Higher taxes could be saddled on homebuyers and home sellers to raise an estimated $25 million for school construction and storm-water management projects.
“I think people would go along [with a tax increase] if it is dedicated to school renovation,” said Councilman Edward Middlebrooks, R-District 2, who sponsored the resolution. “I think people will say, ?Hey, we?re getting something done instead of talking about it.? ”
The County Council unanimously backed a resolution asking the state to grant Anne Arundel the authority to raise the real estate transfer tax by a half percentage point to 1.5 percent. The General Assembly must approve enabling legislation for the county to raise the tax.
“This is another attempt to have the taxpayer subsidize developers,” said County Executive John R. Leopold, who wants higher impact fees.
“There was no advertisement of a public hearing. It?s a slap in the face of taxpayers.”
Middlebrooks floated the idea of raising the transfer tax last month as a way to pump more money into schools and as an alternative or supplement to increased impact fees, money developers pay for building in the county.
The tax revenue would cover “backfill” development ? new families moving into older houses once occupied by senior citizens ? that impact fees don?t cover. Impact fees are limited to increasing the school?s size to accommodate new development.
Raising transfer taxes “is more manageable [than impact fees] and spreads the costs and benefits out evenly,” said Councilman Ronald Dillon, R-District 3.
Of the revenue generated from the higher transfer tax, 70 percent would be dedicated to school construction and renovation, and 30 percent to stormwater management projects. Currently, the transfer tax is undedicated revenue.
The county delegation may vote on the request next week. If approved by the General Assembly, the council would then vote on the tax increase.
“It?s their ballpark, not ours,” said Del. Mary Ann Love, D-District 32, chairwoman of the county delegation.
Tax incentive
Resolution No. 10-08 would request the General Assembly grant the county the authority to raise the real estate transfer tax to 1.5 percent and tie that revenue to school construction and stormwater management projects.
» For: Council Chairwoman Cathy Vitale, R-District 5; and Councilmen Daryl Jones, D-District 1, Edward Middlebrooks, R-District 2, Ronald Dillon, R-District 3, Jamie Benoit, D-District 4, Josh Cohen, D-District 6, and Ed Reilly, R-District 7
» Against: None
» County administration: Opposed the resolution
» For more information, visit www.aacounty.org.
