A new bill seeks to reduce taxes for low- and middle-income residents of Montgomery County.
Titled the “Family Local Tax Relief Act of 2023,” the measure would cut taxes at the county level so that less money comes out of your paycheck.
Delegate Will Jawando explained that, as of now, everyone in Montgomery County pays a flat 3.2% tax rate, regardless of salary. However, if the proposal is approved, other counties in the state of Maryland would be allowed to:
- Establish a structure with various tax rates. That is, whoever earns less would pay less.
- Increase the maximum revenue fee to 3.7%
- Increase the contribution of high-income people from $500,000 dollars
- The use of those collections would be designated to a fund that reduces taxes for people of low and middle income.
“Right now for Montgomery residents, the rate is 3.2% (while) the state rate is 4.75 combining this rate we are currently at 7.95%,” explained Nataly Saldaña, tax agent.
Experts agree that this measure would reflect a great benefit for middle-class people and families.
“In terms of the proportion of what each contributor is paying in their state taxes, it does benefit the lower middle class that spends 17% of their annual income on their state taxes much more,” Saldaña concluded.
If this project is approved, in June of this year, families and residents could see a reduction in their tax contribution for the next year 2024.