Cardin to Hold Event on Van Hollen's Turf

Duncan, Perez Talk Taxes

County homeowners opening their mail next month might think they have received campaign literature from Duncan and Council President Tom Perez (D-Silver Spring). But the letter will be an official notification of fiscal 2006 tax rates.

Following this spring's grueling battle in the County Council, Perez and Duncan are sending every homeowner a letter on July 1 detailing the council's budget decisions on how much tax relief to offer residents.

Despite opposition from Duncan, the council responded to record property assessments by cutting the property tax rate by 4 cents and giving an additional property tax credit of $116 to every resident. The council decided to stick to a voter-imposed property tax cap for the first time in four years.

Duncan, who wanted to override the charter limit by a record $67 million, was a vocal critic of the council's budget. He submitted a budget that included a 2-cent reduction in the property tax rate, arguing the county couldn't afford a larger tax cut. He instead supported tax credits for residents on fixed incomes, which the council also supported.

But all that background is lost in Duncan and Perez's letter.

Instead, it highlights many of the same themes Duncan plans to focus on in his all-but-declared campaign for governor.

"Montgomery County has enjoyed great success over the years with a strong economy, record growth, historic educational gains and safe streets," the letter begins. "This progress didn't happen by chance. It was achieved through hard work and a commitment to making this a better community."

The second paragraph then attempts to connect rising property assessments to investments in the county school system.

"The challenges we face today are the result of our success. Our strong economy and nationally ranked school system mean that more people want to call Montgomery County home, and property values are on the rise," it says.

In the third paragraph, Duncan and Perez take a swipe at Republican Gov. Robert L. Ehrlich Jr. , who supported a 5-cent increase in the state property tax rate in 2003. "However, increasing property values also mean rising state property assessments. Coupled with the governor's nickel increase in the state's property tax rate, every family budget is feeling the squeeze. . . . That's why the county's fiscal year 2006 budget includes $85 million in property tax cuts and credits."