Montgomery County Council in May unanimously approved increases in the recordation tax that will result in homebuyers and sellers having to pay more when they sell or buy homes. To be effective September 1, 2016 the Montgomery County Recorder of Deeds office of Maryland announced recordation tax will increase as follows:
The first $500,000 of “consideration payable” or the “principal amount of debt secured” will be taxable at a rate of $4.45 per $500 or fraction thereof.
The excess of $500,000 of “consideration payable” or “principal amount of debt secured” will be taxed at a rate of $6.75 per $500 or fraction thereof.
The current $50,000.00 exemption, available to an individual buyer who intends to use the property as the individual’s principal residence, will be increased to $100,000.00 effective September 1, 2016.
Montgomery County has indicated that they will rely upon the later of the date of the document or the last acknowledgement to determine when a transfer occurs. A document with a date or acknowledgment on or after September 1, 2016 will be subject to the new rates.
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