D
ecember 22nd, 2024 | By Ryan Genova
Montgomery County Commissioners have approved a $610.9 million budget for fiscal year 2025, addressing a $15.8 million deficit by increasing property tax rates from 5.178 mills to 5.642 mills. This nine percent real estate tax hike is expected to generate around $28.8 million in new revenue.
According to Chief Financial Officer Dean Dortone, approximately 40% of single-family homes with values between $200,000 and $414,000 will see an annual increase of $49 in county real estate taxes, amounting to $601 per year. For the average single-family home valued at around $520,100, this translates to a $79 annual increase to $965.
To mitigate the impact on low-income residents, the county offers assistance programs such as the Real Estate Tax Deferral Program and the Property Tax/Rent Rebate Program through the Pennsylvania Department of Revenue. The Active Volunteer Real Estate Tax Rebate Ordinance also provides relief to qualified first responders.
The budget reflects increased expenditures of $43.1 million (7.6 percent) over the 2024 budget, primarily driven by personnel costs, debt service, and a projected inter-fund transfer to the county's 911 fund. The main revenue sources include real estate taxes at 54.1%, federal and state grants at 34.6%, and departmental earnings at 11.3%.
