Gov. Martin O’Malley, as part of his budget proposal, recently proposed that Maryland sales and use taxes would increased to 6 percent and applied to property management services. That means renters in apartments who use property management services will pay that tax through higher rents.
Homeowners and condo owners should take note. Many homeowner associations and condo boards are managed by professional management companies, and will also pay a 6 percent tax on top of their management fees. Those taxes will ultimately be paid by the property owners in higher HOA and condo assessments. This tax is bad enough when considering its impact on renters, but it will hit homeowners too.
This proposal is inconsistent with the governor's pledge to help working families. Maryland should work to help housing affordability not make it worse.
Small business takes it on the chin from this tax too!
Any small business renting space from a building owner using a property management service will ultimately pay this tax as it is passed down to them though higher rents. The property management tax is a bad deal for small business as well as homeowners and renters.
(Terry Fox, gazette.net)
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