By pushing back the time when impact taxes are collected, Montgomery County councilmembers Tuesday said they are making it easier for developers to finance and build housing projects here.
The legislation, which was passed unanimously, does not change how much money the county collects, and that money still will be used to fund road and school projects.
“We are experiencing a nationwide housing shortage, and Montgomery County is no exception,” said Councilmember Evan Glass.
“By changing the time at which impact taxes are collected, we will be able to reduce the overall cost of new housing by millions of dollars. Those cost savings will be shared with renters and buyers. If we want to build more housing that is affordable, we need to make it more affordable to build housing. This legislation does exactly that,” Glass said.
He called the legislation “another tool in the toolbox.”
Currently, anyone requesting a building permit must pay an impact tax within six months to a year of receiving a building permit.
Now, the builder is required to pay that tax at the time of final inspection of the housing project.
This reduces upfront costs, which councilmembers believe will encourage more builders to choose to build in the county.
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