Summer temperatures and energy taxes are on the rise in the Washington, D.C. suburb of Montgomery County, Maryland. WTOP News reports that on July 1st, a 150 percent energy tax hike on homeowners took effect. The tax increase was part of budget enacted earlier this year.
Per the Washington Examiner: "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 prior to filling a $1 billion budget gap this year." While these rates seem small, they add up substantially over time.
As the temperatures reach triple-digit levels and air conditioners run almost non-stop, residents of Montgomery can expect to see their utility bills go up like the mercury on an old thermometer. A resident of Chevy Chase reports that his energy taxes rose from $9.21 in May to $63.40 in June, a $54 jump in just one month. Also, a Gaithersburg resident says that his May electric bill listed $7.31 in taxes, but now says $41.63, a $34 difference! County officials predict that residents will pay about $150 more in taxes this year.
In enacting the tax hike, county officials said it was necessary to prevent draconian cuts to government services. Yet, the county's budget has grown considerably over the years. Rather than reduce spending to keep the budget manageable when the economy turned sour and tax revenues shrank, the county has turned to enacting more taxes or raising rates on hard-working families. In fact, Montgomery County residents now shoulder one of the highest tax burdens in the national capitol region. County officials are going after everything they can think of, from energy to wireless phones; the creativity behind the tax hikes is beyond comprehension. One proposal considered by Montgomery County in its desperation has been charging fees for use of portable toilets.
Montgomery County needs to learn that increasing taxes is not the solution to its budget woes. Instead of heaping more taxes on families, the county needs to recognize that restraining spending is the better way forward. Let's hope that cooler heads on the County Council will prevail in the budgets ahead.