Maryland counties are feeling the pain of the collapse of the housing market. From fiscal 2006, the height of the housing boom, to fiscal 2010, they have lost $345 million in revenue from transfer taxes that are charged every time a property is bought or sold.
Revenues to counties from property taxes will be declining soon too, officials said, as the decline in housing prices starts reducing the assessable base for this key source of local funds.
Leslie Knapp, associate director of the Maryland Association of Counties, said there is not much the counties can do to compensate. “They could raise property taxes, but that is politically difficult to do,” he said. “They could charge other fees and taxes – hotels, impact fees – but much of that is tied to economic growth.”
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