County Council Approves Recordation Property Tax Increase
The Council is seeking to fund nearly $1.72 billion in construction projects for Montgomery County Public Schools (MCPS). Expedited Bill 15-16 would allocate an additional $200 million for Fiscal Years 2017-22 for capital projects to increase school capacity and improve buildings.
In addition to school construction, $5 million would be set aside annually to assist low and moderate income households with rental assistance.
The Council plans on paying for the projects by increasing the recordation tax by $1 per $500 and the recordation tax premium by and additional $0.75 per $500 during the sale or refinancing of real estate. The tax premium only applies to sales and refinancing above $500,000. First time homebuyers would receive an exemption for the first $100,000 of their home purchase.
Council President Nancy Floreen was the lead sponsor of the legislation.
“As parents well know, and testified to earlier this spring, our schools are bursting at the seams,” said Council President Floreen in a news release. “While nobody likes the idea of increasing taxes of any kind, our needs are great, and the recordation tax is the most progressive approach to meet the needs our residents have clearly identified as their top priorities. The recordation tax is just one piece of what I call an ‘education first’ budget that will finally give our students some long-overdue relief.”
The new law is scheduled to take effect from September 1, 2016.
The Montgomery County Council took a straw vote, unanimously approving the FY 2017 budget recently. The Council is scheduled to take a final vote later this week. In this MyMCMedia Extra video, County Executive Ike Leggett talks about his concerns with the budget, including the recordation tax rate hike, additional spending, and employee negotiations. Related Posts:
"21 This Week" Covers Proposed Recordation Tax Increase, Governor Hogan Moves to Reduce State Fees (VIDEO)
Casey Aiken hosts the latest episode of “21 This Week.” Aiken and the panel discuss Montgomery County Council’s plan to increase the recordation tax; Prince George’s County Council’s recent ban on hydraulic fracturing, or fracking; Governor Hogan’s plan to reduce 155 state fees; and the Obama administration guidance to public schools regarding transgender students. This week’s panel […]
UPDATED Montgomery County Council President Nancy Floreen introduced legislation this week to change the rate of the recordation tax paid when properties are sold or refinanced. According to a Council news release, the tax premium only applies to sales and refinancing above $500,000 and the move will stimulate funding for additional school construction and affordable […]