taxes) is 25 percent.

Property taxes not only represent the largest share of general fund revenues at $38 million but they are also expected to grow more than 5 percent in 2016 compared to last year.  That’s not because of increased rates, but increased property values. Although I always grumble when I receive my property tax bill, I’m slightly mollified by knowing that the value of my house has also increased (and that I’m helping pay for those things I value in my community, such as roads, parks, police, libraries, schools, etc. etc.). In chatting with others in the community, they also grumble about property taxes but place most of the blame on the City of Rockville, but it should actually be aimed at Continue reading →