Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1961-06-29
County Council Not Sure
Transfer Tax Will Do What
1t Was Intended To Do
David Cahoon Has Idea
So Has Joe M. Kyle

Considerable opposition to the Countys proposed
real estate transfer tax at the County Council meet
ing this week gave indication the may be in
for major overhaung before it takes effect.
Spurred by motion by Council member Joe M.
Kyle that the proposed law be rejected unfair" to
residents and realtors alike the city heads Of
fered an alternate proposal from president pro tenn
David Cahoon that would modify the aggressive ma
ture of the tax"
Amounts To Sales Tax
Cahoon said the measure as now proposed
amounts to sales tax on the purchase of homes,
which is not going to be paid by those prong from
the transaction This tax is going to be paid by the
purchaser We should find tax which taxes the real
estate interests"
Zone of the problems in this county," he added,
lis widespread speculative turnover of unimproved
land This is detrimental to our interests The right
kind of transfer tax would depress the number of sales
and transfers on unimproved land"
Hickey Agrees
Council president William F. Hickey agreed ito
certain degree with Cahoons views arguing that the
primary purpose of the tax should be to reach
where revenue can be obtained without additional
burden on home owners"
While he said he thought the proposed measure
serves the purpose of increasing sources of
enue," Hickey expressed regret that the County had
been pushed into this by the fact the State Legisa-
ture refused to approve the omnibus tax bill which
would have given it greater choice Of revenue
Mrs. Werner Defends 1t
Defending the proposed tax Council member SteI-
Ia Werner pontedo that the County 'does have an
overall financial problem and we should do everything
to make our finances sound"
Over Kyle's proposal that the Council try to find
some alternative to the transfer tax, Cahoon moved
that the tax be pro-rated in this fashion:
On the transfer of unimproved property regard
less Of value, per cent tax be levied;
On the transfer of improved property valued
at $4,000 or more, a one-half of per cent tax;
On improved property valued at between $4,000
and $4,000 the tax be one-fourth Of per cent and
On improved transferred property worth less
than $4,000 no tax be levied
Council member Grover Walker commended Ca
hoons proposal would wreak hardship on buyers pur-
chasing homes worth more than $4,000, but he was
met with the argument that citizens in upper income
brackets who would want such homes would be both
in better position to pay the tax and receive greater
Federal income tax exemptions on their payments.
Hickey admitted the counterproposa would
lieve the Council of placing countrywide tax all
residential property.
Additional Opposition
Additional opposition came from Jerry T. Will
liams who stated fatty ono matter how you look at
it, it's still an unfair tax I'm against it."
Kyle also pointed out that in addition to the state
and Federal transfer taxes, county levy would have
an inhibiting effect on the communty's biggest
business"
Mrs. Werner said however, that "any person in
land transaction in Montgomery County is bound to
gain money Real estate interests afford to pay the
Enn mn AA:I.s