Realtors oppose real estate transfer tax

Frederick News Post
Michael Kurtianyk
We read with interest Saturday’s editorial (“Underrepresented on growth”), and we want to make clear that the Frederick County Association of Realtors opposes a real estate transfer tax because it would hurt homebuyers and sellers of existing homes — as well as buyers of new homes. In a typical transaction involving existing real estate, the buyer and the seller split the cost of a transfer tax. In a new-home sales contract, the buyer typically shoulders the full cost of a transfer tax. However, impact fees, like all construction costs, are reflected in the sales price of the home. Thus, they are financed through the buyer’s mortgage over years or decades. A transfer tax is due as cash at property closing, and in this fragile home market, both buyers and sellers would be greatly affected.

Frederick County work group to discuss impact fees, new transfer tax

Frederick News Post
Bethany Rodgers
The unanimous decision followed discussion about eliminating the county’s impact fee and replacing it with a transfer tax levied when properties are sold. The Maryland General Assembly would have to authorize the change, so recent efforts to swap the fee with a tax fizzled without support from a majority of Frederick County’s legislators. Delegate Kathy Afzali said creating a new tax on home sales would further depress the county’s housing market. “We’re hungry for buyers,” said Afzali, R-District 4A, who has worked in real estate. “If anything, we should try to figure out how to cut costs for buyers.” But Commissioners President Blaine Young said it’s not fair to rely only on new construction to drum up funds for infrastructure improvements. Developers pay impact fees of $15,185 for each single-family detached house, $13,089 for townhouses or duplexes, and $2,845 for other residential units. The costs are typically rolled into the cost of a new home and passed on to the buyer. The fees, which brought Frederick County almost $7.2 million in fiscal 2013, are intended to fund construction of additional library and school space to serve the new communities.

Candidates clash at final forum

Frederick News Post
Meg Tully
In a last-minute push for votes, candidates at a Tuesday night Frederick County commissioner forum went into attack mode on some of the biggest issues facing the county. Candidates disagreed on the effects of land use policy, how much the budget has been cut and whether the next board should reverse a decision to build a regional waste-to-energy trash incinerator. Ten candidates are running for five slots on the commissioners board.