HB500 Summary

• Authorizes Montgomery County Commission to increase the special ad valorem tax rate in the Montgomery School Tax District from $0.30 per $100 (3 mills) to a maximum of $1.85 per $100 (18.5 mills) of assessed value.

• Tax increase is subject to approval by majority vote of qualified electors in the district at a special election, with first collection due no earlier than the tax year beginning October 1, 2023.

• Excludes the City of Pike Road from the Montgomery School Tax District boundaries.

• Limits use of tax proceeds to no more than 6 mills for capital outlay, school facilities, or debt service related to school infrastructure.

• Requires Montgomery County Board of Education to adopt a strategic plan with performance metrics within six months and submit annual updates to the County Legislative Delegation for review.

• Reduces the maximum tax rate to $1.25 per $100 (12.5 mills) beginning October 1, 2028, unless continued levy at the higher rate is approved by a subsequent local act of the Legislature.