| Washington County Announces Changes to Building Excise Tax Rates Effective July 1, 2026 |
| HAGERSTOWN, MD (June 16, 2026) – The Washington County Board of County Commissioners has approved amendments to the County’s Building Excise Tax Ordinance, with updated rates and provisions taking effect on July 1, 2026. The Building Excise Tax helps fund critical infrastructure and public facilities needed to support growth and development throughout Washington County, including roads, schools, and other public improvements. Effective July 1, 2026, the following Building Excise Tax rates will apply: Residential ConstructionNew residential construction will increase from $1.00 per square foot to $2.00 per square foot.Residential additions and alterations will increase from $0.50 per square foot to $1.00 per square foot. Non-Residential ConstructionNon-residential, non-retail construction will increase from $1.00 per square foot to $1.50 per square foot.Non-residential retail construction will increase from $1.00 per square foot to $1.50 per square foot for the first 15,000 square feet. The allocation of excise tax revenue will also be adjusted as follows:Roads: 25% (previously 23%)Schools: 70% (no change)Other Public Facilities: 5% (no change) The ordinance also includes a new provision related to the County’s Adequate Public Facilities Ordinance (APFO). Residential units that previously paid an Alternate Mitigation Contribution (AMC) to obtain final plat approval under prior APFO requirements will receive a credit for the first $1.00 per square foot of Building Excise Tax. The Department of Planning and Zoning will provide documentation to the Division of Permits and Inspections identifying eligible units.In addition, the ordinance establishes a new excise tax exemption to encourage residential development within the Hancock and Cascade Elementary School attendance districts. Residential construction and eligible residential additions within these attendance areas will be exempt from Building Excise Tax for a period of ten years from the effective date of the amendment. The updated rates and provisions will apply to permits applied for on or after July 1, 2026. |
| For additional information regarding the Building Excise Tax changes, residents, builders, developers, and contractors are encouraged to contact the Washington County Division of Permits and Inspections at 240-313-2460 or visit www.washco-md.net. ### |
