Did you know that the Montgomery County Council recently passed Bill 17-23 establishing new recordation tax rates that will take effect on October 1, 2023?
While the current recordation tax calculation procedures will remain in place until September 30, 2023, as of October 1, 2023, the "consideration payable" or "principal amount of debt secured...including the mortgage or deed of trust assumed by a grantee" will be taxed at the following rates:
- the first $500,000 will be taxed @ $4.45 per $500.00 or fraction thereof;
- $500,000-$600,000 will be taxed @ $6.75 per $500 or fraction thereof;
- $600,000.01-$750,000 will be taxed @ $10.20 per $500 or fraction thereof;
- $750,000.01-$1,000,000 will be taxed @ $10.78 per $500 or fraction thereof; and,
- $1,000,000.01 and over will be taxed @ $11.35 per $500 or fraction thereof.
The recordation tax exemption of $100,000 will remain the same for an "individual" buyer who intends to use the property as the individual's principal residence.
The Montgomery County Department of Finance advised that the date it receives the recordable document will determine the application of the new recordation rates. (ex.: received 9/30/2023, the old rates will apply; received 10/1/2023, the new rates will apply.
For more information on Bill 17-23, click HERE.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
