City Tax Bills Increase Due to County Water Fee

Real estate tax bills went out this week and despite falling values, most property owners will face an increase in their tax bills.

To help homeowner track these changes to their bills, the City of Gaithersburg posted a chart comparing the tax rates from fiscal year 2009 through fiscal year 2011.

“I had received several random questions regarding the increase in the tax bill and felt that posting the chart would be a proactive way to inform the community about the changes,” said Gaithersburg City Manager Angel Jones.

The chart shows the real property tax rates for the state, county, city, solid waste, city recycling and water quality protection charge comparing fiscal years 2009, 2010 and fiscal year 2011. Fiscal year 2012 is not on the chart.

“The table is information for city residents. We pride ourselves on our first-rate customer service and transparency,” Jones said.

City Finance Director Harold Belton said the chart allows residents to compare the tax rate increases over the past three years.

According to the chart, the tax bill for a property valued at $250,000 is expected to be about $130.34 more than last year; a tough pill to swallow as the country appears headed into the second part of a double dip recession.

Largely to blame- a water quality protection charge that was $49.00 last year per equivalent residential unit upped to $70.50 as of July 2011. That means that a single family homeowner pays a flat rate of $70.50 for the WQPC and townhomes pay a flat rate of $23.27 in the fee. The Montgomery County Council sets the WQPC rate annually. In 2009 that rate was $45.50.

The WQPC is a fee the county uses to pay for the structural maintenance of residential and associated non-residential stormwater facilities and water quality improvements in the county. That fee alone increases the tax bill by $21.50 for all single family homeowners.

Belton said he knew about the WQPC increase and hopes that the city sees its piece of that increase come back in the form of funding for city water quality issues.

“I hope we get our fair share of it,” he said.

Also adding to the increase is a higher county real estate property tax rate and the county’s solid waste tax, which increased from $41.43 in fiscal year 2010 to $52.77 per singe family household in fiscal year 2011, or $11.34.