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NCA Continues Pressure to Stop Assessment Bill: An Update from Montgomery County

Over the last several months, NCA has been fighting alongside Montgomery County, Md., clubs to fight a newly proposed assessment bill that would dramatically increase the property tax rates for club land throughout Montgomery County—and possibly the entire state.

Currently, Maryland clubs have the opportunity to enter into an agreement with the state that ensures the club’s land remains open space. In return, the state reduces the assessed value of land on which the club is located. With this agreement, clubs preserve green space, limit urban sprawl and help to minimize traffic congestion.

The proposed measure would remove this opportunity for clubs in Montgomery County to enter into such an agreement. This would effectively increase the real estate taxes for all county clubs.

The Latest

NCA and our Maryland allies have worked with Maryland House Majority Leader Bill Frick (D) to stop the bill from passing. Our coalition is making progress.

No News is Good News
First, the Montgomery County subcommittee is split 3-3 on the bill, providing no recommendation. According to Frick, this is good news as the subcommittee chose not to move the bill forward during its hearing. Though the legislation still remains, the fact that a Democratic bill hitting private country clubs was not able to move in a hearing made up of only Democrats is positive. This signals that NCA’s voice is being heard.

Amendments on the Table
Delegate Moon, who proposed the original bill, has offered two amendments to the legislation. 

  1. Increase the tax assessment per acre from $1,000 to $5,000.
  2. Assess acreage at market value rates with up to the $400,000 taxed at $1,000 per acre.

The second amendment would mean, for example, that if a club has 200 acres that are assessed at a market value of $4 million ($20,000 per acre), the first 20 acres (representing $400,000) would be taxed at $1,000 per acre. The remaining 160 acres would be taxed at market value.

NCA opposes these amendments as they still dramatically increase the tax burden on clubs, even if less than the original bill. Additionally, NCA is optimistic that these amendments do not make the bill more palatable for the subcommittee to vote in favor of the legislation. In all, the increased tax burden proposed by either of these amendments would impose significant costs to clubs, by jeopardizing the status of workers, club services and by negatively impacting the local community.

NCA will continue to fight this bill to protect clubs in Montgomery County and the state of Maryland. If your club learns of any local issues that impact your and neighboring clubs, please contact NCA’s Vice President of Government Relations & General Counsel Brad Steele at [email protected].

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