In September, five Montgomery County Council members will introduce a bill that would help builders in Montgomery County spread out their financial burden in the months preceding completion of a project.

Ballard Spahr has been working with the Council and its staff on the form and content of the bill, which would tie payment of the transportation and school impact taxes to issuance of the use and occupancy permit. Currently, impact taxes, as well as the school facilities payment (required when schools exceed 105 percent capacity), must be paid when a building permit is issued, many months before the development affects roads and/or schools.

Fees due at the time a building permit is issued are significant. By shifting the due date for the impact taxes, a developer’s carrying costs would be reduced across the construction period. The combined impact taxes can range from $11,000 per high-rise unit to $36,000 (or more) for single-family units; commercial buildings are charged per square foot of gross floor area, based on use.

For a copy of the draft bill or for more information on the effect of the bill or suggestions on improving it, please contact Roger D. Winston at 301.664.6201 or winstonr@ballardspahr.com; or Raquel D. Montenegro, Real Estate and Government Affairs Specialist, at 301.664.6239 or montenegror@ballardspahr.com. 


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