Montgomery to Tax 'Buy Nothing' Transactions

The Montgomery County Council has approved a new tax on Buy Nothing Group (BNG) transactions beginning January 1, 2024. Council officials say the funds are earmarked for education.

More than $500 million in transactions take place within the county's 47 BNG communities each year, according to the county's Finance Department.

"For far too long, neighbors swapping 20 year old dumb LCD televisions have been riding on the tax backs of consumers buying smart new LED televisions," County Executive Marc Elrich said.

The Finance Department has released a schedule of taxes for BNG transactions based on community valuation. "Obviously the tax rate on cast iron is higher than on half jars of apple butter," said Director Henry Potter. Rates start at 6.5 and cap at 22.5 percent.

Under the new rules, BNG administrators will track and administer transaction taxation. Individuals giving away merchandise must pay associated taxes within 72 hours of porch pickup or dropoff. Potter says the person getting rid of the item is considered the beneficiary of the transaction, and therefore pays the tax.

Council members say the BNG tax revenue is needed to offset mounting legal bills associated with the investigation of the MCPS board's review of its previous examination over its earlier inquiry into the handling of allegations against the former principal of Paint Branch high school.