10/14/2026
I testified at the County Council yesterday. The new Homeowner property tax credit is definitely not replacing the ITOC the previous income tax offset credit that lowered property taxes for about 200,000 homeowners, but if the County Council plans on using the homeowner property tax credit to mitigate the impact of the removal of the ITOC particularly on residents with limited income and lower value homes, the current program needs to be amended in my mind.
I have included a brief summary of my oral testimony below.
Summary of Testimony — Bill 47-26 Homeowner Property Tax Credit
Montgomery County Council | October 13, 2026
Position: Support with Amendments
I support expanding property tax relief for homeowners with limited incomes. However, I have several concerns about the existing Homeowners’ Property Tax Credit Program. I am proposing two amendments.
1. Limited Scope
Unlike the former Income Tax Offset Credit (ITOC), which benefited approximately 201,000 eligible properties, the Homeowners’ Property Tax Credit has stricter income requirements and property assessment limitations.
2. Assessment Ceilings
The county's assessment ceiling is $383,000, compared with $300,000 for the state credit. These ceilings are substantially below Maryland's median home price of approximately $446,400 and Montgomery County's median of approximately $610,000–$625,000.
3. Complexity and Unpredictability
The application requires extensive documentation, and the calculation is difficult to understand. Homeowners cannot easily predict how much relief they will receive, making household budgeting difficult.
4. Lack of Transparency
Homeowners should receive an individualized explanation showing how their credit was calculated, including the income, property assessment, and limitations used.
5. Proposed Amendments
Written determination: Require an individualized calculation notice with information about review or appeal procedures, preferably provided with the revised tax bill.
Increase the assessment ceiling: Raise the county's $383,000 ceiling to better reflect current housing values, using Maryland's median home price as a benchmark.
6. Additional Recommendation
Consider providing an online calculator so homeowners can estimate their credit before applying, if feasible.
