Friday, May 26, 2017

MoCo Council passes tax hike budget, bloated with payoffs to donors and allies - and themselves

The Montgomery County Council yesterday unanimously passed another budget that will raise your tax bill for FY-2018, in order to cover their highest-in-the-region salaries, and taxpayer-funded giveaways to political allies in the non-profit and contracting fields. Buried in the Council press release is a legally-required admission that your tax bill will increase, not decrease. That's because, while the Council can technically claim they "held the line on taxes," the corrupt tax system they've put in place automatically hikes taxes based on increased real estate assessments.

Allies of the Council in the local media went even further than the Council's own press release Thursday, falsely declaring that taxes had decreased - even as the release stated otherwise. Fake news. In fact, the Council posted a required ad in local newspapers several weeks ago announcing a budget with an increase in taxes. This follows last year's all-time-high property tax increase of 9% (which many County homeowners found actually translated into tax hikes of 10% or more, based on - yep - those automatic tax hikes that happen whether the Council increases the rate or not), and a major hike in the recordation tax.

So "holding the line" in this case means we're still at the highest level of taxation in Montgomery County history. The Council didn't have to move a muscle to get all that, and a little bit more, from your wallet for this budget.

As I reported a few weeks back, the budget massively overpays for procurement purchases, and funnels money to key donors and political allies in often-duplicative non-profit social services. Some who receive salaries from those non-profits turn portions of their tax hikes into campaign donations for the very councilmembers who voted to approve the funding for their organizations. Funding for a new microlending "Bank of the County Council" can also be "paid forward" by recipients to the campaigns of councilmembers. Those involved in determining who receives the microloans are either directly appointed by the Council, or are within their direct orbits of political influence.

Whether you pay taxes in Montgomery County can also depend on who you are. As I reported this week, developer Regency Centers was found to be in arrears to the County, having not paid their tax bills on two Westbard properties. Yet their development proposals are being pushed through the approval process, at taxpayer expense. As you know, ordinary citizens like you and me can be denied various government benefits and services if we are delinquent on our taxes.

There's a lot in this budget for the beleaguered County taxpayer to review, and perhaps even more for the FBI to examine. Such an examination could turn the Council's unwarranted budget victory lap into a perp walk outside of 100 Maryland Avenue.

18 comments:

Anonymous said...

Did you ever contact the FBI with your concerns?

Anna Van Horn said...

Thankfully, property owners ease into the increased assessments over three years.
Assessed every three years, increases staggered over 3 years. Other jurisdictions across the country don't offer staggered increases-all due in 1st year and every year after.
It's not like they are springing something new on taxpayers. This has been the case for a long time.

I don't agree with much of the council's actions, but pick your battles. This part is routine.



May 26 1978 - The first legal casino in the Eastern U.S. opened in Atlantic City, NJ.


Anonymous said...

It's just the usual lack of leadership. It's really easy to pass a budget where everything is funded, thanks to tax increases.

It's much more difficult to pass a budget where something had to be cut. County leaders are unwilling to lead like that. Take privatization of the DLC (alcohol sales). Leggett claims it generates $30mln in revenue (out of the $5bln+ budget) and they can't find a way to make that up. Yet, they found about the same amount of money for the new minimum wage hike costs (which didn't pass)... so where did that planned money end up?

The Elon Musk of Bethesda said...

I wouldn't say this was the best meme possible for use, but at least it isn't Will Smith.

Anonymous said...

#Reheated #ArgleBargle

#LitanyOfStDyer

Anonymous said...

"As I reported this week, developer Regency Centers was found to be in arrears to the County, having not paid their tax bills on two Westbard properties."

"$904.05 on a 46,609 SF property at Westbard, and $384.98 on a second, .34 acre property."

Seems like only a fraction of the total annual bill. Do you know the total amount?

Robert Dyer said...

6:00: I'd like to see you not pay "only a fraction" of what you owe the IRS, and see what happens. It's the offense, not the total amount, that matters. And the hypocrisy, of the County bending over backwards to get their applications through, while they are in arrears to the County. Unreal!

Anonymous said...

Reporters can be loved or they can do journalism. They must pick one.

Anonymous said...

"Robert Dyer is not loved, therefore he is a journalist."

This is called "Denying the Antecedent".

Anna Van Horn said...

You talk like this was a purposeful act! Little property parcels get missed all the time. And those amounts are obviously only a portion of the entire bill. Was there a purchase closing? Those tax allocations are often off by a day or two, leaving a small balance due or a small over-payment. For all we know those could be late fees, or disputed fees. Did you see the property bills?

And you were the one who noted that since they no longer appeared on the list, they must have paid. It really sounds like an inadvertent error.

Robert Dyer said...

7:10: One of them was a huge property, if you look at my report. You said they have paid since my report, but I personally have no proof of that.

Anna Van Horn said...

Robert, *you* said that yesterday, kiddo. After I noticed they weren't on the list.

I haven't seen any property identifiers, so I have no idea which parcels these are.

But trust me that weird sh*t happens with RE bills. Like splitting a parcel into two and only mailing out one bill so the other sat unpaid through no fault of the owner. Or a $50 credit on one parcel while they harass the owner the adjacent piece for a $50 balance due because they applied the payment wrong. These were quite awhile ago, but you get the idea.

Anonymous said...

Your posts are commonly ridiculously, but "corrupt tax system they've put in place automatically hikes taxes based on increased real estate assessments" might very well take the cake.

The tax RATE went down; if someone's property value has increased enough to more than offset the drop in tax rate then it's remarkably dumb to claim that's a bad thing. My salary has gone up compared to last year, too; should I whine that that's a bad thing since now I pay a few dollars more in income taxes as a result?

Anonymous said...

Non-profits in this area are generally businesses with overpaid staff.

Robert Dyer said...

9:04: Home value going up only helps if you are selling it right now. Otherwise, you just get stuck with a higher tax bill.

Anonymous said...

Or re-financing
Or financial planning

Anonymous said...

Are there any regional jurisdictions that *do not* base property tax rates on assessments?

Anonymous said...

California has some odd calculations using prior sale price, but off the top of my head I can't think of any that aren't based on assessments.