GO Item 1
May 4, 2017
Government Operations and Fiscal Policy Committee
Robert H. Drummer, Senior Legislative
BilllO-17, Recordation Tax - Rates Amendments
Bill 10-17, Recordation Tax - Rates - Amendments, by Lead Sponsor Councilmember
Eirich and Co-sponsor Councilmember Leventhal, was introduced on April 4. A public hearing
was held on April 25.
Bill 10-17 would modify the recordation tax rates levied under state law for certain
The "Recordation Tax Premium" went into effect in 2008. Bill 15-16, enacted on May 18,
2016, increased the Premium rate from $1.55 to $2.30/$500. Unlike the two elements of the base
rate paid on all transactions, the Premium applies only to the cost of a property or a refinancing
that is more than $500,000. Half of the proceeds from the Premium are allocated to County
Government capital projects (i.e., capital projects of departments in the Executive Branch); the
other half is for rent assistance for low and moderate income households.
Bill 10-17 would reduce the Premium for transactions that are more than $500,000 but less
than $1,000,000 from 2.30 to $1.55/$500. The Bill would increase the Premium for transactions
that are more than $1,000,000 but less than $2,000,000 from $2.30 to $2.55/$500. The Bill would
also increase the Premium for transactions that are more than $2,000,000 from $2.30 to
The lone speaker, Peg Mancuso, representing the Greater Capital Area Association of
Realtors, supported the Bill to the extent it lowers the premium recordation
rate on transactions
greater than $500,000 and less than $1 million. See ©5-6. Ms. Mancuso also recommended that
the Bill be amended to lower all recordation tax rates.