New Montgomery County Recordation Tax Law
Effective March 1, 2008
Effective March 1, 2008
Effective March 1, 2008, the recordation taxes for Montgomery County, Maryland will be increased to $10 per $1000 for consideration payable over $500,000.00. Consideration payable of $500,000.00 or less will continue to be taxed at the current rate of $6.90 per $1000.00. The tax calculation will continue to exempt the first $50,000.00 of the sales price from recordation tax if the property is to be owner occupied. The new Act applies to any transaction that occurs on or after March 1, 2008. The new Act, however, does not affect the existing State and Montgomery County transfer taxes. To avoid any confusion in advising or preparing net sheets for your clients, we are providing the following examples as to how the new Montgomery County recordation tax will be applied.
Consideration (i.e. Sales Price) of $600,000.00 for a Principal Residence:
First $50,000 of sales price is exempt from recordation tax
The next $450,000 of sales price is taxed at $6.90/$1000
The remaining $100,000 of sale price is taxed at $10/$1000
Total Recordation Tax: $4,105.00
Total County Transfer Tax (1%): $6,000.00
Total State Transfer Tax (.50%): $3,000.00
Consideration (i.e. Sales Price) of $600,000.00 but will NOT be a Principal Residence:
First $500,000 of sales price is taxed at $6.90/$1000
Next $100,000 of sales price is taxed at $10/$1000
Total Recordation Tax: $4,450.00
Total County Transfer Tax (1%): $6,000.00
Total State Transfer Tax (.50%): $3,000.00
Consideration (i.e. Sales Price) of $375,000.00 for a Principal Residence:
First $50,000 of sales price is exempt from recordation tax
Remaining $325,000 of sales price is taxed at $6.90/$1000
Total Recordation Tax: $2,242.50
Total County Transfer Tax (1%): $3,750.00
Total State Transfer Tax (.50%): $1,875.00
Consideration (i.e. Sales Price) of $375,000.00 but will NOT be a Principal Residence:
Full sales price of $375,000 is taxed at $6.90/$1000
Total Recordation Tax: $2,587.50
Total County Transfer Tax (1%): $3,750.00
Total State Transfer Tax (.50%): $1,875.00
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Hello. My wife and I bought our house about 6 months ago. It was a foreclosure and we were able to get a great deal on it. We also took advantage of the 8K tax credit so that definitely helped. We did an extensive remodeling job and now I want to refinance to cut the term to a 20 or 15 year loan. Does anyone know any good sites for mortgage information? Thanks!
Mike
Hello Anonymous,
You could call Kenny Sylvester 301-252-7262 or Geoff Clasper 301-928-7523 or contact them at loansbykenny.com
They are with Wells Fargo Bank.
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