With recent county figures showing a loss of more than 5,000 jobs over the last year, Montgomery leaders hit the streets last week to thank businesses for operating in the county and counter increased efforts by out-of-state recruiters to entice firms away.

Economic development chief Pradeep Ganguly said County Executive Ike Leggett had asked him to organize a Montgomery County Business Appreciation Week long before Leggett proposed an 8.3 percent increase in the property tax rate and state lawmakers voted to raise the sales tax and increase income taxes on the state’s wealthiest residents.

Ganguly sent 26 delegations of local leaders to more than 250 businesses to ask how the county could help them grow.

Other states have stepped up efforts to entice Montgomery firms to relocate in light of state tax increases — specifically a now-repealed extension of the sales tax to computer services work. Ganguly said many business owners visited reminded local leaders of the ongoing efforts to recruit them elsewhere.

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“To a certain extent, that challenge is always there,” Ganguly said. Economic development offices across the country monitor when business leases are set to expire and time recruitment campaigns around that information. “… But, yes, when taxes increased, we did hear of heightened recruitment efforts,” Ganguly said.

Fairfax County economic development chiefs said they do not actively recruit businesses from other Washington-area counties, out of respect for local relationships, but they will work with Montgomery companies that contact them.

“We had 25 years ago, what we call a gentlemen’s agreement. That was, we don’t poach from each other, but if a company comes to us, we will work with them,” said Gerald Gordon, president and CEO of the Fairfax Economic Development Authority. “There have been increased calls lately, marginally increased, from Maryland businesses, probably because of the recent state tax stuff.”

Ganguly said he wants companies to remember what tax money funds.

“We have to pay for those good schools and the low crime rate and the good roads and infrastructure,” Ganguly said. “Are these higher taxes a challenge? Yes. Is that the only driver of business locations? The answer is no.”

Council Member Nancy Floreen said the county should be concerned about job loss.

“We have to avoid a tipping point situation that could drive people out,” Floreen said, pointing to Leggett’s property tax proposal that could raise taxes for businesses up to 24 percent. “That’s not just the big businesses, but also the little guys. I am very concerned.”

kmiller@dcexaminer.com