Overcrowding at Montgomery County schools is nothing new. Potomac Elementary has nine trailers for classrooms to accommodate over-enrollment, and several new developments will bring more children to the school in the next year.

But a bill before County Council would institute a new tax to help alleviate the problem.

Councilmembers Tom Perez (D-5) and Phil Andrews (D-3) have introduced legislation which would levy an education impact tax on new residential developments in the county.

“This bill will help us pay for some of our sorely needed school construction,” Andrews said.

The bill will levy a per unit tax on new housing, but will exempt affordable housing. The tax will also not apply if an existing house is torn down and the same number of dwelling units are built in the same location.

It is estimated the tax would generate $10 million per year for capital improvements to school facilities.

“Many of our schools need modernization -- this will help. This is tied specifically to education,” Andrews said.

The building industry thinks that such a tax is not appropriate at this time.

“New development accounts for only a fraction of the increase in enrollment,” said Nancie Porten James, vice president for Montgomery County chapter of the Suburban Maryland Building Industry Association (SMBIA). “We believe that the discussion for funding for schools should be part of the process of the annual growth policy.”

That policy is currently under its biannual review and is due to be adopted by the county council this fall.

Most enrollment growth comes from turnover, when empty-nesters sell their homes to young families, James said, and as a result builders favor an increase in the recordation tax, paid when a house changes hands, rather than a tax on new construction.