Anne Arundel County's state lawmakers will not consider a County Council request to raise the transfer-tax rate, effectively killing a proposal that could have generated $25 million a year for school construction and stream restoration, the chairwoman of the county's House delegation has confirmed.
Mary Ann Love, a Democrat who leads the Anne Arundel delegates, said Thursday that the county's Senate delegation was not going to vote on the council's resolution seeking state authority to raise the transfer tax from 1 percent to as much as 1.5 percent.
Love also alluded to opposition within her ranks. Real estate agents sent scores of e-mails to delegates last week opposing the council's request, she said. The proposal was also denounced by County Executive John R. Leopold, a Republican.
"The bottom line is, I don't have the votes," Love said.
Council Chairwoman Cathleen M. Vitale said she was notified Wednesday of the delegation's decision, two days after the Republican-majority council unanimously passed the measure.
"Mr. Leopold has convinced the members of the delegation not to partake. ... That comes as a little disappointing," said Vitale, a Severna Park Republican.
Leopold, through a spokesman, declined to comment.
Leopold recently proposed a sweeping increase in impact fees on new development as a way of generating $22.2 million a year for new schools, roads and other infrastructure, county officials say.
Council members offered the transfer-tax proposal as a way of alleviating Anne Arundel's $1.5 billion school maintenance backlog and the $1.3 billion backlog in projects to repair waterways and restore watersheds.
The resolution's sponsor, Republican C. Edward Middlebrooks, said he wants to create a dedicated fund to reduce those shortfalls.
The only Maryland jurisdictions that apply the maximum transfer tax rate of 1.5 percent are Baltimore and Baltimore County.
On the purchase of a $400,000 home in Anne Arundel County, the rate increase from 1 percent to 1.5 percent would result in transfer taxes of $6,000, a $2,000 increase.
The advantage of obtaining revenue from transfer taxes, council members said, is that it could be directed to modernizing outdated schools and impact fees could not.
The transfer-tax plan was supported last month by the county's consultant on impact fees, James C. Nicholas, during his testimony at a council work session. Nicholas said the transfer-tax increase might be the fairest of several mechanisms, including impact fees, to repair and replace schools and other infrastructure.
