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Montgomery home sellers must disclose future tax
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Members of the Greater Capital Area Association of Realtors protest Bill 24-07, which requires homeowners to make projections of the property taxes that would be paid on homes post-purchase.
WASHINGTON (Map, News) - People selling homes in Montgomery County will soon have to estimate the future property tax payments of homebuyers, under a new law approved 8-0 Tuesday by County Council members despite heavy opposition from real estate industry lobbyists.
Council Vice President Phil Andrews proposed legislation in September to mandate that property tax estimates for homebuyers be included in any written or electronic advertising for the home.
Property taxes often jump after a home is sold because the sellers have been benefiting from state property tax caps that prohibit more than a 10 percent increase per year unless a home changes ownership.
“It will prevent someone from being surprised or shocked by their first property tax bill,” Andrews said.
Andrews and several other council members said the legislation was necessary to help combat skyrocketing foreclosure rates. The number of foreclosure filings in Montgomery County spiked 2,000 percent in the third quarter of this year compared with the same period last year.
After meeting with real estate industry representatives, Andrews agreed to amend the bill to limit a seller’s liability so long as the seller uses property tax calculation methods approved by the county. During Tuesday’s meeting, the council also approved an amendment that says the county Office of Consumer Protection must assist sellers who seek help in calculating the new property taxes.
While real estate industry representatives acknowledged that most of their concerns had been met, Meredith Weisel, a lobbyist with the 12,000-member Greater Capital Area Association of Realtors, said her group remained opposed to the bill because the tax-estimation process is too complicated and time-consuming for most sellers to use.
“We think it should be on the buyer to do these calculations since they are the ones who will ultimately be benefiting from it,” Weisel said.
About 10 real estate industry members attended the council’s vote and held signs to show their opposition. The law goes into effect April 1, 2008.
The council also unanimously approved a bill Tuesday that would allow a property tax credit of 10 to 75 percent for green buildings certified by the U.S. Green Buildings Council, with the size of the credit depending on the number of environmentally friendly features.
kmiller@dcexaminer.com
Comments from Examiner Readers
10:17 AM MST on Wed., May. 14, 2008 re: "Leggett says property tax cuts only help businesses, wealthy"
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5:28 AM MST on Tue., May. 13, 2008
re: "Most council members favor cut to property tax"
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12:18 PM MST on Tue., Apr. 15, 2008
re: "Council may kill Montgomery property tax hike"
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10:23 AM MST on Tue., Apr. 1, 2008
re: "Anti-tax signs disappear before increase proposed"
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1:02 AM MST on Tue., Apr. 1, 2008
re: "Montgomery balks at tax increase for millionaires"
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6:30 PM MST on Sat., Mar. 22, 2008
re: "Anti-tax signs disappear before increase proposed"
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5:50 PM MST on Sat., Mar. 22, 2008
re: "Anti-tax signs disappear before increase proposed"
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10:19 AM MST on Fri., Mar. 21, 2008
re: "Anti-tax signs disappear before increase proposed"
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5:54 AM MST on Tue., Jan. 22, 2008
re: "Legislation would give charter counties OK to raise property taxes above limit"
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7:56 PM MST on Fri., Dec. 7, 2007
re: "Montgomery home sellers must disclose future tax"
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7:07 PM MST on Tue., Nov. 20, 2007
re: "Petition seeks vote to make property tax hikes tougher"
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7:04 PM MST on Tue., Nov. 20, 2007
re: "Petition seeks vote to make property tax hikes tougher"
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Robin Ficker, Broker Robin Realty said:
Don't use the words, "property tax cut," in Montgomery County. Leggett has proposed the largest property tax increase in 20 years. Sticking to the charter limit will allow a 3.6% increase in property tax revenues. That should be enough. We shall see if Council members Tratchenberg and Andrews were serious when they spoke of sticking to the charter property tax limit. If they vote to exceed the limit, it will make passage of our November ballot question making it more difficult to exceed the charter property tax limit more likely.
3 agree | 2 disagree
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Gazette Reader (and Examiner, too) said:
The council committee tax plan will result in a MUCH larger tax increase for the average homeowner (where their home is worth under about $500,000) then the Leggett plan. Older people and those who live in smaller condos and townhomes will bear the greater brunt of the increase than the people who live in million dollar homes. That fact that is exposed by this article, and their is no hiding from it.
2 agree | 3 disagree
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Robin Ficker, Broker Robin Realty said:
The council is waiting for the results of the special election in District 4 to see what to do. Mark Fennel is running for County Council and Property Tax Relief. He opposes Leggett's biggest proposed property tax increase in 20 years, has pledged to vote against exceeding the charter property tax limit and supports our November ballot question which makes it more difficult to exceed the charter property tax limit. C
3 agree | 2 disagree
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Examiner Reader said:
Last summer, Help Save Maryland filed a Freedom of Information” request with Montgomery County Executive Ike Leggett and County Council President Mike Knapp. Our request covered 5 years worth of official documents concerning Montgomery County and all taxpayer funding for the illegal alien support group CASA of Maryland – Day Laborer Centers, Training, Education, Outreach, Health Care, Legal Services and more, all County funded activities advertised on CASA’s web site. Leggett responded and supplied Help Save Maryland with THREE pieces of paper; Knapp had ZERO. Judicial Watch, a conservative, non-partisan educational foundation, which promotes transparency, accountability and integrity in government, politics and law, came to the rescue. Judicial Watch re-filed the request and guess what, they received boxes of documents from multiple parts of the Montgomery County Government regarding CASA of Maryland.
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Robin Ficker Broker Robin Realty said:
Knapp and Leggett are trying to push through the biggest property tax increase in 20 years. When the state budget "deficit" in a budget that was 8.5% larger than last year was proposed, Leggett proposed raising taxes. He got what he wanted. Then he said he got too much of what he wanted. Now he is trying to raise the gas tax while gasoline is headed to $4 a gallon. Is he nuts?
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Mark D. Fennel, County Council Candidate said:
For goodness sakes, three of the signs taken on seperate occasions, by the Montgomery County Government, was displayed in the yard of Tommy Le, who lives along that stretch. He's a candidate for Montgomery County Board of Education, fine man, and political ally.
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Mark D. Fennel, County Council Candidate said:
When I caught the county employee, he said each house needed a permit to have a sign. He also said, the signs were to big for permits, and that he could fine me $500 per house for all 26 houses,($1,300). NONE OF THIS WAS TRUE. He asked to see my identification. I asked for them back from his truck, he said no. ACLU Help! As I drove off, he said, "And some of them were in the right of way." Some of them? Today, Montgomery County's spin is all of them were in the right of way. Tragically, they tossed many of them in Montgomery County's landfill. I told permitting services, that donations from senior citizens who are being driven out of their homes due to high property taxes helped to pay for those signs -- they shrugged. VOTE FENNEL FOR COUNTY COUNCIL AND PROPERTY TAX RELIEF APRIL 15 AND MAY 13
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Robin Ficker, Broker Robin Realty said:
All these signs were put up on the homes of homeowners with the permission of the homeowners. None was put in the right of way. We caught the county employee surreptitiously taking down the signs when he was doing it for the fifth time, after we had filed two police reports. Vote for Fennel for County Council and Property Tax Relief in the April 15 special election.
2 agree | 4 disagree
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Robin Ficker, Broker Robin Realty said:
We have a ballot question on the 2008 ballot in Montgomery County. It would make it more difficult to exceed the county property tax limit, not easier. This ballot question will pass.
31 agree | 52 disagree
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Tony Sharpe said:
I read your article about the Council's decision to have sellers estimate taxes. What a crock. Why don't they make it easy and keep the law simple and say that taxes cannot be increased more than 10% a year. Why does it matter if the property changes hands! This is just another example of the county being greeeeedy taking advantage of the purchasers of real estate. The county should get their hands out of the purchasers pockets. Taxes are way too high the way it is. This will only hamper the already hurting market. Thanks.
56 agree | 48 disagree
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Control spending said:
Monkey County needs to control spending, not try to take our homes.
77 agree | 67 disagree
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Taxed out said:
After all the O'Malley tax increases, I can't believe the council covets out home equity!
53 agree | 50 disagree
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