In a decisive move to address a projected $15.8 million budget shortfall, the Montgomery County Board of Commissioners has adopted a $610.9 million budget for the fiscal year 2025. The approved budget includes a 9% increase in the county's real estate tax rate, raising the millage from 5.178 mills to 5.642 mills. This adjustment is expected to generate approximately $28.8 million in additional revenue for the county's general fund.
🗝️ Budget Overview:
The 2025 budget allocates funds across various sectors, with significant investments in housing, mental health services, infrastructure projects, and county staff and programs. Real estate taxes constitute the largest portion of the county's operating revenue, accounting for 54.1% of the general fund's income (source: Montgomery County PA).
🗝️ Property Tax Implications for Homeowners:
The increase in the real estate tax rate will impact homeowners differently based on their property values. For example, a single-family home valued at $520,100 will see an annual tax increase of approximately $79, bringing the total annual tax to about $965 Glenside Local. Approximately 40% of single-family homes in the county, particularly those valued between $200,000 and $414,000, will experience an average annual tax increase of $49, resulting in a total of $601 per year (source: Glenside Local).
🗝️ Public Response and Legislative Action:
The proposed tax increase has elicited mixed reactions from residents. During public hearings held in December 2024, some residents expressed concerns about the financial burden of the tax hike. Ambler resident David Morgan voiced his disappointment, stating, "I was disappointed to see the 9 percent proposed increase in taxes" North Penn Now. Despite these concerns, the budget was approved in a 2-1 vote, with Commissioners Jamila Winder and Neil Makhija voting in favor, and Commissioner Tom DiBello voting against (source: North Penn Now).
🗝️ Moving Forward:
The county has implemented a Real Estate Tax Deferral Program to assist eligible residents facing financial hardship due to the tax increase. This program allows qualifying homeowners to defer payment of the increased tax amount until a later date . Residents interested in this program are encouraged to contact the Montgomery County Finance Department for more information.
As Montgomery County moves forward with the 2025 budget, officials emphasize the importance of balancing fiscal responsibility with the needs of the community. The additional revenue generated from the tax increase is expected to support essential services and infrastructure projects that benefit all residents.
Montgomery County Real Estate Market Sees Steady Growth in 2025
