As the County Council struggles to fund school construction, some council members floated the idea of increasing taxes residents pay when selling their houses instead of fees placed on developers.
Councilmen Edward Middlebrooks, R-District 2, and Jamie Benoit, D-District 4, proposed higher transfer and recordation taxes and tying the revenue to school construction.
“It?s a worthwhile discussion … if we looked at how the transfer tax may allow us to have a steady stream of funding to actually do something about the schools,” Middlebrooks said.
This proposal emerged as the County Council debated over proposed increases to impact fees ? charges levied on new development for expanding roads and schools ? that County Executive John R. Leopold is seeking to offset rising construction costs.
Using the transfer and recordation taxes, instead of the impact fee, may be a better option because impact fees are restricted by geography and to only new construction ? making them less effective, council members said ? while tax revenue is more flexible and reliable and could be used for maintenance, officials said.
Some council members were concerned that as the elderly population leaves their residences for affordable apartments or senior housing, families would move in with more students attending area schools. Because no impact fee would apply, the higher transfer and recordation taxes would offset the impact.
The council scrutinized the data and method used by a consultant in determining the fee increases and may hire its own consultant or form a committee to review the data the administration used to create the proposed impact fees.
The council questioned consultant James Nicholaus, who used different population figures between the September draft of the report and the data he presented to the council Tuesday.
Council Chairwoman Cathy Vitale, R-District 5, said the proposed fees would be introduced next week, and the council?s auditor would meet with Nicholaus to address the council?s questions.
