On Tuesday, April 19, 2016, a bill was introduced that would increase recordation taxes by $0.75/$500 on all sales and refinances. If the increase is made law, recordation taxes on the purchase of a $400,000 owner occupied home, for example, would increase from $2,415.00 to $2,940.00. Likewise, on a house that costs $1 million, the recordation taxes would increase from $8,105.00 to $10,280.00.
The increased revenue would pay for Montgomery County Public School capital improvements, County Government (non-school) capital improvements and rental assistance. The tax increase is expected to raise $125 million for school improvements, $30 million for County Government projects and $30 million for rental assistance over the next six years.
The Public Hearing on this bill is Tuesday, May 10 at 1:30pm and a final vote is expected to take place the following week, likely sometime between May 16-18.
If you have any questions concerning the proposed legislation or questions regarding real estate taxes, contact one of the attorneys on the right. If you have questions concerning other types of taxes, we would be happy to direct you to attorneys in the firm that can answer those questions.
CONTACT
Matthew D. Alegi
David M. Kochanski
Marc D. Lipman
MORE INFORMATION
For more information regarding our Residential Real Estate Settlements Group or our general real estate transactions and litigation practice, please contact the Group Chair at 301-230-6574 or [email protected].
This publication/newsletter is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer.
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