LA PLATA, Md. — A May 20, 2025, public hearing on a proposed increase to Charles County’s recordation tax brought sharp criticism from local real estate professionals, who warned the change could further strain housing affordability and deter prospective homebuyers.
The Revisions to Recordation Tax bill would amend Section 281-1 of the Charles County Code to raise the rate to $7 for every $500. County officials say the measure is necessary to support growing demands on public education and affordable housing, and to absorb $3.6 million in state-imposed cost shifts — all without raising broad-based tax rates or reducing county services.
While the proposed increase only applies during real estate transactions and exempts property transfers between immediate family members, the Southern Maryland Association of REALTORS® (SMAR) and its members maintain that the policy unfairly targets a narrow group and could have chilling effects on the market.
“This tax directly contributes to housing unaffordability, discourages homeownership, and ultimately harms our community,” said Helen Mattingly Wernecke, president of SMAR. “SMAR is particularly concerned about the impact on first-time buyers, minority families, teachers and essential workers — individuals who deserve the opportunity to live and thrive in Charles County. We urge the commissioners to seek a fairer, more equitable solution to the budget shortfall rather than placing the burden on homebuyers and sellers.”
County officials defended the proposal, noting that the recordation tax applies only to property transactions, meaning renters and non-transacting homeowners would not be impacted. By contrast, they said raising the same revenue through a countywide increase in property or income taxes would result in an estimated cost of $7 per month for every resident who owns a home and earns income in Charles County.
According to county data, the additional tax on a median-priced home ($455,390) would add approximately $1,821.56 at settlement, or $910.78 per party if split evenly. When financed over 30 years, the monthly impact is estimated at $5.94.
However, multiple speakers pointed out that the recordation tax must be paid in full at settlement, making it a significant up-front cost for buyers. Others argued that the county should consider alternatives like broad-based tax increases or tiered tax structures based on property value, similar to systems in counties like Montgomery.
Real estate professionals who spoke at the hearing argued the increase would create a financial barrier for homebuyers. Among them was Billy Fitzgerald, a real estate broker with over 50 years of experience in the county, who pushed back on suggestions that the change was minimal.
“We look at it as a 40% increase,” Fitzgerald said. “It’s not just a teeny bit. It’s going from $10 to $14.”
Fitzgerald also questioned the validity of the county’s budget survey results, suggesting the outreach may not have reached those most directly impacted, such as buyers, sellers and real estate professionals.
If approved, the tax increase would take effect 45 days after adoption. The public record for comments will remain open until May 30, 2025, giving residents additional time to submit written testimony or feedback before the commissioners consider a final vote.
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