A Montgomery County bill intended to spur economic development in the county would likely cut revenues by $13.4 million — nearly 80 percent of development taxes’ expected earnings — in the current fiscal year, county Office of Management and Budget Director Jennifer Hughes said in a memo to the County Council.
Revenues for fiscal 2013 — which starts July 1 — would be cut by $3.8 million, Hughes said, putting the total reduction at $17.2 million over the two years.
Proposed a few weeks ago by Councilman Hans Riemer, D-at large, the bill would allow developers to wait to pay taxes and fees until after completing projects, rather than at the start of planning and construction. It would result in new jobs, Riemer told The Washington Examiner two weeks ago.
But those taxes help pay for road and school improvements, Hughes said, so those projects would be delayed. Among the projects that may be affected are Montrose Parkway East and the planned Clarksburg Cluster Elementary School.
The council’s Government Operations and Fiscal Policy Committee is scheduled to discuss the bill on Monday.
