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Dec 15 08 11:36a 900-000-0000 pel MC. FOL-CF Kensington Business District Association Phone: 301-933-1551 Fax: 301-942-4271 www. December 11. 2008 ‘The Montgomery County Delegation to the Maryland General Assembly Re: Montgomery County-Property Tax-Classes of Property and Special Rates MC 906- 09 Delegates. The members and directors of the Kensington Business District Association wish to thank you for the opportunity to offer opposition to the above referenced legislation. In these uncertain and difficult times for our businesses, this is not the time to consider any measures that might inhibit further job creation and retention, There is indeed a “tipping point” and many businesses are at that point where additional operating expenses can mean the difference in not making payroll. Our businesses in Kensington, as in other areas of the County, are suffering. Many of our members sit on committees devoted to the revitalization of the business community and this legislation enacting split rates for just Montgomery County-NO county in Maryland has them- will send a strong anti- business signal to not only existing business in the County, but to businesses that might be considering relocation here. Our businesses do not rely on County services to the same degree as individuals. We are a net “payer” and not a “receiver”, and we provide jobs, payroll, goods and services that are a source of County revenue. The example attached is an analysis of the commercial and residential property on the Town of Kensington side of Perry Avenue between University Boulevard and St. Paul Street. This street includes the Kensington Business District Association office and is used only for that reason as an example of our current ~split rate” real estate tax policy. This analysis shows the average tax rate for owner ‘occupied residential property to be over thirty eight percent (38%) below business property on the same street. The current Homestead Assessment Cap Tax Credit is estimated to cost the County $265 tnillion in FY 09-approximately 18 cents on the property tax rate, Tt does, however, bring in deferred tax payments even during periods of flat or decreasing property value. In lieu of our huge County budget deficit, why would we want to reduce this revenue source by reducing that tax rate? Further, this tax break is enjoyed exclusively by owner occupied residential properties, not businesses. To make matters worse, the benefit falls to the ‘owners of the more expensive houses located in better neighborhoods. Since this proposed legislation is basically revenue neutral, the result will be a further cedistribution of the property tax burden to our already strained business community ‘What are we attempting to accomplish and is this the best way to accomplish it? 3202 Pemry Avenue: Kensington, Maryland 20895 Dec 15 08 11:36a 900-000-0000 pee If this proposal can serve to initiate a comprehensive review of our current tax structure- including personal property, impact fees, resident credits, ete.-then this exercise has been, and will continue to be, worthwhile for our businesses, residents, and County as well. We will be anxious to be of help in this endeavor. cosy ol iH Dennis O. McCurdy President +3 000-000-0000 Dec 15 08 11:36a Example of Montgomery County Property Taxes - 2008 Tax Year Commercial & Residential Properties located on the south side of Perry Ave., Kensington, MD Not A Principal Residence LESS: County Actual County Actual County Tax 1D # Assessment Property Tax Rate County Tax Tax Credits Tax Tax Rate 1023575 $389,800.00 0.912 $3,554.98 0 $3,554.98 0.912 1026107 $293,086.00 0.912 $2,672.76 0 = $2672.76 0.912 1026095 $368,600.00 0.912 $3,361.64 0 $3,961.64 0.912 1019128 $305,500.00 0.912 $2,786.18 0 $2,786.18 0.912 1019948 $434,408.00 0.912 $3,961.78 0 $3,961.78 0.912 1021760 $376,032.00 0.912 $3,429.42, 0 $3,429.42 0,912 Average: $361,234.00 $3,294.46 $3,294.48 0.912 Principal Residence LESS: County Actual County Actual County TaxID# Assessment Property Tax Rate County Tax Tax Credits Tax Tax Rate 1021485 $431,692.00 ost2 $3,997.03 $2,31039 © -$1,62664 0.377 1022206 $498,990.00 0.912 $4,550.79 $1,428.22 $3.12257 0.626 1018421 $382,606.00 0.912 $3,489.37 $1,072.83 0.632 1023996 $390,690.00 0.912 $3,563.10 $1,914.55 0.422 1021007 $435,636.00 0.912 $3,973.00 $579.00 0.779 1022605 $396,162.00 0.912 $3,613.00 $1,828.75 0.450 1024956 $373,960.00 0.912 $3,410.51 $1,682.66 0.462 1019208 $365,772.00 ot $3,335.85 $579.00 $2,756.85 0.754 Average: $409,438.50 $3,734.08 $1,424.43 $2,309.66 0.563