On July 31, 2012, the Planning Board presented a resolution to the Montgomery County Council to reduce the school facilities payment by more than $4,000 per middle school and high school student. The school facilities payment is imposed on new residential units when school enrollment reaches 105 percent to 119 percent of capacity, and the developer must pay it in addition to the school impact tax. The new development is then taxed on 60 percent of the construction cost per student, which currently ranges from $19,514 per elementary school student to $28,501 per high school student.

The proposed reduction is based on construction costs having decreased during the past three years. A public hearing on this resolution was scheduled for September 18, 2012, in conjunction with the public hearing on the 2012-2016 Subdivision Staging Policy. While the Council can vote to make this effective immediately after the public hearing, the resolution will be combined with the Planning, Housing and Economic Development (PHED) Committee's work sessions on the Subdivision Staging Policy, beginning September 24.

Ballard Spahr continues to monitor the resolution’s status. Please contact us if you would like to discuss it further. To view the resolution, click here.