I just heard today that Montgomery County, MD is considering a substantial increase in the County Transfer & Recordation Tax. 5 years ago, this tax was $4.20 per thousand, then it was increased to $6.90 per thousand. Now, the proposal on the table would increase this tax to $11.20 per thousand.
We already have fairly high property taxes. The FED has played with the prime rate which has affected the housing market overall. Mortgage rates have been creaping up. All these things combined, I have no doubt, have had affecting the housing market. Now, such a substantial increase in transfer taxes will affect both buyers and sellers closing costs by as much as $2,000 on a medium home price in Montgomery County.
The market has already slowed down, now it appears that the politicians want to just kill it altogether. If you live, work and/or do business in Montgomery County contact your County Council representative and tell them not to pass this legislation.