Montgomery County residents and business owners will pump an extra $105 million into the cash-strapped jurisdiction’s empty coffers just through steeper energy and cell phone taxes this fiscal year, according to new projections by the suburb’s chief economist. Residents will pay 150 percent more in energy taxes the next two years. Some, such as County Executive Ike Leggett, called the charge largely avoidable since residents can control how much power they use.
| More Montgomery projections | ||||
| Fiscal ’11 | Fiscal ’12 | Change | ||
| Per capita personal income | $72,910 | $76,450 | 4.9% | |
| Average household income | $194,690 | $203,860 | 4.7% | |
| Households | 363,750 | 367,010 | 0.9% | |
| Resident employment | 487,547 | 493,709 | 1.3% | |
| Population | 971,400 | 978,700 | 0.8% | |
| Source: Montgomery County Department of Finance | ||||
However, a dramatic spike in utility tax revenue shows that most residents’ energy bills have become more expensive.
Between July and September — the most recent figures available — residents paid $15.7 million in electricity taxes, a 138 percent jump from a year ago. And revenue from natural gas taxes was up 198 percent.
“We don’t have the numbers yet, but I would imagine they will be much higher,” said Montgomery Chief Economist David Platt, of electricity bills from the recent cold months, when residents likely maxed out their heaters — and their bank accounts — to stay warm.
Residents are charged 1.3 cents per kilowatt-hour of electricity use, and 11.5 cents per therm of natural gas, under rates that went into effect July 1, according to Pepco, the area’s largest electricity provider. By comparison, rates were half a cent per kilowatt-hour and 4 cents per therm, respectively, before filling a $1 billion budget gap this year.
Residents should brace for electricity bills similar to those they received during summer months.
One extreme example: Arthur Salzberg, of Chevy Chase, said his energy taxes soared from $9.21 in May to $63.40 in June.
Platt also projected the county will rake in another $18 million from higher cell phone taxes, which were increased from $2 to $3.50 per month for each line.
The higher energy charge will expire at the end of fiscal 2012, and Leggett previously told The Washington Examiner that additional tax increases were “off the table.” But officials will be forced to find at least $300 million to fill the county’s budget gap next fiscal year.
