The following information was provided in a recent news release from the Howard County Council:
If a property owner is refinancing the remaining unpaid principal on their mortgage and the principal has not increased, the refinancing is exempt from the recordation tax.
Homeowners pursuing a home equity loan for less than an additional $300,000 would also receive a tax cut under this proposal.
The thing not said above…homeowners pursuing a home equity loan for more than an additional $300,000 would pay more in taxes than they would today.
I have provided additional information on this topic in past articles…I highly recommend you give them a read:
How this tax increase relates to the proposed FY2021 HoCoGov Operating Budget: The budget also includes $21 million in anticipated new funding from an expected recordation tax rate increase
A look at the current and the proposed recordation tax in Howard County vs surrounding counties: https://scotteblog.com/2020/04/23/how-significant-is-the-proposed-recordation-tax-rate-increase-in-howard-county/
A look at current and proposed transfer and recordation taxes in Howard County and surrounding areas (remember…there are actually 2 proposed tax increases that would affect buying, selling properties and one of those tax increases could affect refinancing properties in Howard County): https://scotteblog.com/2020/04/24/a-look-at-current-and-proposed-transfer-and-recordation-taxes-in-howard-county-and-surrounding-areas/
The proposed legislation (CR85-2020) was pre-filed on April 23, 2020 and will be introduced at the Council’s legislative session on Monday, May 4, 2020 with the FY21 Capital and Operating Budget. Testimony will be accepted at the legislative public hearing on Monday, May 18, 2020. Howard County residents can sign up to testify virtually after May 4 by visiting https://apps.howardcountymd.gov/otestimony/. If you would like to submit your testimony electronically, please email firstname.lastname@example.org.
I have additional articles on this topic planned in the near future.