WASHINGTON — Every time you sell or refinance your home, you pay a recordation tax. That might be going up in Montgomery County.
Montgomery County Council President Nancy Floreen is proposing the tax increase as a way to help finance school construction. The school system, as Floreen says, is “our crown jewel, and a quality education is what keeps us great.”
Under Floreen’s calculations, the increase on the tax paid when property is sold or transferred could raise $185 million. Most of that — $155 million — would be earmarked for school construction.
The rest, a projected $30 million, would go towards affordable housing, including rental assistance for low and moderate income households.
Also according to Floreen, the added revenue from the proposed bill would cover up to 70 percent of the added funding requested by the Montgomery County school board.
A hearing on the bill is scheduled for May 10.
See the bill and the tax impact here.