Exclusive: MoCo Country Clubs May Have To Pay Fees To Make Up For Tax Exemptions

Heather Curtis
WMAL.com

WASHINGTON (WMAL) – Four of Montgomery County’s most exclusive country clubs may soon have to pay fees to make up for tax exemptions.

“Private country clubs are basically assessed nothing on their land, and ordinary homeowners are therefore forced to make up the lost revenue that the country clubs are getting out of this said break,” said Del. David Moon.

Tuesday Maryland’s House Ways and Means Committee will consider a bill that would charge clubs on land worth more than $500,000 an acre a $100,000 flat fee a year to make up for revenue the county losses because of property tax exemptions.

President of the Kenwood Country Club in Chevy Chase, Todd Chamberlain, calls the proposed fee arbitrary.

“I think that is David Moon’s position on this: ‘You guys can afford it, so why not?'” Chamberlain said.

Moon estimates the exemptions cost the county $10 million a year in losses because their land is only taxed at $1,000 an acre. He said the county should not be prioritizing tax exemptions for clubs at a time where County Executive Mark Elrich proposed cutting $46 million from the budget to make up for a budget shortfall. The cuts included $25 million from schools.

Chamberlain said the county claims it needs money for overcrowded schools, but those schools would be far more crowded if the clubs sold their land and housing complexes were built in their places.

While Chamberlain thinks the fee is unfair, Moon doesn’t think it’s high enough. He proposed a bill in a previous session to completely get rid of the country club property tax exemption – which was put in place in 1966 to maintain green space by encouraging country clubs to keep operating rather than sell to developers – but that bill failed. His original bill this session would have just removed the exemption for four clubs – Columbia Country Club, Bethesda Country Club, Kenwood Golf and Country Club and Chevy Chase Club – but that was amended to charge those clubs a flat fee instead. Moon said the amended bill isn’t ideal because $400,000 a year won’t make up for $10 million in losses, but it’s better than nothing.

Chamberlain said the fee would hurt his club forcing it to raise dues and cut hours.

Moon believes the annual dues for most of these clubs is about $100,000 per year, so he calculated the dues increase to be about $80 to 100 per member.

“I highly doubt someone who could afford a $100,000 a year golf club dues is gonna have a problem with that being 100,” he laughed, “$100,100. I mean, give me a break,” Moon said.

Chamberlain would not say how much members of his club pay annually.

“It’s frustrating to try to be a business in Montgomery County when they just are always coming after you with tax increases.” Chamberlain said.

Copyright 2019 by WMAL.com. All Rights Reserved. (Photo: Pixabay)

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