Montgomery County, Maryland is seeing its property values drop over $10 billion since fiscal year 2011. According to The Washington Examiner, taxable property values are projected to fall to $157.1 billion in fiscal 2013 from $167.8 billion in fiscal 2011. This decrease will greatly affect several of the county’s services as property taxes make up about 30% of the county’s revenue. The drop in value has caused the county to propose a 4.5% increase in the property tax rate after a 4.2% increase last year.
Montgomery is left with little choice but to raise the tax rate and extend the disliked energy tax increase in order to avoid massive cuts in services. Similarly, Prince George’s County, Maryland has also been hit by plummeting property values as its assessable tax base has dropped $20 billion from $96 billion to an estimated $76 billion in fiscal 2013.
To read the full article from The Washington Examiner, click here.