Montgomery County is losing its share of millionaires, causing a sharp decline in income tax revenue.
County officials estimate next year’s budget deficit will be more than $761 million. Much of the shortfall is tied to a few residents who have either lost money in the economy, died or fled Maryland‘s new millionaire tax.
County records show Montgomery lost $4.6 billion in taxable income between tax years 2007 and 2008. The number of income tax returns above $1 million declined by 27 percent during that time.
County Executive Isiah Leggett says some wealthy residents who own homes in other states are establishing residency elsewhere. Officials believe the state’s millionaire tax is a factor. Duh!
The tax is set to expire this year. The General Assembly is considering an extension.