County Executive Ike Leggett is planning to propose a property tax increase either this year or next as the county faces an estimated $200 million revenue shortfall, according to a Washington Post report.
The Post reported that the “significant” increase would probably be included in the fiscal year 2016 budget, which is being planned now, or in the 2017 budget next in order to offset projected cuts from the state. The county executive plans to make a final decision after reviewing financial indicators such as tax revenue projects from the state, according to the report.
The Post reported the increase would likely require a unanimous vote from the County Council because it would require an exemption from the charter limit—which voters previously approved and limits property tax increases to the rate of inflation and the value of new construction.
The county hasn’t raised taxes above the rate of inflation since the recession in 2008. The tax increase is not to be confused with a new tax that could be instituted under the proposed Independent Transit Authority (ITA).
The county last week released details about the ITA, which Leggett is proposing as an independent entity to plan and construct Bus Rapid Transit projects in the county. County officials are also asking for an exemption from the charter limit to allow the ITA to raise funds. The ITA proposal, which is still in its very early stages and has not yet been approved by the County Council, has already drawn some criticism including a blog against its creation and an online petition protesting it signed by more than 1,000 people by this morning.
