Leopold has proposed increase in impact fees as alternative

County lawmakers won't take up transfer-tax rise

Nicholas said that among the advantages of using the transfer tax to address the effects of development is that only those who buy and sell property are affected, based on a recording of the work session. Those who remain in their homes would not have to pay new taxes, he said.

He also noted at the Jan. 15 hearing that the county could issue bonds based on the transfer-tax revenue. At $25 million a year, Anne Arundel could issue more than $300 million in bonds, bond experts said.

County officials countered that revenue from transfer taxes would be ineffective in paying for the infrastructure needed to keep up with growth.

"That would certainly free up other dollars for school maintenance and school construction to address capacity, and to possibly get rid of the trailers," Vitale said, referring to portable classrooms. "Some have commended the council, and others preferred we found funds elsewhere."

Some council members said they would support increasing the transfer-tax rate to offset the increase in impact fees, but Leopold said last week that he opposes such a compromise. He called the transfer-tax proposal a way of forcing "county taxpayers to subsidize developers."

Love said her colleagues had not discussed projections of the revenue from raising the transfer tax.

Council members were criticized for not holding an advertised public hearing on the resolution. They said they were forced to act to try to meet a Friday deadline to submit state legislation.

Bob Burdon, chief executive of the Annapolis and Anne Arundel County Chamber of Commerce, said that "it was just the wrong time" for the transfer-tax increase, given the national economic downturn. He said it would "put home buying too far out of reach."

Several council members have criticized Leopold's proposal, which would increase the impact fee on a four-bedroom home from $4,069 to $26,407. The fee for a four-bedroom condominium would increase from $3,546 to $51,232, and the fee for hotels would rise from $1,031 to $5,459 per room, according to the bill.

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