LA PLATA, Md. — The Charles County commissioners voted 4-1 on Tuesday, June 10, to approve an increase in the county’s recordation tax. The approved rate adjustment raises the tax from $5 to $7 per $500 of a property’s sale price. County officials say the adjustment will help meet local funding needs while avoiding broader tax hikes that would affect all residents.
The Revisions to Recordation Tax bill would amend Section 281-1 of the Charles County Code to raise the rate to $7 for every $500. County officials say the measure is necessary to support growing demands on public education and affordable housing, and to absorb $3.6 million in state-imposed cost shifts — all without raising broad-based tax rates or reducing county services. The county has not raised property or income taxes since 2013.
The recordation tax applies only to property transactions, meaning renters and homeowners who are not buying, selling or refinancing would not be affected. At the May 20 public hearing, county officials stated that raising the same amount of revenue through a countywide increase in property or income taxes would cost the average resident approximately $7 per month. In contrast, the recordation tax applies only at the time of settlement, and many exemptions exist for transfers between family members.
The vote followed a public hearing and community input, including testimony from members of the Southern Maryland Association of Realtors®. During the May 20 public hearing, real estate professionals expressed concern that the increase would raise closing costs and potentially deter homeownership, particularly among first-time buyers and low-to-middle-income households.
County officials noted that the recordation tax was chosen after months of internal analysis and public feedback, including results from a countywide budget survey. The survey showed residents favored targeted revenue tools — like transaction-based taxes — over broad-based increases to property or income tax rates.
Commissioner Gilbert Bowling cast the sole opposing vote. During the board’s discussion, he questioned whether the tax increase was necessary, noting that the school system’s existing fund balance could potentially cover its funding needs.
Watch the Board of Commissioners meeting on CCGTV.
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This article states: “The county has not raised property or income taxes since 2013.” Seems funny to me, my property taxes go up every year. Where did this information come from?