In July 2020 the Montgomery County Council introduced a bill which would increase recordation tax rates. GCAAR stands firmly opposed to this legislation.
Our President, Danai Mattison Sky, has testified against this measure, and your association leadership has been meeting with the Council to express our opposition to this legislation.
The bill is being heard in committee on October 12 and is tentatively scheduled for the full Council work sessions on October 20 and 27. We need you to tell your Councilmember why this would be damaging to housing affordability in an already devastated marketplace.
Please use the form on this page to send a prepared message to your Councilmember.
Under the current system, the recordation tax stands at $4.45 ($2.08 to the general fund and $2.37 for school construction funding) for each $500 up to $500,000. If the property exceeds $500,000, an additional $2.30 for each $500 is levied. Those funds go to capital improvements and rental assistance.
Bill 39-20E proposes an additional $0.50 per $500 below $500,000 be added to the school construction fee, as well as $0.50 per $500 above $500,000 to be paid into the same fund. There would also be a new fee for single-family homes exceeding $1,000,000, where an additional $1.00 for each $500 over $1,000,000 is added and used to fund the Montgomery Housing Initiative.
For homes above $500,000, the only jurisdiction in our region with higher recordation taxes than Montgomery County is the District of Columbia.
The Council cannot keep adding taxes and fees to the housing marketplace. Tell them we cannot afford this tax hike!