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SPENDING LEVELS TOLERABLE -- continued from page 2...
employees expanded by 9,924 while contractual employment dropped 909 FTEs.   Health care costs for State employees will increase 14% for FY 2003. Several members of the Committee wanted it noted that the shirt to regular employment was a definite strategy of the Legislature who wanted to convert the contract employees.

   Hiram Burch spoke about aid to local government saying that for FY 2003 the increase would be 4.9% or $191 million.  Public 

schools will get a 4.8% increase, compared to a 15% increase for community colleges and a 10.7% for colleges and universities.

   Theresa Tuszynski indicated that the tax amesty income was still being counted and has reached $38 million.  The annual audit by the Comptroller will probably add $50 to 100 million to the revenues.  The Congressional stimulus package is still unknown and its affect on State income uncertain.  Personal income taxes are slightly down 

from last month, but sales taxes are recovering to projected levels.  Comparison of the September chart of General Revenues with the October chart of the same, shows wide variances in many base figures.  No Committee member asked why.
Property Taxes and the Constitution -- continued from page 1
upon the sale of a home.

   Montgomery County is largely ignoring the intent of the law as written by the General Assembly.  The County has been challenging property owners outside the regular three-year cycle and is systematically targeting recent homebuyers in order to circumvent the Homestead Exemption.

   In 2001 the County filed 783 off-cycle challenges, formally known as Petitions for Review.  Of these, nearly 99% targeted recent homebuyers.  For these targeted homeowners the County has created a de facto annual assessment system.  In addition, these homeowners are not protected by the Homestead Exemption since the County is retroactively challenging them back to the date they purchased their home.  My taxes have been increased 64% in a single year by the County.  And more than 750 other homeowners are seeing similar increases.

   Some homeowners are collectively working on the County's unfair practices.  I am leading the effort for equal protection and fair taxation.  We are engaging County and State officials.  Through these discussions, we have determined that the County is the only major roadblock to reaching a fair resolution.  The County Department of Finance defends their tactics in the name of higher revenues.  And the County Council has not taken a position.  We are hopeful that our ally in the County, Council Member Howard Denis, will introduce a bill that forces the County to end its profiling practices and off-cycle challenges.  Council Member Phil Andrews has stated his support for the County's unequal revenue generation activities.  The rest of the Council is silent on the issue.

   On the State level, elected officials are taking a cautious approach, but generally siding with the homeowners.  The State Attor

ney General has sided with the targeted homeowners.  The AG believes that the County is acting outside of the intent of the law and is likely undermining the Constitutional guarantees of equal treatment under the law.  Specifically, the AG notes, "The State Department of Assessments and Taxation believes and therefore avers that the systematic triggering of a reassessment of sold properties by Montgomery County based on the recent sale of a subject property is inappropriate under the triennial assessment process established in the Tax-Property article and contrary to the law."  The AG further notes that, "The Supreme Court has held that 'the equal protection clause...protects the individual from state action which selects him out for discriminatory treatment by subjecting him to taxes not imposed on others of the same class.'"
 
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