Montgomery County, MD

Pursuant to Chapter 52, Article IV and Article V of the Montgomery County Code (Development Impact Tax for Transportation Improvements and Development Impact Tax for Public School Improvements, respectively), the Director of Finance has adjusted the tax rates set under Sections 52-49, 52-55, and 52-59. As prescribed by law, the Director must adjust the Transportation Improvements tax rates by the annual average increase or decrease in a published construction cost index specified by regulation for the two most recent calendar years. The Director must calculate the adjustment to the nearest multiple of 5 cents for rates per square foot of gross floor area or one dollar for rates per dwelling unit. Based on the change in the Engineering-NewsRecord's Baltimore Construction Cost Index for calendar years 2019 and 2020, the existing rates were increased by a rate of 2.97% percent. The rates were adjusted to the nearest 5 cents for rates calculated per square foot of gross floor area (GFA) or adjusted to the nearest dollar for rates calculated per dwelling unit.

The revised Public School Improvements Impact Tax Rates were developed by the Montgomery County Planning Board staff, with input from Montgomery County Public Schools staff, and are based on 2020-2021 school year construction costs and enrollment data. The current rates and the new rates are as shown in the accompanying text, which should be published in the May edition of the County Register.