An organization representing area realtors have installed signs declaring “Higher Taxes Means Fewer Affordable Homes” at some of Montgomery County’s largest intersections.
The Greater Capital Area Association of Realtors placed the signs and are asking people to write to councilmembers against an increase in real estate taxes as well as the recently adopted recordation tax.
“The Montgomery County Council didn’t just vote to increase recordation taxes, they voted to make housing less affordable. Council President Evan Glass and Councilmembers Natali Fani-González, Will Jawando, Sidney Katz, Kristin Mink, Laurie-Anne Sayles and Kate Stewart all supported this increase, which will amount to up to 30% more in recordation tax being paid by a homebuyer at the settlement table,” GCAAR wrote in a statement.
A recordation tax is imposed on those registering the purchase or sale of a property. It is not applied to those refinancing their homes as long as they don’t take any increased equity.
It is a one-time cost that applies to the principal amount of debt secured by a mortgage or deed of trust when a house or building is purchased. Often, the tax is split between the home buyer and seller.
GCAAR also called on councilmembers not to increase property taxes. A straw vote on the Fiscal Year 2024 is expected to take place during Thursday’s council meeting. County Executive Marc Elrich included a 10-cent property tax increase in his proposed budget. Councilmembers have been going through the budget for the past few weeks. Some members have talked about a 5.5-cent increase or a 7-cent increase.
According to GCAAR, a property tax increase will drive up the cost of living for residents, especially seniors; increase the rising cost of housing and hamper economic growth.
“In the following days, the Council will decide whether to approve hundreds of millions of dollars in new government expenses by increasing property taxes to support this spending spree. When combined, these troublesome tax hikes will further exacerbate the affordability crisis at a time when Montgomery County homeowners are already facing higher property tax bills due to rising property assessments. We call on the Council to demonstrate fiscal responsibility and hold the line against raising property taxes,” GCAAR officials wrote in a statement.
Meanwhile, the Montgomery County Education Association (MCEA) continues to call for the council to fully fund the budget so that teachers, administrators and support staff receive the salary increases approved in tentative contracts with Montgomery County Public Schools Board of Education.
MCEA members will be outside the council building in Rockville Thursday at noon to show their support for a budget increase.
GCAAR’s statement includes a property tax calculator to determine how much a tax increase will cost residents.
