For Immediate Release: Wednesday, July 23, 2025
Committees will receive a briefing on the County’s reserve policy; review bills to establish an excise tax on certain demolitions and renovations, day care and child care property tax credits, labor peace agreements for certain hotel development projects, and payment in lieu of taxes for certain public housing authorities
The Government Operational and Fiscal Policy (GO) Committee will meet on Thursday, July 24 at 9 a.m. to receive a briefing on a study of the County’s reserve policy and review Bill 21-25, Taxation – Day Care and Child Care Property Tax Credit, and Bill 5-25, Demolition Tax for Affordable Housing Production.
The members of the GO Committee include Chair and Council President Kate Stewart and Councilmembers Andrew Friedson and Sidney Katz.
The joint GO and Economic Development (ECON) Committee will meet at 1:30 p.m. to review Bill 22-25, Labor Peace Agreements – Hotel Development Projects.
The members of the ECON Committee include Chair Natali Fani-González and Councilmembers Marilyn Balcombe, Evan Glass and Laurie-Anne Sayles.
The joint GO and Planning, Housing and Parks (PHP) Committee will meet at 3 p.m. to review Bill 25-25, Taxation – Payments in Lieu of Taxes – Public Housing Authorities.
The members of the PHP Committee include Chair Friedson, Council Vice President Will Jawando and Councilmember Fani-González.
More detail on each agenda item is provided below.
Study on the County’s Reserve Policy and Options
Briefing: The GO Committee will receive a briefing from representatives of the Department of Finance and the County’s financial advisors, Davenport and Company, about the Davenport March 2025 Reserve Policy Study. The Department of Finance consulted with Davenport to analyze and provide possible recommendations to further strengthen the County’s reserve policy. The County has a long-established formal reserve policy that has been an important component of the County maintaining its AAA bond rating from all three rating agencies. Currently, the County’s reserves exceeded the 10 percent policy level of Adjusted Governmental Revenues (AGR) in Fiscal Year 2021-2024 due to stronger than estimated revenue growth.
Bill 5-25, Demolition Tax for Affordable Housing Production
Review: The GO Committee will review Bill 5-25, Demolition Tax for Affordable Housing Production, which would establish an excise tax on certain demolitions and renovations of single-family homes and specify the uses of tax revenues for affordable housing initiatives. The purpose of Bill 5-25 is to raise revenue for affordable housing initiatives in the County. The bill would create an excise tax on the activities of demolishing or partially demolishing a single-family home.
The lead sponsor of the Bill 5-25 is Councilmember Kristin Mink. Council Vice President Jawando is a cosponsor of Bill 5-25.
Bill 21-25, Taxation – Day Care and Child Care Property Tax Credit
Review: The GO Committee will review Bill 21-25, Taxation – Day Care and Child Care Property Tax Credit, which would increase eligibility for the day care and child care property tax credit, increase the amount of the tax credit and update terminology in accordance with state law. In 1988, the County passed into law a property tax credit for improvements to real property used by day care providers to provide care for children. The Maryland General Assembly has expanded the permissible credit in 2025. Expedited Bill 21-25 would increase the amount of the credit to $10,000 and expand eligibility to large family child care homes in line with state law.
The lead sponsor of Bill 21-25 is Council President Stewart. Councilmember Gabe Albornoz, Council Vice President Jawando, and Councilmembers Friedson, Katz, Glass, Sayles and Dawn Luedtke are cosponsors of Bill 21-25.
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Bill 22-25, Labor Peace Agreements – Hotel Development Projects
Review: The joint GO and ECON Committee will review Bill 22-25, Labor Peace Agreements – Hotel Development Projects, which would require Labor Peace Agreements (LPAs) on hotel development projects where the County is an economic participant, bringing the County in line with neighboring jurisdictions and industry norms in the hospitality and tourism sector. The purpose of the bill is to establish a general requirement that, whenever the County has a proprietary interest in a hotel development project, the employers at the project must enter into LPAs with unions. These agreements avoid strikes, lockouts and other adverse economic actions that might affect the County’s proprietary interests.
The lead sponsors of Bill 22-25 are Councilmember Fani-González, Council President Stewart and Councilmember Katz. Council Vice President Jawando and Councilmembers Mink, Luedtke, Glass and Sayles are cosponsors of Bill 22-25.
Bill 25-25, Taxation – Payments in Lieu of Taxes – Public Housing Authorities
Review: The joint GO and PHP Committee will review Bill 25-25, Taxation – Payments in Lieu of Taxes – Public Housing Authorities, which would define housing authorities, expand the automatic payment in lieu of taxes (PILOT) for public housing authorities of qualifying housing developments, modify the procedural method for executive regulations and implement technical and stylistic changes.
The purpose of Bill 25-25 is to increase the housing stock in the County by expanding the existing tax abatement program for an affordable housing development owned or controlled by a public housing authority or an affiliated nonprofit entity of a public housing authority. A PILOT provides a negotiated agreement that allows the County to lower or exempt 100 percent of the costs of real property taxes in exchange for a property owner’s commitment to provide affordable housing.
The lead sponsor of Bill 25-25 is Councilmember Katz. Councilmembers Friedson and Luedtke are cosponsors of Bill 25-25.
The Committee meeting schedule may change from time to time. View the current Council and Committee agendas, Council staff reports and additional information on items scheduled for Council review on the Council website .
Council and committee meetings are streamed live on the Council’s web page via YouTube and on Facebook Live and can be watched on County Cable Montgomery on Xfinity/RCN 6 HD 996/1056, Fios 30, and on the CCM live stream .
Release ID: 25-259
Media Contact: Sonya Healy 240-777-7926, Benjamin Sky Brandt 240-777-7884
For updates and link to press release, see here: http://www2.montgomerycountymd.gov/mcgportalapps/Press_Detail.aspx?Item_ID=47399