The Greater Capital Area Association of REALTORS® has released a statement in response to the Montgomery County Council’s 7-4 vote this week to increase the county’s recordation tax rates up to 200%.
“When this proposal was first introduced, GCAAR stated that hiking recordation taxes, when combined with all-time high real estate prices and increased interest rates, will put homeownership further out of reach for the average person. We stand by that assessment.
“This week, 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.
“We thank Council Vice President Andrew Friedson and Councilmembers Gabe Albornoz, Marilyn Balcombe and Dawn Luedtke for voting against the increase after their alternative proposal was not adopted. The recordation tax issue was raised primarily to shore up a gap in funding for school construction, and their alternative proposal would have fully funded the balance of the school system’s request.
“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.”
About GCAAR
The Greater Capital Area Association of REALTORS®, one of the largest local REALTOR® associations in the U.S., is the voice for REALTORS® in Washington, D.C. and Montgomery County, Maryland. Representing more than 12,000 real estate professionals in the greater capital area, GCAAR provides services vital to its members’ daily business needs and works with lawmakers to ensure public policy that encourages homeownership and supports the real estate industry. For more information, visit www.GCAAR.com.
