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Maureen Woodruff, representing the Charles County Chamber of Commerce, speaks at a public hearing regarding the transfer tax May 10.
La Plata, MD – Whatever Charles County residents may think of the transfer tax enacted last year by the Charles County Commissioners, they canโt argue with the fact that the new tax has raised the county from a mire of financial insecurity.
Instead of a $5 million shortfall, the county is now looking at an estimated $9 million surplus.
The tax itself didnโt appear to be as big of a problem for the eight citizens who spoke out against its passage at a public hearing in La Plata Tuesday, May 10, as the fact the legislation denied an exclusion from the tax for first-time homebuyers.
Charles County Commissioner President Peter Murphy [D] made it clear he expected the measure to be voted into law.
โIt is my intent that we will vote on this legislation tonight,โ he said before the hearing began Tuesday night.
The new legislation would substitute the treasurer of the county instead of the clerk of circuit court to receive the funds as they are paid to the county.
Charles County Attorney Rhonda Weaver said the new legislation removed certain language to comply with a court order issued last year.
โThe amendment money is to deposit right into the general fund,โ Weaver noted.
Roger Bayer of Port Tobacco told the commissioners he was, โHere as [an] investor in real estate.
โI buy dilapidated homes, restore them and then sell them,โ Bayer said. โMy market is the first-time homebuyer. Losing the first-time homebuyer credit is very serious. All of my buyers are first-time homebuyers.โ
Tom Earnest of La Plata wanted to remind a couple of the commissioners of a promise not to raise taxes, which brought an admonition from Murphy to keep his comments on topic.
โWeโre talking about raising taxes arenโt we?โ he asked. โWeโre implementing a tax.โ
โThe new legislation just changes who is going to collect the tax,โ Weaver broke in.
โAfter the election, in spite of what you said before the election, commitments you made, I ask you to honor the commitment you made,โ Earnest said. โStand up and do the right thing.โ
โThe local transfer tax to bridge the budget shortfall, even going so far as to have state legislation enacted, the only thing omitted was first-time homebuyer,โ said Maureen Woodruff, representing the Charles County Chamber of Commerce. โIt is time to correct this final deficiency in local legislation.โ
Jackie Alexander of La Plata said that to remove the exemption completely was a promise broken.
โThe state of Maryland waives their transfer tax, we should be able to provide the same in the county also,โ Alexander stated.
โI believe we put ourselves is a position where the issue is moot at this point,โ said Charles County Commissioner Vice President Debra Davis [D- District 2]. โUnfortunately, weโre at that position. I know we moved really fast to put this tax in effect. I hope weโve learned from our mistakes and can have more public input in the future.โ
โIโm in favor of the legislation, but not in favor of not excluding the first-time homebuyer,โ Commissioner Bobby Rucci [D-District 4]. โIf we didnโt have that transfer tax, we wouldnโt have a surplus. The selling of homes is what gave us that extra money. That bothers me a little bit.โ
At that point the measure passed overwhelmingly by a 5-0 vote.
Contact Joseph Norris at joe.norris@thebaynet.com
