These regulations address the High-Performance Newly Constructed Dwellings Tax Credit.
These regulations describe:The application process for obtaining the tax credit,
The criteria for qualifying for the tax credit,
The application process for obtaining a certification of the dwelling as a highperformance newly constructed dwelling,
The criteria for maintaining eligibility for the tax credit,
How the tax credit is applied, whether it is transferable and when the tax credit program will terminate, and
The effect of other tax credits on how the High-Performance Newly Constructed Dwelling Tax Credit is applied to a dwelling.
In <cite data-path="05.01.07">this chapter</cite>, the following terms have the meanings indicated.
Terms Defined.“Closing Documentation” means any form from the settlement of the sale of real estate that contains the address of the property transferred, the parties to the transfer, and the date of the transfer.
“Credit” means the tax credit described in these regulations for highperformance newly constructed dwellings.
“DHCD” means the Baltimore City Department of Housing and Community Development.
“Finance” means the Baltimore City Department of Finance.
“HERS” means the Home Energy Rating System.
“High performance” has the meaning stated in MD <cite data-doc="Md. Code" data-path="gtp|9242">Tax-Property Article, §9242(a)</cite>.
“LEED” means the U.S. Green Building Council’s Leadership in Energy and Environmental Design.
“Newly constructed dwelling” has the meaning stated in <cite data-doc="City of Baltimore, Md., Code" data-path="|28">City Code Article 28</cite>, §10-18.1(a)(3).
“NGBS” means the National Green Building Standard.
“Owner” has the meaning stated in MD <cite data-doc="Md. Code" data-path="gtp|9-304">Tax-Property Article, §9-304(d)</cite>.
“System” means the Department of Finance’s Online Tax Credit Application System.
“Vacant dwelling” has the meaning stated in <cite data-doc="City of Baltimore, Md., Code" data-path="|28">City Code Article 28</cite>, §10-18.1(a)(5).
The credit is against the property tax imposed on a high-performance newly constructed dwelling that is owned by a qualifying owner.
The creditBegins at 50 percent of the tax imposed on the qualifying property in the first full tax year in which the property qualifies and
Decreases by 10 percent in each of the four following years.
The property no longer qualifies for the creditBeginning in the sixth full tax year after the property initially qualifies; or
If continuing eligibility requirements are not met.
To be eligible for the credit a property owner shall meet the following criteria:Purchase and occupy as the property owner’s principal residence a highperformance newly constructed dwelling;
Receive a high-performance certification from DHCD;
File a state income tax return as a resident of Baltimore City for each taxable year for which the credit is sought;
The property owner may not be receiving the credit previously authorized under <cite data-doc="City of Baltimore, Md., Code" data-path="|28|§10-5">City Code Article 28, § 10-5</cite>; and
The property owner shall timely submit a completed application in accordance with the specifications in § .05.
To be eligible for the credit a property shall:Be one of the following:A newly constructed dwelling, or
A vacant dwelling;
Be located within the City of Baltimore;
Be purchased by the owner-occupant following completion of the dwelling, or be constructed on land that was purchased by the owner-occupant prior to construction of the dwelling;
Receive an occupancy permit following the construction or conversion; and
Meet the standards set forth in the Maryland <cite data-doc="Md. Code" data-path="gtp|9-242">Tax-Property Article, § 9-242(a)</cite>.
A property that meets the eligibility criteria and has an approved application becomes eligible for the credit with the first full-year tax bill issued after the latest ofThe high-performance certification date,
The date on which the use and occupancy permit was issued,
The first assessment notice of the newly constructed dwelling, or
The date of settlement.
The following items must be received by Finance prior to the approval of the property’s application:An application for the tax credit that is both:Complete, and
Submitted in a timely manner;
A final occupancy permit for the completed dwelling; and
A certification of the property as a high-performance newly constructed dwelling by the DHCD.
A credit may not be issued until the property is certified by DHCD as a highperformance newly constructed dwelling.
DHCD shall issue a certification that, to the extent possible, provides a certification date that reflects the date on which the property became a HighPerformance building.
In the event DHCD denies certification, DHCD will provide a letter identifying the reason for the denial.
Prior to the issuance of a credit, the property owner is liable for all taxes due.
Properties remain eligible for the credit for a period of five consecutive tax years.
An applicant who has purchased a newly constructed dwelling shall submit a completed application within 90 days after settlement.
An applicant who has constructed a dwelling on land purchased prior to the construction of the dwelling, shallSubmit a completed application within 90 days of the issuance of a final occupancy permit for the dwelling, and
Include complete documentation of the construction cost of the new dwelling.
An application shall be submitted electronically via the system.This system can be accessed via the internet at the following url:
<u>https://propertytaxcredits.baltimorecity.gov</u>
An applicant shall create a user account to gain access to the application system.
The user account may be used to apply for this and other tax credits for the property.
An application or required documentation may not be submitted in paper form.
The City of Baltimore shall not be responsible forConnectivity issues experienced by the applicant, or
Issues beyond the control of the City of Baltimore’s Department of Finance.
For tax credit applications DHCD shall certify the property as a high-performance newly constructed dwelling.For a timely submitted application, the Department of Finance shall provide the relevant details of the subject property to DHCD for certification of the property.
For a newly-constructed dwelling built on vacant land DHCD shall review the plans to determine whether the dwelling was constructed according to the high-performance elements of the Baltimore City Residential Building Code.
Dwellings constructed prior to 2015 or that were substantially renovated without obtaining a new construction plan number and plan approval from the DHCD permit center shall qualify for the credit by completing one of the following:Obtain LEED rating for the property of Silver or higher.
Obtain a certification from NGBS (ICC 700) rating the property Silver or higher.
Obtain a rating from a certified energy rater for the HERS Index of 80 or lower and must achieve an increase in energy efficiency of at least 20 percent.
Failure to file certification documentation required under .05(F)(3) with Finance within 30 days of receipt shall result in rejection of the application and the applicant may not reapply.
All final applications for the High-Performance Newly Constructed Dwellings Tax Credit shall be accompanied by:A copy of the final occupancy permit issued for the property after construction or rehabilitation was completed,
A copy of any building permit issued during the construction or rehabilitation of the property,
A copy of the closing documentation issued to the purchaser at the time of settlement on the new dwelling or the land on which it was built, and
Other required documents available at the time of application.
If an occupancy permit is not issued to the property prior to settlement, the property owner shallSubmit a letter with the application stating that no occupancy permit was issued prior to settlement, and
Email a copy of the occupancy permit to <u>tax.credits@baltimorecity.gov</u> when it is received.
The High-Performance Newly Constructed Dwellings Tax Credit is not transferrable to subsequent owners of the property.
The property owner shall ensure that, during the credit period the property for which the credit was granted meets the following criteria:Is in full compliance with the building, fire, and related codes of Baltimore City;
Maintains its high-performance rating; and
Is the applicant’s principal residence.
For each taxable year for which the credit is sought, an applicant shall file a state income tax return as a resident of Baltimore City.
If a property no longer meets the continuing eligibility requirements, the credit will be removed from the property’s account and may not be reinstated until the issue has been remedied.
The eligibility term of the credit is 5 consecutive tax years, beginning with the first full tax year in which the property qualifies for the tax credit.
Ineligibility for the credit during one or more of the five years in the eligibility term will not extend the five-year term of the tax credit.
A property receiving a tax credit under <cite data-doc="City of Baltimore, Md., Code" data-path="|28|§10-5">City Code Article 28, § 10-5</cite> is not eligible for the High-Performance Newly Constructed Dwellings Tax Credit.
The calculation of this credit shall be made prior to the application of any tax credit awarded under the Maryland <cite data-doc="Md. Code" data-path="gtp|9-229">State Tax-Property Article, § 9-229</cite>.
The calculation of this credit shall be made afterThe application of any credit awarded to the property under Maryland Tax Property Article §§ 9-104 and 9-105; and
Any other real property tax credit other than the credit specified in .08(B).
An owner whose settlement on the purchase of a high-performance newly constructed dwelling occurs after June 30, 2027 may not apply for this credit.
<cite data-doc="COBRA Register Volume 04, Issue 02" data-path="05.01.13">This chapter</cite> establishes rules and regulations related to the Energy Conservation Devices Tax Credit, including:
Application processes for obtaining the tax credit;
Criteria for qualifying for the tax credit;
How the tax credit may be applied to the City Real Property Tax on a dwelling;
Transferability of the tax credit;
Criteria for maintaining eligibility for the tax credit; and
The effect of other tax credits on how the Energy Conservation Devices Tax Credit is applied to a dwelling.
In <cite data-doc="COBRA Register Volume 04, Issue 02" data-path="05.01.13">this chapter</cite>, the following terms have the meanings indicated.
Terms Defined.“Application system” means the Department’s online tax credit application system.
“The Department” means the Baltimore City Department of Finance.
“Dwelling” has the meaning stated in <cite data-doc="City of Baltimore, Md., Code" data-path="|28|§10-31|(a)|(2)">Baltimore City Code Article 28, § 10-31(a)(2)</cite>.
“Eligible costs” has the meaning stated in <cite data-doc="City of Baltimore, Md., Code" data-path="|28|§10-31|(a)|(3)">Baltimore City Code Article 28, § 10-31(a)(3)</cite>.
“Energy conservation device” means the following, as defined in these regulations:A solar energy device; or
A geothermal energy device.
“Geothermal energy device” has the meaning stated in <cite data-doc="City of Baltimore, Md., Code" data-path="|28|§10-31|(a)|(4)">City Code Article 28, § 10-31(a)(4)</cite>.
“Homeowner” has the meaning stated in Maryland <cite data-doc="Md. Code" data-path="gtp|9-105">Tax-Property Article, § 9-105 </cite>(a)(7).
“Solar energy device” has the meaning stated in <cite data-doc="City of Baltimore, Md., Code" data-path="|28">City Code Article 28</cite>, § 10-31(a)(7).
“Tax credit” means the Energy Conservation Devices tax credit described in <cite data-doc="City of Baltimore, Md., Code" data-path="|28|§10-31">City Code Article 28, § 10-31</cite>.
In General.
In accordance with <cite data-doc="City of Baltimore, Md., Code" data-path="|28|§10-31">City Code Article 28, § 10-31</cite>, the Department shall grant the tax credit against the City property tax imposed on a dwelling to which a solar energy device or geothermal energy device is:Installed; and
In use.
Amount.The Department shall ensure the amount of the tax credit is the lesser of:Fifty percent of an eligible cost up to a maximum of $5,000; or
Fifty percent of an eligible cost up to a maximum of $1,500, if the energy conservation device is installed exclusively to provide hot water for use in the dwelling.
The Department shall ensure the amount of the tax credit applied in a tax year does not exceed the property tax imposed on the dwelling in that tax year.
The Department shall ensure the eligibility term of the tax credit is one tax year.
The Department may not issue the tax credit until the tax credit application is approved.
A homeowner shall be liable for applicable taxes due prior to receiving the tax credit.
Homeowner Eligibility.
A homeowner shall be eligible for the tax credit if the homeowner:Obtains an energy conservation device through:Purchase; or
Lease.
Files a Maryland state income tax return as a resident of Baltimore City for the taxable year for which the tax credit is sought; and
Submits a timely and complete application in accordance with <cite data-doc="COBRA Register Volume 04, Issue 02" data-path="05.01.13.07">Regulation .07 of this chapter</cite>.
Dwelling Eligibility.To be eligible for the tax credit, a homeowner shall ensure a dwelling is:Located within the City of Baltimore; and
The homeowner’s principal residence.
The Department may deem a dwelling for which an application has been approved eligible for the tax credit starting with the first full-year tax bill issued after the date of the submission of a complete application.
A cost associated with installing an energy conservation device is incurred on the date that the cost became due.
An applicant shall present documents showing that the cost was associated with installation of the energy conservation device and the date of installation.
To apply for the tax credit, a homeowner shall:Submit a complete application electronically via the application system located on the Department’s website within 12 months of incurring the eligible cost; and
Include copies of the following with their application:Documentation showing the date of the acquisition and the date of the installation of the energy conservation device including a:Receipt;
Paid invoice;
Canceled check; or
Lease agreement;
A notarized affidavit stating that:The property is the homeowner’s principal residence;
The property is expected to be occupied by the homeowner for more than six months of a 12-month period beginning with the date of finality for the tax year for which the credit is sought; and
The costs submitted by the homeowner are related to the installation of the energy conservation device;
A picture of the installed energy conservation device, including device labels.
The homeowner shall be responsible for ensuring a working internet connection for the duration of application submission.
If a property is sold, the Department shall automatically transfer the credit to a subsequent homeowner, if the transfer occurs within the one-year credit eligibility period.
The subsequent homeowner shall ensure that the requirements of <cite data-doc="COBRA Register Volume 04, Issue 02" data-path="05.01.13.09">Regulation .09</cite> are met for a transferred credit.
To remain eligible for the tax credit throughout the one-year period for which the credit is granted, the homeowner shall ensure:The property continues to be the homeowner’s principal residence; and
The energy conservation device remains in use.
If a property does not meet the continuing eligibility requirements, the Department shall remove the tax credit from the property’s account.
The Department shall make the calculation of the tax credit prior to the application of another tax credit awarded to the property under the Maryland State Tax-Property Article, §§ <cite data-doc="Md. Code" data-path="gtp|9-221">9-221</cite> and <cite data-doc="Md. Code" data-path="gtp|9-229">9-229</cite>.
The Department shall calculate this tax credit after:The application of a tax credit awarded to the property under Maryland Tax-Property Article §§ <cite data-doc="Md. Code" data-path="gtp|9-104">9-104</cite> and <cite data-doc="Md. Code" data-path="gtp|9-105">9-105</cite>; and
A real property tax credit other than the tax credits specified in <cite data-doc="COBRA Register Volume 04, Issue 02" data-path="05.01.13.10|A.">Regulation .10(A)</cite>.
When combined with other tax credits, the Department shall ensure the tax credit does not exceed the amount of City real property tax liability on the dwelling in that tax year.
The Department may not award more than one tax credit authorized under Art. 28, §10-31 to a single dwelling.
Adoption.
The Baltimore City Department of Finance (“DOF”) adopts these rules and regulations under <cite data-doc="City of Baltimore, Md., Code" data-path="|28">City Code Article 28</cite>, §8-5.
Applicability.
These rules and regulations are in addition to all applicable laws found in the <cite data-doc="City of Baltimore, Md., Code" data-path="|28">City Code Article 28</cite>, other applicable sections of the City Code, and the Annotated Code of Maryland.
Scope of Regulations.Effective July 1, 2021, certain homeowners are eligible to apply during a two-month period beginning February 15 of that fiscal year to have their properties withheld from the annual tax sale list.
<cite data-path="05.18.01.01">This section</cite> applies to the sale of a dwelling with an assessed value of $250,000 or less.
The aggregate tax and lien liability of all properties withheld from the annual tax sale list may not exceed $2 million in any tax year.
In <cite data-path="05.18.01">this chapter</cite>, the following terms have the meanings indicated.
Terms Defined.“Dwelling” has the meaning stated in State Tax-Property-Article § 9-105(a)(5).
“Finance” means the Baltimore City Department of Finance.
“HCD” means the Baltimore Department of Housing and Community Development.
“Homeowner” has the meaning stated in State Tax-Property-Article §9-105(a)(7).
“Program” means the Tax Sale Exemption Program.
“Tax” has the meaning stated in State Tax-Property-Article § 14-801(d).
“Withheld”means that dwellings will be removed from the list of properties eligible for tax sale, but
does not mean that the outstanding tax and lien liabilities for the dwelling have been abated.
Homeowners are eligible for participation in the Tax Sale Exemption Program ifthey meet certain criteria and
there are available funds to cover the tax and lien liability for the dwelling.
A homeowner is eligible for participation in the Tax Sale Exemption Program ifthe homeowner has resided in the dwelling for at least 15 years; and
has eithera total annual household income of less than $36,000;
is at least 65 years old and has annual earned income of $75,000 or less; or
is an adult who iscurrently receiving disability benefits from the Federal Social Security Disability Insurance program or the Supplemental Security Income program, and
has annual earned income of $75,000 or less.
Determination of eligibility.The determination of whether a homeowner meets the eligibility requirements outlined in <cite data-path="05.18.01.03">this section</cite> is based onthe application documentation provided, and
a database verification process.
The tax and lien liability for the homeowner’s dwelling shall not cause the aggregate tax and lien liability of all withheld dwellings to exceed $2 million.
Terms of exemption.A homeowner shall apply on an annual basis to have their dwelling withheld from tax sale.
Participation in the program does not signify approval for future years.
Participation in the program does not result in the abatement of any outstanding tax and lien liability of exempted dwellings.
Program participants are responsible for making payments on any outstanding tax and lien liability.
Application deadlines.Application deadlines will be set annually and advertised on the Finance and HCD websites.
Application deadlines arebinding upon all applicants, and
shall not be altered for an individual applicant.
Failure to meet a deadline shall result in the application being rejected.
By submitting an exemption applicationan applicant acknowledges these requirements, and
agrees to be bound by the deadlines.
Application submission.Applications shall be submitted to the Baltimore City Department of Housing and Community Development (“HCD”) either:electronically at <strong>https://portal.neighborlysoftware.com/baltimoremd/participant</strong>;
by mail to Baltimore City Department of Housing and Community Development, Tax Sale Exemption Program, 417 E Fayette Street, 11<sup>th</sup> Floor, Baltimore, MD 21201;
in person at 417 E Fayette Street, 11<sup>th</sup> floor; or
by email to dhcd.taxsaleinfo@baltimorecity.gov, subject line: Tax Sale Exemption Application.
The City of Baltimore is notresponsible for any connectivity or application submission issues experienced by the applicant, and
will not grant an extension of any deadline due to issues beyond the control of the Department of Housing and Community Development.
Complete applications shall include copies of the following documentation:a copy of a photo ID for the applicant issued bythe United States government;
the State of Maryland; or
the City of Baltimore;
any two of the following documents showing the current address of the applicant:utility bills;
photo ID issued by the United States government, State of Maryland, or City of Baltimore; or
Social Security (SSA, SSDI, SSI) award letters.; and
a complete Income Information form which includes:the total number of people in the household;
number of adults, school-aged and non-school-aged children;
total gross household income; and
proof of household income.
Proof of household income may include:two pay stubs from current employer, within last two months of employment;
Social Security (SSA, SSDI, SSI) award letters;
pension statements;
Unemployment or Workers’ Compensation statements or award letters; or
other documentation that confirms the income provided in the Income Information form.
The online and paper form of the application shall list documents accepted to validate eligibility for this program.
The Tax Sale Ombudsman shall provide information and answer applicant questions aboutthe application process, and
required supporting documentation.
Application review.Hard copy applications received by mail or personal delivery shall be date and time stamped upon receipt by the Department of Housing and Community Development.
Date and time stamped hard copy applications shall be entered in the Neighborly project management database by HCD personnel.
Applications received by HCD shall be reviewed for completeness and eligibility.
Applications shall be deemed complete if the application includes all required documentation and all required application fields are completed.
Applications shall be deemed eligible ifall eligibility criteria are met, and
all required documentation has been verified.
The Department of Finance shall be notified of applications deemed eligible upon review.
Incomplete applications.Applications shall be deemed incomplete when the homeownerdoes not fully complete the application,
does not provide required documentation, or
completed fields in the application are not legible.
For incomplete applications, HCD shall contact the applicantusing the contact information provided on the application
to request additional information or clarification.
Eligibility review.Applications shall be deemed ineligible if the homeowner does not meet the eligibility criteria based ondocumentation provided, or
the application and documentation verification process.
The Department of Housing and Community Development shall notify the applicant using the contact information provided on the application.
Fund availability.For all eligible applications, the Department of Finance shall assessthe amount of tax and lien liability on the applicant dwelling, and
the aggregate tax and lien liability for the Program at the time of receiving the application.
If the amount of tax and lien liability on the applicant dwelling causes the aggregate tax and lien liability of the Program to exceed $2 million, the Department of Finance shallreject the application, and
assess successive applications until it identifies an application with outstanding tax and lien liability that will not exceed the Program’s aggregate tax and lien liability limit.
When the remaining Program funding available is below $750the application process shall be closed and
no additional applications shall be approved.
The Department of Finance shall notify HCD of approved applications based on fund availability.
The Department of Housing and Community Development shall notify the applicant using the contact information provided on the application.
The Department of Finance shall deny an application ifthe property is not on the tax sale list, or
if the lien amount is greater than the remaining available funds.
If the Department of Finance denies an application,it shall notify HCD as to why the application was denied, and
the Department of Housing and Community Development shall notify the applicant using the contact information provided on the application.
If an applicant is found to have provided false information the application shall be deemed to be fraudulent.
If an application is deemed fraudulent and the tax sale has not yet occurredthe exemption shall be revoked and
the property shall be placed back onto the tax sale list.
If an application is deemed fraudulent and the tax sale has occurred the City shall pursue available legal action.
The Department of Housing and Community Development and the Department of Finance shall issue notice to the public about this Program.
Schedule of notice.The Department of Finance’s Bureau of Revenue Collection shall issue a notice as part of the Mayor’s Message in the July 1 property tax bills.
The City’s Tax Sale Ombudsman shall issue a notice to dwellings that are owneroccupied, have an assessed value of $250,000 or less, and have delinquent property tax accounts in January.
The Department of Finance’s Bureau of Revenue Collection shall issue a notice to dwellings receiving a Final Bill and Legal Notice in February.
These rules and regulations are promulgated by the Department of Finance pursuant to <cite data-doc="City of Baltimore, Md., Code" data-path="|28">City Code Article 28</cite>, Subtitle 32.
In <cite data-path="05.19.01">this chapter</cite>, the following terms have the meanings indicated.
“Bag surcharge” means the $0.01 of the $0.05 collected by a Retailer and remitted to the City for each bag provided to customers pursuant to <cite data-doc="City of Baltimore, Md., Code" data-path="|28|§32-4">City Code Article 28, § 32-4</cite>.
“Checkout bag” has the meaning stated in <cite data-doc="City of Baltimore, Md., Code" data-path="|28|§32-1">City Code Article 28, § 32-1</cite>.
“Plastic checkout bag” has the meaning stated in <cite data-doc="City of Baltimore, Md., Code" data-path="|7">City Code Article 7</cite>, §62-1.
“Retailer” has the meaning stated for “Dealer” in <cite data-doc="City of Baltimore, Md., Code" data-path="|7">City Code Article 7</cite>, §62-1.
Effective January 1, 2022, subject to exceptions defined in <cite data-path="05.19.01.03">this regulation</cite>, retailers are prohibited from supplying customers with plastic checkout bags to carry or hold purchased items.
Only paper or compostable bags may be provided by a retailer to customers in the City of Baltimore.
<cite data-path="05.19.01.04">This regulation</cite> does not apply to:
checkout bags that meet the definition of “plastic checkout bag” in <cite data-doc="City of Baltimore, Md., Code" data-path="|7">Baltimore City Code Article 7</cite>, §62-1; and
checkout bags provided to customers solely for the purpose of carrying purchases of:fresh and derivative fish;
meat and poultry products;
unpackaged fruits, nuts, vegetables, confectionery, fresh cheese, and baked goods;
ice;
foods and goods obtained at a farmers’ market;
prescription drugs obtained from a pharmacy;
newspapers; and
dry-cleaned goods.
To comply with the requirements of <cite data-path="05.19.01.05">this regulation</cite>, a retailer must register online at cityservices.baltimorecity.gov/bagtax.
Only one user ID and password shall be allowed per account.
Frequently asked questions and answers are available at <u>www.baltimoresustainability.org</u>.
A retailer must apply to the Baltimore Finance Department for a taxpayer identification (ID) number.
The provided ID shall uniquely identify each eligible retailer location.
Chain retailers must request individual tax ID per location.
A retailer must provide the Baltimore City Director of Finance a monthly, detailed report of all bags provided to customers by location.
The report must be filed online at cityservices.baltimorecity.gov/bagtax.
For the use of a checkout bag, a retailer must charge a user fee of $0.05, pursuant to <cite data-doc="City of Baltimore, Md., Code" data-path="|28">Baltimore City Code Article 28</cite>, Subtitle 32.
A retailer must remit monthly the total amount yielded by the bag surcharge to the Baltimore City Director of Finance.
A retailer must remit the total amount yielded by the bag surcharge by location.
The bag surcharge is due on or before the 25th day of the month following the month of collection.
Payments must be made online at cityservices.baltimorecity.gov/bagtax.
If a retailer provides 300 or more checkout bags to customers, the bag surcharge is triggered.
No tax is due for any month in which fewer than 300 checkout bags are provided to customers.
A retailer shall report zero bags for any month in which the retailer provides fewer than 300 checkout bags to customers.
Notwithstanding <cite data-path="05.19.01.10|C.">subsection C of this section</cite>, if a retailer provides fewer than 300 checkout bags to customers in any given month, the retailer must aggregate the number of bags provided to customers over multiple consecutive months.
When a retailer provides a total aggregate of at least 300 bags to customers pursuant to <cite data-path="05.19.01.10|D.">subsection D of this section</cite>, a retailer is required to file a report with the City for that month and remit the appropriate bag surcharge. F. Partial payments will not be accepted.
High bag sales.If a retailer reports providing more than 300 bags to customers in a month, the bag surcharge would be for the total number of bags reported.
If the retailer does not remit the appropriate bag surcharge, penalties will be assessed.
Pursuant to <cite data-doc="City of Baltimore, Md., Code" data-path="|28">Baltimore City Code Article 28</cite>, §32-4, each receipt a retailer gives a customer must itemize and show the bag surcharge, if any, on the customer’s bill.
A retailer must keep complete and accurate records of all transactions involving exempt and non-exempt checkout bags.
A retailer must provide documentation that supports the retailer’s general accounting system.
The retailer’s records must be available for inspection and audit by the City during all business hours.
A retailer who fails to comply with the provisions of the <cite data-doc="City of Baltimore, Md., Code" data-path="|28">City Code Article 28</cite>, Subtitle 32 and <cite data-path="05.19.01.13">this regulation</cite> will be penalized in accordance with <cite data-doc="City of Baltimore, Md., Code" data-path="|28|§32-6">City Code Article 28, § 32-6</cite>.
The $0.01 bag surcharge collected by a retailer and remitted to the City for each bag provided to customers pursuant to <cite data-doc="City of Baltimore, Md., Code" data-path="|28|§32-4">City Code Article 28, § 32-4</cite> cannot be included in the calculation of the Maryland Sales and Use Tax pursuant to the <cite data-doc="Md. Code" data-path="gtg|11102">Tax-General Article, § 11102, Annotated Code of Maryland</cite>.