Montgomery County, Md. Bill Proposes New Tax on Replacement Homes

Builders and residents testify on ‘teardown’ tax proposal.

1 MIN READ

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A controversial housing bill proposed by Montgomery County, Md. council member Evan Glass, would, if passed, impose impact taxes on new homes that are built to replace existing homes on residential lots.

New impact taxes would include school impact taxes on homes that replace structures built after March 1, 2004, as well as an affordable housing tax for new homes or major renovations that expand the square footage of the previous structure, at a suggested rate of $9 per additional square foot.

Glass and his supporters have championed the legislation as vital support for affordable housing in Montgomery County. But opponents at the hearing argued it would significantly increase costs and drive away potential home buyers.

Representatives from the building industry oppose the bill, arguing that it would hurt small businesses and trickle down to consumers. At Tuesday’s hearing, several opponents also criticized basic logic behind the legislation.

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