Charles County is considering a targeted recordation tax adjustment to meet growing service demands, without raising property or income rates for residents and businesses.
The proposal, introduced by a 3-1 vote of the County Commissioners, reflects the County’s effort to manage long-term fiscal pressures while prioritizing investments in education, public safety, and infrastructure.
Targeted Revenue, Broad Impact
Proposed Bill 2025-04, presented by County Attorney Wes Adams, would raise the recordation tax rate applied to certain real estate transactions.
Counties collect this tax when someone sells a property or records a title, using it to support essential services without raising broad-based tax rates. Local leaders must explore targeted tools like this to meet rising service demands as federal aid grows less reliable and the State shifts more responsibilities to counties.
Unlike property or income taxes, the recordation tax affects only those completing real estate transactions, allowing the County to raise needed funds without impacting renters or non-transacting homeowners.
Fiscal Context and Strategic Goals
The bill comes amid consideration of Charles County’s $594.3 million proposed fiscal 2026 budget. With inflation, rising service demands, and planned infrastructure investments, such as upgrades linked to the Washington Suburban Sanitary Commission, the County faces pressure to identify sustainable, equitable revenue options.
Commissioners emphasized their desire to preserve Charles County’s longstanding commitment to stable property and income tax rates, which remain unchanged for the 12th consecutive year.
Hearing Scheduled for Tuesday, May 20
The Commissioners voted unanimously to schedule a public hearing on the proposal for Tuesday, May 20, at 6:00 pm, in the Commissioners’ Hearing Room. The hearing invites residents to share their views and help shape the bill’s final version.
Looking Ahead
County leaders have acknowledged the balancing act required to address growing community needs without placing broad new burdens on residents. The Commissioners aim to generate dedicated revenue tied to the County’s increasing growth and development by focusing on a transaction-based tax.
The recordation tax proposal follows a clean financial audit and recent progress on workforce housing, transit, and state bond investments. As the County prepares for continued growth, projected at 15% by 2030, leaders are working to match that growth with strategic fiscal planning.
Details about the bill and hearing are available on the Charles County website.