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

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Source: Frederick News Post
Author: Bethany Rodgers
Article Type:
Date Published: 11/05/2013

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.