Howard County?s plan to take on the duties of collecting a real estate tax, rather than paying the state for the task, was intended to save money.
But, it could make more sense to negotiate a better deal with the state, officials said.
“It?s not as cost-effective overall to the citizens” of the county and Maryland, said Councilman Greg Fox, R-District 5.
Howard County Executive Ken Ulman proposed transferring the recordation tax collection duties from the clerk of the court, a state office, to the county?s Finance Department. This would eliminate the 5 percent fee and save the county $600,000, Ulman said in January when he announced the plan.
But the state already has the staff and expertise, Fox said.
Negotiating a better deal is the best option, but in a tough budget year, the county needs that additional revenue, Budget Director Ray Wacks said.
“We?re willing to negotiate with the state and have the state do it for us, but we?d want to make sure that money is available to us,” Wacks told the County Council during a work session this week.
The council is considering legislation that would transfer the collection of the tax, levied when a property deed or lien is recorded, to the Finance Department.
State law requires Howardto pay the 5 percent fee, but Del. Gail Bates, a Howard County Republican, is pushing a bill that would allow counties to broker a deal down to 2 percent.
“It gives counties the flexibility if they are considering taking it over themselves,” Bates said.
Howard Circuit Court Clerk Margaret Rappaport said, “I would have no problem reducing the fee from 5 to 2 percent.”
Baltimore, Anne Arundel and Harford counties and Baltimore City are among the eight jurisdictions that collect the tax.
In Anne Arundel, which took over the duties this year, officials estimate they can save at least $1 million, Budget Director John Hammond said. The county was paying $1.5 million a year because of the 3 percent fee.
“We talked to some folks at the state about reducing the fee from 3 percent to 1 percent, but we couldn?t get to first base on that,” he said.
