# Montgomery County Code — Part II. Local Laws, Ordinances, Resolutions, Etc. ## Chapter 52. Taxation. ### Article I. General. **Sec. 52-1. Date of finality generally.** In the county the date of finality and the semiannual date of finality for the levying of all taxes which the council is now or may hereafter be authorized to levy shall be January 1 and July 1 respectively in each year and all such taxes shall be levied for a taxable year beginning on July 1 and ending on June 30 in the next calendar year, and the state and county taxes shall be levied prior to June 30 each year; provided, however, that nothing herein contained shall be construed to prevent the levying of any assessment for front benefit charges or special benefit assessments for special improvements by the council at any time as the council shall determine the special benefit thereunder; and provided further, that for the fiscal year 1951-52 and thereafter, the date of finality for the assessment of tangible personal property shall be January 1 next preceding the fiscal year. **Sec. 52-2. Date of finality for tax purposes; when taxes due and payable; date when taxes overdue; penalty for late payment of taxes; when improvements assessable.** (a) The date of finality for tax purposes, as that term is defined in state law, is January 1. The semiannual date of finality is July 1. The three-quarter date of finality is October 1 and the one-quarter date of finality is April 1. (b) Ordinary taxes are due July 1 in each taxable year, except as provided in subsections (c), (d), (e) and (f). Unpaid taxes are overdue on October 1, and bear interest and penalties as specified in subsection (h). (c) Taxes based upon an assessment made as of a semiannual date of finality are levied for the full taxable year beginning on the same day. (d) Any real property completed after July 1 in any year and through September 30, or otherwise first added to the tax rolls during that period, is subject to the payment of property taxes for the 9 months beginning on October 1 and ending on the next June 30. Taxes for these 9 months must be computed by multiplying the assessed valuation of the property by three-fourths the current annual tax rate for the county. Taxes imposed for these 9 months are due on October 1. Taxes are overdue 30 days after the tax bill is mailed or made available, and bear interest and penalties as specified in subsection (h). (e) Any real property completed after September 30 in any year and through December 31, or otherwise first added to the tax rolls during that period, is subject to the payment of property taxes for the 6 months beginning on January 1 and ending on the next June 30. Taxes for these 6 months must be computed by multiplying the assessed valuation of the property by one-half the current annual tax rate for the county. Taxes imposed for these 6 months are due on January 1. Taxes are overdue 30 days after the tax bill is mailed or made available, and bear interest and penalties as specified in subsection (h). (f) Any real property completed after December 31 in any year and through March 31, or otherwise first added to the tax rolls during that period, is subject to the payment of property taxes for the 3 months beginning on April 1 and ending on the next June 30. Taxes for these 3 months must be computed by multiplying the assessed valuation of the property by one-quarter of the current annual tax rate for the county. Taxes imposed for these 3 months are due on April 1. Taxes are overdue 30 days after the tax bill is mailed or made available, and bear interest and penalties as specified in subsection (h). (g) Improvements become assessable when they are substantially completed. For buildings under construction, "substantially completed" means when the building is under roof, plastered (or ceiled) and trimmed. (h) Ordinary taxes when overdue are subject to interest at the rate specified in state law. In addition to interest, taxes are also subject to a penalty at the rate established by resolution of the County Council. Notice of the penalty and interest rates must be included with each tax bill. No interest or penalty may be charged or collected under this section until 30 days after the bill or revised bill for taxes has been mailed or otherwise made available to the taxpayer at the address shown on the tax rolls. As an additional penalty for failure to pay all taxes due within the thirty-day period, the penalty and interest revert to the dates specified in subsections (b), (d), (e), and (f). Interest and penalty when due are a lien on the property and must be collected in the manner provided in state law for the collection of delinquent ordinary taxes. (i) Notwithstanding any provision of state law authorizing a service charge, the Director of Finance must not impose any service charge or other fee because a taxpayer pays the County real property tax in semiannual installments. Res. No. 10-973, adopted Oct. 2, 1984, authorized the Director of Finance to issue estimated tax bills and to collect estimated corporate tangible personal property taxes pursuant to art. 81, §§ 13(b) and 49B of the Annotated Code of Maryland, which appear in Md. Code Ann., Tax-Prop. §§ 8-201, 10-210, 14-604, 14-608, 14-702, 14-906, and 14-917 (2001). Resolution No. 9-1590, enacted in 1982, addressed § 52-2(g) with the following text (note that 1989 LMC, ch. 38, § 1, renumbered § 52-2(g) to § 52-2(h)): “ . . . there shall be imposed a penalty of one (1) percent per month or any fraction of a month on the payment of all ordinary taxes and other charges collectible in the same manner as ordinary taxes which are overdue and in arrears. The penalty rate hereby established shall for all subsequent levies of all levy years apply to all ordinary taxes and charges collectible in the same manner as ordinary taxes, which are overdue and in arrears on or after October 1, 1982.” **Sec. 52-2A. Advance payment of real property tax.** (a) Payment Authorized. A property owner may make advance payment of County real property tax in accordance with the provisions of MP Code, Tax - Property, § 10-205, as amended. (b) Calculation of Payment. The advance payment must be calculated by applying the current County property tax rate to the assessment of the property owner’s real property for the prior year. (c) Application of Payment. The Director of Finance must apply the advance payment first to any balance due appearing on the Real Property Consolidated Tax Bill for the property for which the advance payment is tendered. The Director of Finance must apply any remaining amount of the advance payment as a credit against the total liability as finally determined by the Director on the next ensuing Real Property Consolidated Tax Bill for the property for which the advance payment has been made. (d) Overpayment and Interest. If the advance payment exceeds the total liability shown on the next ensuing Real Property Consolidated Tax Bill for the property for which the advance payment has been made, the Director of Finance must send a refund to the property owner. The County must not pay interest on the advance payment, including any refund attributable to the advance payment. (e) Separate fund required. The Department of Finance must segregate funds received under this Section from other revenue the County collects. (f) Report. By January 30 each year, the Department of Finance must send a report to the County Executive and County Council on the amount of advance payments received in the previous calendar year. **Sec. 52-3. Annual levy.** As soon as may be practicable after the passage of the appropriate resolution by the council, and after the ascertainment of the assessed valuation of property for taxation, but prior to June 30 of each year, the council by resolution to be recorded in its minutes, shall levy upon all of the taxable property of the county such rate of tax as shall be determined by the council to be necessary to provide a balanced budget for the fiscal year next ensuing. **Sec. 52-4. Authorization to issue an estimated personal property tax bill.** (a) If the State Department of Assessments and Taxation does not notify the County of any particular personal property tax assessment or operating personal property assessment by September 1 of any tax year, the Collector may issue an estimated personal property tax bill to the taxpayer. (b) The estimated personal property tax must be calculated by applying the applicable current property tax rate to the most recent assessment of the property. (c) The taxpayer must pay the estimated tax bill within 30 days after the bill is received, reasonably should have been received, or is made available to the taxpayer. If the estimated bill is not paid when due, the unpaid balance is subject to interest and penalty as provided by law. (d) If the tax paid under this Section is less than the tax finally determined to be due, the Collector must send a bill to the taxpayer for the difference. If this tax bill is not paid within 30 days after the bill is received, reasonably should have been received, or is made available to the taxpayer, the unpaid balance is subject to interest and penalty as provided by law. (e) If the tax paid under this Section is more than the tax finally determined to be due, the Collector must refund the difference to the taxpayer with interest as provided by law. **Sec. 52-5. Abatement of small amounts of tax due.** The director of finance may abate the tax where the cost of collection exceeds the amount of tax due and payable. The director must report to the county council each proposed abatement of more than one hundred dollars ($100.00), with an estimate of the tax waived. **Sec. 52-6. Tax anticipation certificates-Authority of council to issue; purpose; sale.** The council is hereby authorized and empowered, by resolution duly adopted in executive session, to provide for the issuance, sale, redemption and acceptance, in payment of taxes, of certificates of the county to be known as tax anticipation certificates. In such resolution the council shall have full and complete authority and discretion, subject to the provisions of this section, to fix and determine the form and tenor of such certificates, including denominations, the date upon which the certificates shall be sold, the manner of selling and issuance, the manner of redemption, and the value to be given to the certificates when used in payment of taxes, and generally all matters incident or necessary to the issuance, sale, redemption and delivery thereof. The certificates shall be issued only for the purpose of sale to the public to be used by members of the public for payment of county taxes. Such certificates shall be sold only at face value, shall not bear interest and shall be redeemable in cash by the county, or its designated agents, only at face value of the certificate. Such certificates shall not be negotiable and shall be transferable by the holder only to his successor or assign in ownership of property subject to county taxation, and then only by registration of the transfer at the division of revenue and disbursements, or other county agency as directed in the council resolution. Certificates may be authorized to be accepted by the county at above face value only in payment of outstanding due and owing ad valorem county tax bills, and in no event shall the increased value allowed for payment of taxes and interest on such taxes exceed the amount, on a pro rata basis by denomination, of five dollars ($5.00) per one hundred dollars ($100.00) of the face amount of the certificate. The allowed increased value for tax payment purposes shall be prorated in equal monthly amounts from July 1 of the year in which the taxes become due and payable through the next succeeding February. No increase in value for any purpose whatsoever shall be allowed prior to July 1 of the year in which the taxes become due and payable nor shall any additional increase in value for any purpose be allowed after the next succeeding February. No certificates shall be sold in February of any year but may be sold in every other month of the year at the discretion of the council. **Sec. 52-7. Tax anticipation certificates for county property taxes.** (a) (1) The county executive may issue tax anticipation certificates for county property taxes. (2) The amount of tax anticipation certificates issued in any fiscal year may not exceed five (5) percent of the amount of county property taxes levied for the previous fiscal year. (b) The county executive may make tax anticipation certificates available at: (1) Any county office that the county executive designates; and (2) Any state or national bank in the county that offers to issue the certificates to the public. (c) If warranted, the county executive may pay a bank for the service of issuing and accepting tax anticipation certificates. (d) (1) Tax anticipation certificates are in the form that the county executive determines. (2) A tax anticipation certificate may be purchased in fifty dollars ($50.00), one hundred dollars ($100.00), two hundred fifty dollars ($250.00), and five hundred dollars ($500.00) denominations. (e) An owner of record of property that is located in this county may purchase a tax anticipation certificate under this section for surrender in payment of county property taxes on that property. (f) Interest shall accrue on tax anticipation certificates in the amount that the county executive determines by regulation. (g) The purchase of a tax anticipation certificate by a property owner: (1) Is not payment of property tax; and (2) Does not affect the time or manner of a tax sale of the property for which the certificate is purchased if the property tax is not paid as required by law. (h) (1) A tax anticipation certificate is not negotiable. (2) a. A tax anticipation certificate may be transferred by the purchaser of the certificate to the successor or assignee in ownership of the property for which the certificate was purchased. b. A transfer of a tax anticipation certificate under this paragraph shall be registered at the county division of revenue and disbursements in the manner as the director of finance determines. (i) (1) The county executive may adopt regulations to implement this section. (2) A regulation adopted under this section shall be adopted under method (2) of section 2A-15 of this Code. **Sec. 52-8. Certification of payment of taxes; fees; liability for errors, etc.** For certifying the payment or nonpayment of ordinary taxes, to persons other than the council or the head of any department of the county government, the director of finance shall charge and collect a fee for each such certification as shall be established by the county executive by written regulations adopted under method (3) of section 2A-15 of this Code and in an amount not to exceed the cost of administering and providing for liability under this section. In addition, the director of finance shall charge and collect a fee which shall be established by the county executive by written regulation adopted under method (3) of section 2A-15 of this Code for each certification of payment or nonpayment of any farmland transfer tax due under Section 52-31. All such certifications shall certify the taxes that are paid or unpaid according to the records of the county but neither the director of finance nor any official authorized by him to make such certificate shall be personally liable for any error in such certificate unless the error be caused by his willful, capricious or fraudulent act. In the event of the failure to list on such certificate unpaid taxes for the period covered by such certificate, or the failure to list properly payment or nonpayment of the farmland transfer tax due under Section 52-31, the liability of the county on such certificate shall be limited to the amount of such unpaid taxes, interest and penalties. **Sec. 52-9. Listing and assessment of personal property.** All tangible personal property in the county subject to taxation shall be listed and assessed at not less than the full cash value thereof in lawful money. Such assessment shall be made by the appeal tax court of the county upon the recommendations of the supervisor of assessment in the manner following: (1) Forms or schedules; notice. The supervisor of assessment shall annually cause to be prepared printed forms or schedules of all tangible personal property and all general merchandise and stock in trade, owned or held in trust or otherwise, subject to taxation, to which shall be appended an affidavit in blank, setting forth that the foregoing presents a full and true statement of all such personal property. When such schedule or form is ready for delivery, notice thereof shall be given by the supervisor of assessment by advertisement for the public by inserting such notice once a week for three (3) successive weeks in all newspapers having a general circulation within the county, and a copy of such schedule or form shall be delivered to any resident applying therefor at the office of the supervisor of assessment, at Rockville, Maryland, or at the office of the director of finance, Rockville, Maryland, or at any other places which may in the aforesaid notice be designated by the supervisor of assessment. (2) Duty of taxpayer on notice. Every person, within the county liable to taxation hereunder, and every association, company, executor, administrator, guardian or trustee holding personal property in trust liable to taxation hereunder, shall, prior to April 15 of each year, fill out the proper blanks in such form or schedule with a full and true statement, as in this section hereinabove required, and make and sign an affidavit to the truth thereof, as aforesaid, before the supervisor of assessment or before any of the duly appointed assessors for the county, or before the director of finance of the county or any of his assistants or deputies, and the supervisor of assessment and the duly appointed assessors for the county, and the director of finance of the county and his assistants and deputies are hereby authorized to administer such and all oaths in connection with their duties as assessors or collectors of taxes without charge, or before any person authorized by law to administer oaths; and the address in the county of the person making affidavit shall in each case be given below his signature, and thereupon such supervisor of assessment or any assessor shall assess such property at its full cash value, and enter the same in the columns upon blanks provided for that purpose, and the amount thus ascertained shall be entered upon the books for taxation for each fiscal year. (3) Failure of taxpayer to return form. If any person, association, company, administrator, executor, guardian or trustee shall fail to make and deliver to the supervisor of assessment, prior to April 15 of each year, the form or schedule of his personal property owned, held in trust or otherwise, provided for in this section, then the supervisor of assessment shall, without delay, from the best information he can procure, make an assessment against such person, association, company, administrator, executor, guardian or trustee, to which such supervisor of assessment shall add fifteen (15) percent thereof; provided, that upon application after filing of the return, the appeal tax court of the county may reduce or abate entirely the addition of fifteen (15) percent upon good cause shown. (4) Rejection of return; independent assessment. If the supervisor of assessment be not satisfied as to the correctness of the return of personal property made by any person, association, company, administrator, executor, guardian or trustee, such supervisor may reject the return, and the supervisor of assessment or any assessor may from the best information he can procure, or by making such examination of the personal property as may be practicable, assess the same in such amount as may to him seem just; and notice of the rejection of the sworn return shall be given to the party interested by leaving the same at the address given in the return or by placing a copy of the notice in the United States mail postage prepaid, addressed to such person at his ordinary post office address for the receipt of mail, in a sealed envelope with the return address of the council on the outside; and in all such cases there shall be a right of appeal from the action taken by the supervisor of assessment to the appeal tax court of the county; provided, however, that such appeal is made within twenty (20) days after delivery of such notice or rejection or its deposit in the United States mail as aforesaid. (5) False affidavits. If any person, association, company, administrator, executor, guardian or trustee shall make a false affidavit touching the matters hereinbefore provided for, he or they shall be deemed guilty of perjury, and upon conviction thereof shall be subject to the penalties provided for that offense now provided by law. (6) When return to be filed. Returns of all tangible personal property other than automobiles shall be filed prior to April 15 of each year. (7) Rate of tax. On all tangible personal property, assessed at a fair cash value over and above the exemptions provided by law, including vessels, ships, boats, tools, implements, machinery, horses and other animals, carriages, wagons and other vehicles there shall be paid to the director of finance of the county as the collector of taxes for the county the rate of tax provided by law. (8) Taxes to be paid annually. Tangible personal property taxes of all kinds, excepting the tax on motor vehicles for which a special method of collection is otherwise provided, shall hereafter be paid annually as real estate taxes are paid in the county, that is, the same shall become due and payable on July 1 in each taxable year. From and after October 1, all such taxes are overdue and in arrears and shall bear interest and penalties as specified by the council by resolution pursuant to section 52-2(g). This tax, with the interest and penalties thereon, shall constitute a delinquent tax to be collected in the manner provided by law. (9) Failure to file statement-Petition for mandamus. If any person neglects or refuses to file a return of personal property as required by law, and the supervisor of assessment aforesaid certifies to the council that in his opinion the best information obtainable does not afford a satisfactory basis for assessment, the county may, by petition to the circuit court for the county for mandamus against such person, compel the filing of a sworn return and in such case the court shall require the person at fault to pay all expenses of the proceeding. (10) Same-Penalty. Any person required to file a return or schedule as hereinbefore provided, who shall fail or refuse to file the same within the time required therein shall, upon conviction thereof, be fined not more than one hundred dollars ($100.00) for each and every failure or refusal and for any such failure or refusal extending beyond thirty (30) days’ duration, each day thereafter shall constitute a separate and distinct offense, and such person shall be fined in addition to the aforesaid one hundred dollars ($100.00) not more than the sum of ten dollars ($10.00) for each and every day of such failure or refusal beyond such thirty-day period. All prosecutions under this section shall be brought in any court of competent jurisdiction within the county on information by the state's attorney for the county in the name of "Montgomery County, Maryland," or the director of finance of the county. (11) Applicability of section to certain corporations. The provisions of the foregoing section shall not apply to corporations which are by the provisions of any general law required to file returns in a different manner than herein provided to the extent of the requirement of such general law, but shall be applicable in all other respects. **Sec. 52-10. Assessment of certain machinery and equipment.** The percent of assessment for personal property tax purposes of machinery or equipment used to generate electricity, steam for sale, or hot or chilled water for sale that is used to heat or cool a building, as described in Section 7-237 of the Tax-Property Article, Maryland Code, is inicreased from 50% for the taxable year 2007 to: (a) 65% for the taxable year beginning July 1, 2008; (b) 60% for the taxable year beginning July 1, 2009; and (c) 55% for the taxable year beginning July 1, 2010. **Sec. 52-11. Manufacturing machinery and farm implements exempt from personal property taxes.** Beginning on the date of finality of January 1, 1965, all personal property of every description in the county used entirely or chiefly in manufacturing, including mechanical tools, or implements, whether worked by hand or steam or other motive power, machinery, manufacturing apparatus or engines, are hereby exempt from all county personal property taxes, and all farm implements or apparatus are also hereby exempt from county personal property taxes. **Sec. 52-12. Special revenue tax on trailer coach parks.** The county council for Montgomery County is empowered and authorized to levy and impose by resolution, ordinance or public local law a special revenue tax on every trailer coach park owned by a person licensed to operate and conduct a trailer coach park in Montgomery County, under existing laws and regulations pertaining thereto; and the same person shall pay a monthly tax to be computed at the rate of not more than six dollars ($6.00) per month, as determined by the council, multiplied by the number of spaces which, on the first day of each month, in each licensed trailer coach park are in actual use and operation for occupancy by any trailer coach designed for dwelling and sleeping purposes. Any person liable for the taxes imposed under the authority of this section who: (a) willfully fails to pay such taxes; or (b) willfully fails to file any return required; or (c) willfully makes any false statement or misleading omission in any return filed as required; or (d) violates the provisions of any resolution, or ordinance or law adopted under the authority of this section shall be subject to punishment for a class A violation as set forth in section 1-19 of chapter 1 of the County Code. **Sec. 52-13. Special mass transit facilities tax.** (a) Authority to impose tax; purpose. The county council is empowered and authorized to levy and impose by resolution a revenue tax on all assessable property in the county to create a special fund to be used to plan, develop, finance and cause to be operated improved transit facilities located in the county, necessary or useful in rendering transit service between points in the county, by means of rail, bus, water or air and any other mode of travel, including without limitation, tracks, rights-of-way, bridges, tunnels, subways, rolling stock for rail, motor vehicles, marine and air transportation, stations, terminals and ports, areas for parking and all equipment, fixtures, buildings and structures and services incidental to, or required in connection with the performance of transit services. (b) Rate of tax. The rate or amount of tax shall be no less than three cents ($0.03) per one hundred dollars ($100.00) of assessed value of all assessable property within the county. (c) Payment of proceeds into special fund; disbursements. The director of finance shall pay into a special fund in the treasury all taxes, penalties and interest collected and received by him pursuant to this section. Such proceeds shall be disbursed upon the warrant of the director only for the purposes set out in subsection (a) above or for any of the purposes set forth in chapter 870 of the Laws of Maryland 1965, as amended, including the county's obligation to the Washington Suburban Transit District under any contract or agreement between such district and the Washington Metropolitan Area Transit Authority but excluding any appropriations required to meet the administrative expenses of the district pursuant to section 15 of Chapter 870, Laws of Maryland 1965. **Sec. 52-14. Fuel-energy tax.** (a) (1) A tax is levied and imposed on every person transmitting, distributing, manufacturing, producing, or supplying electricity, gas, steam, coal, fuel oil, or liquefied petroleum gas in the County. (2) The County Council must set the rates for various forms of fuel and energy by a resolution adopted under Section 52-17(c). The Council may, from time to time, revise, amend, increase, or decrease the rates, including setting different rates for fuel or energy delivered for different categories of final consumption, such as residential or agricultural use. Each rate must be based on a weight or other unit of measure regularly used in the conduct of business. The rate for each form of fuel or energy should impose an equal or substantially equal tax on the equivalent energy content of each form of fuel or energy for a particular category of use. (3) The tax does not apply to the transmission or distribution of electricity, gas, steam, coal, fuel oil, or liquefied petroleum gas in interstate commerce through the County if the tax would exceed the taxing power of the County under the United States Constitution. The tax does not apply to fuel or energy converted to another form of energy that will be subject to a tax under this Section. The tax must not be imposed at more than one point in the transmission, distribution, manufacture, production, or supply system. The rates of tax apply to the quantities measured at the point of delivery for final consumption in the County. For an electric company (as defined in state law), the rates of tax apply to the net consumption that is used to calculate each consumer bill. (4) The tax does not apply to energy that is generated from a renewable source located: (A) in the County and either used on the site where it is generated or subject to a net energy metering agreement (as defined in state law) with a public utility; or (B) in the same electric service territory in Maryland as the subscriber using the energy and subject to a virtual net energy metering agreement (as defined in state law) with a public utility. Renewable source means a “Tier 1 renewable source” as defined in Section 7-701(l) of the Public Utilities Article of the Maryland Code or any successor provision. (b) Person as used in this Section means any individual or legal entity, and includes any corporation, company, association, firm, partnership, group of individuals acting as a unit, trustee, receiver, assignee or personal representative. Director in this Section means the Director of Finance or the Director’s designee. (c) Every person who transmits, distributes, manufactures, produces, or supplies fuel or energy in the County must pay the tax and report any information required by the Director for each calendar month on or before the last day of the following month. With the written permission of the Director, a person who regularly owes taxes under this Section may pay the tax and make reports on a quarterly basis, on or before the 15th day of April, July, October, and January in each year for the preceding 3 months. (d) If any person does not pay the tax due under this Section or file a proper return to the Director by the time and in the amount required, that person is liable for interest on the amount of tax due at the rate of ½ of one percent per month on the amount of the tax for each month or part of a month after the tax is due, and a penalty of 10 percent of the amount of the tax. Any interest and penalty due may be collected as a part of the tax. (e) If any person does not timely file any report and pay the tax required under this Section, the Director may use any available information to estimate the tax due. As soon as the Director obtains available information on which to base the calculation of any tax payable by any person who has not timely filed any report and paid the tax, the Director may assess against that person any tax, interest, and penalties due and must notify that person of the total amount due by regular mail sent to the person’s last known address. The total amount assessed is due and payable within 10 days after the notice is sent. (f) Every person liable for any tax under this Section must preserve, for 2 years, any records necessary to calculate the amount of tax due, which the Director may inspect at any reasonable time. (g) If any person required to pay a tax under this Section stops doing business or otherwise transfers ownership or control of the business, any tax payable under this Section is immediately due, and the person must immediately file a report and pay any tax due. (h) The Director may adopt a regulation, by Method 2, to assess, collect, audit, and otherwise administer the tax imposed by this Section. If the Council by resolution establishes different rates for different categories of fuel-energy use, the regulations may specify how the Director will determine whether a taxpayer qualifies under the resolution for any rate that is less than the maximum rate. (i) Any violation of this Section is a class A violation. Each violation is a separate offense. Any conviction does not relieve any person from paying any tax due. (j) The Council must appropriate 10% of the revenue received by the County from the fuel-energy tax each year to the nonprofit corporation designated as the Montgomery County Green Bank under Section 18A-46. (k) Any funds which under this section are given to the nonprofit corporation designated as the Montgomery County Green Bank under Section 18A-46 must only be used to: (1) promote the investment in clean energy technologies; (2) provide financing for clean energy technologies, including renewable energy and energy efficiency projects; (3) promote resiliency activities; or (4) provide financing for resiliency activities. **Sec. 52-15. Telephone tax.** (a) (1) A person who owns a telephone line for the reception, transmission or communication of messages by telephone, or leases, licenses, or sells telephonic communication in the County must pay a tax on the following services furnished to customers with a billing address or fixed service address in the County: (A) each residence, business, or PBX local exchange access line or trunk line (except telephone lifeline service customers); (B) each wireless telephone line; and (C) each Centrex local exchange access line or trunk line. (2) The Council must by resolution adopted after advertisement and public hearing in accordance with Section 52-17(c) set the monthly tax rate for each type of line listed in paragraph (1). A person subject to the tax imposed under this section must pay a tax equal to the sum of each line multiplied by the tax rate for that line. (b) In this section: (1) Line means a connection to the local telephone exchange through a unique telephone number. (2) Person means any individual, corporation, company, association, firm, or co- partnership, or any group of individuals acting as a unit, and includes any trustee, receiver, assignee or personal representative. (3) Wireless telephone means any equipment or instrument that transmits: (A) cellular telephone service; (B) personal communication service; or (C) any other commercial mobile radio service as defined by the Federal Communications Commission. (c) Every person liable for the tax must pay the tax and must report upon such forms and set forth such information as the director of finance may prescribe. The report and payment of the tax must be made on or before the fifteenth day of each month, covering the immediate preceding calendar month. Any person liable for the tax may, upon written application to and with the consent of the Director of Finance, make reports and remittances on a quarterly basis instead of the monthly basis. Quarterly reports and remittance must be made on or before the fifteenth day of April, July, October and January in each year, and must cover the three (3) immediately preceding months. (d) If any person fails or refuses to remit the tax required to be paid or to make a proper return to the director of finance, within the time and in the amount specified, that person is liable for: (1) Interest on the amount of tax due at the rate of one (1) percent per month for each month or part of a month after the date upon which the tax is due; and (2) A penalty of five (5) percent of the amount of the tax per month or part of a month, not to exceed a total of twenty-five (25) percent of the tax. The interest and penalty is collected as a part of the tax. (e) If any person fails or refuses to make any report and remittance required within the time provided, the Director of Finance must obtain information on which to base the Director's estimate of the tax due. As soon as the Director obtains sufficient information upon which to base the assessment of any tax due, the Director must assess against the person the tax and penalties. The Director must notify the person by mail sent to the person's last-known place of address of the total amount of the tax, interest and penalties. The total amount is payable within ten (10) days after the date of the notice. (f) Every person liable for the payment of any tax must keep and preserve, for two (2) years, suitable records necessary to determine the amount of the tax as that person may have been liable for to the County. The Director of Finance may inspect the records at all reasonable times. (g) Whenever any person subject to tax stops doing business or otherwise disposes of the business, any tax payable to the County is immediately due and payable and the person must immediately make a report and pay any tax due. (h) A person is entitled to a refund, under procedures in State law, of the tax paid on any wireless telephone line billed to an address in the County for wireless telephone service that is not available in the County. (i) Any violation or failure to comply with this section is a class A violation. Each violation is a separate offense. A conviction does not relieve any person from the payment, collection or remittance of the tax. Resolution No. 12-193, adopted May 8, 1991, effective May 1, 1991, amended the rates of the telephone tax levied under Section 52-15 as follows: $1.25 per month on each residence, business or PBX local exchange access line or trunk line furnished to customers (except telephone lifeline services customers) in the County; and 12.5 cents per month on each Centrex local exchange access line or trunk line furnished to customers in the County. This resolution expired on June 30, 1995. **Sec. 52-16. Room rental and transient tax.** (a) (1) The Director of Finance must impose on each transient a tax at the rate of 7 percent of the total amount paid for room rental, by or for the transient, for sleeping accommodations in any hotel or motel that is located in the County. (2) The County Council by resolution, after a public hearing advertised under Section 52-17(c), may increase or decrease the rate of this tax. (b) The following words and phrases, when used in this Section, have the following meanings: Broker means a person, other than the owner or operator of a hotel or motel, that receives, facilitates or arranges payment, directly, indirectly, or through an online platform, for hotel or motel accommodations from a transient who is subject to the tax under subsection (a). Director means the Director of Finance or the Director’s designee. Hotel or motel means any hotel, inn, hostelry, tourist home or house, motel, apartment hotel, rooming house, dwelling unit or other lodging place that offers for compensation sleeping accommodations in the County. A hotel or motel does not include: (1) a hospital, medical clinic, nursing home, rest home, convalescent home, assisted living facility, or home for elderly individuals; or (2) a facility owned or leased by an organization that is exempt from taxation under section 501(c)(3) of the Internal Revenue Code if the primary use of the facility is other than housing overnight guests. Hotelkeeper means a person that: (1) owns or operates a hotel or motel; or (2) acts as a broker. Room rental means the total charge required to be paid by a transient for a sleeping accommodation. Room rental includes any service fee, broker’s fee, or other charge or fee required to be paid by the transient regardless of what the charge is called or how the charge is designated. Room rental does not include any optional charge for services in addition to the charge for the use of sleeping space, such as Wi-Fi access, food, beverage, movie rental, or fitness center access. The portion of the total charge, if any, that represents a charge other than room rental must be separately billed. Transient means an individual who, for any period of 30 or fewer consecutive days, actually occupies a sleeping accommodation. (c) Every hotelkeeper that receives any payment for a room rental that is subject to a tax under this Section must collect the amount of tax imposed under subsection (a) when payment for the room rental is made. The hotelkeeper must hold the taxes required to be collected by this Section in trust for the County until remitted as required by this Section. (d) (1) Each hotelkeeper must file a report on a form supplied by the Director. The form must show the amount of room rental payments collected, the amount of tax required by this Section to be collected, and any other information the Director requires to assure that the proper tax has been remitted to the County. (2) Unless the Director accepts a quarterly report, each hotelkeeper must file a report on or before the last day of each month showing all room rentals during the preceding month. (3) If a hotelkeeper requests, the Director may, in the Director’s sole discretion, accept a quarterly report showing all room rentals during the 3 months immediately before the month when the report is due. Each hotelkeeper so approved must file a quarterly report on or before the last day of April, July, October, and January. (4) Each hotelkeeper must remit the full amount of tax due with each report (e) If any hotelkeeper does not remit to the Director the tax required to be paid by this Section, or does not file a timely report to the Director, the Director must add to the tax due: (1) interest at the rate of one percent per month on the amount of the tax for each month or part of a month after the tax is due until the tax is paid and the report is files; and (2) a penalty of 5 percent of the amount of the tax per month or part of a month, not to exceed a total of 25 percent of the tax, until the tax is paid and the report filed. (f) (1) (d) If a hotelkeeper does not file a required report by the deadline established under subsection (d), the Director may estimate the amount of tax due. The Director may base the estimate on a reasonable projection of room rentals, and may consider rentals reported by other hotelkeepers. (2) The Director must send a notice of the estimated tax due, including interest and penalty, to the hotelkeeper’s last known address. The hotelkeeper must pay the estimated tax, including any interest and penalty, assessed by the Director within 10 days after the notice is sent. (g) (1) Each hotelkeeper must preserve, for 3 years, all records necessary to determine the amount of the tax due under this Section. (2) The Director may inspect any records required to be kept under this Section at any reasonable time. (h) If a hotel or motel stops doing business or a hotelkeeper disposes of its business, the hotelkeeper must immediately file a report under subsection (d) and pay any tax due. (i) Each hotelkeeper or transient that does not comply with any provision of this Section has committed a class A violation. A finding of violation under this subsection does not relieve any hotelkeeper or transient of any tax, including any applicable interest or penalty, due under this Section. (j) At least 7% of the revenue from the tax levied under this Section must be used for the Conference and Visitors Bureau, Inc., as designated by the Council in a budget resolution to promote travel to the County. The County Executive must report to the Council on the use of these funds by March 15 each year. (a) All taxes paid within three years prior to the effective date of this Act. (b) All taxes due and/or assessable for periods within four years prior to the effective date of this Act. (c) All taxes due, payable, billed or assessed where legal action has been instituted and is pending on the effective date of this Act. **Sec. 52-16A. Admissions and amusement tax.** (a) As authorized by Section 4-102(a)(1) of the Tax-General Article of the Maryland Code, a tax is imposed at a rate set by resolution adopted by the Council and approved by the Executive on the gross receipts derived from any admissions and amusement charge as defined in Section 4-101(b) of the Tax-General Article except to the extent this rate is limited by Section 4-105(b) of the Tax-General Article. If the Executive disapproves a resolution within 10 days after it is adopted and the Council readopts it by a vote of six Councilmembers, or if the Executive does not act within 10 days after the Council adopts it, the resolution takes effect. (b) In addition to the exemptions listed in Section 4-103 of the Tax-General Article, the following gross receipts are exempt from this tax: (1) gross receipts used exclusively for community or civic improvement by a not for profit community association as defined by Section 4-104(a) of the Tax-General Article; (2) gross receipts from any charge for admission to a concert or theatrical event of a not for profit organization organized to present or offer any of the performing arts as defined by Section 4-104(b) of the Tax-General Article; (3) gross receipts from any admissions and amusement charge by the County Board of Education or Montgomery College, or by any County, bi-county, or municipal government agency, including the Revenue Authority and the Maryland-National Capital Park and Planning Commission; (4) gross receipts from any admissions and amusement charge levied by an arts and entertainment enterprise or qualifying residing artist in an arts and entertainment district designated under state law; (5) gross receipts from any public daily fee golf course for which admission or a playing fee is charged; and (6) gross receipts from any activity related to agricultural tourism for which admission is charged. Agricultural tourism means the act of visiting a farm, vineyard, winery, or orchard for entertainment, education, or participation in agricultural activities. Agricultural tourism does not include any activity at a County fair. (c) Revenue from the admissions and amusement tax set at a rate of 7 percent or less may be used for General Fund purposes. Additional revenue generated from levying the tax at a higher rate must be used to support, encourage, and promote arts and humanities in the County, including projects, performances, historic and heritage preservation, and other activities that advance the artistic, cultural, and intellectual environment in the County. The Council must decide in the annual operating budget how these funds are administered. **Sec. 52-16B. Recordation Tax.** (a) Rates. The rates and the allocations of the recordation tax, levied under Md. Tax- Property Code §§12-101 to 12-118, as amended, are: (1) for each $500 or fraction of $500 of consideration payable or of the principal amount of the debt secured for an instrument of writing, including the amount of any mortgage or deed of trust assumed by a grantee; (A) $2.08, of which the net revenue must be reserved for and allocated to the County general fund; and (B) $2.37, of which the net revenue must be reserved for and allocated to the cost of capital improvements to public schools; and (2) if the consideration payable or principal amount of debt secured; (A) exceeds $500,000 and is less than or equal to $600,000, an additional $2.30 for each $500 or fraction of $500 of the amount over $500,000; and (B) exceeds $600,000 and less than or equal to $750,000, an additional $5.75 for each $500 or fraction of $500 of the amount over $600,000; and (C) exceeds $750,000 and less than or equal to $1,000,000, an additional $6.33 for each $500 or fraction of $500 of the amount over $750,000; and (D) exceeds $1,000,000, an additional $6.90 for each $500 or fraction of $500 of the amount over $1,000,000 (3) Allocation of revenue collected. The net revenue collected under paragraph (2) must be reserved for and allocated as follows: (A) one-third for the cost of County government capital improvements; and (B) one-third for rent assistance for low and moderate income households, which must not be used to supplant any otherwise available funds; and (C) one-third for the cost of capital improvements for public schools. (b) Exemption. The first $100,000 of the consideration payable on the conveyance of any owner-occupied residential property is exempt from the recordation tax if the buyer of that property is an individual and intends to use the property as the buyer’s principal residence by actually occupying the residence for at least 7 months of the 12-month period immediately after the property is conveyed. (a) the cost of County government capital improvements; and (b) rental assistance programs for low- and moderate-income households, which must not be used to supplant any otherwise available funds. Sec. 3. Effect of Previous Actions. Effective July 1, 2002, this Act supersedes Resolution No. 7-182. Any action taken under that resolution before that date, including the levy and collection of the recordation tax, is ratified and confirmed as if that action had been taken under authority of a law enacted by the County Council. Sec. 4. Allocation of Revenue. During any fiscal year that begins on or after July 1, 2004, except a fiscal year that begins on July 1, 2010, the net revenue attributable to the increase in the rate of the recordation tax enacted in this Act must be reserved for and allocated to the cost of capital improvements to schools and educational technology for Montgomery College in the form of debt service for debt-eligible projects and current revenue for debt-eligible or non-debt-eligible projects. **Sec. 52-17. Additional taxing powers; prohibited taxes.** (a) Generally. The County Council for Montgomery County is hereby empowered and authorized to have and exercise, within the limits of the County, in addition to any and all taxing powers heretofore granted by the General Assembly, the power to tax to the same extent as the state has or could exercise said power within the limits of the County as a part of its general taxing power, which includes the power to impose and provide for the collection of development impact taxes for financing, in whole or in part, the capital costs of additional or expanded public transportation facilities required to accommodate new construction or development; and to provide by resolution for the imposition, assessment, levy and collection of any tax or taxes authorized by this Section; and from time to time to grant exemptions and to modify or repeal existing or future exemptions. (b) Exceptions. Provided, that the Council shall not have the power to impose any tax upon any alcoholic beverages, intangible personal property or upon the subject matter of Annotated Code of Maryland, 1957, Sections 135 to 157 of Article 56 (Gasoline Tax); Sections 3-601.1, 3-801 to 3-824, 11-706, 14-112 of Article 66 1/2 (Motor Vehicle Registration); Section 3-831 of Article 66 1/2 (Titling Tax); Sections 181 to 190 of Article 56 and Section 273 of Article 81 (Motor Vehicle Taxation); Section 9(32) of Article 81 (Class A and Class D Motor Vehicles); Sections 279 to 323 of Article 81 (Tax on Incomes); Article 78B (Horseracing and Pari-mutuel Betting); Sections 194 and 195 of Article 81 (Bonus Tax); Sections 197 to 201 of Article 81 (Tax on Franchise to a Corporation); Sections 129 and 130 of Article 23 (Recording Corporate Papers); Section 128 of Article 81 (Deposits of Savings Banks); Sections 135 to 143 of Article 81 (Insurance Premiums); Sections 149 to 193 of Article 81 (Inheritances); Article 62A (Estate Tax); or Section 144 of Article 81 (Tax on Commissions of Executors and Administrators); or Sections 431 to 464 of Article 81 (State Tobacco Tax Act) or Sections 12-A and 12-B of Article 81 (Sales Tax and Gross Receipt Tax on Advertising, etc.) to the extent applicable; or any other tax prohibited to a political subdivision of this state by any applicable statewide law; nothing in this Section shall be construed to authorize the County to impose a tax upon the gross receipts of any person in the County; provided, however, that the County in taxing the receipts, from motor vehicle operations, may only tax receipts from operations of motor vehicles having a permit from the Public Service Commission of Maryland authorizing both the taking on and discharging of passengers at more than one point within the County and/or the transportation of passengers between 2 or more points within the County. (c) Advertisement required. On or after June 1, 1963, no tax shall be levied or imposed by the County pursuant to any of the provisions of this Section unless the levy or imposition of the tax is advertised for 3 consecutive weeks in 2 newspapers having a general circulation in the County. After such advertising a public hearing shall be held concerning the levy and imposition of such tax. The provisions of this Section shall not apply to any tax levied and imposed prior to June 1, 1963. (d) (1) From the revenues derived from any hotel and motel room rental tax imposed by the County, the County shall distribute 50% of the revenue attributable to a hotel or motel located in a municipal corporation or in a special taxing district created by the General Assembly to the Municipal Corporation or special taxing district. (2) Paragraph (1) of this subsection shall apply only to tax revenues generated from hotels and motels located in any area that is added to the County by an alteration of the boundary line between Montgomery County and any other County after July 1, 1995. (e) The Council may not impose a tax on the sale of a right to occupy a room or lodgings as a transient guest at a dormitory or other lodging facility that: (1) is operated solely in support of the headquarters, a training facility, a conference facility, an awards facility, or the campus of a corporation or other organization; (2) provides lodging solely for employees, contractors, vendors, and other invitees of the corporation that owns the dormitory or lodging facility; and (3) does not offer lodging services to the general public. In Montgomery County v. Maryland Soft Drink Ass’n., Inc., 281 Md. 116, 377 A.2d 486 (1977), the court upheld the constitutionality of the Maryland General Assembly's grant to the County (codified in § 52-17) of the broad power to impose excise taxes (non-property taxes) in addition to the power of chartered counties to impose property taxes set forth in the Express Powers Act, Md. Code Ann., Art. 25A, § 5(O). The same broad taxing power was granted by the General Assembly to Baltimore City and Baltimore County and this was confirmed in Hampton Associates v. Baltimore County, 66 Md. App. 551, 558, 505 A.2d 537 (1986), cert. denied, 307 Md. 406, 514 A.2d 24 (1986), Kimball-Tyler v. Balto. City, 214 Md. 86, 92, 96, 133 A.2d 433 (1957), State Tax Commission v. Armco, 226 Md. 533, 544-545, 174 A.2d 327 (1961). The Maryland appellate court held that the County Council had the authority to impose the development impact tax under ch. 808, Laws of 1963, codified in §§ 52-47 through 52-59 of the County Code, in Montgomery County v. Waters Landing Limited Partnership, 99 Md. App. 1, 635 A.2d 48, aff’d., 337 Md. 15, 650 A2d 712 (1994). Many of the laws referenced in Sec. 52-17(b) have been repealed or moved to a different section of the Annotated Code of Maryland, as follows: Art. 56, §§ 135 to 157 (Gasoline Tax) appear in Tax-Gen. § 9-101 et seq.; Art. 66 ½, §§ 3-601.1, 3-801 to 3-824, 11-706, and 14-112 (Motor Vehicle Registration) appear in Transp. §§ 13- 623, 13-617, 13-901 to 13-946, 21-706, and 22-228; Art. 66 ½, § 3-831 (Titling Tax) appears in Transp. §§ 13-809 to 13-811 and 13-814; Art. 81, § 273 (Motor Vehicle Taxation) was repealed in 1981; Art. 81, § 9(32) (Class A and Class D Motor Vehicles) appears generally in Tax Prop., Title 7; Art. 81, §§ 279 to 323 (Tax on Incomes) appear in Tax-Gen., Titles 10 and 13, Nat. Res. § 5-219, Corp. & Assns. §§ 1-203, 8-204, and 8-403, and Cts. & Jud. Proc. § 5-106; Art. 78B (Horseracing and Pari-mutuel Betting) appears in the Bus. Reg. Art.; Art. 81, §§ 194 and 195 (Bonus Tax) were repealed in 1985; Art. 81, §§ 197-201 (Tax on Franchise to a Corporation) were repealed in 1972; Art. 23, §§ 129 and 130 (Recording Corporate Papers) were repealed in 1975 and portions moved to the Corp. and Assns. Art.; Art. 81, § 128 (Deposits of Savings Banks) appears in Tax-Gen., Title 8; Art. 81, §§ 135 to 143 (Insurance Premiums) appear in Tax-Gen. art. 48A §§ 631 to 640; Art. 81, §§ 149 to 193 (Inheritances) appear in Tax-Gen., Title 7; Art. 62A (Estate Tax) appears in Tax-Gen., Title 7; Art. 81, § 144 (Tax on Commissions of Executors and Administrators) appears in Tax-Gen. §§ 7-401, 7-403, and 7-405; Art. 81, §§ 431 to 464 (State Tobacco Tax Act) appear in Tax-Gen., Titles 1, 2, 12, and 13 and Art. 56 ch. 6; Art. 81, §§ 12-A and 12-B (Sales Tax and Gross Receipt Tax on Advertising, etc.) appear in Art. 24, §§ 9-201 and 9-202. **Sec. 52-18. Appeal tax court.** (a) There is hereby created an appeal tax court to be known as "the appeal tax court for Montgomery County, Maryland." (b) The appeal tax court for the county, shall consist of three (3) members, to be appointed by the county executive, subject to the confirmation of the county council, one (1) of such members to be designated by the county executive as chairman, subject to the confirmation of the county council. (c) Each member of the appeal tax court for the county appointed after June 9, 1953 shall be paid for the performance of public duties imposed upon him by virtue of his appointment the sum of twenty dollars ($20.00) for each meeting of the appeal tax court which the member attends in person, but not to exceed twenty dollars ($20.00) for any one (1) day or three thousand dollars ($3,000.00) during any fiscal year; except, that each member of the appeal tax court appointed or re-appointed after May 30, 1960 shall be paid for the performance of public duties imposed upon him by virtue of his appointment the sum of thirty dollars ($30.00) for each meeting of the appeal tax court which the member attends in person, but not to exceed thirty dollars ($30.00) for any one (1) day or three thousand dollars ($3,000.00) during any fiscal year. **Sec. 52-19. Moderate-income multifamily rental housing facility real property tax deferral.** (a) For the purpose of this section, a moderate-income multifamily rental housing facility is a rental apartment facility which (1) has five (5) or more dwelling units, (2) has entered into an agreement with the housing opportunities commission to participate in the section 8 housing assistance payments program for existing housing and (3) as of the January 1 preceding the tax year for which the tax deferral is sought has at least fifteen (15) percent of its units renting at or below the fair market rents for existing facilities as established by the department of housing and urban development for Montgomery County under section 8 of the United States Housing Act of 1937, as amended. (b) Owners of rental facilities may apply for a deferral of Montgomery County real property taxes due and payable for a rental facility. Taxes eligible for the deferral shall, where applicable, consist of: (1) General county tax. (2) Washington Suburban Transit District tax. (3) Fire district tax. (4) Advance land acquisition tax. (5) Metropolitan district tax. (6) Regional district tax. (7) Recreation district tax. (8) WSSC sanitary district tax. (9) Storm drainage district tax. (10) Suburban district tax. (c) The amount of taxes which may be deferred for any one (1) year shall be the amount calculated by taking the percentage of dwelling units renting at or below fair market rents as of January 1 to the total number of dwelling units in the facility, and multiplying the percentage by the assessment of the rental facility, and multiplying the product by the applicable tax rates. Where a rental facility consists of two (2) or more buildings, the owner may elect to have the tax deferral calculated separately for each building. The election shall be made at the time of application for the deferral and shall be final for the taxable year for which the deferral is sought. (d) Interest must accrue on the deferred taxes at the rate specified in Sections 8-421, 10-102, 14-602, and 14-603 of the Tax-Property Article of the Maryland Code. (e) At no time may the accumulation of deferred taxes and accrued interest exceed fifty (50) percent of the full cash value of the rental facility as determined by the supervisor or assessments for Montgomery County. (f) All taxes deferred and interest accrued thereon shall be a first lien on the property, having the priority of real property taxes, until paid or otherwise extinguished by operation of law. The taxes are collectible by suit or by tax sale, regardless of any period of limitations imposed under law. In the event of tax sale for nonpayment of taxes, the property shall be sold for all unpaid taxes and interest, including deferred taxes and interest. In addition to being a first lien on the property, the deferred taxes and accrued interest shall be a personal liability of the owner of the property immediately prior to the happening of any of the conditions listed in subsection (g) below. (g) All taxes deferred and interest accrued thereon shall be due and payable upon any of the following conditions: (1) The property no longer qualifies as a moderate-income multifamily rental housing facility, as defined above; (2) The owner fails to submit a timely annual application for deferral; (3) Title to or controlling interest in the rental facility is conveyed, except in the case of a distribution by will or descent upon the death of the owner; (4) A notice of intent to establish a condominium regime or create a cooperative housing project is given to tenants; or (5) The rental facility becomes subject to tax sale. (h) The director of finance, at the director's discretion, and upon request of the owner, may at any time enter into an installment agreement, in form acceptable to the director, to repay the county the accumulated deferred taxes and accrued interest except where deferred taxes have become due under subsection (g)(3), (4) or (5). All amounts to be paid under an installment agreement (1) shall bear interest at the rate specified in subsection (d); (2) shall remain a first lien on the property; and (3) shall become due and payable upon the happening of any condition listed in subsection (g)(3), (4) or (5) above. Once an installment agreement has been entered into, the property shall not be eligible for further deferral of taxes until all taxes previously deferred and accrued interest have been paid in full. In the event an installment payment agreement is entered into and the payment of any installment becomes delinquent, the property may be sold at tax sale or legal action may be instituted for the remaining balance due under the agreement. (i) Applications for a tax deferral under this section shall be submitted to the director of finance by the first day of April immediately preceding the taxable year for which a tax deferral is sought to be applied or continued. The application shall include a certification as to the number of units rented at or below fair market rentals as of the prior January 1. Applications shall be on forms acceptable to the director and shall be sworn to by the applicant. The director shall notify the applicant of approval or disapproval. (j) Any person who knowingly transmits a false or fraudulent application, or statement, or withholds information, in order to obtain a deferral under this section shall be guilty of a misdemeanor and upon conviction thereof shall be fined not more than one thousand dollars ($1,000.00) for each offense or six (6) months in jail or both. In addition, such persons shall be liable for and shall repay to the county any and all amounts of taxes and interest deferred. The county may enforce this provision by propriate civil action; and such persons shall be liable for all fees, costs and expenses of such proceedings. (k) The county executive is authorized to adopt regulations under method (2) of section 2A-15 of this Code, for the administration of this deferral program. **Sec. 52-20. Residential real property tax deferral—Government-initialized rezonings.** (a) Taxpayers who own, in fee simple, and actually occupy residential real property as their principal place of residence may, upon written application approved as provided below, receive a deferral of due and payable county real property taxes on the property for the levy year July 1, 1981, and thereafter. For the purposes of this section, residential real property includes property owned by the taxpayer adjacent to his residence, provided it is unimproved and not assessed on the basis of agricultural use. The real property on which the residence is located must be included in the property for which deferral is sought, and not more than ten (10) acres in total shall be eligible for the deferral of real property taxes under this program. The amount of taxes which may be deferred pursuant to this section, for any one (1) year, is that amount, as determined by the county's director of finance, to be attributable to an assessment increase resulting directly from a government-initiated change in the zoning classification of the property to a higher intensity use. In determining the applicable increase in assessment, the director shall utilize information to be requested from the office of the supervisor of assessments for Montgomery County relative to the full cash value assessment of the subject property for each triennial cycle based on the residential zoning of the property prior to its reclassification. (b) County real property taxes eligible for the deferral shall, where applicable, consist of: (1) General county tax; (2) Washington Suburban Transit District tax; (3) Fire district tax; (4) Advance land acquisition tax; (5) Metropolitan district tax; (6) Regional district tax; (7) Recreation district tax; (8) Washington Suburban Sanitary District tax; (9) Storm drainage district tax; and (10) Suburban district tax. (c) Interest must accrue on the deferred taxes at the rate specified in the Tax-Property Article, section 14-603 of the Annotated Code of Maryland. (d) At no time may the accumulation of deferred taxes and accrued interest exceed fifty (50) percent of the current full cash value of the property as determined by the supervisor of assessments for Montgomery County, or a lesser amount elected by the taxpayer by written notice to the director. The election of a lesser amount does not constitute a withdrawal from the program. Where such maximum amounts have been reached, they may continue to be deferred until any of the conditions of subsection (g) occurs. (e) No penalty shall be charged during the period of the deferral on any taxes deferred pursuant to this section. (f) All taxes deferred and interest accrued thereon shall be a first lien on the property, having the priority of real property taxes, until paid or otherwise extinguished by operation of law. The deferred taxes and accrued interest are collectible by suit or by tax sale, regardless of any period of limitations imposed under law. In the event of tax sale for nonpayment of taxes, the property shall be sold for all unpaid taxes and interest, including deferred taxes and interest. In addition to being a first lien on the property, the deferred taxes and accrued interest shall be a personal liability of the person or persons who owned the property immediately prior to the occurrence of any of the conditions listed in subsection (g) below. (g) All taxes deferred and interest accrued thereon shall be due and payable upon any one of the following conditions: (1) The taxpayer ceases to own the property in fee simple; (2) The taxpayer ceases to occupy the property as his principal place of residence; (3) The property becomes subject to tax sale; or (4) The use of the property changes. (h) A taxpayer shall be eligible for the tax deferral provided for by this section only if he had a fee simple ownership interest in the property and occupied the property at his principal place of residence for at least twenty-four (24) months immediately prior to the effective date of the zoning resolution as a result of which a tax deferral under this section is sought. (i) Applications for a tax deferral under this section shall be submitted to the director of finance no later than September 1 of the first tax year in which the taxpayer wishes to participate in the program. The taxpayer may receive a refund, without interest, for deferrable taxes paid for the first tax year. Applications shall be on forms acceptable to the director and shall be sworn to by the taxpayer. The director shall notify the taxpayer of approval or disapproval. Once approved, no further applications are required. (j) A taxpayer may withdraw from the program by giving written notice to the director and paying all deferred taxes and accrued interest, whereupon the director shall cease deferral of taxes, effective the following tax year; and the taxpayer shall not be eligible for further participation in the program. (k) Any person who knowingly transmits a false or fraudulent application, or statement, or withholds information, in order to obtain a deferral under this section shall be guilty of a misdemeanor and upon conviction thereof shall be fined not more than one thousand dollars ($1,000.00) for each offense or six (6) months in jail or both. In addition, such persons shall be liable for and shall repay to the county any and all amounts of deferred taxes, and interest and penalties accrued thereon. The county may enforce this provision by appropriate civil action, and such persons shall be liable for all fees, costs and expenses of such proceedings. (l) Where the council president notifies persons who may be affected by a pending comprehensive rezoning application, the notification shall include notice to the effect that in the event property is rezoned to a higher intensity use, the taxpayer may be eligible for a tax deferral and should contact the county division of revenue for further information. (m) The county executive is authorized to adopt regulations, under method (2) of section 2A- 15 of this Code, for the administration of this deferral program. **Sec. 52-21. Excise tax; property lien.** (a) In this section: (1) Excise tax: a. Is any tax not directly imposed on property; and b. Includes but is not limited to fuel-energy taxes, telephone taxes, room rental transient taxes, beverage container taxes, and transfer taxes. (2) Taxpayer means any person or persons paying or liable to pay, remit, or collect any tax, or against whom any liability for taxes is claimed or asserted, or could be claimed or asserted, whether on the behalf of the taxpayer or of others. (3) Person means an individual, receiver, trustee, guardian, personal representative, fiduciary, or representative of any kind and any partnership, firm, corporation, or other entity. (b) If a taxpayer fails to pay to the county any excise tax when due and payable, that tax and any interest, penalties, fees, and costs are a lien in favor of the county on all property, real or personal, and all rights to the property that belongs to the taxpayer. (c) A lien under this section: (1) Arises from and after the date that notice is given that the tax is due and payable; (2) Continues until the liability is satisfied and the lien is released by the county; (3) Attaches to real property only after notice is filed by the county with the circuit court where the real property is located; (4) Has the full force and effect of a lien of judgment. (d) The clerk of the circuit court under subsection (c)(3) of this section must record and index all notices of lien and file the lien in the judgment records. (e) To enforce the lien and judgment on the property of the taxpayer for the tax, interest, penalties, fees, and costs, the county may: (1) File a civil action by way of attachment, execution, or otherwise in any of the courts; and/or (2) Sell the real property at tax sale in the same manner as real property is sold for nonpayment of taxes. **Sec. 52-22. Residential real property tax deferral.** (a) Definitions. In this Section the following words have the meanings indicated: Dependent means a dependent under Section 152 of the Internal Revenue Code. Director means the Director of the Department of Finance. Legal interest has the meaning stated in Section 9-104 of the Tax-Property Article of the Maryland Code. Owner means an individual who has a legal interest in residential real property. (b) Authorization; Amount of Deferral. An owner may defer payment of County property taxes due on residential real property occupied by the owner as the owner’s principal residence if the owner meets the requirements of this Section. The amount of taxes that may be deferred for any one year is the amount that County taxes due exceeds the amount of County property taxes paid in the prior taxable year. (c) Program Eligibility. An owner is eligible for a payment deferral under this Section if: (1) (A) the gross income or combined gross income of all individuals who actually reside in the dwelling (except a dependent or a person who pays reasonable fixed charges for rent or room and board), did not exceed $120,000 for the calendar year that immediately precedes the taxable year for which the deferral is sought; and (B) the owner, or at least one of the owners, has resided in the dwelling as that person’s principal place of residence for 5 consecutive years and continues to occupy the property for that purpose; or (2) (A) the owner is at least 65 years old; and (B) the gross income or combined gross income of all individuals who actually reside in the dwelling (except a dependent or a person who pays reasonable fixed charges for rent or room and board), did not exceed $80,000 for the calendar year that immediately precedes the taxable year for which the deferral is sought. For purposes of income determination under paragraph (c), and to the extent consistent with this Section, gross income or combined gross income must be calculated in accordance with Section 9-104 of the Tax-Property Article of the Maryland Code. (d) Eligible Residential Property. The amount of the property eligible for a deferral is limited to the real property on which the residence is located, the curtilage, as determined by the Supervisor of Assessments, and any adjacent unimproved land on the same lot or parcel that is not assessed on the basis of agricultural use. A deferral must not be granted for taxes attributable to any improvement to the property that was not reflected in the assessment used for the base year for which taxes were paid to determine the amount of tax deferral under subsection (b). (e) Eligible Taxes. County real property taxes that are eligible for deferral are the general County tax and, where applicable, special service area taxes. (f) Interest. (1) Except as provided in paragraph (2), interest accrues on the deferred taxes at a rate set annually by the Director that does not exceed the prime lending rate generally available on June 1 of the preceding fiscal year. The regulations adopted under subsection (q) must specify the source or sources that the Director must use to calculate the prime rate generally available on June 1 of each year. The annual interest rate set by the Director applies to any tax deferred that year, regardless of the year when the tax was first deferred. (2) Notwithstanding paragraph (1), for deferrals for owners eligible under paragraph (c)(2), the interest accrues on the deferred taxes at a rate of 0.0% or another amount set by Council resolution. (g) Annual Tax Bills. The cumulative amount of the payment deferral and accrued interest must be specified in the taxpayer’s annual property tax bill. The Director must record the amount of that deferral in the County tax records. (h) Limits on Deferrals. The accumulation of deferred taxes and accrued interest must not exceed 50% of the full cash value of the property, as determined by the Supervisor of Assessments, or a lesser amount elected by the taxpayer and specified in the agreement required under subsection (l). When the maximum amounts have been reached, those amounts may continue to be deferred until any of the events specified in subsection (k) occur. An owner who receives a tax deferral under this Section must not also receive a tax deferral under Section 52-20. (i) Penalties. A penalty must not be charged during the period of the deferral on any taxes deferred under this Section. (j) Liens. All taxes deferred and interest accrued on the taxes are a first lien on the property, with the priority of real property taxes, until paid or otherwise extinguished by operation of law. The deferred taxes and accrued interest are collectible by suit or by tax sale, regardless of any period of limitations imposed under law. In the event of tax sale for nonpayment of taxes, the property must be sold for all unpaid taxes and interest, including deferred taxes and interest. In addition to being a first lien on the property, the deferred taxes and accrued interest constitutes a personal liability of the person or persons who owned the property immediately before the occurrence of any event specified in subsection (k). (k) Events Accelerating Payment. Except as otherwise provided in this subsection, all deferred taxes and accrued interest become due and payable if: (1) ownership of the property is transferred; (2) an owner no longer occupies the property as that person’s principal residence; (3) the property becomes subject to tax sale; or (4) the use of the property changes. However, the property tax deferral remains available to a surviving spouse, or to a spouse or former spouse in possession of the residence under a written separation agreement or divorce decree, for amounts previously deferred. A spouse or former spouse may continue to defer taxes if that person is otherwise eligible under subsection (c). (l) Applications; Agreement with Director of Finance. An application for a tax deferral under this Section must be submitted to the Director no later than September 1 of the tax year in which the taxpayer seeks to obtain a tax deferral, or any other date established by regulations. An eligible owner may receive a refund, without interest, for deferrable taxes paid for the first tax year. Applications must be on forms acceptable to the Director and must be sworn to as true by the owner or each joint owner. The Director may request information to verify eligibility under this Section, including income tax records, and may require a certification by the applicant of all joint owners, persons having an equitable interest in the property, and parties having a secured interest in the property. If the applicant is eligible, the Director or the Director’s designee must execute a written agreement with the owner or each joint owner before a tax deferral can be made. The agreement must reflect the terms and conditions of the deferral including notice of the lien. The agreement may provide for repayment of the deferred taxes and accrued interest in installments if the owner ceases to occupy the property as that owner’s principal residence but maintains ownership. Interest must be assessed at the rate specified under subsection (f). The Director must record the written agreement in the County’s land records. The agreement must include a conspicuous statement that indicates it is being recorded by or on behalf of the County. (m) Notification of Secured Parties. The Director must notify all mortgagees or beneficiaries under any deed of trust of a payment deferral under this Section and of the amount of tax to be deferred. In selecting who to notify, the Director may rely on any certification made by the taxpayer under subsection (l). Notification must also be given when participation in the payment deferral program terminates. (n) Program Withdrawal. A taxpayer may terminate the deferral at any time by giving written notice to the director and paying all deferred taxes and accrued interest. If a taxpayer terminates a deferral, the Director must record a notice of a termination of deferral in the County’s land records. The notice must include a conspicuous statement that indicates it is being recorded by or on behalf of the County. (o) Penalties for False or Fraudulent Information. A person who knowingly submits a false or fraudulent application or statement, or withholds information, in order to obtain a deferral under this Section has committed a class A violation. In addition, the person is liable for and must repay to the County deferred taxes and accrued interest and penalties applicable to overdue taxes. The County may enforce this subsection by appropriate judicial action. A person who violates this Section is liable for all court costs and expenses of the County in a civil action. (p) Appeals. Any owner aggrieved by a decision of the Director under this Section may appeal to the Maryland Tax Court. An appeal must be filed within 30 days after the owner receives written notice of the decision from the Director. (q) Regulations. The County Executive must adopt regulations under method (2) to administer this tax deferral program. (r) Annual Report. The Director must provide an annual report to the County Council by January 1 of each year that describes the extent of program participation, aggregate amounts of taxes deferred, interest accrued, administrative costs, and other relevant information. **Sec. 52-23. Property tax refund—Disabled veterans and blind persons.** The Director of Finance must refund to each disabled veteran or blind person who qualifies for a property tax exemption under state law county property taxes paid for the three taxable years before the year for which the exemption was first granted, as provided in state law, if: (1) the Supervisor of Assessments certifies that the taxpayer has qualified for the exemption; (2) the taxpayer was qualified for an exemption during the entire taxable year for which the refund is claimed; and (3) the taxpayer claims a refund from the Director not later than 3 years after the tax to be refunded was paid. **Sec. 52-24. Payments in lieu of taxes for certain housing developments.** (a) Definitions. In this Section, the following words have the following meanings. Area median income means the median household income for the Washington, DC metropolitan area as estimated by the U.S. Department of Housing and Urban Development, adjusted by household size based on the occupancy standard for the unit. Authority has the same meaning as defined under Section 12-101 of the Housing and Community Development Article of the Maryland Code, as amended. Director means the Director of Finance or the Director’s designee. Housing authority entity has the same meaning as defined under Section 12-104 of the Housing and Community Development Article of the Maryland Code, as amended. Payment in lieu of taxes means an authorized payment made by the owner of a qualifying housing development instead of paying the County real property tax, including a County real property tax levied under a special area taxing law, that would otherwise be due. Person has the same meaning as in Section 1-101 of the Tax-Property Article of the Maryland Code, as amended. Section 8 Project-Based Rental Assistance means a program operated by the U.S. Department of Housing and Urban Development that provides housing assistance payments under a contract with the owner of a multi-family rental housing property to make up the difference between rent affordable to a low income household earning between 50 and 80 percent of the area median income and the approved rent for an adequate housing unit pursuant to 42 U.S.C. §1437f, as amended. (b) When authorized by state law, the Director may agree to accept a negotiated payment in lieu of the real property tax that would otherwise be levied on a qualifying housing development. A qualifying housing development is any housing development of which the owner is expressly eligible under state law to make payments in lieu of taxes. (c) When authorized by state law, the Director must offer a payment in lieu of taxes for a qualifying housing development: (1) owned or controlled by an authority or housing authority entity that exempts 100 percent percent of the real property tax that would otherwise be levied; (2) owned or controlled by a non-profit housing developer if at least 50 percent percent of the dwelling units located on the property receiving the payment in lieu of taxes are built under a government regulation or binding agreement with the County limiting the rent charged for the unit for at least 15 years to make the unit affordable to households earning 60 percent percent or less of the area median income. The offer must exempt 100 percent percent of the real property tax that would otherwise be levied for a period of at least 15 years, but no more than the number of years that rents charged for 50 percent percent of the dwelling units must remain restricted to households earning 60 percent percent or less of the area median income; (3) owned or controlled by a non-profit housing developer if all of the dwelling units are subject to a Section 8 Project-Based Rental Assistance Payment contract. The offer must exempt 100 percent percent of the real property tax that would otherwise be levied as long as the Section 8 Project-Based Rental Assistance Payment contract is in effect; or; or (4) owned or controlled by a person engaged in constructing or operating housing structures or projects if: (A) the property receiving the payment in lieu of taxes is converted to residential use from a commercial use with at least a 50 percent vacancy rate at the date of application to either the Planning Department or, if the property’s development does not require site plan approval from the Planning Department, Department of Permitting Services under Section 3.3.2.B of Chapter 59; (B) the property’s development meets all the requirements of an expedited approval plan under Section 7.3.5 of Chapter 59, except that if a property’s development does not require site plan approval from the Planning Department it is not required to meet the requirements of an expedited approval plan but must obtain the building permit within 2 years of acceptance by the Department of Permitting Services of the building permit application that includes the core and shell of the principal building; and (C) at least 17.5 percent of the dwelling units located on the property are built under a government regulation or binding agreement with the County limiting the rent charged for the unit for at least 25 years to make the unit affordable to households earning 60 percent or less of the area median income. The offer must exempt 100 percent of the real property tax that would otherwise be levied for a period of at least 20 years beginning in the year a use and occupancy permit is issued for the qualifying development, but no more than the number of years that rents charged for 17.5 percent of the dwelling units must remain restricted to households earning 60 percent or less of the area median income. (d) The Director must not offer a payment in lieu of taxes for a qualifying housing development under this Section for any property that has already received a payment in lieu of taxes under any Section. (e) Any payment accepted by the Director must conform to guidelines included in a regulation adopted by the Executive under method (2). Before the Director accepts a payment in lieu of taxes, the Director must consult the Director of the Department of Housing and Community Affairs on whether: (1) the subject of the payment is a qualifying housing development; and (2) the amount of the payment complies with applicable guidelines. (f) The Executive, in each annual operating budget submitted to the Council, must calculate the amount of pending payments in lieu of taxes already approved under this Section, including payments for housing developments owned or controlled by an authority or housing authority entity. Sec. 4. Transition. If a property has obtained site plan approval from the Planning Board by the effective date of this legislation, then the property is eligible for a payment in lieu of taxes under Section 52-24(c)(4), as amended by this Act, if it otherwise complies with subparagraphs (4)(A) and (4)(C) of Section 52-24(c), as amended by this Act, and an applicant for the property: (i) applies for a building permit, which is accepted by the Department of Permitting Services and includes the core and shell of the principal building, within 2 years of the earlier of the date of the Planning Board’s resolution or the effective date of this legislation; and (ii) obtains the building permit within 2 years of acceptance by the Department of Permitting Services of the building permit application that includes the core and shell of the principal building. Sec. 5. Sunset. This Act must sunset and must have no further force and effect after 10 years from the effective date of this legislation, except that any agreements entered into prior to the sunset must remain in full force and effect. **Sec. 52-24A. Payments in lieu of taxes for certain property leased from WMATA.** (a) Definitions. In this Section, the following words have the following meanings: Director means the Director of the Department of Finance or the Director’s designee. High-rise residential apartment building means a multi-family building with an occupied floor that is more than 8 stories above ground level and is used primarily for dwelling units for rent to the public. Metro station means a mass transit train station owned and operated by the Washington Metropolitan Area Transit Authority. Qualifying development means a project where at least 50% of the project consists of the construction of one or more high-rise residential apartment buildings located on land leased from WMATA at a metro station. A qualifying development must include at least 25% of the moderately priced dwelling units required by Chapter 25A affordable to households at 50% of the area median income. Washington Metropolitan Area Transit Authority or WMATA means the regional transit instrumentality of the State of Maryland, Commonwealth of Virginia, and the District of Columbia created by Compact and described in Md. Transportation Code Ann. §10-204, as amended. (b) When authorized by state law, the Director must offer a payment in lieu of taxes for a qualifying development. (c) The payment in lieu of taxes must exempt 100% of the real property tax that would otherwise be levied for a period of 15 years. The Director may begin the payment in lieu of taxes in the year a use and occupancy permit is issued for the qualifying development or in the second year property tax for the qualifying development is levied, regardless of subleases or assignments executed by the lessee. The payment in lieu of taxes must not include an exemption for any tax levied under an applicable special taxing area law. (d) Any payment accepted by the Director must conform to guidelines included in a regulation adopted by the Executive under method (1) to implement this Section. The regulation must require the developer of the qualifying project, as a condition of receiving a payment in lieu of taxes under subsection (c), to agree in writing that, to the best of its knowledge, information, and belief: (1) none of the contractors or subcontractors hired to perform work on the qualifying development site had three (3) or more final, non-appealable penalties assessed against it in the amount of $5,000.00 or more in the 3 years prior to being hired for the project for violations of applicable wage and hour laws, including the County’s prevailing wage law and any applicable Maryland wage and hour laws; and (2) at least 25% of the workers constructing the qualifying project were residents of the County while performing the work. The regulation must also require the developer to provide quarterly reports to the Executive during construction demonstrating compliance with the conditions for receiving a payment in lieu of taxes. (e) A developer of a qualifying project who violates the guidelines included in the regulation adopted under subsection (d) has committed a Class A violation. (f) This Act must be known as the “Housing at Metrorail Stations Act.” (g) Sunset. A qualifying development is eligible and includes all buildings within its preliminary plan so long as the preliminary plan’s approval occurs before December 31, 2032. For single buildings not part of a multi-building preliminary plan, the building is eligible so long as the sketch or site plan approval occurs before December 31, 2032. ### Article Ii. Tax Sales. **Sec. 52-25. Sale of property for taxes generally.** At any time after March 1 next succeeding the date taxes are due and unpaid, payment may be enforced by sale, as provided by law. The director of finance shall make or cause to be made up a list of all taxes which are due and unpaid, which shall contain the amount thereof, the interest and penalties thereon, the property affected thereby, the name of the owner thereof as such name appears on the assessment records of the county, a brief description of the property sufficient to identify the same and such references to conveyances or other records of title as will identify the property. To such list shall be appended a notice that if taxes, penalties and interest thereon are not paid on or before the second Monday in June next ensuing, together with the expenses of sale allowable by state law, the director of finance will, commencing on the second Monday in June at an hour and place specified in such notice, offer or cause to be offered for sale to the highest bidder upon the terms provided by public general law each and every parcel of property contained in such notice. Such notice and list shall be published in accordance with the applicable provisions of the public general laws, and the last publication thereof shall appear on or before the second Monday in June. Commencing on the second Monday in June, the director of finance shall proceed to sell or cause to be sold at auction to the highest bidder all such properties upon which the taxes are due and unpaid; but no such property shall be sold for a sum less than the total amount provided by applicable public general law. In addition to the expenses of sale allowable by state law and such interest and penalties as provided for elsewhere in this chapter, the director of finance shall impose on each parcel of property published a penalty charge of twenty dollars ($20.00). **Sec. 52-26. Purchase of property by county; issuance of certificates of indebtedness, etc.** (a) The county is hereby authorized and empowered to purchase any real estate offered for sale for the payment of taxes and special assessments; provided, it shall not bid a sum greater than the taxes and special assessments in arrears on such property and the interest and expenses of sale and costs and fees, and to sell or lease the same as shall be deemed to be in the best interests of the county. The county is authorized and empowered to issue upon its faith and credit at one time or from time to time as may be necessary, certificates of indebtedness in an amount not exceeding the amount of such taxes or special assessments, interest, penalties, costs and fees, in anticipation of the receipt of money from the redemption and from the sale of property sold for such taxes or special assessments; provided, however, that the amount of such certificates of indebtedness shall not in the aggregate at any time exceed twenty (20) percent of the total amount of taxes or special assessments levied for the year for which such certificates are issued. (b) The certificates of indebtedness so issued in anticipation of the receipt of money from the redemption and from the sale of property sold for taxes or special assessments in any year shall be identified by the year in which such sale is made and designated “Certificates of Indebtedness, 19___,” and shall mature not later than October 1 of the fifth year after the year in which such sale for taxes or special assessment is made. Such certificates of indebtedness shall bear interest at a rate to be determined by the county executive, with the approval of the council, payable semiannually or at shorter intervals, and shall be sold in such manner and on such terms as the county executive shall determine to be for the best interests of the county, and if for any reason certificates of indebtedness issued against property purchased by the county at any tax sale have been retired in whole or in part before the time limit for maturity as specified in this section new certificates may be issued, the total principal of which shall exceed neither the amount of principal previously retired nor the amount of taxes, interest, penalties, expenses of sale, costs and fees on property purchased by the county for such year remaining unredeemed at the time of issuance of such new certificates, but all such certificates of indebtedness shall mature within the time herein limited for the maturity of the original certificates of indebtedness. (c) The county executive shall by regulation fix the form of such certificates of indebtedness, the officers by whom they shall be executed, the amounts, the medium of payment and the place in Maryland or elsewhere at which they shall be payable. Such certificates of indebtedness may be renewed from time to time by endorsement thereon or new certificates of indebtedness may be issued from time to time for the payment of such certificates issued hereunder as may mature and all such new certificates may be issued in the same manner as herein provided not exceeding the total principle of the maturing certificates and shall mature within the time herein limited for the maturity of the original certificates of indebtedness. All money received from the redemption and from the sale of property sold for taxes or special assessments in any year shall be kept in a separate fund, identified by the year in which the sale for taxes or special assessments is made and designated as “19___ Tax Sale Fund,” and shall be applied solely to the payment of the principal and interest of certificates of indebtedness and renewals thereof or new certificates, issued in anticipation of the receipt of such money. The county may purchase or redeem before maturity any of such certificates offered. (d) In each year in which property is sold for taxes or special assessments there shall be included in the annual tax levy an amount sufficient to pay one (1) year’s interest on all certificates of indebtedness authorized or to be authorized by the county in anticipation of the receipts of money from the redemption and from the sale of property sold for such taxes or special assessments. In each year thereafter there shall be included in the annual tax levy an amount sufficient to provide for the payment of the principal and interest of all certificates of indebtedness as the same shall fall due; provided, however, that the amount of such tax shall be reduced by the amount received into the fund which is pledged to the payment of such certificates of indebtedness. After the payment of the principal and interest of all certificates of indebtedness issued in anticipation of the receipt of money from the redemption and sale of property sold for taxes or special assessments in any year, all funds received from the sale or redemption of property sold for such taxes or special assessments shall be paid into the general fund of the county. Money received from the sale of certificates of indebtedness shall be used so far as necessary for the payment of appropriations made for the fiscal year in which the tax sale occurs or for the payment of loans or interest thereon made for the purpose of paying such appropriations. **Sec. 52-27. Sale of properties purchased by county at public auction.** (a) On or before October 15 of each year, the county shall cause to be offered for sale at public auction all properties which it has purchased at tax sale and which are no longer subject to redemption. One (1) or more of the properties may be so offered at such other times as the county executive may determine. Each such property shall be offered at such auction at an upset price equal in amount to all taxes and assessments thereon which are due and unpaid, together with interest thereon to the date of the sale, plus all costs and penalties allowable by law, plus the cost of advertising and selling such property at auction sale. Upon a finding by the county executive that such upset price is, in the case of a particular piece of property, either too high or too low, the county executive may, by regulation fix an upset price at a figure other than that provided for in this section; provided, that such finding and the basis therefor are recited in the regulation. At any time prior to the date of any such auction the county executive may withdraw any of the properties from the sale for the purpose of (1) Conveying properties to any governmental agency or political subdivision; or (2) For retention for use by the county; or (3) Whenever there was no bid equal to or greater than the upset price at a previous public auction, the county executive may dispose of the property in the manner prescribed by subsection(b) of this section. (b) After any such property has been offered for sale at public auction one (1) or more times, it may be sold at private sale at the best price obtainable by the county executive, subject to the approval of the council. **Sec. 52-28. Describing owners as heirs of a named person; conveyance to devisees or heirs of purchaser.** Any sale of lands by the director of finance when the owners are described as the heirs of a named person shall pass the title as fully as if such heirs were each named in the proceedings by his other proper name; and if the purchaser of any real estate sold by the director of finance for the payment of taxes shall die without having procured a deed therefor the director of finance may convey the real estate to the devisees or heirs of the purchaser. ### Article Iii. Real Property Transfer Tax. **Sec. 52-29. Definitions.** For the purposes of this article, the following words and phrases shall have the meaning respectively ascribed to them by this section: (a) Consideration: Such term shall include everything of value included in the actual price paid or to be paid to a transferor or to a third party on behalf of a transferor for the property transferred, including, but not limited to, cash, bonds, stock, documents evidencing monetary value, choses in action, property either real or personal, payment by way of fees, labor or services, instruments of credit, notes, deeds of trust, mortgages, assumption of liability for debt incurred by another and cancellation of a debt. Consideration shall be presumed to be not less than the total full cash value of the property based on the most recent notice of assessment. For the purposes of the farmland transfer tax contained in Section 52-31(d), consideration for the transfer of land previously assessed as farmland shall be presumed to be not less than the total full cash value as computed by the supervisor of assessments at the request of the director of finance, as if the land were not assessed as farmland. These presumptions may be rebutted by clear and convincing evidence. The director may make a final determination of consideration pursuant to Section 52-36 of the Code. (b) Transfer: The acts of the parties, or act or operation of law, by which: (1) The title to property or a leasehold interest in property is conveyed from a person, firm, corporation, legal entity, or government agency to another; or (2) Real property subject to Section 52-31 is transferred to a government agency on the assessment records and removed from the tax rolls under the laws of eminent domain. (c) Act or operation of law: Any act by which title to or an interest in property is transferred by law, or judicial or administrative action including, but not limited to, a taking under the power of eminent domain or the acquisition of property for a public purpose. (1) Is assessed on the basis of farm or agricultural use; and (2) On or after July 1, 1984, is transferred to a government agency on the assessment records and removed from the tax rolls under the laws of eminent domain.” **Sec. 52-30. Authority to levy tax.** (a) The county council for Montgomery County is empowered and authorized to levy and impose by resolution or ordinance a tax to be paid and collected on the transfer in Montgomery County of: (1) Any fee simple interest in real property, except by way of mortgage, deed of trust, or deed of trust for the benefit of creditors; (2) Stock or other evidence of ownership in a cooperative housing corporation or similar entity; (3) Any leasehold interest in real property, where such lease contains a covenant for perpetual renewal; and (4) Any nonresidential leasehold interest in real property where there is a simultaneous or subsequent transfer of the fee interest in the real property to: (i) Any transferee or assignee of the leasehold; or (ii) Any entity in which a transferee or assignee of the leasehold has any interest. (b) The rate of such tax shall not exceed: (1) Six percent of the value of the consideration for any transfer of land, excluding improvements thereon, that is or was assessed on the basis of being actively devoted to farm or agricultural use. The tax shall be paid by the transferor of the land. The tax does not apply to a transfer of land if the land was subject to the tax at the time of a previous transfer. The revenue derived from the tax shall be used for agricultural land preservation programs or other programs that support agriculture in the county. The tax shall be reduced by 65% if the land was assessed on the basis of any assessment other than the farm or agricultural use assessment for 5 or more full consecutive taxable years before the transfer; or (2) Six percent of the value of the consideration for any transfer of real property which, after the effective date of any such rate of tax has been rezoned to a more intensive use at the instance of the transferor, transferee, or any other person who has or had at the time of application for rezoning a financial, contractual, or proprietary interest in the property, but excluding the value of improvements constructed after such rezoning; or (3) Four percent of the value of the consideration for the initial transfer of a residential unit subject to a condominium regime offered for rent for residential purposes prior to the establishment of the condominium regime. The tax shall be paid by the initial transferor of the residential unit. The tax shall be in addition to the tax provided in paragraph (5) of this subsection; or (4) Four percent of the value of the consideration for the initial transfer of stock or other evidence of membership in a cooperative housing corporation or similar entity where such stock corresponds to a residential unit which is being converted from rental status to a system of cooperative housing corporation ownership under which title to a multi-unit residential facility is held by a corporation, the shareholders or members of which, by virtue of such ownership or membership, are entitled to enter into an occupancy agreement for a particular residential unit. This tax shall not be applicable to transfers made pursuant to the purchase of a building by or on behalf of a bona fide tenants association. The tax shall be paid by the initial transferor of the residential unit and shall be in addition to the tax provided in paragraph (5) of this subsection; or (5) One percent of the value of the consideration for any other transfer including any nonresidential leasehold interest and fee interest under subsection (a)(4) of this section based on the: (i) Average annual rent over the term of the lease, including renewals, capitalized at 10 percent plus any additional consideration payable, other than rent; or (ii) If the average annual rent can not be determined, the greater of: 1. 105 percent of the minimum average annual rent, as determined by the lease, capitalized at 10 percent, plus any additional consideration payable, other than rent; or 2. 150 percent of the assessment of the real property subject to lease. (c) No transfer of any interest in such property shall be taxed hereunder where the transfer is to any nonprofit hospital or nonprofit religious or charitable organization, association or corporation, nor to any municipal, county or State government, or instrumentalities, agencies or political subdivisions thereof; provided, that no exemption shall be granted hereunder to a transfer under paragraph (b)(1) of this section unless the transferor is a nonprofit hospital or nonprofit religious or charitable organization, association or corporation, or a municipal, county or State government, or instrumentality, agency or political subdivision thereof. The county council may provide for any additional exemptions from the provisions of this section. (d) No tax levied pursuant to this section shall apply to transfers pursuant to contracts or agreements entered into prior to the effective date of such tax. (e) The county council is further empowered and authorized to fix a penalty not in excess of one thousand dollars or imprisonment not exceeding six months, or both such fine and imprisonment, for violation of the provisions of any resolution or ordinance of the county council adopted pursuant to this section. **Sec. 52-31. Levied; amount.** There is hereby levied a tax on (1) each transfer in the County of a fee simple interest in real property, except a transfer by mortgage, deed of trust, or deed of trust for the benefit of creditors, (2) the initial transfer of stock or other evidence of ownership in a cooperative housing corporation or similar entity, and (3) each transfer of a leasehold interest in real property where the lease or instrument by which a leasehold interest is transferred contains a covenant for perpetual renewal, known as ground rent. The tax must be computed on the value of the full consideration for each transfer at the following rates: (a) On improved residential property: (1) One-quarter of one (0.25) percent on property where the value of the full consideration is less than forty thousand dollars ($40,000.00); (2) One-half of one (0.50) percent on property where the value of the full consideration is forty thousand dollars ($40,000.00) or more, but less than seventy thousand dollars ($70,000.00); and (3) One (1) percent on property where the value of the full consideration is seventy thousand dollars ($70,000.00) or more. Where the transfer is subject both to the tax imposed by this subsection and the tax imposed by another subsection of this section, the tax imposed by the other subsection shall be the only tax imposed on the transfer. "Improved property" means real property that includes a structure that is under roof, plastered or ceiled, and trimmed. (b) On improved nonresidential property, one (1) percent regardless of the value of the full consideration. Where the transfer is subject both to the tax imposed by this subsection and the tax imposed by another subsection of this section, the tax imposed by the other subsection shall be the only tax imposed on the transfer. "Improved property" means real property that includes a structure that is under roof, plastered or ceiled, and trimmed. (c) On unimproved property, one (1) percent regardless of the value of the full consideration. (d) On land assessed as farmland, a percentage of the value of the consideration for the transfer of land, excluding improvements thereon, which, while owned by the transferor, has been assessed and taxed at any time during the five (5) years preceding transfer on the basis of being actively devoted to farm or agricultural use, said tax to be paid by the transferor of such land, which percentage shall vary according to the following schedule: (1) Land assessed and taxed to the transferor for one (1) year on the basis of farm or agricultural use, two and four-tenths (2.4) percent. (2) Land assessed and taxed to the transferor for two (2) years on the basis of farm or agricultural use, three and eight-tenths (3.8) percent. (3) Land assessed and taxed to the transferor for three (3) years on the basis of farm or agricultural use, five and two-tenths (5.2) percent. (4) Land assessed and taxed to the transferor for more than three (3) years on the basis of farm or agricultural use, six (6) percent. (5) Land zoned Rural Density Transfer Zone (RDT) or its successor zone, or land covered by a permanent easement prohibiting development for residential or other nonagricultural use, one (1) percent. Improvements and land which were not assessed based on farm or agricultural use and are not subject to the farmland transfer tax levied under this subsection and are transferred as a part of a transaction including a transfer of land previously assessed as farmland, shall be taxed as provided in other subsections of this section as if such improvements and land were not part of a transaction including farmland. Consideration for the improvements and non-farm-assessed land shall be presumed to be the total full cash value most recently determined by the supervisor of assessments based on the most recent notice of assessment. The presumption may be rebutted by clear and convincing evidence. Where the transfer is subject both to the tax imposed by this subsection and the tax imposed by subsection (e) of this section, the tax imposed by subsection (e) shall be the only tax imposed on the transfer. The county executive may from time to time issue written regulations adopted under method (3) of section 2A-15 of this Code, pertaining to the collection of the tax levied in this subsection. (e) On rezoned property, 6 percent of the value of the consideration for any transfer of real property which has been rezoned to a more intensive use at the request of the transferor, transferee, or any other person who has or had at the time of application for rezoning a financial, contractual or proprietary interest in the property, not including the value of any improvement constructed after the rezoning. “Rezoned” as used in this subsection means the classification, reclassification, or change from one zone to another of any property by local map amendment under Chapter 59. “Rezoned to a more intensive use” as used in this subsection means a classification, reclassification, or change in zone which permits a greater number of dwelling units per acre in any residential zone, or which permits a greater number of permitted uses regardless of area or allows more floor area in a commercial, commercial/residential, employment, or industrial zone, or is from any residential zone to any commercial, commercial/residential, employment, or industrial zone, or is from any industrial zone to any commercial, commercial/residential, or employment zone. “Rezoned to a more intensive use” does not include: (1) A zoning from a residential zone to a residential floating zone if the approved floating zone plan, including any amendments to the plan, does not increase the total number of permitted dwelling units and does not permit commercial or industrial uses, but the transfer must be subject to any tax otherwise due under this subsection if at any time an amendment to the floating zone plan increases the total number of permitted dwelling units or permits commercial or industrial uses; (2) A zoning from a residential zone to a commercial, commercial/residential, or employment, zone within one year after the property was down zoned from a zone of equal or greater intensity to a residential zone by sectional map amendment; (3) A rezoning from an industrial zone to a commercial, commercial/residential, or employment, zone which: (i) Is necessitated by a previously adopted amendment to Chapter 59 that was not requested by the transferor, transferee, owner or former owner of the real property, or by any person who has or has previously had an interest of any kind in the property, including a contractual interest; and (ii) Allows establishment or continuance of a use or uses which were permitted uses on the property under the industrial zone immediately before the text amendment, to which use or uses the property was restricted by bona fide covenants recorded among the land records before July 1, 1971, and which covenants are in effect at the time of a transfer; or (4) a rezoning of any property that is located in an enterprise zone when the property is transferred. The taxpayer may deduct from the consideration on which the tax is based any cost actually incurred by the transferor for public improvements, such as sewer, water, roads, sidewalks, storm drainage structures, and permanent soil erosion and sediment control measures, if the taxpayer submits satisfactory proof of costs documented by certificates from public agencies where applicable, but the rate of the tax on a single transfer must not exceed 6 percent of the bona fide market value consideration for the transfer. If a transfer is subject both to the tax imposed by this subsection and the tax imposed by subsection (d), the tax imposed by this subsection must be the only tax imposed on the transfer. Any tax collected under this subsection must be collected only once on the first taxable transaction after each rezoning to a more intensive use, and any transfer that does not follow a rezoning to a more intensive use must be taxed at the rates applicable under other subsections of this section. The Executive may issue regulations under method (3) regarding the collection of the tax levied in this subsection. (f) On condominium property, four (4) percent of the value of the consideration for the initial transfer of a residential unit subject to a condominium regime, which unit was offered for rent for residential purposes prior to the establishment of the condominium regime. (1) The tax shall be paid by the transferor initially transferring a unit and shall be in addition to the taxes imposed under subsection (a) of this section. (2) No transfer of any interest in real property shall be taxed under this subsection where: (A) The transfer is pursuant to a bona fide contract or agreement for sale of the individual unit entered into prior to July 28, 1980; or (B) The transfer is of a unit in a condominium regime established by recording a declaration, bylaws and condominium plat, before July 28, 1980, under the Maryland Condominium Act, Title 11 of the Real Property Article of the Maryland Code. For purposes of this subsection, residential units contained in an expanding condominium regime established by recording a declaration, bylaws and condominium plat before July 28, 1980, but not added to the established condominium regime by that date, shall continue to be exempt from taxation under this subsection if the unit becomes a condominium unit in an established condominium regime by the last date for establishment of units in the expanded condominium as contained in the declaration filed before July 28, 1980, either as a part of the original expanding condominium or as a part of a separate condominium. (3) All taxes and interest collected and received pursuant to this subsection shall be paid into a special fund to be used to preserve multiunit rental residential facilities, to support construction of new rental facilities, to provide rental assistance and financing assistance to eligible persons, to otherwise mitigate the impact on tenants displaced or threatened with displacement by the conversion of a multiunit residential rental facility to a condominium or cooperative, to provide affordable housing, and for any other purpose related to the loss of rental housing as set forth in regulations to be adopted by the county executive. The executive must transfer any balance in this fund not committed to an existing project, and any revenue the fund receives after May 15, 1988, to support the Montgomery Housing Initiative established under section 25B-9. (4) The county executive may adopt regulations, under method (2) of section 2A-15 of this Code, for the implementation of the purposes set forth above. Expenditures from the fund shall be authorized by appropriation by the county council. (5) Where the transfer of a unit is subject to this tax and is subject to tax under subsection (d) or (e) of this section the director of finance shall collect at the rate which shall yield the highest return; and all taxes and interest collected shall be paid into the special fund provided in paragraph (3) of this subsection. (g) On cooperative housing, 4% of the value of the consideration for the initial transfer of stock or other evidence of membership in a cooperative housing corporation or similar entity where such stock corresponds to a residential unit which is being converted from rental status to a system of cooperative housing corporation ownership under which title to a multi-unit residential facility is held by a corporation, the shareholders or members of which, by virtue of such ownership or membership, are entitled to enter into an occupancy agreement for a particular residential unit. (1) The tax shall be paid by the transferor initially transferring the stock or other evidence of membership in a cooperative housing corporation or similar entity, corresponding to a residential unit, and shall be in addition to other taxes imposed by subsection (a) of this section. (2) No transfer of stock or other evidence of ownership in a cooperative housing corporation or similar entity shall be taxed under this article where: (A) The transfer is made pursuant to the purchase of a building by or on behalf of a bona fide tenants' association; or (B) The transfer is made pursuant to a bona fide contract or agreement for sale of the stock or other evidence of membership corresponding to a residential unit entered into prior to July 1, 1981; or (C) The transfer is of stock or other evidence of membership in a cooperative housing corporation which, prior to July 1, 1981, had been specifically incorporated as a cooperative and was the owner in fee simple of the multifamily residential facility. (3) All taxes and interest collected and received pursuant to this subsection shall be paid into the special fund established under subsection (f)(3) of this section. (4) The county executive may adopt regulations, under method (2) of section 2A-15 of this Code, for the implementation of the purposes set forth above. Expenditures from the fund shall be authorized by appropriation by the county council. (5) Where the transfer of the stock corresponding to a residential unit is subject to this tax and is subject to tax under subsection (d) or (e) of this section the director of finance shall collect at the rate which shall yield the highest return; and all taxes and interest collected shall be paid into the special fund provided in subsection (f) of this section. (6) The tax levied by this subsection shall be paid prior to the actual transfer of the stock or other evidence of membership. The tax shall be paid to the county at the office of the director of finance and shall be evidenced by the affixing of an official stamp upon the stock certificate, membership certificate or other instrument of conveyance, showing the amount of the tax paid. At the time of payment, the person paying such tax shall present to the director, in a form prescribed by the director, a signed statement setting forth the actual and true value of the consideration for the transfer. The person paying the tax shall be given a receipt for such payment. This paragraph shall be applicable to this subsection only and shall supersede any of the provisions of Section 52-32, to the extent they are inconsistent. (7) For purposes of this subsection, a transfer or issuance of stock or other evidence of membership from the cooperative housing corporation to the developer shall not be deemed to be the initial transfer. The county executive may from time to time issue written regulations, adopted under method (2) of section 2A-15 of this Code, to define any terms or to effectuate the purposes of this subsection. (8) It shall be the duty of the transferor to keep and preserve, for a period of three (3) years, a record of transfers that have occurred and the amount of consideration for each transfer. The director of finance, or his designee, shall have the right to inspect these records at all reasonable times. (h) On any nonresidential leasehold interest in real property, one percent of the value of the consideration, where there is a simultaneous or later transfer of the fee interest in the real property to any transferee or assignee of the leasehold, or any entity in which a transferee or assignee of the leasehold has any interest. The consideration for tax purposes must be: (1) The average annual rent over the term of the lease, including renewals, capitalized at ten (10) percent, plus any additional consideration payable, other than rent; or (2) If the average annual rent cannot be determined, the greater of: (i) One hundred five (105) percent of the minimum average annual rent, as determined by the lease, capitalized at ten (10) percent, plus any additional consideration payable, other than rent; or (ii) One hundred fifty (150) percent of the assessed value of the real property subject to lease. (i) Where transfers are taxable under more than one subsection of this section, the director of finance must collect the tax at the rate which yields the highest return. **Sec. 52-32. When payable; evidence of payment on conveyance; receipt for payment.** The tax levied by this article shall be paid at the time of or prior to presentation of the instrument of transfer to the supervisor of assessments for the county for transfer of such property on the assessment books of the county or certification by the director of finance of the payment of ad valorem property taxes. In the case of any transfer of an interest in real property not required by public general law of this state or other local law or ordinance to be transferred on the assessment records of the county or to be certified as to property tax payments, the tax herein levied shall be paid before any instrument conveying such an interest shall be presented to the clerk of the circuit court for recordation. The tax shall be paid to the county at the office of the director of finance and shall be evidenced by the fixing of an official stamp upon the deed or instrument of conveyance by the director of finance or his authorized representative, showing the amount of the tax paid. At the time of payment, the person paying such tax shall present to the director of finance, in a form prescribed by the director, a signed statement setting forth the actual and true value of the consideration for the transfer. The person paying the tax shall be given a receipt for such payment. **Sec. 52-33. Conveyances not to be accepted for recordation unless stamped.** The clerk of the circuit court shall not accept for recording any instrument upon which a tax is payable under the provisions of this article unless such instrument has the official stamp of the director of finance affixed thereto. **Sec. 52-34. Certain transfers exempt from tax.** (a) (1) A transfer of any interest in property is not subject to tax if the property is transferred to: (A) any nonprofit hospital or nonprofit religious or charitable organization, association or corporation, or (B) any municipal, County or State government, or any instrumentality, agency, or political subdivisions thereof. (2) However, an exemption must not be granted to a transferor under Section 52-31(d) unless the transferor is a nonprofit hospital or nonprofit religious or charitable organization, association or corporation, or a municipal, County or State government or an instrumentality, agency or political subdivision thereof. (b) A transfer, by will or descent, of real property is not subject to tax. (c) A transfer of any interest in real property is not subject to tax if the transfer is between spouses or former spouses of real property owned by them jointly or individually, underthe terms of a separation agreement or divorce decree adjusting the parties' respective equities and rights in the real property. (d) (1) A transfer of improved residential property in a cooperative housing corporation to the owner of a cooperative interest in the same corporation is not subject to tax if: (A) the corporation consists of single-family detached residential units and was established on or before January 1, 1970; and (B) the transfer is incident to or part of the termination of the corporation. (2) However, a transfer covered by subsection (1) is not exempt from tax if: (A) the transfer is incident to or part of the conversion of the corporation to a condominium; or (B) the property is transferred to a person who: (i) does not occupy the residential unit transferred; or (ii) has received the same exemption for another property transferred as part of the same corporate termination. (e) (1) (3) The transfer of an interest in improved residential owner-occupied property is exempt from the transfer tax, to the extent allowed in paragraph (3), if the value of the full consideration is not more than $250,000. (2) To receive an exemption under this subsection, the transferee must submit a statement signed under oath that the residence will be occupied by the transferee. (3) The exemption under this subsection applies only to the first $500 of transfer tax payable by the transferee under the sales contract. (4) The exemption under this subsection applies only if the contract to transfer the property is ratified on or after July 1, 1994, and on or before June 30, 1996, and settlement is completed by September 30, 1996. (f) Transfers between spouses or domestic partners. The transfer of an interest in real property is not subject to tax if the transfer is between: (1) spouses or former spouses; or (2) domestic partners or former domestic partners of the same sex. (g) Transfers between relatives. When property is transferred subject to an existing mortgage or deed of trust, the transfer tax does not apply to the unpaid principal balance of debt secured by the mortgage or deed of trust if the property is transferred to the transferor’s: (1) son, daughter, stepson, or stepdaughter; (2) parent or stepparent; (3) son-in-law, daughter-in-law, stepson-in-law, or stepdaughter-in-law; (4) parent-in-law or stepparent-in-law; or (5) grandchild or step-grandchild. **Sec. 52-35. Deferred payment.** (a) Montgomery County may by law provide for deferred payment of any county transfer tax levied on owner-occupied, single-family residential property, at the rate of interest prescribed in section 14-606 of the Tax-Property Article and on such other terms as it may prescribe. (b) The unpaid balance of the transfer tax plus interest shall be a lien on the property affected. (c) Montgomery County may issue annually tax anticipation notes in an amount not to exceed the amount of taxes deferred as provided in subsection (a) of this section. **Sec. 52-36. Consideration or valuation understated.** (a) Where the director of finance has reason to believe that the consideration for property or valuation of property is understated on the transfer tax form, the director of finance, at his or her discretion, may request the supervisor of assessments for the county or a professional real estate appraiser to make an appraisal of the property. (b) The director of finance shall make a final determination of the consideration for the transfer and the amount of transfer tax due. The director of finance shall consider the appraisal of the property and such other facts and information which the director deems appropriate. The director shall notify the transferor and transferee in writing of his decision. Where the final determination of the director is made after payment of the tax, any additional tax shall be immediately due, and interest on the difference shall run from the date of initial payment of tax at a rate at which interest is charged on overdue real property taxes. The transferee and transferor shall be jointly and severally liable for the payment of the difference in tax due. **Sec. 52-37. Refund of tax when transfer not effected.** In the event a transfer subject to the tax imposed by this article does not in fact occur after such tax has been paid and the instrument is thus not recorded as required by law with the clerk of the circuit court or the transfer is set aside by judicial decree, the director of finance shall refund the tax paid, without interest; provided, that application in a form prescribed by the director is made within six (6) months from payment of such tax, or within six (6) months from the date of the judicial decree setting aside such transfer. **Sec. 52-38. Penalty for violation of article.** Any person who fails, neglects or refuses to comply with the provisions of this article or any person who makes a false statement as to value of consideration or fraudulently affixes or attempts to affix to any document a forged or counterfeit impression of any receipt or stamp of the director of finance shall be subject to punishment for a class A violation as set forth in section 1-19 of chapter 1 of the County Code. ### Article Iv. Development Impact Tax for Transportation Improvements. **Sec. 52-39. Definitions.** In this Article the following terms have the following meanings: Additional capacity means a new road, adding an additional lane or turn lane to an existing road, or another transportation improvement that: (1) increases the maximum theoretical volume of traffic that a road or intersection can accommodate, or implements or improves transit, pedestrian and bike facilities or access to non-auto modes of travel; and (2) is classified as a minor arterial, arterial, parkway, major highway, controlled major highway, or freeway in the County’s Master Plan of Highways, or is similarly classified by a municipality. The Director of Transportation may find that a specified business district street or industrial street also provides additional capacity as defined in this provision. Additional capacity is sometimes referred to as added “highway capacity,” “transportation capacity,” or “intersection capacity”. Adequate Public Facilities Ordinance (APFO) means Section 50-35(k). Adequate Public Facilities Ordinance policy area transportation adequacy standards means standards by which the area-wide adequacy of transportation facilities serving a proposed development are judged. APFO policy area transportation adequacy standards do not include requirements for other on-site or off-site transportation improvements that may be separately required or standards relating to local area review which may be independently required. Agricultural facility means a building or structure, or portion of a building or structure that is used exclusively for the storage or processing of an agricultural product to prepare the product for market and is located in the Agricultural Reserve, Rural Residential, RE-1 or RE-2 Zones. Applicant means the property owner, or duly designated agent of the property owner, of land on which a building permit has been requested for development. Bioscience facility means any biological research and development or manufacturing facility that substantially involves research, development or manufacturing of: (1) biologically active molecules, (2) devices that employ or affect biological processes, (3) devices and software for production or management of specific biological information, or (4) products or materials that purify or handle biologically active products; Building permit means a building permit issued by the Department of Permitting Services under Chapter 8. Capital improvements program (CIP) means the current adopted six-year capital improvements program. Charitable, philanthropic institution means a private, tax-exempt organization whose primary function is to provide services, research, or educational activities in areas such as health, social service, recreation, or environmental conservation. Clergy House means a single-family dwelling unit provided for the designated religious leader of a place of worship to live. Construction means the planning, design, acquisition of land, site improvements, utility relocation, building, and initial furniture and equipment for a capital project. Cultural institution means any privately-owned or -operated structure and land where works of art or other objects are kept and displayed, or where books, periodicals, and other reading material are offered for reading, viewing, listening, study, or reference, but not typically offered for sale. Cultural institution includes a museum, cultural or art exhibit, and library. Demolish means to tear down or destroy an entire building or structure, or 67 percent or more of first-story exterior walls of a one-family or two-family dwelling unit. Demolish includes the conversion of an exterior wall into an interior wall. Basement and cellar walls are not considered exterior walls. Development means the carrying out of any building activity or the making of any material change in the use of any structure or land which requires issuance of a building permit and: (1) Increases the number of dwelling units; or (2) Increases the gross floor area of nonresidential development. Development impact tax means a pro rata per unit or per square foot of gross floor area tax imposed before a building permit is issued for development which is intended to defray a portion of the costs associated with impact transportation improvements that are necessary to accommodate the traffic generated by the development. Dwelling unit means the definition given to dwelling unit by Chapter 59. Farm tenant dwelling means a dwelling unit under the control of the owner or operator of the farm on which the dwelling unit is located and occupied by an agricultural worker actively engaged in farming on a full-time or part-time basis. Farm Tenant Dwelling includes up to three mobile homes. A Farm Tenant Dwelling is not restricted by the definition of household. General plan refers to “On Wedges and Corridors . . . A General Plan for the Maryland- Washington Regional District,” as amended, adopted by the Montgomery County Planning Board and approved by the Montgomery County District Council. Gross floor area means the sum of the gross horizontal area of the several floors of a building or structure measured from the exterior faces of the exterior walls or from the center line of party walls. In a covered but unenclosed area, such as a set of gasoline pumps or a drive-through area, gross floor area means the covered area. Gross floor area does not include: (1) basement or attic areas with a headroom of less than 7 feet 6 inches; (2) areas devoted to unenclosed mechanical, heating, air conditioning, or ventilating equipment; (3) parking structures; or (4) accessory structures to a residential building. Growth policy means the Growth and Infrastructure Policy most recently adopted under Chapter 33A to provide guidelines for the administration of the Adequate Public Facilities Ordinance. Hospital means an institution licensed as a hospital under state law. Impact tax district means a planning policy area or combination of planning policy areas described under Section 52-41(c). Impact tax district transportation program means the transportation improvement program described under Section 52-50. Impact transportation improvement means an improvement listed in Section 52-50. Improvement means a highway, intersection improvement, transit center, bus, bus shelter, hiker- biker trail, sidewalk connection, or park-and-ride lot, including planning, engineering, design services, right-of-way acquisition, grading, paving, curbs, gutters, drainage, sidewalks, signalization, signage, and all other construction and associated costs. Major Activity Center means a commercial site, school, shopping area, transit area, Metro station, or other major employment area that generates pedestrian trips. Master plan of highways means the “Master Plan of Highways” adopted by the Planning Board and approved by the District Council, and any similar plan adopted by either Gaithersburg or Rockville. Nonresidential means the use of a building that is not a residential use and includes: (1) offices, including general, medical, office parks, research parks, townhouse office buildings, government offices, and other similar uses; (2) industrial uses, including truck terminals, warehouses, light or heavy industrial and manufacturing, industrial parks, and other similar uses; (3) retail uses, including stores or shopping centers engaging in the sale of goods, restaurants, vehicle sales or service, banks or savings and loan institutions, theaters, post offices and other similar uses; (4) places of worship; (5) private elementary, secondary, or post-secondary schools; and (6) other nonresidential uses, including hotels, motels, day care centers, nursing homes, recreational facilities, and other public facilities and similar uses; Office-to-residential conversion is when an existing office building is turned into housing through adaptive reuse, renovation, or demolition. Operating expense includes reasonable costs of staffing, advertising, marketing, building rental, furniture, supplies and materials, bus fuel, and personnel to operate a trip reduction program. Policy area means any geographic area designated as a transportation policy area in the growth policy. Programmed transportation improvement means an improvement listed in the current approved county capital improvements program or the state consolidated transportation program or any similar program adopted by either Gaithersburg or Rockville. Property owner means any person, group of persons, firm, corporation, or other entity with a proprietary interest in the land on which a building permit has been requested. Residential means the use of a building as a dwelling unit. (1) Single-family detached residential includes detached single-family dwelling units. (2) Single-family attached residential includes townhouses, duplexes and other attached single-family dwelling units. (3) Multifamily residential includes: (A) garden apartments; (B) mid-rise and high-rise dwelling unit structures; and (C) mobile homes. (4) Senior residential means: (A) a residential care facility as defined in Section 59.3.3.2.E used solely for housing seniors or persons with a disability; (B) dwelling units located in the age-restricted section of a planned retirement community, as defined in Section 59.8.3.5; (C) an independent living facility for seniors or persons with a disability as defined in Section 59.3.3.2.C; and (D) any household living unit constructed under Section 59.3.3.1 that is restricted by a covenant running with the land for housing persons who are 55 years of age or older. (5) High-rise residential includes any dwelling unit located in a multifamily residential or mixed-use building that is taller than 4 stories. Sidewalk connector means a sidewalk that provides a direct link or connection to a major activity center. Stacked flats are dwelling units constructed in a stack of 2 or more dwelling units, where each dwelling unit is located either above or below an adjacent unit within a single building that is 4 stories or less. Use and occupancy permit means a use and occupancy permit issued by the Department of Permitting Services under Chapter 8. (a) must not require the payment of a transportation mitigation payment or a school facilities payment for the same development; and (b) must refund the payment or give the property owner a credit against the development impact tax for transportation due for the development in the amount of any transportation mitigation payment made for the same development prior to March 1, 2017. **Sec. 52-40. Findings; purpose and intent.** (a) The master plan of transportation indicates that certain transportation facilities are needed in planning policy areas. Furthermore, the Growth and Infrastructure Policy indicates that the amount and rate of growth projected in certain planning policy areas will place significant demands on the County for provision of transportation facilities necessary to support and accommodate that growth. (b) Montgomery County, through its adoption of the Capital Improvements Program, indicates its commitment to provide transportation infrastructure. (c) Montgomery County has determined that a combination of approaches will be necessary to fully achieve the level of impact transportation improvements needed to accommodate growth in the County. Thus, Montgomery County proposes to fund a program of transportation improvements through development impact taxes to allow new growth in the County. (d) Imposing a development impact tax that requires new development to pay its pro rata share of the costs of impact transportation improvements necessitated by that development in conjunction with other public funds is a reasonable method of raising the funds to build improvements in a timely manner. (e) The development impact tax funds, in part, the improvements necessary to increase the transportation system capacity, thereby allowing development to proceed. Development impact taxes are used exclusively for impact transportation improvements. (f) In order to assure that the necessary impact transportation improvements are constructed in a timely manner, the County assures the availability of funds sufficient to construct the impact transportation improvements. (g) The County retains the power to determine the types of impact transportation improvements to be funded by development impact taxes and to do all things necessary and proper to effectuate the purpose and intent of this Article. (h) The County intends to further the public purpose of ensuring that an adequate transportation system is available in support of new development. (i) The County intends to impose development impact taxes until the County has attained build-out as defined by the General Plan. (a) must not require the payment of a transportation mitigation payment or a school facilities payment for the same development; and (b) must refund the payment or give the property owner a credit against the development impact tax for transportation due for the development in the amount of any transportation mitigation payment made for the same development prior to March 1, 2017. **Sec. 52-41. Imposition and applicability of development impact taxes.** (a) A development impact tax must be imposed before a building permit is issued for development in the County. (b) An applicant for a building permit must pay a development impact tax in the amount and manner provided in this Article, unless a credit in the full amount of the applicable tax applies under Section 52-47 or an appeal bond is posted under Section 52-48. (c) The following impact tax districts are established: (1) White Flint: The part of the North Bethesda Metro Station Policy Area included in the White Flint Special Taxing District in Section 68C-2; (2) Red Policy Areas: Bethesda CBD, Chevy Chase Lake, Forest Glen, Friendship Heights, Grosvenor, Glenmont, Lyttonsville, Medical Center, North Bethesda Metro Station, Purple Line East, Rockville Town Center, Shady Grove, Silver Spring CBD, Takoma, Twinbrook, Wheaton CBD, and Woodside Metro Station Policy Areas; (3) Orange Policy Areas: Aspen Hill, Bethesda/Chevy Chase, Burtonsville Town Center, Clarksburg East, Clarksburg Town Center, Derwood, Fairland/Briggs Chaney, Gaithersburg, Germantown East, Germantown Town Center, Germantown West, Great Seneca Communities, Great Seneca Life Science Center, Kensington/Wheaton, Montgomery Village/Airpark, North Bethesda, Olney Town Center, Rock Spring, Rockville City, Silver Spring/Takoma Park, White Oak, and White Oak Downtown Policy Areas; (4) Yellow Policy Areas: Clarksburg West, Cloverly, Damascus, Colesville, North Potomac, Olney, and Potomac Policy Areas; and (5) Green Policy Areas: Rural East and Rural West Policy Areas. (d) A Clergy House must pay the impact tax rate that applies to a place of worship if the house: (1) is on the same lot or parcel, adjacent to. or confronting the property on which the place of worship is located; and (2) is incidental and subordinate to the principal building used by the religious organization as its place of worship. The place of worship tax rate does not apply to any portion of a Clergy House that is nonresidential development. (e) Development impact taxes collected from developments located in the cities of Gaithersburg and Rockville must be accounted for separately according to the municipality where the funds originated. These tax revenues must be used only to fund transportation improvements listed in a memorandum of understanding between the County and the respective City, which must be approved by the County Council. If the County and the respective City do not agree on a memorandum of understanding regarding the use of impact tax revenues, the County Council may appropriate funds to improvements which are consistent with the master plan of the respective City after holding a separate hearing on any specific improvement if the City so requests. (f) A development impact tax must not be imposed on any building owned, and used primarily, by any agency or instrumentality of federal, state, County, or municipal government. (g) A development impact tax must not be imposed on: (1) any Moderately Priced Dwelling Unit built under Chapter 25A or any similar program enacted by either Gaithersburg or Rockville; (2) any other dwelling unit built under a government regulation or binding agreement that limits for at least 15 years the price or rent charged for the unit in order to make the unit affordable to households earning less than 60% of the area median income, adjusted for family size; (3) any Personal Living Quarters unit built under Section 59-3.3.2.D, which meets the price or rent eligibility standards for a moderately priced dwelling unit under Chapter 25A; (4) any dwelling unit in an Opportunity Housing Project built under Sections 56-28 through 56-32, which meets the price or rent eligibility standards for a moderately priced dwelling unit under Chapter 25A; (5) any development located in an enterprise zone designated by the State; (6) except for a development located in the City of Rockville, any development located in a Qualified Opportunity Zone certified by the United States Treasury Department or in an area previously designated as an Opportunity Zone, including a development located in the following census tracts as defined by their 2010 Census Boundaries: Silver Spring – 25.00, 26.01; Takoma Park – 17.03, 20.00, 23.01; White Oak – 15.05, 15.09, 14.21; Wheaton – 38.00; Rockville – 9.04; Gaithersburg – 7.24, 7.23, 7.13, 8.13; and Germantown – 8.30; (7) a house built by high school students under a program operated by the Montgomery County Board of Education; (8) a farm tenant dwelling; (9) a bioscience facility; (10) a multifamily dwelling unit with 3 or more bedrooms in a multifamily structure; (11) any single-family attached or detached dwelling units with a gross floor area of 1,800 square feet or less, or a gross floor area of 2,200 square feet or less including an attached garage; or (12) any development that is within one-half mile of a Metro station, within a Parking Lot District, and that provides no onsite parking. (h) The development impact tax does not apply to: (1) any reconstruction or alteration of an existing building or part of a building that does not increase the gross floor area of the building; (2) any ancillary building in a residential development that: (A) does not increase the number of dwelling units in that development; and (B) is used only by residents of that development and their guests, and is not open to the public; and (3) any building that replaces an existing building on the same site or in the same project (as approved by the Planning Board or the equivalent body in Rockville or Gaithersburg) to the extent of the gross floor area of the previous building, if: (A) an application for a building permit is filed within four years after demolition or destruction of the previous building was substantially completed; (B) the Director of the Department of Permitting Services or the Director’s designee finds that the applicant was unable to apply for a building permit or commence construction within four years after demolition or destruction of the previous building was substantially completed due to circumstances beyond the control of the applicant or the applicant’s agents; or (C) the previous building is demolished or destroyed, after the replacement building is built, by a date specified in a phasing plan approved by the Planning Board or equivalent body. (4) office-to-residential conversions when the building is adaptively reused or renovated for multifamily housing; and (5) the conversion of office to multifamily, single-family detached, or single-family attached housing when demolition is involved. However, if in any case the development impact tax that would be due on the new, reconstructed, or altered building is greater than the tax that would have been due on the previous building if it were taxed at the same time, the applicant must pay the difference between those amounts. (a) must not require the payment of a transportation mitigation payment or a school facilities payment for the same development; and (b) must refund the payment or give the property owner a credit against the development impact tax for transportation due for the development in the amount of any transportation mitigation payment made for the same development prior to March 1, 2017. (a) Except as provided in paragraph (b) or (c), County Code Section 52-41(g)(5), formerly 52-49(g)(5), and Section 52-54(c)(5), formerly 52-89(c)(5), both inserted by Section 1 of this Act, do not apply to any development which received preliminary subdivision plan approval or site plan approval (or a similar approval in a municipality) before October 22, 2015. (b) If a development approved before October 22, 2015 is amended any time thereafter to include additional dwelling units and at least 25% of the additional dwelling units are exempt under paragraph (1), (2), (3), or (4) of Section 52-54(c), or any combination of them, then Section 52-41(g)(5) and Section 52-54(c)(5), apply to the additional units. (c) If the relevant preliminary subdivision plan was approved before January 1, 2008, Sections 52-41(g)(5) and 52-54(c) apply to building permit applications for the unbuilt portion of the development. **Sec. 52-42. Collection of development impact taxes.** (a) The Department of Permitting Services must determine the amount of the applicable development impact tax. (b) Each applicant for a building permit for development that is not exempt from the development impact tax must supply to the Department of Permitting Services for each requested building permit: (1) The number and type of dwelling units for residential development; and (2) The gross floor area and type of development for nonresidential development. The applicant must submit for inspection relevant support documentation as the Department requires. (c) The Department of Permitting Services must not issue a building permit for development that is not exempt from the development impact tax unless: (1) the applicant has paid the applicable development impact tax; (2) the applicant is entitled to a credit under Section 52-47 in the amount of the applicable development impact tax; (3) an appeal has been taken and a bond or other surety posted under Section 52-48; or (4) payment is deferred under Section 52-42(l). (d) When a person applies to a municipality in the County for a building permit for a building or dwelling unit, the applicant must show that all payments due under this Section with respect to the building or unit have been paid unless payment is deferred under Section 52-42(l). If payment is deferred under Section 52-42(l), the applicant must submit proof of payment to the municipality once payment has been made. The Director of Finance must promptly refund any payment made for any building or part of a building for which a building permit is not issued by the municipality. (e) Nothing in this Article changes or supercedes any other requirement of City, County, state or federal law that may apply to the development, including county zoning and subdivision regulations that may impose on-site and off-site transportation improvement requirements and local area review requirements implemented by the Planning Board. (f) If any person fails to pay the tax due under Section 52-43, that person is liable for: (1) interest on the unpaid tax at the rate of one percent per month for each month or part of a month after the date for payment of the tax; and (2) a penalty of 5 percent of the amount of the tax per month or part of a month after the date for payment of the tax, not to exceed 25 percent of the tax. The Director of Finance must collect any interest and penalty as a part of the tax. (g) If any person fails to pay the tax when due, the Director of Finance must obtain information on which to calculate the tax due. As soon as the Director obtains sufficient information to calculate any tax due, the Director must assess the tax and penalties against the person. The Director must notify the person by mail sent to the person's last known address of the total amount of the tax, interest, and penalties. The total amount must be paid within 10 days after the notice is mailed. (h) Every person liable for any tax under this Article must preserve for 2 years all records necessary to determine the amount of the tax. The County may inspect the records at any reasonable time. (i) Any failure to pay the tax due under this Article, and any violation of this Section, is a Class A violation. Each violation is a separate offense. A conviction does not relieve any person from payment of the tax. (j) Section 52-21 applies to this tax. The lien imposed under this Article has the same priority and may be enforced in the same manner as a lien imposed in case of nonpayment of County real property taxes. (k) If, within 10 years after a building permit is issued, any person changes the use of all or part of a building to a use for which a higher tax would have been due under this Article when the building permit was issued (including a change from a status, use, or ownership that is exempt from payment to a status, use, or ownership that is not so exempt), the owner of the building must within 10 days after the change in status, use, or ownership pay all additional taxes that would have been due if the building or part of the building had originally been used as it is later used. If the building owner does not pay any additional tax when due, each later owner is liable for the tax, and any interest or penalty due, until all taxes, interest, and penalties are paid. (l) Notwithstanding any other provisions of this Chapter, an applicant for a building permit need not pay any development impact tax, Transportation Mitigation Payment, or School Facilities Payment due until the applicant schedules the final inspection of the building by the Department of Permitting Services. Final inspection will not be scheduled until payment is received. The rate of the tax or Payment due is the rate in effect when the tax or Payment is paid. A permittee may appeal the imposition or calculation of the tax or Payment under Section 52-48. If the Department of Permitting Services or a municipality revokes or suspends a building permit or issues a stop-work order solely because the permittee did not pay any tax or Payment due under this Article, the permittee or any other party must not appeal the permit revocation or suspension or the stop work order issuance, or any modification of either, under Chapter 8. If the appealing party posts a bond or other sufficient surety satisfactory to the County Attorney as provided in Section 52-48, the Department or municipality must reissue or reinstate the building permit or revoke the stop-work order.. **Sec. 52-43. Calculation of development impact tax.** (a) The Department of Permitting Services must calculate the amount of the applicable development impact tax due for each building permit by: (1) determining the applicable impact tax district and whether the permit is for development that is exempt from the tax under Section 52-41(f); (2) verifying the number and type of dwelling units and the gross floor area and type of nonresidential development for which each building permit is sought; (3) determining the applicable tax under Section 52-49; and (4) multiplying the applicable tax by: (A) the appropriate number of dwelling units; and (B) the gross floor area of nonresidential development. (b) If the development for which a building permit is sought contains a mix of uses, the Department must separately calculate the development impact tax due for each type of development. (c) If the type of proposed development cannot be categorized under the definitions of nonresidential and residential in Section 52-39, the Department must use the rate assigned to the type of development which generates the most similar traffic impact characteristics. (d) The Department must calculate the amount of the development impact tax due under this Article in effect when the building permit application is submitted to the Department, or before a building permit is issued by a municipality. (e) A building permit application, or if the property is located in a municipality with authority to issue building permits, a request to determine the amount of the impact tax, must be resubmitted to the Department if the applicant changes the project by: (1) increasing the number of dwelling units; (2) increasing the gross floor area of nonresidential development; or (3) changing the type of development so that the development impact tax would be increased. (f) A 1-bedroom garden apartment must be calculated using the high-rise residential rate if the preliminary plan was approved before January 1, 2025. The Department must recalculate the development impact tax based on the plans contained in the resubmitted building permit application. **Sec. 52-44. Annual report.** The County Executive must submit a report to the Council on the development impact tax not later than April 1 of each year. The report must include: (a) a summary of the revenue collected from the tax in the previous calendar year in each impact tax district; (b) a list of each building exempted from the tax during the previous calendar year under Section 52-41(g) or taxed at a rate of $0 under Section 52-49, and the tax that otherwise would have been paid for that building; and (c) any other information that the Executive finds relevant. **Sec. 52-45. Restrictions on use and accounting of development impact tax funds.** (a) The funds collected by the development impact tax must be used solely to fund County or municipal transportation improvements of the types listed in Section 52-50 located anywhere in the County, except as provided in subsections (c) and (h). In appropriating funds collected by the development impact tax, the Council should, to the extent feasible, designate funds to be used for transportation improvements in the policy area from which the funds were collected or an adjacent policy area. (b) Upon receipt of development impact taxes, the Department of Permitting Services must transfer the taxes to the Department of Finance for crediting to the appropriate account. (c) The Department of Finance must establish separate accounts for the City of Gaithersburg and the City of Rockville, and must maintain records for each account so that development impact tax funds collected can be segregated by each city. (d) The Department of Finance must maintain and keep adequate financial records for each account that must: (1) Show the source and disbursement of all revenues; (2) Account for all monies received; and (3) Ensure that the disbursement of funds from each account is used exclusively for the financing of the transportation improvements listed in Section 52-50. (e) Interest earned by each account must be credited to that account and must be used solely for the purposes specified for funds of the account. (f) The Department of Finance must annually issue a statement for each account. (g) Development impact taxes must be disbursed from an account only for the purposes for which the tax has been imposed, including reimbursement to the County or Gaithersburg or Rockville of advances made for these purposes from other available funds. (a) must not require the payment of a transportation mitigation payment or a school facilities payment for the same development; and (b) must refund the payment or give the property owner a credit against the development impact tax for transportation due for the development in the amount of any transportation mitigation payment made for the same development prior to March 1, 2017. **Sec. 52-46. Refunds.** (a) Any person who has paid a development impact tax may apply for a refund of the impact tax if: (1) the County has not appropriated the funds for impact transportation improvements of the types listed in Section 52-50, or otherwise formally designated a specific improvement of a type listed in Section 52-50 to receive funds, by the end of the twelfth fiscal year after the tax is collected; (2) the building permit has been revoked or has lapsed because construction did not start; or (3) the project has been physically altered, resulting in a decrease in the amount of impact tax due. (b) Only the current owner of property may petition for a refund of the impact tax. A petition for refund of the impact tax must be filed within the time established for filing a claim for refund of a local tax under state law. (c) The petition for refund of the impact tax must be submitted to the Director of Permitting Services on a form provided by the County. The petition must contain at least: (1) A statement that petitioner is the current owner of the property; (2) A copy of the dated receipt for payment of the development impact tax issued by the Department of Permitting Services; (3) A certified copy of the latest recorded deed for the subject property; and (4) The reasons why a refund of the impact tax is sought. (d) The Director of Permitting Services must investigate each claim and hold a hearing if the petitioner requests a hearing. Within 3 months after receiving a petition for refund of the impact tax, the Director of Permitting Services must provide the petitioner, in writing, with a decision on the impact tax refund request. The decision must include the reasons for the decision, including, as appropriate, a determination of whether impact tax funds collected from the petitioner, calculated on a first-in-first-out basis, have been appropriated or otherwise formally designated for impact transportation improvements of the types listed in Section 52-50 within 12 fiscal years. If a refund of the impact tax is due the petitioner, the Director of Permitting Services must notify the Department of Finance and, if the property is located in Gaithersburg or Rockville, the finance director of that city. (e) The Department of Finance must not pay a refund of the impact tax unless the petitioner has paid all other state, county, or municipal taxes, fees, or charges that the Department is responsible for collecting. (f) The petitioner may appeal the determination of the Director of Permitting Services in accordance with Article 24, Title 9, of the Maryland Code or any successor law. **Sec. 52-47. Credits.** (a) A property owner is entitled to a credit if the owner, before July 1, 2002, entered into a participation agreement, or a similar agreement with the state or a municipality, the purpose of which was to provide additional transportation capacity. A property owner is also entitled to a credit if the owner receives approval before July 1, 2002 of a subdivision plan, development plan, or similar development approval by the County or a municipality that requires the owner to build or contribute to a transportation improvement that provides additional transportation capacity. The Department of Transportation must calculate the credit. The credit must equal the amount of any charge paid under the participation agreement. The Department may give credit only for building permit applications for development on the site covered by the participation agreement. (b) Except as provided in subsection (l), a property owner must receive a credit for constructing or contributing to an improvement of the type listed in Section 52-50, including the cost of an improvement in a Unified Mobility Program or the White Oak Local Area Transportation Improvement Program, if the improvement reduces traffic demand or provides additional transportation capacity and to the extent the cost of the improvement exceeds the property owner’s fee under a Unified Mobility Program or the White Oak Local Area Transportation Improvement Program. (1) If the property owner elects to make the improvement, the owner must enter into an agreement with a municipality or the County or receive a development approval based on making the improvement, before any building permit is issued. The agreement or development approval must contain: (A) the estimated cost of the improvement, if known then; (B) the dates or triggering actions to start and, if known then, finish the improvement; (C) a requirement that the property owner complete the improvement according to applicable municipal or County standards; and (D) any other term or condition that the municipality or County finds necessary. (2) The Department of Transportation must: (A) review the improvement plan; (B) verify costs and time schedules; (C) determine whether the improvement is an impact transportation improvement; (D) determine the amount of the credit for the improvement that will apply to the development impact tax; and (E) certify the amount of the credit to the Department of Permitting Services before that Department or a municipality collects the applicable impact tax. (3) An applicant for subdivision, site plan, or other development approval from the County, Gaithersburg, or Rockville, or the owner of property subject to an approved subdivision plan, development plan, floating zone plan, or similar development approval, may seek a declaration of allowable credits from the Department of Transportation. The Department must decide, within 30 days after receiving all necessary materials from the applicant, whether any transportation improvement which the applicant has constructed, contributed to, or intends to construct or contribute to, will receive a credit under this subsection. If, during the initial 30-day period after receiving all necessary materials, the Department notifies the applicant that it needs more time to review the proposed improvement, the Department may defer its decision an additional 15 days. If the Department indicates under this paragraph that a specific improvement is eligible to receive a credit, the Department must allow a credit for that improvement when taking action under paragraph (2). (4) Any credit that was certified under this subsection on or after March 1, 2004, and before December 31, 2015, expires 6 years after the Department certifies the credit. Any credit that was certified under this subsection on or after January 1, 2016, expires 12 years after the Department certifies the credit, except that any credit certified between January 1, 2016, and January 1, 2022, in the amount of at least $3 million expires 16 years after the Department certifies the credit. (5) The property owner must notify the Department of Transportation of the actual cost of each improvement for which a credit was certified within 180 days after the improvement is completed. Any cost of dedicating land or another right-of-way is not eligible unless the owner shows that the improvement resulted in a loss of density for the development. (6) If the actual cost of an improvement for which a credit was certified differs from its estimated cost: (A) if the actual cost is greater than the estimate, the amount of the credit must be increased to cover the actual cost of the improvement; (B) if the actual cost is less than the estimate: (i) the amount of any credit that has not been used must be reduced by the difference between the estimate and the actual cost; and (ii) if any impact tax on the development is owed, the property owner must pay the additional tax. (c) Any property owner who, before May 1, 2001, built all or part of a project in the Clarksburg policy area which is listed in the impact tax transportation program (including building any road which would be widened under the program) is entitled to a credit equal to the reasonable cost of the improvement. The Department of Transportation must calculate the credit. (d) Any credit for building or contributing to an impact transportation improvement does not apply to any development that has been previously approved under the Alternative Review Procedure for Metro Station Policy Areas in the Growth and Infrastructure Policy. (e) A refund must not be granted when any credit certified under this Section exceeds the applicable tax. (f) (1) If an improvement has not been completed and the impact tax credit is based on an estimated cost, the property owner must post a surety bond or similar instrument for the estimated cost of the improvement unless the owner has already filed a bond in at least that amount with the County for the same improvement. (2) If the property owner does not construct or complete the improvement for which a credit has been issued, the County may use the bond as necessary to construct or complete the improvement. (3) The Department may revoke a credit when the property owner does not build the improvement for which a credit was certified. (g) Any credit certified for an improvement located in a municipality must be applied to impact tax payable on development in the same municipality. (h) Any road or other transportation improvement that primarily serves the residents or occupants of one development or a small number of developments is not eligible for a credit under this Section. (i) Any contribution to a transportation improvement must be to a specific project that is fully funded in the County capital improvement program or the similar program of a municipality to be eligible for a credit under this Section, except a credit issued under subsection (a). (j) (1) (a) A property owner must receive a credit for constructing or contributing to the cost of building a new single family residence that meets Level I Accessibility Standards, as defined in Section 52-107(a). (2) The credit allowed under this Section must be as follows: (A) If at least 5% of the single family residences built in the project meet Level I Accessibility Standards, then the owner must receive a credit of $250 per residence. (B) If at least 10% of the single family residences built in the project meet Level I Accessibility Standards, then the owner must receive a credit of $500 per residence. (C) If at least 25% of the single family residences built in the project meet Level I Accessibility Standards, then the owner must receive a credit of $750 per residence. (D) If at least 30% of the single family residences built in the project meet Level I Accessibility Standards, then the owner must receive a credit of $1,000 per residence. (3) Application for the credit and administration of the credit must be in accordance with Subsections 52-107(e) and (f). (4) A person must not receive a tax credit under this Section if the person receives any public benefit points for constructing units with accessibility features under Chapter 59. (k) After a credit has been certified under this Section, the property owner or contract purchaser to whom the credit was certified may transfer all or part of the credit to any successor in interest of the same property. However, any credit transferred under this subsection must only be applied to the tax due under this Article with respect to the property for which the credit was originally certified. (l) The Department must not certify a credit for the cost of a project in a Unified Mobility Program or the White Oak Local Area Transportation Improvement Program up to the property owner’s fee under a Unified Mobility Program or the White Oak Local Area Transportation Improvement Program. (a) must not require the payment of a transportation mitigation payment or a school facilities payment for the same development; and (b) must refund the payment or give the property owner a credit against the development impact tax for transportation due for the development in the amount of any transportation mitigation payment made for the same development prior to March 1, 2017. (a) This Act takes effect on July 1, 2002, and applies to any development for which an application for a building permit is filed on or after that date. (b) Each taxpayer in the County District must pay the development impact tax at 25% of the rates set in Section 52-57 (now Section 52-49, 2016 L.M.C., ch. 7, § 1), as amended by Section 1 of this Act, for building permit applications filed between July 1, 2002 and December 31, 2002; 50% of the rates set in Section 52-57 (now Section 52-49, 2016 L.M.C., ch. 7, § 1) for building permit applications filed between January 1, 2003, and June 30, 2003; 75% of the rates set in Section 52-57 (now Section 52-49, 2016 L.M.C., ch. 7, § 1) for building permit applications filed between July 1, 2003 and December 31, 2003; and 100% of the rates set in Section 52-57 (now Section 52-49, 2016 L.M.C., ch. 7, § 1) for building permit applications filed on or after January 1, 2004. To the extent that any taxpayer pays a lower rate than that set in Section 52-57 (now Section 52-49, 2016 L.M.C., ch. 7, § 1) because this subsection applies, any credit claimed under Section 52-55 (now Section 52-47, 2016 L.M.C., ch. 7, §1) must be reduced by the same ratio. (c) In the County District, the development impact tax does not apply to any building if: (1) a subdivision plan, project plan, or an equivalent development approval mechanism in Gaithersburg or Rockville, which includes that building was approved before July 1, 2002, and (2) a building permit is issued before July 1, 2003. **Sec. 52-48. Appeals.** After determination of the amount of the development impact tax or credit due, an applicant for a building permit or a property owner may appeal to the Maryland Tax Court to the extent permitted by state law or, if the Maryland Tax Court does not have jurisdiction, to the Circuit Court under the Maryland Rules of Procedure that regulate administrative appeals. If the appealing party posts a bond or other sufficient surety satisfactory to the County Attorney in an amount equal to the applicable development impact tax as calculated by the Department of Permitting Services, the Department or municipality must issue the building permit if all other applicable conditions have been satisfied. The filing of an appeal does not stay the collection of the development impact tax until a bond or other surety satisfactory to the County Attorney has been filed with the Department of Permitting Services. **Sec. 52-49. Tax rates.** (a) The Council must establish the tax rates for each impact tax district, except as provided in subsection (b), by resolution, after a public hearing advertised at least 15 days in advance. (b) For any development located in the White Flint Impact Tax District, the tax rates are $0. (c) Any Productivity Housing unit, as defined in Section 25B-17(j), must pay the tax at 50% of the applicable rate calculated in subsection (a). (d) Any building that would be located within one-half mile of the Germantown, Metropolitan Grove, Gaithersburg, Washington Grove, Garrett Park, or Kensington MARC stations must pay the tax at 85% of the applicable rate calculated in subsection (a). (e) The County Council by resolution, after a public hearing advertised at least 15 days in advance, may increase or decrease the rates established under this Section. (f) Biennial tax rate adjustment. The Director of Finance, after advertising and holding a public hearing as required by Section 52-17(c), must adjust the tax rates set in or under this Section on July 1 of each odd-numbered year by the cumulative increase or decrease in a published construction cost index specified by regulation over the prior two calendar years. The Director must calculate the adjustment to the nearest multiple of 5 cents for rates per square foot of gross floor area or one dollar for rates per dwelling unit. The Director must publish in the County Register the amount of this adjustment not later than May 1 of each odd-numbered year. (1) Inflation cap on biennial tax rate increases. Notwithstanding subsection (f), the Director must cap the biennial tax rate adjustment not to exceed 20%. (2) Carryover of biennial tax rate adjustments in excess of 20%. If the biennial tax rate adjustment exceeds 20%, the excess dollar amount must be carried over and added to the tax rate before calculating the next biennial adjustment. If this total adjustment, including any carried over value, again exceeds 20%, the excess dollar amount must be carried over and added to the tax rate before calculating the biennial adjustment. (g) Any non-exempt dwelling unit in a development in which at least 25% of the dwelling units are exempt under Section 52-41(g)(1) must pay the tax discounted by an amount equal to the impact tax rate applicable in the Red Policy Area for that unit type. (h) Except for a development located in the City of Rockville, any development located in a Desired Growth and Investment Area, as defined in the 2020-2024 Growth and Infrastructure Policy (Subdivision Staging Policy), that has an accepted preliminary plan application, or equivalent plan acceptance in the City of Gaithersburg, before January 1, 2025, must pay the tax at: (1) 60 percent of the otherwise applicable rate if located in an Orange Policy Area; or (2) 68 percent of the otherwise applicable rate if located in a Yellow Policy Area. (i) Stacked flats must pay the multifamily low-rise applicable rate. (a) must not require the payment of a transportation mitigation payment or a school facilities payment for the same development; and (b) must refund the payment or give the property owner a credit against the development impact tax for transportation due for the development in the amount of any transportation mitigation payment made for the same development prior to March 1, 2017. (a) This Act takes effect on March 1, 2004. The development impact tax imposed under Article VII (now Article IV, 2016 L.M.C., ch. 7, § 1) of Chapter 52, as amended by Section 1 of this Act, applies to any building for which an application for a building permit is filed on or after that date. (b) The development impact tax rates imposed under Section 52-57 (now Section 52-49, 2016 L.M.C., ch. 7, § 1), as amended by Section 1 of this Act, do not apply to any building located in a Metro Station Policy Area or Town Center Policy Area if: (1) a site plan which includes that building was approved by vote of the County Planning Board, or the equivalent body in any municipality, before May 1, 2003; and (2) (A) a building permit is issued for that building before September 1, 2006; or (B) if the building is part of a mixed use project, a building permit is issued for any building or structure in that project before March 1, 2005. Any building to which this subsection applies is liable for the tax at the rates in effect on February 29, 2004. (a) This Act takes effect on July 1, 2002, and applies to any development for which an application for a building permit is filed on or after that date. (b) Each taxpayer in the County District must pay the development impact tax at 25% of the rates set in Section 52-57 (now Section 52-49, 2016 L.M.C., ch. 7, § 1), as amended by Section 1 of this Act, for building permit applications filed between July 1, 2002 and December 31, 2002; 50% of the rates set in Section 52-57 (now Section 52-49, 2016 L.M.C., ch. 7, § 1) for building permit applications filed between January 1, 2003, and June 30, 2003; 75% of the rates set in Section 52-57 (now Section 52-49, 2016 L.M.C., ch. 7, § 1) for building permit applications filed between July 1, 2003 and December 31, 2003; and 100% of the rates set in Section 52-57 (now Section 52-49, 2016 L.M.C., ch. 7, § 1) for building permit applications filed on or after January 1, 2004. To the extent that any taxpayer pays a lower rate than that set in Section 52-57 (now Section 52-49, 2016 L.M.C., ch. 7, § 1) because this subsection applies, any credit claimed under Section 52-55 (now Section 52-47, 2016 L.M.C., ch. 7, §1) must be reduced by the same ratio. (c) In the County District, the development impact tax does not apply to any building if: (1) a subdivision plan, project plan, or an equivalent development approval mechanism in Gaithersburg or Rockville, which includes that building was approved before July 1, 2002, and (2) a building permit is issued before July 1, 2003. “Sec. 3. The tax rates in Section 52-57 (now Section 52-49, 2016 L.M.C., ch. 7, § 1), as amended by Section 1 of this Act, that apply to the Eastern Montgomery County impact tax district take effect on August 1, 1992, and apply to each development for which an application for a building permit is filed on or after that date. The tax rates in Section 52-57 (now Section 52-49, 2016 L.M.C., ch. 7, § 1), as amended by Section 1 of this Act, that apply to the Germantown impact tax district take effect on July 1, 1993, and apply to each development for which an application for a building permit is filed on or after that date. “Sec. 4. Notwithstanding the provisions of Section 52-57 (now Section 52-49, 2016 L.M.C., ch. 7, § 1), before its amendment by Section 1 of this Act, the tax rates that apply in the Germantown impact tax district to any development for which an application for a building permit is filed between August 1, 1992, and June 30, 1993, are as follows: **Sec. 52-50. Use of impact tax funds.** Impact tax funds may be used for any: (a) new road or total reconstruction of all or part of an existing road that adds an additional lane or turn lane or improves transit service or bicycle commuting, such as bus lanes or bike lanes; (b) new or expanded transit center or park-and-ride lot, (c) bus added to the Ride-On bus fleet, but not a replacement bus; (d) new bus shelter, but not a replacement bus shelter; (e) hiker-biker trail and protected bike lanes used primarily for transportation; (f) bicycle locker that holds at least 8 bicycles; (g) bikesharing station (including bicycles) approved by the Department of Transportation; (h) sidewalk connector in a public right-of-way to or within a major activity center or along an arterial or major highway; or (i) element of bus rapid transit, including exclusive bus lanes, shelters, and buses. (a) must not require the payment of a transportation mitigation payment or a school facilities payment for the same development; and (b) must refund the payment or give the property owner a credit against the development impact tax for transportation due for the development in the amount of any transportation mitigation payment made for the same development prior to March 1, 2017. **Sec. 52-51. Local Area Transportation Review Mitigation Payment.** (a) In addition to the tax due under this Article, an applicant for a building permit for any building must pay to the Department of Finance a Mitigation Payment if this payment is required for a building included in a preliminary plan of subdivision that was approved under the Local Area Transportation Review provisions in the Growth and Infrastructure Policy. (b) The Council, by resolution after a public hearing advertised at least 15 days in advance, must establish the rates for the Mitigation Payment required in this Section. (c) The Payment must be paid at the same time and in the same manner as the tax under this Article, and is subject to all provisions of this Article for administering and collecting the tax. (d) The Department of Finance must retain funds collected under this Section in an account to be appropriated for transportation improvements that result in added transportation capacity or improved mobility in the area where the development for which the funds were paid is located. (e) A property owner must receive a credit against the Local Area Transportation Review Mitigation Payment authorized by this Section for the cost of constructing or contributing to an improvement listed in a Unified Mobility Program for that area or for the White Oak Local Area Transportation Improvement Program up to the cost of the improvement listed in that program. (a) must not require the payment of a transportation mitigation payment or a school facilities payment for the same development; and (b) must refund the payment or give the property owner a credit against the development impact tax for transportation due for the development in the amount of any transportation mitigation payment made for the same development prior to March 1, 2017. ### Article V. Development Impact Tax for Public School Improvements. **Sec. 52-52. Definitions.** In this Article all terms defined in Section 52-39 have the same meanings, and the following terms have the following meanings: Cost of a student seat means the construction cost of a school, not including the cost of land acquisition, divided by the program capacity of the school. Development impact tax for public school improvements means a tax imposed to defray a portion of the costs associated with public school improvements that are necessary to accommodate the enrollment generated by the development. High-rise unit means any dwelling unit located in a multifamily residential or mixed-use building that is taller than 4 stories. Low-rise unit means any dwelling unit located in a multifamily residential or mixed-use building that is 4 stories or less. Public school improvement means any capital project of the Montgomery County Public Schools that adds to the number of teaching stations in a public school. School service area means the geographically defined attendance area for an individual school. (a) must not require the payment of a transportation mitigation payment or a school facilities payment for the same development; and (b) must refund the payment or give the property owner a credit against the development impact tax for transportation due for the development in the amount of any transportation mitigation payment made for the same development prior to March 1, 2017. **Sec. 52-53. Findings; purpose and intent.** (a) The amount and rate of growth will place significant demands on the County to provide public school improvements necessary to support and accommodate that growth. (b) The County, through its adoption of the Capital Improvements Program, indicates its commitment to provide public school improvements. (c) The County has determined that a combination of approaches will be necessary to fully achieve the level of public school improvements needed to accommodate growth. Thus, the County proposes to fund a program of public school improvements through development impact taxes to support new growth in the County. (d) Imposing a development impact tax that requires new development to pay a share of the costs of public school improvements necessitated by that development in conjunction with other public funds is a reasonable method of raising the funds to build improvements in a timely manner. (e) The development impact tax for public school improvements will fund, in part, the improvements necessary to increase public school capacity, thereby allowing development to proceed. Development impact taxes authorized in this Article will be used exclusively for public school improvements. (f) In order to assure that the necessary public school improvements are constructed in a timely manner, the County intends to make sufficient funds available to construct the public school improvements. (g) The County retains the power to determine the public school improvements to be funded by development impact taxes; estimate the cost of such improvements; establish the proper timing of construction of the improvements to meet school capacity needs as identified in the Growth Policy; determine when changes, if any, may be necessary in the County CIP; and do all things necessary and proper to accomplish the purpose and intent of this Article. (h) The County intends to further the public purpose of assuring that adequate public school capacity is available in support of new development. (i) The County’s findings are based on the adopted or approved plans, planning reports, capital improvements programs identified in this Article, and specific studies conducted by Montgomery County Public Schools. (j) The County intends to impose development impact taxes for public school improvements until the County has attained build-out as defined by the General Plan. **Sec. 52-54. Imposition and applicability of tax.** (a) An applicant for a building permit for a residential development must pay a development impact tax for public school improvements in the amount and manner provided in this Article before a building permit is issued for any residential development in the County unless: (1) a credit for the entire tax owed is allowed under Section 52-58; or (2) an appeal bond is posted under Section 52-48. (b) Except as expressly provided in this Article, this tax must be levied, collected, and administered in the same way as the tax imposed under Article IV. All provisions of Article IV apply to this tax unless the application of that Article would be clearly inconsistent with any provision of this Article. This tax is in addition to the tax imposed under Article IV, and any tax paid under this Article must not be credited against any tax due under Article IV. (c) The following public school impact tax districts are established, as identified in the County Growth Policy: (1) Infill Impact Areas; and (2) Turnover Impact Areas. (d) The tax under this Article must not be imposed on: (1) any Moderately Priced Dwelling Unit built under Chapter 25A or any similar program enacted by either Gaithersburg or Rockville; (2) any other dwelling unit built under a government regulation or binding agreement that limits for at least 15 years the price or rent charged for the unit in order to make the unit affordable to households earning equal to or less than 60% of the area median income, adjusted for family size; (3) any Personal Living Quarters unit built under Section 59-3.3.2.D, which meets the price or rent eligibility standards for a moderately priced dwelling unit under Chapter 25A; (4) any dwelling unit in an Opportunity Housing Project built under Sections 56-28 through 56-32, which meets the price or rent eligibility standards for a moderately priced dwelling unit under Chapter 25A; (5) any development located in an enterprise zone designated by the State; (6) except for a development located in the City of Rockville, any development located in a Qualified Opportunity Zone certified by the United States Treasury Department or in an area previously designated as an Opportunity Zone, including a development located in the following census tracts as defined by their 2010 Census Boundaries: Silver Spring – 25.00, 26.01; Takoma Park – 17.03, 20.00, 23.01; White Oak – 15.05, 15.09, 14.21; Wheaton – 38.00; Rockville – 9.04; Gaithersburg – 7.24, 7.23, 7.13, 8.13; and Germantown – 8.30; or (7) a house built by high school students under a program operated by the Montgomery County Board of Education. (e) The tax under this Article does not apply to: (1) any reconstruction or alteration of an existing building or part of a building that does not increase the number of dwelling units of the building; (2) any ancillary building in a residential development that: (A) does not increase the number of dwelling units in that development; and (B) is used only by residents of that development and their guests, and is not open to the public; and (3) any building that replaces an existing building on the same site or in the same project (as approved by the Planning Board or the equivalent body in Rockville or Gaithersburg) to the extent of the number of dwelling units of the previous building, if: (A) an application for a building permit is filed within four years after demolition or destruction of the previous building was substantially completed; (B) the Director of the Department of Permitting Services or the Director’s designee finds that the applicant was unable to apply for a building permit or commence construction within four years after demolition or destruction of the previous building was substantially completed due to circumstances beyond the control of the applicant or the applicant’s agents; or (C) the previous building is demolished or destroyed, after the replacement building is built, by a date specified in a phasing plan approved by the Planning Board or equivalent body. However, if in any case the tax that would be due on the new, reconstructed, or altered building is greater than the tax that would have been due on the previous building if it were taxed at the same time, the applicant must pay the difference between those amounts. (f) If the type of proposed development cannot be categorized under the residential definitions in Section 52-39 and 52-52, the Department must use the rate assigned to the type of residential development which generates the most similar school enrollment characteristics. (g) A Clergy House must pay the impact tax rate that applies to a place of worship under Section 52-41(d) if the house: (1) is on the same lot or parcel, adjacent to, or confronting the property on which the place of worship is located; and (2) is incidental and subordinate to the principal building used by the religious organization as its place of worship. The place of worship tax rate does not apply to any portion of a Clergy House that is nonresidential development. (a) must not require the payment of a transportation mitigation payment or a school facilities payment for the same development; and (b) must refund the payment or give the property owner a credit against the development impact tax for transportation due for the development in the amount of any transportation mitigation payment made for the same development prior to March 1, 2017. (a) Except as provided in paragraph (b) or (c), County Code Section 52-41(g)(5), formerly 52-49(g)(5), and Section 52-54(c)(5), formerly 52-89(c)(5), both inserted by Section 1 of this Act, do not apply to any development which received preliminary subdivision plan approval or site plan approval (or a similar approval in a municipality) before October 22, 2015. (b) If a development approved before October 22, 2015 is amended any time thereafter to include additional dwelling units and at least 25% of the additional dwelling units are exempt under paragraph (1), (2), (3), or (4) of Section 52-54(c), or any combination of them, then Section 52-41(g)(5) and Section 52-54(c)(5), apply to the additional units. (c) If the relevant preliminary subdivision plan was approved before January 1, 2008, Sections 52-41(g)(5) and 52-54(c) apply to building permit applications for the unbuilt portion of the development. of Permitting Services must report to the Council the use of any impact tax exemption under Section 52-49(c)(5) and Section 52-89(c)(5) within 30 days from the date the exemption is granted. (a) This Act takes effect on March 1, 2004, and the development impact tax for public school improvements imposed under Section 52-89 (now Section 52-54, 2016 L.M.C., ch. 7, § 1), added by Section 1 of this Act, applies to any building for which an application for a building permit is filed on or after that date. (b) The development impact tax for public school improvements does not apply to any residential building located in a Metro Station Policy Area or Town Center Policy Area if: (1) a site plan which includes that building was approved by vote of the County Planning Board, or the equivalent body in any municipality, before May 1, 2003; and (2) (A) a building permit is issued for that building before September 1, 2006; or (B) if the building is part of a mixed use project, a building permit is issued for any building or structure in that project before March 1, 2005. **Sec. 52-55. Tax rates.** (a) The Council must establish the rates for each school impact tax district by resolution after a public hearing advertised at least 15 days in advance. (b) Any Productivity Housing unit, as defined in Section 25B-17(j), must pay the tax at 50% of the otherwise applicable rate. (c) The County Council by resolution, after a public hearing advertised at least 15 days in advance, may increase or decrease the rates established under this Section. (d) The Director of Finance, after advertising and holding a public hearing as required by Section 52-17(c), must adjust the tax rates set in or under this Section effective on July 1 of each odd-numbered year in accordance with the update to the Growth and Infrastructure Policy using the latest student generation rates and average Montgomery County Public School construction costs. The Director must calculate the adjustment to the nearest multiple of one dollar. The Director must publish in the County Register the amount of this adjustment not later than May 1 of each odd-numbered year. (1) Inflation cap on tax rate increases. Notwithstanding subsection (d), the Director must cap the biennial tax rate adjustment not to exceed 20%. (2) Carryover of biennial tax rate adjustments in excess of 20%. If the biennial tax rate adjustment exceeds 20%, the excess dollar amount must be carried over and added to the tax rate after calculating the next biennial adjustment. If this total adjustment, including any carried over value, again exceeds 20%, the excess dollar amount must be carried over and added to the tax rate after calculating the biennial adjustment. (e) Any non-exempt dwelling unit in a development in which at least 25% of the dwelling units are exempt under Section 52-54(d)(1) must pay the tax discounted by an amount equal to the impact tax rate applicable in the Infill School Impact Area for that unit type up to the amount of the impact tax otherwise applicable. (f) A 3-bedroom multi-family dwelling unit located in an Infill Impact Area must pay the tax at 40 percent of the otherwise applicable rate. (g) Stacked flats must pay the multifamily low-rise applicable rate. (h) A 1-bedroom garden apartment must be calculated using the high-rise residential rate if the preliminary plan was approved before January 1, 2025. (a) must not require the payment of a transportation mitigation payment or a school facilities payment for the same development; and (b) must refund the payment or give the property owner a credit against the development impact tax for transportation due for the development in the amount of any transportation mitigation payment made for the same development prior to March 1, 2017. **Sec. 52-56. Accounting; use of funds.** (a) The Department of Finance must maintain and keep adequate financial records that: (1) show the source and disbursement of all revenues under this Article; (2) account for all funds received; and (3) assure that the funds are used exclusively for the public school improvements listed in subsection (d). (b) Interest earned on revenues under this Article must be used solely for public school improvements. (c) The Department of Finance must annually issue a statement for this account. (d) Revenues raised under this Article may be used to fund planning design, acquisition of land, site improvements, utility relocation, construction, and initial furniture and equipment for any: (1) new public elementary or secondary school; (2) addition to an existing public elementary or secondary school that adds one or more teaching stations; or (3) modernization of an existing public elementary or secondary school to the extent that the modernization adds one or more teaching stations. (a) must not require the payment of a transportation mitigation payment or a school facilities payment for the same development; and (b) must refund the payment or give the property owner a credit against the development impact tax for transportation due for the development in the amount of any transportation mitigation payment made for the same development prior to March 1, 2017. **Sec. 52-57. Refunds.** (a) Except as provided in this Section, Section 52-46 applies to any petition for a refund of taxes paid under this Article. Subsections 52-46(a)(1) and (d) do not apply to taxes paid under this Article. (b) Any person who has paid a tax under this Article may apply for a refund of the tax if the County has not appropriated the funds for public school improvements of the types listed in Section 52-56(d) by the end of the sixth fiscal year after the tax is collected. (c) The Director of Permitting Services must investigate each claim and hold a hearing at the request of the petitioner. Within 3 months after receiving a petition for refund, the Director must provide the petitioner, in writing, with a decision on the refund request. The Director must specify the reasons for the decision, including, if a refund is claimed under subsection (b), a determination of whether funds collected from the petitioner, calculated on a first-in-first-out basis, have been appropriated or otherwise formally designated for public school improvements of the types listed in Section 52-56(d) within 6 fiscal years. **Sec. 52-58. Credits.** (a) Section 52-47 does not apply to the tax under this Article. A property owner must receive a credit for constructing or contributing to an improvement of the type listed in Section 52-56(d), including costs of site preparation. A property owner may receive credit for land dedicated for a school site, if: (b) A property owner must receive a credit for constructing or contributing to an improvement of the type listed in Section 52-56(d), including costs of site preparation. (c) A property owner may receive credit for land dedicated for a school site, if: (1) the density calculated for the dedication area is excluded from the density calculation for the development site; and (2) the Montgomery County School Board agrees to the site dedication. (d) If the property owner elects to make a qualified improvement or dedication, the owner must enter into an agreement with the Director of Permitting Services, or receive a development approval based on making the improvement, before any building permit is issued. The agreement or development approval must contain: (1) the estimated cost of the improvement or the fair market value of the dedicated land, if known then; (2) the dates or triggering actions to start and, if known then, finish the improvement or land transfer; (3) a requirement that the property owner complete the improvement according to Montgomery County Public Schools standards; and (4) such other terms and conditions as MCPS finds necessary. (e) MCPS must: (1) review the improvement plan or dedication; (2) verify costs or land value and time schedules; (3) determine whether the improvement is a public school improvement of the type listed in Section 52-56(d) or meets the dedication requirements in subsection (c); (4) determine the amount of the credit for the improvement or dedication; and (5) certify the amount of the credit to the Department of Permitting Services before that Department or a municipality issues any building permit. (f) An applicant for subdivision, site plan, or other development approval from the County, Gaithersburg, or Rockville, or the owner of property subject to an approved subdivision plan, development plan, floating zone plan, or similar development approval, may seek a declaration of allowable credits from MCPS. MCPS must decide, within 30 days after receiving all necessary materials from the applicant, whether any public school improvement which the applicant has constructed, contributed to, or intends to construct or contribute to, will receive a credit under this subsection. If during the initial 30-day period after receiving all necessary materials, MCPS notifies the applicant that it needs more time to review the proposed improvement, MCPS may defer its decision an additional 15 days. If MCPS indicates under this paragraph that a specific improvement is eligible to receive a credit, the Director of Permitting Services must allow a credit for that improvement. If MCPS cannot or chooses not to perform any function under this subsection or subsection (c), the Department of Permitting Services must perform that function. (g) (1) (a) A property owner must receive a credit for constructing or contributing to the cost of building a new single family residence that meets Level I Accessibility Standards, as defined in Section 52-107(a). (2) The credit allowed under this Section must be as follows: (A) If at least 5% of the single family residences built in the project meet Level I Accessibility Standards, then the owner must receive a credit of $250 per residence. (B) If at least 10% of the single family residences built in the project meet Level I Accessibility Standards, then the owner must receive a credit of $500 per residence. (C) If at least 25% of the single family residences built in the project meet Level I Accessibility Standards, then the owner must receive a credit of $750 per residence. (D) If at least 30% of the single family residences built in the project meet Level I Accessibility Standards, then the owner must receive a credit of $1,000 per residence. (3) Application for the credit and administration of the credit must be in accordance with Subsections 52-107(e) and (f). (4) A person must not receive a tax credit under this Section if the person receives any public benefit points for constructing units with accessibility features under Chapter 59. (h) The Director of Finance must not provide a refund for a credit which is greater than the applicable tax. (i) Any credit issued under this Section before December 31, 2015 expires 6 years after the Director certifies the credit. Any credit issued under this Section on or after January 1, 2016 expires 12 years after the Director certifies the credit. (j) After a credit has been certified under this Section, the property owner or contract purchaser to whom the credit was certified may transfer all or part of the credit to any successor in interest of the same property. However, any credit transferred under this subsection must only be applied to the tax due under this Article with respect to the property for which the credit was originally certified. (a) must not require the payment of a transportation mitigation payment or a school facilities payment for the same development; and (b) must refund the payment or give the property owner a credit against the development impact tax for transportation due for the development in the amount of any transportation mitigation payment made for the same development prior to March 1, 2017. **Sec. 52-59. Utilization Premium Payment.** (a) In addition to the tax due under this Article, an applicant for a building permit must pay to the Department of Finance a Utilization Premium Payment if such payment was required under the Annual School Test in effect at the time the building was approved. (b) The Council by resolution, after a public hearing advertised at least 15 days in advance, must establish the rates for the Utilization Premium Payment. (c) The Director of Finance, after advertising and holding a public hearing, must adjust the rates set in or under this Section effective on July 1 of each odd-numbered year in accordance with the update to the Growth and Infrastructure Policy using the latest student generation rates and school construction cost data. The Director must calculate the adjustment to the nearest multiple of one dollar. The Director must publish the amount of this adjustment not later than May 1 of each odd-numbered year. (d) The Payment must be paid at the same time and in the same manner as the tax under this Article. (e) The Department of Finance must retain funds collected under this Section in an account to be appropriated for: (1) any public school improvement that adds capacity designed to alleviate overutilization in the school service area from which the funds were collected; or (2) for capital projects adding capacity at any school adjacent to the school for which the funds were collected. Adjacent schools must be determined using the Planning Board’s Annual School Utilization Report. (f) The Utilization Premium Payment must not be imposed on any: (1) Moderately Priced Dwelling Unit built under Chapter 25A or any similar program enacted by either Gaithersburg or Rockville; (2) other dwelling unit built under a government regulation or binding agreement that limits for at least 15 years the price or rent charged for the unit in order to make the unit affordable to households earning equal to or less than 60% of the area median income, adjusted for family size; (3) Personal Living Quarters unit built under Section 59-3.3.2.D, which meets the price or rent eligibility standards for a moderately priced dwelling unit under Chapter 25A; or (4) dwelling unit in an Opportunity Housing Project built under Sections 56-28 through 56-32, which meets the price or rent eligibility standards for a moderately priced dwelling unit under Chapter 25A. ### ARTICLE VI. Reserved. **Sec. 52-60. Reserved.** **Sec. 52-61. Reserved.** **Sec. 52-62. Reserved.** **Sec. 52-63. Reserved.** **Sec. 52-64. Reserved.** **Sec. 52-65. Reserved.** ### Article Vii. Tobacco Tax. **Sec. 52-66. Definitions.** Unless the context indicates otherwise, in this Article the following terms have the meanings indicated: (a) Cigar means a roll of tobacco wrapped in leaf tobacco or any other substance containing tobacco. A cigar does not include a cigarette. (b) Cigarette has the meaning stated in Section 12-101, Tax-General Article of the Maryland Code. (c) Cigarette tobacco means any loose-leaf tobacco that, because of its appearance, type, packaging, or labeling, is suitable or intended to be smoked in a cigarette but which is not wrapped in paper or any other non-tobacco material. Cigarette tobacco does not include a cigarette. (d) Consumer means a person who buys a cigar, cigarette tobacco, pipe tobacco, snuff, or spit tobacco to use the product or give the product to another for personal use. (e) Director means the Director of Finance or a designee of the Director. (f) Pipe tobacco means any tobacco that, because of its appearance, type, packaging, or labeling, is suitable or intended to be smoked in a pipe. (g) Snuff means any finely cut, ground, or powdered tobacco that is not intended to be smoked. (h) Spit tobacco means leaf tobacco that is intended to be chewed and not smoked. (i) Vendor means a person who receives a cigar, cigarette tobacco, pipe tobacco, snuff, or spit tobacco for sale to a consumer. **Sec. 52-67. Imposition of tax.** (a) Each vendor must pay to the Director a tax in the amount listed in subsection (c) for cigars, cigarette tobacco, pipe tobacco, snuff, or spit tobacco that the vendor receives at a site in Montgomery County from which the vendor intends to sell the taxable tobacco product to a consumer. (b) The Director must calculate the tax on each cigar and package of cigarette tobacco, pipe tobacco, snuff, and spit tobacco that the vendor intends to offer for sale to a consumer. If the vendor does not intend to offer to sell the taxable tobacco product in a pre-packaged quantity, the Director must calculate the tax on the smallest packages in which the vendor receives the taxable tobacco product. (c) The tax rate on: (1) Cigars is: (A) 3 cents for each cigar that weighs 3 pounds or less per 1000 cigars; and (B) 6 cents for each cigar that weighs more than 3 pounds per 1000 cigars. (2) Cigarette tobacco is: (A) 36 cents for each package containing 1.5 ounces or less; or (B) for each package containing more than 1.5 ounces, 36 cents for each unit or fraction or a unit containing 1.5 ounces. (3) Pipe tobacco is: (A) 36 cents for each package containing 1.5 ounces or less; or (B) for each package containing more than 1.5 ounces, 36 cents for each unit or fraction or a unit containing 1.5 ounces. (4) Snuff is: (A) 36 cents for each package containing 1.5 ounces or less; or (B) for each package containing more than 1.5 ounces, 36 cents for each unit or fraction of a unit containing 1.5 ounces. (5) Spit tobacco is: (A) 36 cents for each package containing 3 ounces or less; or (B) for each package containing more than 3 ounces, 36 cents for each unit or fraction of a unit containing 3 ounces. The County Council, by resolution, after holding a public hearing advertised under Section 52-17(c), may increase or decrease the tax rate on any product taxed under this Article. (d) The tax imposed under this Article is due when the vendor takes physical possession of the taxable tobacco product. (e) Each vendor must pay to the Director the tax imposed under this Article, along with a monthly report of all tobacco products subject to tax under this Article that the vendor received during a calendar month, by the 25th day of the next month. The monthly report must be submitted on a form approved by the Director, and must identify the quantity and number of items of each taxable product which the vendor received during the preceding calendar month. (f) If a vendor sells the business from which taxable products are sold or otherwise stops doing business, the vendor must pay all taxes due under this Article, and submit any monthly report not previously submitted, within 3 days. (g) If a vendor does not pay all taxes due under this Article, or does not keep accurate records as required by this Article, the Director may obtain other information on which the Director may base an estimate of the tax due. The Director may then calculate the tax due and assess that amount, and all applicable interest and penalties, against the vendor or any other person liable for the tax. The Director must notify the person from whom the tax is due by mail to that person's last known address, and the person must pay all tax due within 10 days after receiving the notice. **Sec. 52-68. Tobacco Tax - Exemption.** (a) Any agency of the State or the United States is not subject to the tobacco tax imposed under this Article. (b) The tax imposed under this Article applies to any tobacco product that is not subject to the State tobacco tax. **Sec. 52-69. Enforcement.** (a) A vendor must display to the Director, or another person designated by the County Executive, packages of tobacco products taxable under this Article to allow the County to decide if the vendor has paid the tax due under this Article. (b) A vendor must keep complete and accurate records of all transactions involving tobacco products that are taxable under this Article, as required by the Director. A vendor must display to the Director records of the vendor's business to allow the Director to decide if the vendor has paid the tax due under this Article. The Director may audit the vendor's records. (c) The Director, or another person designated by the County Executive, may issue a subpoena to inspect the records of a vendor to decide if the vendor has paid the tax due under this Article. **Sec. 52-70. Overdue tax - interest.** If the vendor does not pay the tax when due under Section 52-67(e), the vendor must pay to the Director, in addition to the tax due, interest at the rate of one percent for each month or fraction of a month that the tax is overdue. **Sec. 52-71. Penalties.** (a) If a vendor does not pay the tobacco tax when due under Section 52-67(e), the vendor is subject to a Class C civil penalty for each taxable tobacco product for which a tax has not been paid. (b) If a vendor does not display to the Director taxable products or records as required under this Article, the Vendor is subject to a Class A civil penalty. (c) A violation of this Article is not subject to a criminal penalty. (d) Section 52-21 applies to the tobacco tax imposed under this Article. ### Article Viii. Excise Tax on Electronic Cigarettes. **Sec. 52-72. Definitions.** In this Article, the following terms have the meanings indicated: Dealer means any person who engages in a retail business. Director means the Director of Finance or the Director’s designee. Distributor means: (1) a person who supplies an electronic cigarette product to a dealer in the County; or (2) a person who supplies and services a vending machine with an electronic cigarette product. Electronic cigarette product means any product containing or delivering nicotine or any other substance intended for human consumption that can be used by a person to simulate smoking through inhalation of vapor or aerosol from the product. The term includes any such device, whether manufactured, distributed, marketed, or sold as an e-cigarette, e-cigar, e-pipe, e-hookah, or vape pen, or under any other product name or descriptor. Electronic cigarette product includes any component, part, or accessory of an electronic cigarette, whether or not sold separately, that is used during the operation of the electronic cigarette, but does not include any battery or battery charger that is sold separately. Supplying or supplies means the act of providing, furnishing, delivering, distributing, or transmitting an electronic cigarette product by a distributor to a dealer in the County. Liability for the tax accrues when the electronic cigarette product is provided, distributed, or delivered to the dealer in the County. **Sec. 52-73. Tax levied; rate.** (a) A tax is levied and imposed on every distributor who supplies to a dealer in the County an electronic cigarette product. (b) The tax rate for an electronic cigarette product is 30% of the wholesale price of the electronic cigarette product. (c) The County Council by resolution, after a public hearing advertised under Section 52-17(c), may increase or decrease the rate set in subsection (b). (d) The County Executive may further specify the administration of this tax by Method (2) regulation. **Sec. 52-74. Remittance.** (a) The tax levied under Section 52-73 is due and payable for each month on the last day of the next month. (b) The Director may establish an alternative payment system. If an alternative payment system is established, the Director must require a pro-rated payment for any taxable period that ends before the system takes effect. (c) If any dealer transports or causes to be transported into the County an electronic cigarette product, that dealer is liable for the payment of the tax imposed under Section 52-73 unless that dealer obtains from the supplier of the electronic cigarette product a written certification, in a form approved by the Director, that the supplier is liable for and is paying the tax. **Sec. 52-75. Cessation of business.** When a person who is required to pay a tax under this Article ceases to do business or otherwise disposes of the business, any tax owed becomes immediately due and payable. That person must immediately remit the total amount of the tax due. **Sec. 52-76. Collection; interest and penalties; violation.** (a) If any person does not pay the Director the tax due under Section 52-73, that person is liable for: (1) interest on the unpaid tax at the rate of 1% per month for each month or part of a month after the tax is due; and (2) a penalty of 5% of the amount of the tax per month or part of a month after the tax is due, not to exceed 25% of the tax. The Director must collect any interest and penalty as part of the tax. (b) If any person does not timely file any report and pay the tax required under this Section, the Director may use any available information to estimate the tax due. As soon as the Director obtains available information on which to base the calculation of any tax payable by any person who has not timely filed any report and paid the tax, the Director may assess against that person any tax, interest, and penalties due and must notify that person of the total amount due by regular mail sent to the person’s last known address. The total amount assessed is due and payable within 10 days after the notice is sent. (c) Every person liable for any tax under Section 52-73 must preserve for 3 years suitable records necessary to determine the amount of the tax. The Director may inspect and audit the records at any reasonable time. (d) Any failure to pay the tax when due under Section 52-74, and any violation of this Section 52-74 or this Section, is a Class A violation. Each violation is a separate offense. A conviction under this subsection does not relieve any person from paying the tax. (e) Section 52-21 applies to this tax. ### Article Ix. Carryout Bag Tax. **Sec. 52-77. Definitions.** In this Article, the following terms have the following meanings: Department means the Department of Finance. Director means the Director of the Department of Finance. Food assistance program means any federal, state, or local program that provides monetary benefit to low-income individuals and families used at a store to purchase food. Food assistance program include Supplemental Nutrition Assistance Program (SNAP) or Women, Infants, and Children Program (WIC). Paper carryout bag means a paper bag provided by a retail establishment to a customer at the point of sale, pickup, or delivery. Paper carryout bag does not include: (1) a paper bag provided by a pharmacist that contains a prescription drug; (2) a bag used to take live fish, insects, mollusks, or crustaceans away from a retail establishment; (3) a paper bag that a restaurant gives a customer to take prepared or leftover food or drink from a restaurant; (4) a paper bag containing prepared food provided at the drive-through window of a restaurant; (5) a paper bag provided at a mobile food truck that contains prepared food; (6) a paper bag provided for food delivery that is collected by a third party delivery service to carry the purchased item; (7) any paper bag intended for garbage, pet waste, or yard waste; (8) a bag used to package bulk items, including fruit, vegetables, nuts, grains, candy, ice, or small hardware items; (9) a bag that contains hanging garments or dry-cleaned clothes, including suits, jackets, or dresses; (10) a bag or paper bag sleeve used to contain or wrap a perishable item, including meat or fish, or unwrapped prepared foods or bakery goods; (11) a bag used to package items for the purpose of charitable food distribution; or (12) a bag provided at the point of sale at seasonal event, such as: (A) an occasional farmer’s market; (B) a full-time retail operation located on a farm; (C) a street fair; or (D) a yard sale. Point of sale has the same meaning as stated under Chapter 48-66. Restaurant means any lunchroom, café, or other establishment located in a permanent building for the accommodation of the public, equipped with a kitchen containing facilities and utensils for preparing and serving meals to the public, and outfitted with or without a public dining area. A restaurant does not include any area of a supermarket, department store, or other retail establishment beyond the kitchen and public dining area. Retail establishment means any person engaged in the retail sale of goods. Retail establishment includes any supermarket, convenience store, shop, service station, mobile food truck, or restaurant, and any other sales outlet where a customer can buy goods. **Sec. 52-78. Tax imposed – Countywide and municipalities.** (a) A tax in the amount of 10 cents is levied and imposed on each customer for each paper carryout bag that a retail establishment provides or sells to the customer. (b) Applicability to municipalities. A retail establishment in a municipality is required to collect, exempt, remit to the County, report, and adhere to all the requirements under this Chapter for a single-use plastic carryout bag as it would for a paper carryout bag. (c) Except as provided in Section 52-78A, each retail establishment that provides a paper carryout bag, and if a plastic single-use carryout bag is provided within a municipality, to a customer must collect the amount of the tax imposed under subsections (a) and (b) when the customer makes any payment for goods in person, by telephone, by facsimile, or by any other means. The retail establishment must hold the taxes required to be collected under this Section in trust for the County until remitted as required under Section 52-79. (d) Each retail establishment may retain 5 cents from each 10-cent tax that the retail establishment collects to cover the administrative expense of collecting and remitting the tax to the County. (e) A retail establishment must indicate on the customer’s transaction receipt: (1) the number of paper carryout bags that the retail establishment provided to the customer; and (2) the total amount of tax levied under this Section unless a food assistance benefit is used for payment then the receipt must indicate the carryout bag tax is exempt. (f) A retail establishment must post a notice at the public entrance to the retail establishment or at each point of sale that reads: “All carryout bags provided by the retailer are subject to a charge. A customer who brings their own reusable carryout bag or who does not use a carryout bag will not be subject to a charge.” The notice must be posted in English and Spanish. The Department of Environmental Protection must post an example of a notice in English and Spanish on the County website. **Sec. 52-78A. Recipients of food assistance program – exemption.** A retail establishment must not charge or collect a tax for a paper carryout bag provided to a customer for items purchased using a food assistance program. **Sec. 52-79. Remittance.** (a) Each retail establishment must remit the full amount of the tax collected for all paper carryout bags provided to a customer during the previous quarter, less the amount retained under Section 52-78(c). (b) Quarterly remittance – required. A retail establishment is required to remit the taxes under subsection (a) to the Director every quarter in accordance with the remittance schedule posted by the Department on its website. (c) Reporting. Each remittance must be accompanied by a report of all transactions that involve paper bags subject to the tax. The report must be on a form supplied by the Director and must contain: (1) the number of paper bags supplied or provided to customers: (A) for which a tax was collected; and (B) for which a tax was not collected; (2) the amount of tax required by this Section to be collected; (3) for an owner of more than one retail establishment must identify the remittance for each location by name and address; and (4) any other information the Director requires to ensure that the proper tax has been remitted to the County. (d) (1) (a) If the retail establishment does not file a required report by the deadline established under subsection (a), the Director may estimate the amount of tax due. The Director may base the estimate on a reasonable projection of paper carryout bags, or where applicable plastic carryout bags, supplied or provided and may consider taxes reported by other retail establishments. (2) The Director may send a notice of the estimated tax due, including interest and penalty, to the retail establishment’s last known address. The retail establishment must pay the estimated tax, including any interest and penalty assessed by the Director, within 10 days after the notice is sent. (e) Each retail establishment must preserve for 3 years all records necessary to determine the amount of the tax due under this Section. (f) The Director may inspect any records required to be kept under this Section at any reasonable time. (g) The Director must deposit all taxes remitted under this Section into the stormwater management fund created under Section 19-35, after deducting the cost of administering this Article. **Sec. 52-80. Interest and penalties.** (a) If a retail establishment does not remit to the Director any tax owed under Section 52-79 when due, the retail establishment is liable for: (1) interest on the collections at the rate of one percent per month for each month or part of a month after the remittance is due; and (2) a penalty of 5 percent of the amount of the collections per month or part of a month after the remittance is due, up to 25 percent of the tax collected. (b) The Director must collect any interest and penalty as part of the remittance due. **Sec. 52-81. Prohibited conduct.** A retail establishment must not: (a) neglect or refuse to collect or remit the tax levied under this Article; (b) file an incomplete, false, or fraudulent report to the Director; (c) neglect or refuse to keep complete and accurate records; or (d) refuse to allow the Director to inspect and audit the retail establishment’s records. (e) misrepresent, advertise, hold out, collect, or state to the public or to a customer an amount that exceeds the allowable tax established under Section 52-78(a). **Sec. 52-82. Regulations.** The County Executive may adopt regulations under method (2) to implement this Article. **Sec. 52-83. Enforcement.** Any violation of this Article is a Class A civil violation. Each violation is a separate offense. A conviction under this Section does not relieve a retail establishment from paying a remittance owed to the County. ### Article X. Property Tax Credits **Sec. 52-84. Real property tax credits for permanently and totally disabled homeowners.** (a) Eligibility requirements. A property tax credit shall be allowed, upon the application of any homeowner, from total real property taxation upon the dwelling for which application for the tax credit is made; provided, that the homeowner meets the following conditions on or before July 1 of the taxable year for which a tax credit is sought: (1) The homeowner is not yet sixty (60) years of age. (2) The homeowner is receiving benefits as a result of a finding of permanent and total disability under the social security act or under the railroad retirement act or under the provisions of federal acts for members of the armed forces of the United States or by an agency of a municipal corporation, county, state or federal government or the District of Columbia; or (3) The homeowner is not and has not been subject to a disability program of a government or public agency, and the homeowner has been found and certified permanently and totally disabled, and the finding and certification of total and permanent disability is reviewed and approved by the county. (b) Definitions. For the purposes of this section, the following words and phrases shall have the meanings respectively ascribed to them by this subsection: Combined income. The combined gross income of all homeowners, if more than one (1), and all persons eighteen (18) years of age or older as of July 1 of the taxable year in which the credit is sought, actually residing in the same dwelling, except persons whose contributions, reasonably apportionable toward the cost of upkeep, maintenance and repair of the dwelling, are in the form of fixed rental charges. Combined net worth. The total net worth of all homeowners, if more than one (1), and all persons eighteen (18) years of age or older as of July 1 of the taxable year in which the credit is sought, actually residing in the same dwelling, except persons whose contributions, reasonably apportionable for the cost of upkeep, maintenance and repair of the dwelling, are in the form of fixed rental charges. Dwelling. The dwelling house of one (1) or more homeowners and the lot or curtilage where it is erected, which is used as the principal residence of that homeowner or homeowners. No dwelling shall be deemed a principal residence which is not actually occupied or expected to be actually occupied by the homeowner or homeowners for more than six (6) months of a twelve-month period, including the date of application for tax credit. Gross income. Total income from all sources for the calendar year immediately preceding the taxable year for which credit is sought, whether or not included in the definitions of gross income for federal or state tax purposes, including but not limited to benefits under the social security act or railroad retirement act as amended, gifts in excess of three hundred dollars ($300.00), alimony, support money, nontaxable strike benefits, public assistance received in cash grants, pensions or annuities, unemployment insurance benefits, and workmen’s compensation benefits. Gross income shall include the net income received from business, rental or other endeavors; but in no event shall a loss from business, rental or other endeavors be used in the determination of gross income. Homeowner. Every person who, by July 1 of the taxable year for which tax credit is sought, actually resides in a dwelling in which such person has a legal interest, including any life estate, whether as sole owner, joint tenant in common or tenant by the entireties, or through membership in a cooperative. A homeowner, otherwise eligible, may qualify for the credit if he does not actually reside in the dwelling for the required time period because of illness or need of special care. A homeowner or homeowners may claim credit on only one (1) dwelling. When any property which is owned by a person who is entitled to a tax credit under this section is sold to a purchaser, the tax credit shall be terminated as of the date of transfer of the property between the parties. The total amount of any tax credit shall be included in the amount of ordinary taxes which were paid by the seller of the property and which are adjusted at the time of settlement for the property between the seller and the purchaser. The seller of the property shall receive credit only for that proportion of the tax credit which his period of ownership of the property during the taxable year in which the transfer occurs bears to the entire taxable year. The remaining portion of the tax credit shall be paid by the seller to the county and shall be deposited into general funds of the county. Net worth. The sum of the values of assets, including but not limited to cash, savings accounts, stocks, bonds and other investments, less outstanding liabilities, plus the excess of current market value of real property owned over the outstanding indebtedness of each such property. The cash surrender value of life insurance policies and the fair market value of personal property are excluded. Total real property taxes. The total of all real property taxes, including state, county, municipal and special districts for which the homeowner has a real property tax liability on the dwelling for the taxable year. The real property tax liability shall be prior to any discounts for payment and shall be calculated on the assessed valuation of the dwelling or thirty thousand dollars ($30,000.00) of assessed valuation, whichever is less. (c) Amount; application; appeal. A property tax credit, not to exceed seven hundred fifty dollars ($750.00), shall be allowed upon the application of any eligible homeowner, from total real property taxes upon the dwelling for which application for the tax credit is made. The tax credit shall be equal to the amount of total real property taxes in excess of a percentage of the gross income or combined gross income, as the case may be, of the homeowner. This percentage shall equal three (3) percent of the first three thousand dollars ($3,000.00) of combined income, four (4) percent of the next five thousand dollars ($5,000.00) of combined income, five (5) percent of the next four thousand dollars ($4,000.00) of combined income, seven (7) percent of the next three thousand dollars ($3,000.00) of combined income and nine (9) percent of all combined income in excess of fifteen thousand dollars ($15,000.00). The credit shall not be allowed to any homeowner whose net worth is in excess of one hundred fifty thousand dollars ($150,000.00) as of January 1 of the year in which the credit is sought. The percentage of the real property tax assessed by a cooperative against any member shall not exceed the rate of the amount the member paid for his membership to the total cost of all memberships at the time of assessment. (1) The disabled homeowner may apply for the tax credit no later than September 1 of the taxable year in which the tax credit is sought, on a standard form to be provided by the director of finance. If the application has not been made on or before September 1, the tax credit shall not be allowed. After receipt and review of the application for tax credit as provided hereunder, the director of finance shall either approve or disapprove the application and shall notify the applicant in writing of such decision. If the application is approved, the director shall issue or mail to the homeowner a certificate setting forth the amount of the tax credit. (2) The application for the tax credit shall be made under oath or affirmation that the matters and facts stated in the application are true to the best of the applicant’s knowledge, information and belief, including a statement that the applicant’s net worth, as defined herein, does not exceed one hundred fifty thousand dollars ($150,000.00). The applicant may be required to provide copies of income tax returns or other evidence of income, interest, dividends, rents, money paid or received or net worth to substantiate the application for the property tax credit. (3) Any homeowner aggrieved by the decision of the director of finance shall have the right to appeal to the property tax assessment appeal board for the county, which appeal shall be in writing and shall set forth the reasons for the appeal and the grounds for the appeal. An appeal shall be filed with the property tax assessment appeal board within thirty (30) days from the date of the notice of decision by the director of finance. At any hearing proceedings shall be informal and any interested party shall have the right to submit oral or written testimony or documentary evidence without regard to technical rules of evidence. (d) Additional calculations; funding. Beginning with the 1975-1976 taxable year and for each year thereafter, if the credit authorized under this section is less than the credit which was received in the 1974-1975 taxable year, the homeowner shall receive a credit which is the higher of that credit calculated under this section or on the basis of the law applicable to the 1974-1975 taxable year, using in these calculations the income applicable for the current year. The cost of the credit provided to the taxpayer for total real property taxes under this section shall be funded by the county. (e) Applicability of State law. The minimum tax credit provided for disabled homeowners under this Section must not be less than the minimum tax credit in Section 9-102 of the Tax-Property Article of the Maryland Code. **Sec. 52-85. Homeowners property tax credit.** (a) Definitions. In this section, the following words have the meanings indicated. (1) The following words have the meanings defined in Section 9-104 of the Tax- Property Article of the Maryland Code: (A) combined income; (B) dwelling; (C) gross income; (D) homeowner; (E) home purchaser; and (F) legal interest. (2) Assessed value means the adjusted value to which the property tax rate is applied. (3) Consumer Price Index means the Consumer Price Index for All Urban Consumers (CPI-U) for the Washington-Arlington-Alexandria Core Based Statistical Area (CBSA), as published by the United States Department of Labor, Bureau of Labor Statistics, or a successor index. (4) Director means the Director of the Department of Finance or the Director’s designee. (5) Final tax liability means the tax liability for any property tax on the real property of a dwelling less any property tax credit provided under Section 9-104 and any supplemental property tax credit provided under this section. (6) Section 9-104 means Section 9-104 of the Tax-Property Article of the Maryland Code or any successor provision. (7) Total real property tax means the product of the sum of all property tax rates on real property, including special service area rates, but not including State and municipal district rates, for the taxable year on a dwelling, multiplied by the lesser of: (A) $375,000; or (B) the assessed value of the dwelling reduced by the amount of any assessment on which a property tax credit is granted under Section 9-105; and reduced by and any “save harmless” credit mandated under Section 9-101 of the Tax-Property Article of the Maryland Code. (b) General. (1) The Director must provide to homeowners a County property tax credit to supplement the State property tax credit granted under Section 9-104. (2) Except as otherwise expressly stated in this section or an executive regulation, all eligibility requirements, statutory definitions, restrictions, and application or other procedures which apply to the credit granted under Section 9-104 also apply to the County supplemental property tax credit. (3) Eligibility. A property tax credit under this Section must not be granted to a homeowner: (A) whose combined net worth exceeds $250,000 as of December 31 of the calendar year that precedes the year in which the homeowner applies for the property tax credit; or (B) whose combined gross income exceeds $75,000 in that same calendar year. (c) Amount. (1) The County supplemental property tax credit is the total real property tax on a dwelling, less: (A) the percentage of the combined gross income of the homeowner calculated under paragraph (2), and (B) the property tax credit granted under Section 9-104. (2) The allowable percentage of combined gross income is: (A) 0 percent of the first $25,000; (B) 2 percent of the next $7,500; (C) 5 percent of the next $10,000; (D) 6.5 percent of the next $10,000; and (E) 8 percent of any combined gross income over $52,500. (3) The property tax credit for home purchasers is the amount of the credit as calculated under paragraph (1) multiplied by a fraction where the numerator of the fraction is the number of days in the taxable year that the home purchaser actually occupies or expects to actually occupy a dwelling in which the home purchaser has a legal interest, and the denominator is 365 days. (d) Adjustments to amounts. (1) Adjustments by Council resolution. The Council annually, by resolution adopted not later than June 1, may vary either or both: (A) the specific dollar amount referred to in subsection (a)(7); or (B) the allowable percentage of combined gross income under subsection (c)(2). (2) Consumer price index adjustments. (A) Effective July 1, 2026 and July 1 of each subsequent year, the Chief Administrative Officer must adjust each specific dollar amount under subsections (a)(7), (b)(3), and (c)(2). (B) The Chief Administrative Officer must calculate each adjusted amount to the nearest multiple of $10. (C) The adjusted amount must be equal to the current amount multiplied by the outcome of the most recent published Consumer Price Index at the time of the adjustment divided by the annual value of the Consumer Price Index from the year prior to the current year. (D) The Chief Administrative Officer must, by March 1 of the year preceding an adjustment, publish the adjusted amounts: (i) in the County Register; and (ii) on the County website. (e) Administration. Administrative duties are performed by the Director, and by the State Department of Assessments and Taxation as provided in Section 9-104 and Section 9- 215 of the Tax-Property Article of the Maryland Code. If a credit is granted under this section, a revised tax bill or a tax voucher may be used to adjust the final tax liability. (f) Regulations. The County Executive may adopt regulations under Method (2) to administer this section. (g) Penalties for false and fraudulent information. A person who knowingly submits a false or fraudulent application, or withholds information, to obtain a tax credit under this section has committed a Class A violation. In addition, the person must repay the County for all amounts credited and all accrued interest and penalties that would apply to those amounts as overdue taxes. The County may enforce this subsection by appropriate legal action. A person who violates this subsection is liable for all court costs and expenses of the County in any civil action brought by the County against the violator. (h) Annual report. The Executive must submit an annual report to the County Council by March 15 of each year describing program participation in the current tax year by income of taxpayers, number and dollar value of tax credits granted under this section, administrative costs, and other relevant information. This report may be contained in the Executive’s recommended operating budget for the next fiscal year. **Sec. 52-86. Credit to offset certain income tax revenues.** (a) The Director of Finance must allow a credit against County real property taxes due in each tax year for each property that is an owner-occupied dwelling of a homeowner as defined in Md. Tax-Property Code § 9-105(a), as amended. (b) The Director must not grant the credit if the Director finds that the property is not an owner-occupied property of a homeowner (c) The County Council must set the amount or rate of the credit under this Section annually by resolution, adopted no later than the date the Council sets the property tax rates. A public hearing must be held, with at least 15 days’ notice, before the Council adopts a resolution under this Section. The amount or rate of the credit must, in the Council’s judgment, offset some or all of the income tax revenue resulting from a County income tax rate higher than 2.6%. The Council must set the amount of the credit at zero for any tax year in which the rate of the County income tax does not exceed 2.6%. (d) The Director must take all actions necessary to apply the credit to each eligible taxpayer. A taxpayer need not file an application to receive the credit. If a taxpayer after filing an application with the Director has been erroneously denied the credit, the taxpayer may appeal that denial to the Maryland Tax Court within 30 days after receiving a notice of denial from the Director. **Sec. 52-87. Scenic Easement Tax Credit.** (a) Definitions. Scenic easement shall, for the purpose of this article, be defined to mean a recorded easement creating, imposing or continuing an incorporeal right upon a corporeal right wherein a servitude is placed upon land in private ownership which establishes perpetual control in the grantee to maintain scenic views, natural condition, open spaces, green area, animal refuges or natural habitat or flora and fauna. Such easement shall be created by conveyance and acceptance thereof, under lawful authority in the grantee, to the United States, the state, the county, the Maryland-National Capital Park and Planning Commission or any agency or instrumentality of the aforesaid governmental units established by law. (b) Tax credit generally. A tax credit is hereby permitted to the owner of any land which is certified by the grantee of a scenic easement to be an “open space” or “open area” as defined by subsection (b), section 5-1201, of the Natural Resources article of the Annotated Code of Maryland, 1957 and which is subject to a scenic easement, as defined herein, created by the owner or his predecessors in title in accordance with the basic requirements and standards set forth herein. Such tax credit shall be computed by the director of finance of the county as a percentage of the taxes levied by the county council upon the value of land assessment, exclusive of any improvements thereon, which levy is made to appropriate the general funds of the county. (c) Basic requirements. To qualify for a tax credit, the following basic requirements must be met: (1) The property subject to the easement shall not be used for any professional or commercial activities, except such as can be and are in fact conducted from a residential dwelling without alteration of the dwelling; provided, that tracts of land containing in excess of fifty (50) acres may be used for privately owned country clubs, commercial golf courses and golf driving ranges. Agricultural activities, other than timbering, shall be permitted on property subject to such easement. (2) No advertising signs or billboards shall be displayed or placed upon the land, with the exception of professional name plates and signs larger than two (2) square feet advertising home occupations or products or the sale or lease of the lands. (3) No mining or industrial activity shall be conducted on the lands. (4) No tree larger than six (6) inches in diameter and thirty (30) feet in height shall be cut down without the written permission of the grantee or its authorized representative; except, that clearing such land for site improvement, road construction or removing trees for the purpose of protecting utility lines and to eliminate a hazard to persons or property may be exercised without prior permission if no more than ten (10) percent of such trees are to be cut on any acre. (5) No dump of ashes, trash or any unsightly offensive material shall be placed upon the land; except, that in eroding areas of a drainage system where surface water runoff is destroying the natural ground cover, suitable heavy fill may be so placed as to control and prevent further erosion upon the approval of the grantee, provided such fill is covered by arable soil or humus. (6) The land shall not be used as a site for any major public utility installations such as electric generating plants, electric power transmission lines, gas generating plants, gas storage tanks, microwave relay stations or telephone exchanges, except as may be approved by the grantee. Nothing in this subsection shall, however, be deemed to prevent the construction or maintenance on, over or under the lands of facilities usual to a residential neighborhood, such as telephone and electric lines, water mains, sewer mains and gas mains, pipes or conduits and necessary related equipment, together with such removal of trees as shall be required for such construction and maintenance. (d) Standards and categories of credits. If the easement meets the basic requirements set forth above and meets the standards set forth in one of the following two (2) categories, then such property may qualify for the appropriate tax credit: (1) Underdeveloped land within designated parks or conservation areas. (A) Amount of Credit. Land subject to an easement meeting the basic requirements, together with the standards set forth in this subsection, may be entitled to a tax credit of up to one hundred (100) percent. (B) Standards. (i) Location: The property may be of any size but must be within the boundaries of a park or conservation area as designated on a duly adopted master plan of the Maryland-National Capital Park and Planning Commission. (ii) Use: Within the boundaries of the scenic easement, no improvement shall be erected or continued other than noncommercial recreational facilities consistent with the preservation of the property in an open and natural state. (2) Land subject to purchase option. (A) Amount of Credit. Land subject to an easement meeting the basic requirements, together with the standards set forth in this subsection, may be entitled to a tax credit of up to one hundred (100) percent. (B) Standards. (i) Location: The land must be located within park boundaries as designated on a duly adopted master plan of The Maryland- National Capital Park and Planning Commission. (ii) Use: Such land shall have been made the subject of an option agreement whereby the owner agrees to sell or convey the subject property to any local, county, state or federal government or the Maryland-National Capital Park and Planning Commission in fee simple within a fixed period of time, not exceeding twenty (20) years, at a price less than or equivalent to the fair market value at the time of the execution of the option. Such option agreement shall contain such provisions as may be deemed necessary by the grantee to preserve the land in a natural state or condition. (e) Determination and duration of tax credit. The tax credit must be allowed as of the taxable year “date of finality” or “semi-annual date of finality,” as defined in Section 1-101 of the Tax-Property Article of the Maryland Code if the Council notifies the Director of Finance that the property, by reason of a conveyance, assignment, deed, or other instrument recorded among the land records of the County, is affected and servient to a scenic easement which: (1) is irrevocable by its own terms; (2) creates a perpetual servitude on the land described; and meets the basic requirements, together with the standards of one of the categories in paragraph (d). The tax credit authorized under this Article remains in effect for all later tax levies made by the Council. (f) Valuation, assessment, and condemnation. The valuation and assessment of all property which is entitled to the credit herein allowed shall be made and accomplished in all respects as other real property subject to taxation in the county. In the event such property is even acquired by the exercise of the power of eminent domain, the fair market value of such property shall not be affected by its having been qualified for a tax credit; provided, that if the grantee of the easement purchased the same for a monetary consideration other than or in addition to the tax credit, then in such case the condemnation award shall be reduced by an amount equal to the additional consideration. (g) Application for tax credit. (1) The owner of such real property or his duly authorized agent must on or before 60 days before the annual date of finality or semi-annual date of finality, whichever may be applicable, file with the County Council a claim for such tax credit in such form as may be required by the Council. Any application must include a description of the property on which the scenic easement is to be granted and must be signed by all owners, holders of encumbrances, and other parties in interest. The County Council must determine whether the property conforms to and meets the basic requirements and standards of one of the categories provided in paragraph (d). If it does, the applicant must then submit a scenic easement deed and a certificate of title prepared by a member of the bar of the court of appeals of Maryland showing the effect of such easement on the land described therein. Any easement must not be preceded by any prior interest to secure a debt or otherwise which would affect the priority of the easement. (2) If deemed necessary by the Council, a survey by a registered land surveyor or professional engineer may be required. If required, the survey must show the land described, the location of the improvements thereon, the area of land subject to the easement, and a site location sketch showing its relation to the geographical features which relate to its scenic and open space value. The expense of this survey and the title certificate may be assumed by the grantee or the County Council in its discretion, if a request is made therefor in the original application. The County Council must either accept the scenic easement and grant the tax credit or reject the application and deny the credit. If the Council accepts the easement, the tax credit becomes effective upon recordation of the deed in the land records of the County. The County Council must issue an appropriate notice to be delivered by the landowner to the Director of Finance. (h) Interpretation. This Article is intended to comply with the intent and purpose of Section 9-208 of the Tax-Property Article of the Maryland Code, and any inconsistency with that Section should be resolved in favor of that Section. If a Court of competent jurisdiction declares any part of this Article legally ineffectual, then the Council intends that the entire Article becomes ineffective. In any event, any tax credit granted under this Article must not be recovered unless that credit was procured by fraud, misrepresentation, or intentional mistake. **Sec. 52-88. Historic Preservation Tax Credit.** (a) Tax credit generally. There is a tax credit against County real property taxes for certain expenses of a taxpayer after September 21, 1979, for restoration and preservation of certain properties of historic, architectural, archaeological or cultural value. (b) Qualifications for tax credit. (1) To qualify for the tax credit, the taxpayer must show that: (A) the property is an historic site or in an historic district on a County of municipal master plan or zoning map; (B) the expenses are: (i) for work under an approved County historic area work permit or municipal certificate of approval; or (ii) for ordinary maintenance expenses, as defined in guidelines adopted under section 24A-6, over $1,000; (C) the work is done by a licensed contractor; and (D) the taxpayer has paid for the work. (2) A taxpayer must not receive a tax credit for new construction, including: (A) a new structure on an historic site or in an historic district, or (B) a new addition constructed as part of, or next to, an existing structure of historic, architectural, or cultural value, regardless of the architectural compatibility of the addition. (c) Use of tax credit. (1) The tax credit is 25% of the taxpayer’s qualified expenses under paragraph (b). (2) The tax credit applies to the next tax year after the year in which the work or any part is completed. Any unused tax credit may be carried forward to as many as 5 subsequent tax years. However, if the property is removed as an historic site or excluded from an historic district on the applicable County or municipal master plan or zoning map, any unused tax credit must lapse. (d) Application for tax credit; appeals. (1) Application. (A) A taxpayer must file an application for a tax credit with the applicable County or municipal historic preservation commission on forms approved by the County Director of Finance. (B) An application must include receipts and an oath or affirmation by the taxpayer that the receipts are for qualified expenses under paragraph (b). (C) An application must be filed by the first day of April of the year before the tax year in which a tax credit is used. (D) The applicable County or municipal historic preservation commission must transmit all applications to the County Director of Finance with a certificate that the property is an historic site or in an historic district on the applicable County or municipal master plan or zoning map. (E) The County Director of Finance may require additional information and documentation from the taxpayer, and may reject all or part of the claimed expenses for lack of adequate documentation or if the claimed expenses do not qualify under paragraph (b). The Director must notify the taxpayer of the Director’s decision on the application. (2) Appeal. Any taxpayer aggrieved by the decision of the County Director of Finance may appeal to the Maryland Tax Court. An appeal must be filed within 30 days after the date of the notice from the County Director of Finance. (e) Penalties.1 (1) A person must not knowingly file a false or fraudulent application to obtain a tax credit under this article. A violation of this section is class A violation. (2) In addition, a taxpayer who violates this article must pay the County any taxes and interest offset by the tax credit, and the County’s fees and costs in any action to enforce this article. 1Editor’s note—This section contains the amended text of former subsection (a) of § 52-45. (f) Regulations.2 The County Executive may adopt regulations under method (2) to administer this article. 2Editor’s note—This section contains the text of former subsection 52-46, which was the amended text of former subsection (b) of § 52-45. **Sec. 52-89. Conservation Land Tax Credit.** (a) Definitions. In this Article, the following words and phrases have the following meanings: Conservation land means real property that is: (1) (A) used to assist in the preservation of a natural area, (B) used for the environmental education of the public, (C) used to promote conservation generally, or (D) used for the maintenance of: (i) a natural area for public use; or (ii) a sanctuary for wildlife; and (2) (A) subject to a perpetual conservation easement donated to a land trust on or after July 1, 1991; (B) (i) acquired by a land trust on or after July 1, 1991; (ii) owned in fee by that land trust; and (iii) subject to a letter of intent, agreement, or option agreement to convey the property to a government agency; or (C) owned by the Potomac Conservancy. Land trust means a “qualified conservation organization” as defined in State law. (b) Amount of credit. (1) An owner of conservation land may receive a tax credit equaling 100 percent of any County real property tax imposed on the conservation land, not including any improvements. (2) However, an owner must not receive a tax credit for any land which: (A) is actively used for farm or agricultural purposes; and (B) receives a reduced property tax assessment because of that use. (c) Allowance and duration of tax credit. (1) An owner of conservation land must apply for the tax credit under this Article to the Director of Finance by September 1 of any tax year for which the credit would apply, unless a credit already applies to that tax year. (2) As part of the application, the owner must file with the Director documentation, including a copy of any conservation easement deed, letter of intent, agreement, or option agreement for reconveyance of the property, showing that the land qualifies as conservation land. (3) The Director may allow a credit for: (A) a single tax year; (B) the duration of any conservation easement on the property; or (C) the time the property is wholly owned by a land trust. (4) If the ownership or status of any conservation land changes in a way that makes the land ineligible for a tax credit under this Article, the owner must promptly notify the Director of any such change. The Director then must cancel the tax credit, as of the first day of the next month after the land is no longer eligible for a credit, and collect from the owner a pro rata refund of any credit allowed for the current tax year. (5) If a conservation easement referenced in Section 52-89(a)(2)(A) is terminated, or if a land trust sells conservation land subject to a resale agreement to any person other than a government agency or another land trust, the owner of the land must repay the County all credits allowed under this Article and interest computed at the rate applicable to unpaid taxes when the taxes were due. (d) Administration of tax credit. (1) The County Executive may adopt regulations under method (2) to administer this Article. (2) The Executive must report on the number and dollar value of all applications submitted and tax credits granted under this Article. This information should be included as part of the Executive’s recommended budget and should cover the fiscal year before the fiscal year for which the budget is submitted. (3) A denial of a tax credit may be appealed to the Maryland Tax Court. (4) A person must not knowingly file a false or fraudulent application to obtain a tax credit under this Article. A violation of this Article is a Class A violation. In addition to any other applicable penalties, a person who violates this Article must pay the County any taxes and interest offset by the credit and the County’s fees and costs in any action to enforce this Article. **Sec. 52-90. New Jobs Tax Credit and Enhanced New Jobs Tax Credit.** (a) Tax credits. The Director of Finance must allow a new jobs tax credit or an enhanced new jobs tax credit against the County property tax imposed on real property owned or leased by a business entity or its affiliate and on personal property owned by that business entity or its affiliate if the business entity qualifies for either credit under this Article. (b) Definitions. In this Article, the following words have the meanings indicated: Affiliate, Business Entity, New or Expanded Premises, New Permanent Full-Time Position, and Notification Date have the meanings defined in Section 9-230, Tax- Property Article, Maryland Code, or any successor provision. Finance Director means the Director of the Department of Finance or the Director’s designee. New Jobs Tax Credit means the credit granted under this Article to a qualified business entity against the County property tax imposed on the new or expanded premises and the personal property located on those premises. Enhanced New Jobs Tax Credit means the credit granted under this Article to a qualified business entity against the County property tax imposed on the new or expanded premises that qualify under state law for an enhanced new jobs credit and the personal property located on those premises. (c) Eligibility for tax credit. (1) To qualify for a new jobs tax credit under this Article, a business entity must, on or after July 1, 1998: (A) construct, or expand by at least 5,000 square feet, premises in the County on which it conducts business by buying, building, or leasing new premises; and (B) employ at least 25 persons in new permanent full-time positions located in the new or expanded premises in the County during a 24-month period when it occupies the new or expanded premises. (2) To qualify and be certified for an enhanced new jobs tax credit under this Article, a business entity must, on or after December 31, 1998: (A) notify the Finance Director as required under state law; and (B) meet all requirements under state law to qualify for an enhanced new jobs tax credit. (3) A business entity does not qualify for a new jobs tax credit or enhanced tax credit if: (A) the business entity has moved the operations which are located on new or expanded premises from another county (including Baltimore City) in Maryland; (B) the business entity or another taxpayer has been given a tax credit or exemption for the new or expanded premises during the same taxable year under any other state or County law; (C) the new permanent full-time positions are solely or primarily involved in retail sales of goods or services, except when a small number of positions involved in retail sales are incidental to the primary purpose of a building; (D) the business entity is a type of business entity that the County Council by resolution before the Notification Date has made ineligible for a new jobs tax credit or enhanced new jobs tax credit, or the new permanent full-time positions are a type of position that the Council by resolution before the Notification Date has made ineligible for a new jobs tax credit or enhanced new jobs tax credit, or the new or expanded premises are located in a geographic area that the Council by resolution before the Notification Date has made ineligible for a new jobs tax credit or enhanced new jobs tax credit; or (E) the location of the new or expanded premises is inconsistent with any applicable land use master plan. (4) To qualify for a credit against property tax imposed on personal property, a business entity must certify that the personal property is located on premises that qualify for a new jobs tax credit or enhanced new jobs tax credit under this Article. (d) Amount of tax credit; pass-through to lessees. (1) The new jobs tax credit that a taxpayer may claim against County property taxes under this Article is the following percentage of the property tax imposed on the assessment of the new or expanded premises: (A) 52% during the first and second taxable years in which a credit is allowed; (B) 39% during the third and fourth taxable years in which a credit is allowed; and (C) 26% during the fifth and sixth taxable years in which a credit is allowed. After the sixth taxable year, the Finance Director must not allow a new jobs tax credit under this Article. (2) The enhanced new jobs tax credit that a taxpayer may claim against County property taxes under this Article is 58.5% of the property tax imposed on the increase in assessment of: (A) the new or expanded premises; and (B) any substantially renovated real property adjoining or neighboring the new or expanded premises. A renovation is substantial for purposes of this subsection if the renovation results in a complete rehabilitation of at least 50% of each building on the property. The taxpayer may claim this credit in each of the first 24 taxable years after the Director certifies that the taxpayer is eligible for the credit. (3) A lessor of real property must reduce the amount of taxes for which an eligible business entity is contractually liable under a lease or rental agreement by the amount of any tax credit allowed under this Article. (e) Recapture of tax credit. (1) A business entity which does not satisfy all applicable requirements under this Article to qualify for a tax credit during the three taxable years after any year when a credit was allowed must repay the tax credit to the County after receiving notice from the Finance Director that the credit must be repaid. (2) Interest must accrue on any repayable tax credit at the rate established for overdue property taxes, beginning 30 days after the notice from the Finance Director. (3) Any unrepaid tax credit is a lien on real and personal property owned by the business entity in the same manner as unpaid real property taxes under state and County law. (f) Administration of tax credit. (1) A business entity must apply for either tax credit on a form furnished by the Finance Director, and must state which tax credit it intends to request and when and how it expects to qualify for the credit. (2) When a business entity believes it has met all requirements for the tax credit, it may apply for certification on a form furnished by the Director and must provide sufficient information to show that all requirements under this Article and applicable state law have been met. (3) The Finance Director must: (A) determine the eligibility of the business entity for the tax credit; (B) notify the State Department of Assessments and Taxation that a business entity has been approved for the tax credit; and (C) require submission of reports by the business entity during the three taxable years after any year when the tax credit was earned to verify that the business entity continues to satisfy all applicable requirements under this Article. (4) A person who submits a false or fraudulent application, or withholds information, to obtain a tax credit under this Article has committed a Class A violation. In addition, the person must repay the County for all amounts credited and all accrued interest and penalties that would apply to those amounts as overdue taxes. A person who violates this subsection is liable for all court costs and expenses of the County in any civil action brought by the County against the violator. The County may collect any repayable tax credit, and otherwise enforce this Article, by any appropriate legal action. (5) The County Executive may adopt regulations under method (2) to administer this Article. **Sec. 52-91. Brownfields Property Tax Credit.** (a) Definitions. In this Article, the following words have the meanings indicated. Corrective action plan means a corrective action plan for a Qualified Brownfields Site under Title 4 of the Environment Article of the Maryland Code. Director means the Director of the Department of Finance or the Director’s designee. Enterprise zone means an area designated under Article 83A, Section 9-103 of the Maryland Code, or any successor provision. Increased Property Tax Liability means the increase in the property tax levied on a Qualified Brownfields Site resulting from an increased assessment due to a voluntary cleanup of the Qualified Brownfields Site or due to a corrective action plan for the Qualified Brownfields Site. Increased Property Tax Liability includes increases in property taxes levied due to an increased assessment for additional improvements to a Qualified Brownfields Site. Increased Property Tax Liability is calculated after deducting any other property tax credit applicable to the Qualified Brownfields Site. For a Qualified Brownfields Site with a prior use value, the Increased Property Tax Liability must be determined as if the Qualified Brownfields Site had no use value limitation. Property tax means the total County real property tax levied on the Qualified Brownfields Site annually under the Tax-Property Article. Property tax does not include parking district and urban district taxes. Qualified Brownfields Site has the meaning given in Article 83A, Section 3-901 of the Maryland Code. Tax-Property Article means the Tax-Property Article of the Maryland Code. Tax year means the 12-months beginning July 1 and ending on June 30. Use value means a special value of land for assessment purposes specified in Sections 8-209 through 8-217 and 8-220 through 8-225 of the Tax-Property Article. Voluntary cleanup means a voluntary cleanup of a Qualified Brownfields Site under Title 7, Subtitle 5 of the Environment Article of the Maryland Code. (b) Participation. The County may participate in the Brownfields Incentive Program under Section 9-229 of the Tax-Property Article. (c) Property tax credits. (1) For each of the 5 tax years immediately after the first revaluation of a Qualified Brownfields Site after completion of a voluntary cleanup or corrective action plan, the Director must allow a property tax credit of 50% of the Increased Property Tax Liability for a Qualified Brownfields Site. (2) For each of the 5 tax years immediately after the first revaluation of a Qualified Brownfields Site after completion of a voluntary cleanup or correction action plan, the Director must allow an additional property tax credit of 20% of the Increased Property Tax Liability for a Qualified Brownfields Site located in: (A) an enterprise zone; or (B) a neighborhood designated by the County Council for participation in the Neighborhood Business Development Program under state law. (d) Applicability. The tax credits in paragraph (c) apply for: (1) 5 tax years; or (2) if the property is in an enterprise zone, 10 tax years. (e) Contribution to Fund. As provided in Subsection 9-229(e)(2) of the Tax-Property Article, for each tax year of the credit period the County must, after property taxes for a Qualified Brownfields Site have been paid, contribute to the Brownfields Revitalization Incentive Fund established under Maryland Code, Article 83A, Section 3-904. The contribution must be equal to 30% of the Increased Property Tax Liability of the Qualified Brownfields Site. (f) Termination of credit. A recipient of a property tax credit under this Article is no longer eligible if: (1) the recipient of the property tax credit withdraws from the voluntary cleanup program under Section 7-512(A) or (B) of the Environment Article of the Maryland Code; or (2) the Maryland Department of the Environment withdraws approval of a Response Action Plan or a Certificate of Completion under Section 7-512(E) and (F) of the Environment Article of the Maryland Code. **Sec. 52-92. Property tax credit — senior citizens of limited income.** (a) The Director of Finance must allow a tax credit each year against the general County tax and all special service area taxes imposed on any real property that is owned by, and is the principal residence of, an individual who: (1) is at least 65 years old; and (2) qualifies to receive either the state Homeowners’ Property Tax Credit or the County supplement to the Homeowners’ Property Tax Credit under Section 52-85, or both. (b) For each taxable year, the credit under this Section equals 50% of the total state and County credit awarded for that tax year under state law and Section 52-85. (c) The Director must apply this credit automatically each year to the property tax due from any eligible taxpayer. A taxpayer need not file an application, other than the application filed to receive the Homeowners’ Property Tax Credit, to receive this credit. To qualify for this tax credit, the taxpayer must show in that application that at least one individual who owns and resides in the applicable residence is at least 65 years old. (d) The County Executive may issue regulations under method (2) to administer this tax credit. **Sec. 52-93. Tax credit for certain nonprofit organizations.** (a) The Director of Finance must grant a single tax credit against the amount of the ordinary County taxes or any other special charges or assessments levied against: (1) the personal property owned by any nonprofit, nonstock cooperative housing corporation; (2) leased real property and improvements in the County used exclusively as a theater by nonprofit community theatrical organizations under Titles 6 and 9 of the Tax-Property Article of the Maryland Code; and (3) tangible personal property used to improve, replace, or maintain the roads, common areas, or other common facilities owned by a nonprofit organization, association, or foundation which was formed solely to improve, replace, and maintain the roads, common areas, or other common facilities established under the town sector or planned retirement community zones of Chapter 59 where the common facilities are dedicated for the use of all residents of the development without payment of fees or admissions for their use. (b) The Director of Finance must administer the tax credits granted under Titles 6 and 9 of the Tax-Property Article of the Maryland Code. (c) The County Executive may adopt regulations under method (2) to administer the tax credits consistent with Titles 6 and 9 of the Tax-Property Article of the Maryland Code. (d) Each taxpayer entitled to a credit shall be given a notice of the credit at the time the tax bill is sent to the taxpayer. The credit may be applied for at any time up to October 1 of the taxable year; but if application has not been made on or before that date, the credit shall not be allowed. Application shall be made under oath or affirmation. **Sec. 52-94. Day care property tax credit.** (a) Credit for child care or day care provider. (1) A taxpayer may receive a property tax credit against the general County tax and special service area taxes for an improvement on real property if the improvement is used exclusively for child care or day care services under state law as a: (A) registered family child care home or large family child care home under Title 9.5, Subtitle 3 of the Education Article of the Maryland Code, as amended; (B) licensed child care center under Title 9.5, Subtitle 4 of the Education Article of the Maryland Code, as amended; (C) licensed day care center for the elderly under Title 14, Subtitle 2 of the Health – General Article of the Maryland Code, as amended; or (D) licensed day care center for adults under Title 14, Subtitle 3 of the Health – General Article of the Maryland Code, as amended. (2) For each improvement, the credit must not exceed in each year the lesser of: (A) $10,000; or (B) the amount of the general county tax and special service area taxes attributable to the improvement. (3) The Department of Finance administers this subsection. A taxpayer must apply for the tax credit with the Department of Finance by April 1 to receive the credit in the next taxable year. The taxpayer must certify in writing that the child care or day care provider: (A) is licensed or registered by the State; and (B) will accept clients whose care is subsidized by the County, State, or federal government, if the child care or day care provider has space. (4) A taxpayer must not receive a credit under this subsection if the real property qualifies for a credit under subsection (b). (b) Credit for family child care home or child care center on business property. (1) A taxpayer may receive a property tax credit against the general County tax and special service area taxes for an improvement on real property owned by a business with at least 25 employees if the improvement is used exclusively for child care services under state law as a: (A) registered family child care home or large family child care home under Title 9.5, Subtitle 3 of the Education Article of the Maryland Code, as amended; or (B) licensed child care center under Title 9.5, Subtitle 4 of the Education Article of the Maryland Code, as amended. (2) For each improvement, the credit must not exceed in each year the lesser of: (A) $10,000; or (B) the amount of the general County tax and special service area taxes attributable to the improvement. (3) The Department of Finance administers this subsection. A taxpayer must apply for the tax credit with the Department of Finance by April 1 to receive the credit in the next taxable year. The taxpayer must certify in writing that the child care or day care provider is licensed or registered by the State. (c) Executive regulations. The County Executive must adopt regulations under method (3) to implement this Section. (d) Reports. The County Executive must report annually to the County Council on the use of the day care and child care property tax credit. **Sec. 52-95. Personal property tax—Research and development exemption.** (a) Definitions. In this Section, the following words have the meanings indicated. (1) Research and development means: (A) basic and applied research in the sciences and engineering; and (B) the design, development, and governmentally required pre-market testing of prototypes, products, and processes. (2) Research and development does not include: (A) market research; (B) research in the social sciences or psychology and other nontechnical activities; (C) routine product testing; (D) sales services; (E) technical and nontechnical services; or (F) research and development of a public utility. (3) Director means the Director of the Department of Finance or the Director’s designee. (b) General. Any machinery, equipment, materials, and supplies consumed in or used primarily in research and development are exempt from the County property tax to the extent authorized in this section. (c) Amount. The exemption is equal to the County property tax imposed on the assessment of the property which exceeds 25% of the original cost of the property. (d) Applicability. The exemption applies to taxable years beginning July 1, 1996. **Sec. 52-96. Property tax credit—Leased property—Religious organizations.** (a) (1) This Section applies only where a religious organization is contractually liable as a lessee under a lease to pay real property taxes of the property. (2) For purposes of this Section, the term “religious organization” means a religious organization that is certified under Section 501(c)(3) or (d) of the United States Internal Revenue Code. (b) Beginning with the tax year starting on July 1, 1995, a tax credit may be granted to the lessor of real property against County ad valorem property taxes, including special service area taxes, up to the amount of property taxes levied by the County: (1) for that portion of the property that is leased, occupied, and used by a religious organization during the tax year exclusively for: (A) public religious worship; (B) educational purposes; or (C) office space necessary to support or maintain public religious worship or educational purposes; and (2) for which the religious organization is contractually liable. (c) The tax credit under this Section does not apply: (1) to property that is leased, occupied, or used by the religious organization for the purpose of making a profit; or (2) when the religious organization no longer occupies the property. (d) The lessor of property eligible for a tax credit under this Section must reduce by the amount of the tax credit the amount of taxes for which the religious organization is contractually liable under the lease agreement with the lessor. (e) If a religious organization no longer occupies property during a tax year for which a tax credit has been allowed, or if the organization no longer uses the property for the purposes listed in subsection (b)(1), the tax credit expires and the organization must immediately notify the Department. The Department must then issue a bill for the additional tax due, which is the pro rata share of the credit for the remainder of the tax year. (f) (1) The Department of Finance administers this Section. (2) A taxpayer must apply for the tax credit by the first day of April which precedes the tax year in which the tax credit is used. An application must be made on such forms as the Department of Finance prescribes. The applicant must submit a copy of the lease agreement with the religious organization and any other supporting information or certification required by the Department of Finance. (3) The County Executive must adopt regulations under method (2) for administration of this Section. (4) The County Executive must report on the number and dollar value of all applications submitted and tax credits granted under this Section. This information should be included as part of the County Executive’s recommended budget and should cover the fiscal year before the fiscal year for which the budget is submitted. (g) A denial of a tax credit may be appealed to the Maryland Tax Court. (h) (1) A person must not knowingly file a false or fraudulent application to obtain a tax credit under this Section. A violation of this subsection is a Class A violation. (2) In addition to penalties provided under paragraph (1) of this subsection, a person who violates this subsection must pay the County any taxes and interest offset by the credit, any other penalty due, and the County’s fees and costs in any action to enforce this subsection. **Sec. 52-97. Property tax credit for Audubon Naturalist Society.** The Director of Finance must allow a tax credit against 100 percent of the amount of the ordinary County taxes and special service area taxes levied against real or personal property owned by the Audubon Naturalist Society of the Central Atlantic States, Inc., that is used solely for: (a) the environmental education of the public; or (b) the maintenance of: (1) a natural area for public use; or (2) a sanctuary for wildlife. **Sec. 52-98. Property tax credit - fire sprinkler systems.** (a) A taxpayer may receive a one-time property tax credit against the general county tax for any residential building in which a fire sprinkler system was not legally required to be installed, if an approved fire sprinkler system is installed on or after July 1, 2000. (b) For each residential building where a sprinkler system is installed, the credit must not exceed the lower of: (1) the total cost of installing the sprinkler system; or (2) 50 percent of the general county property tax attributable to the residential building. (c) The Department of Finance must administer this credit and include with each residential property tax bill a notice of the availability of the credit and where to obtain more information. (d) A taxpayer must apply for the tax credit in the year the sprinkler system is installed to receive the credit in that tax year or the next tax year. The taxpayer must: (1) show that the installed sprinkler system complies with codes and standards established by the State Fire Prevention Commission and any applicable County building and fire safety codes, and (2) document the cost to the taxpayer of the sprinkler system. (e) The County Executive may adopt regulations under method (2) to implement this Section. (f) The Executive must report annually to the County Council on the use of this tax credit. **Sec. 52-99. Property tax credit — arts and entertainment district.** (a) In this Section the following words have the meanings indicated. Arts and Entertainment District, Arts and Entertainment Enterprise, and Qualifying Residing Artist are defined in Section 4-701 of Article 83A of the Maryland Code. Base year means the taxable year immediately before the taxable year in which a property tax credit under this section is granted. Base year value means the value of the property used to determine the assessment on which the property tax was imposed for the base year. Base year value does not include any property first assessed in the base year. Eligible assessment means the difference between the base year value and the actual assessed value for the applicable taxable year in which the tax credit under this section is granted. (b) The Director of Finance must allow a tax credit, as authorized by state law, to a taxpayer against the County property tax imposed on a manufacturing, commercial, or industrial building that: (1) is located in an arts and entertainment district; and (2) is wholly or partially constructed or renovated to be capable for use by a qualifying residing artist or an arts and entertainment enterprise. (c) A tax credit granted under this Section applies for 10 years, as provided in subsection (d), for that portion of the building that is used by a qualifying residing artist or an arts and entertainment enterprise. (d) The Director must calculate a tax credit allowed under this Section as follows: (1) Except for properties allowed an Enterprise Zone Tax Credit, the amount of the tax credit under this Section is the following percentage of the amount of property tax imposed on the eligible assessment of the property entitled to the credit: (A) 80% in each of the first 5 taxable years after the calendar year when the property initially is entitled to the credit; (B) 70% in the 6th taxable year; (C) 60% in the 7th taxable year; (D) 50% in the 8th taxable year; (E) 40% in the 9th taxable year; and (F) 30% in the 10th taxable year. (2) For properties allowed an Enterprise Zone Tax Credit, the amount of the tax credit under this Section is 20% of the amount of property tax imposed on the eligible assessment of the property entitled to the credit for each of the 10 taxable years after the calendar year when the property initially is entitled to the credit. The credit under this Section is in addition to the Enterprise Zone Tax Credit. **Sec. 52-100. Property tax credit — surviving spouse of law enforcement officer or rescue worker.** (a) The Director of Finance must allow a tax credit against the County property tax imposed on a dwelling that is owned by a surviving spouse of a fallen law enforcement officer or fallen rescue worker if the Director of Finance certifies that the taxpayer was qualified under State law for the credit before the end of the taxable year. (b) The amount of the credit is 100 percent of the County property tax due from the taxpayer, subject to any other limits in State law. (c) The County Executive may issue regulations under method (2) to administer this tax credit. (d) In this Section: (1) “dwelling”, “surviving spouse”, “fallen law enforcement officer”, and “fallen rescue worker” have the meanings provided in the State law authorizing this property tax credit; (2) a qualified surviving spouse is deemed to “own” a dwelling if the surviving spouse has or shares any legal responsibility to pay State or County property tax on the dwelling; (3) “law enforcement officer” means an individual who is authorized by law to make arrests in an official capacity as a member of any local, state, or federal government law enforcement agency; and (4) “rescue worker” means an individual who is a member of any public, private, or volunteer fire, rescue, or emergency medical service. **Sec. 52-101. Home computer telecommuting incentive.** (a) An employer may receive an annual tax credit against the County personal property tax for the purchase of a new home computer or new laptop computer to establish a new off- site employee workstation, if the computer is purchased after December 31, 2005. This tax credit does not apply to the operating personal property of a public utility. (b) The amount of the tax credit must not exceed 50% of the cost of each new home computer or new laptop computer. The aggregate tax credit allowed for any taxpayer in any tax year must not exceed $2,000. (c) The Department of Finance must administer this credit. The Department must allow each tax credit in the order in which the Department receives the application for the credit. (d) The total amount of credits allowed in each tax year must not exceed: (1) $100,000 in 2006; (2) $175,000 in 2007; and (3) $250,000 in 2008. Starting in 2009, the County Council must set the total amount of credits allowed in each future tax year by resolution. If the Council takes no action for any year, the amount allowed for the prior year also applies to that year. (e) An employer is eligible for and must apply for the tax credit within 12 months after a new computer purchase. The tax credit must be applied in the tax year of the purchase or the following tax year. The employer must: (1) show that the computer will be used for telecommuting; (2) affirm that the employee works at home at least 78 days per calendar year or an alternative minimum number of days set by regulation; and (3) document the date of purchase and the cost of the computer. (f) The County Executive must adopt regulations under method 2 to implement this Section. (g) The County Executive or a designee must report annually to the County Council on the use of the tax credit and provide information on the number of employees telecommuting under this credit. **Sec. 52-102. Property tax credit — nonprofit swim clubs.** (a) The Director of Finance must allow a tax credit each year against the general County tax and all special service area taxes imposed on a nonprofit swim club that uses its facility exclusively to provide a recreational outlet for a local community. (b) For each taxable year, the Director must calculate the amount of the credit so that the credit equals the property tax owed. (c) The County Executive may issue regulations under method (2) to administer this tax credit. **Sec. 52-103. Property tax credit — energy and environmental design.** (a) Definitions. In this Section the following words have the meanings indicated: (1) “Covered building” means a newly constructed or extensively modified non- residential or multi-family residential building that has or will have at least 10,000 square feet of gross floor area. (2) “Extensively modified” means any structural modification which alters more than 50% of the building’s gross floor area, as indicated on the application for a building permit. Extensively modified does not include any modification that is limited to one or more of the following building systems: mechanical; electrical; plumbing; heating, ventilation, and air conditioning (HVAC); and fire protection. (3) “High performance building” means: (A) A covered building that achieves: (1) A gold or platinum rating from the USGBC for LEED-NC, LEED-CS, or LEED-EB; or (2) An energy and environmental design standard that the Director of the Department of Permitting Services finds is equivalent to a gold or platinum rating from the USGBC for LEED-NC, LEED- CS, or LEED-EB; and (B) Any other building that achieves: (1) A silver, gold, or platinum rating from the USGBC for LEED- NC, LEED-CS, or LEED-EB; or (2) An energy and environmental design standard that the Director of the Department of Permitting Services finds is equivalent to the silver, gold or platinum rating from the USGBC for LEED- NC, LEED-CS, or LEED-EB. (4) “LEED-CS” means the Leadership in Energy and Environmental Design - Core and Shell rating system administered by the USGBC. (5) “LEED-EB” means the Leadership in Energy and Environmental Design - Existing Building rating system administered by the USGBC. (6) “LEED-NC” means the Leadership in Energy and Environmental Design - New Construction rating system administered by the USGBC. (7) “Property tax” means the general County tax and all special service area taxes. (8) “USGBC” means the US Green Building Council. (b) Credit. Subject to the restrictions in subsections (c), (d), and (e), the Director of the Department of Finance must allow a tax credit each eligible year against the property tax imposed on a high performance building. (c) Application and sunset dates. To qualify for a tax credit under this Section, a taxpayer must submit an application of intent to apply for the credit by January 1, 2022 and either: (1) for LEED-EB project certification, receive LEED-EB project certification for an eligible LEED-EB building and submit an application to the Director by January 1, 2023; or (2) for LEED-CS or LEED-NC certification, receive a building permit for an eligible LEED-CS or LEED-NC building and submit an application to the Director by January 1, 2024. (d) Amount of credit. (1) For a covered building, the amount of the credit is: (A) 25% of the property tax owed on the building for 5 years, if the building achieves a gold rating for LEED-NC or LEED-CS or an equivalent standards; (B) 75% of the property tax owed on the building for 5 years, if the building achieves a platinum rating for LEED-NC or LEED-CS or an equivalent standard; (C) 10% of the property tax owed on the building for 3 years, if the building achieves the gold rating for LEED-EB or an equivalent standard; or (D) 50% of the property tax owed on the building for 3 years, if the building achieves the platinum rating for LEED-EB or an equivalent standard. (2) For any other building, the amount of the credit is: (A) 25% of the property tax owed on the building for 5 years, if the building achieves a silver rating for LEED-NC or LEED-CS or an equivalent standard; (B) 50% of the property tax owed on the building for 5 years, if the building achieves a gold rating for LEED-NC or LEED-CS or an equivalent standard; (C) 75% of the property tax owed on the building for 5 years, if the building achieves a platinum rating for LEED-NC or LEED-CS or an equivalent standard; (D) 10% of the property tax owed on the building for 3 years, if the building achieves the silver rating for LEED-EB or an equivalent standard; (E) 25% of the property tax owed on the building for 3 years, if the building achieves the gold rating for LEED-EB or an equivalent standard; and (F) 50% of the property tax owed on the building for 3 years, if the building achieves the platinum rating for LEED-EB or an equivalent standard. (e) Annual limits. (1) Subject to the annual limits in paragraph (2) and the carryover rules in paragraph (3), the Director must grant credits in the order in which the Department of Finance receives complete applications. (2) During any fiscal year the total credits granted to: (A) All buildings under this Section must not exceed $5 million. (B) Buildings that achieve a silver rating or equivalent standard must not exceed $1.5 million; and (C) Buildings that achieve a gold rating or equivalent standard must not exceed $2.5 million. (3) A complete application that, if granted, would cause any of the limits set in paragraph (2) to be exceeded, must be granted in the next fiscal year or years based on the order in which the Department of Finance received the application. (f) Regulations. The County Executive may issue regulations under method (2) to administer this tax credit. **Sec. 52-103A. Property tax credit — energy conservation devices for existing energy-efficient buildings.** (a) Intent. The intent of this Section is to: (1) encourage building owners to increase the energy performance of existing buildings; (2) incentivize building owners to reduce the energy and climate impacts of existing buildings, as the built environment generates more than half of the County’s measured community-wide greenhouse gas emissions; (3) advance the County’s aggressive climate goals of an 80 percent reduction in greenhouse gas emissions by 2027 and zero emissions by 2035; (4) institute regular review of the tax credits outlined in this Section to ensure that they are meeting the goals under paragraphs (1) through (3); and (5) implement tax credits under Sections 9-203 and 9-242(a) of the Tax-Property Article of the Maryland Code, as amended. (b) Definitions. In this Section the following words have the meanings indicated: Accredited building professional means an individual that holds a valid and current credential from a building certification organization. Baseline ENERGY STAR Score means the ENERGY STAR score of a building calculated over any consecutive 12-month period when the scored building is at least 50 percent occupied. BRE Global means the Building Research Establishment Global. BREEAM means the Building Research Establishment Environmental Assessment Method rating system administered by BRE Global. Building certification organization means a third-party organization that administers the rating systems identified in this Section. Building Sustainability Tax Credit is the property tax credit received for earned building certifications described in this Section. Director means the Director of the Department of Finance or the Director’s designee. Energy conservation device means any equipment, device, or material that reduces the demand for conventional fuels or increases the efficiency of these fuels, but is not a standard household appliance, including: (1) insulation in any wall, roof, floor, foundation, or heating and cooling distribution system; (2) a storm window or door, multi-glazed window or door, heat-absorbing or heat-reflective glazed and coated window and door system, or additional glazing, reduction in glass area, and other window and door system modification that reduces energy consumption; (3) an automated energy control system; (4) a heating, ventilating, or air-conditioning and distribution system modification or replacement; (5) caulking, weather-stripping, and air sealing; (6) replacement or modification of a lighting fixture to reduce the energy use of the lighting system; (7) an energy recovery system; (8) a day lighting system; (9) a measure that reduces the usage of water or increases the efficiency of water usage; or (10) any other installation or modification of equipment, device, or other material intended to decrease energy consumption. Energy-efficient building means a non-residential or multi-family residential building that: (1) has or will have at least 10,000 square feet of gross floor area; (2) has received a Certificate of Occupancy from the Department of Permitting Services; (3) has achieved at least a minimum 50 percent occupancy rate for at least 12 consecutive months; and (4) has demonstrated energy improvements consistent with the requirements of this Section. Energy Reduction Tax Credit is the property tax credit received for energy performance improvements described in this Section. ENERGY STAR Data Verification Checklist means a report generated in the ENERGY STAR Portfolio Manager tool to document property use details and energy consumption. ENERGY STAR Portfolio Manager means the no-cost web-based energy management tool developed and maintained by the U.S. Environmental Protection Agency to track and assess building energy performance. ENERGY STAR Score means the numerical measure of a building’s energy use generated through the use of ENERGY STAR Portfolio Manager. ENERGY STAR score metric reference data means the market data used by the U.S. Environmental Protection Agency to generate the ENERGY STAR Score. Energy Use Intensity or EUI refers to the amount of energy used in a building per square foot per year. Equity Emphasis Area means an area identified as an equity emphasis area by National Capital Region Transportation Planning Board. Improved ENERGY STAR Score means the ENERGY STAR score of a building calculated within a consecutive 12-month period when the scored building is at least 50 percent occupied, demonstrating energy savings resulting from the use of a qualifying energy conservation device. LEED means the Leadership in Energy and Environmental Design rating system administered by the USGBC. Occupancy means the percentage of a building that is occupied and operational. Property tax means the general County property tax and all special service area taxes. USGBC means the United States Green Building Council. (c) Credit. The Director must allow a tax credit each eligible year against the property tax imposed on an energy-efficient building under this Section. (d) Application. An application by the owner of an energy-efficient building for a tax credit must be in the form prescribed by the Director and include: (1) a description and installation date of the energy conservation device installed in the building; (2) the ENERGY STAR Portfolio Manager Data Verification Checklists documenting the baseline and improved (within the past year) ENERGY STAR scores of an existing energy-efficient building, signed by an accredited building professional; and (3) if the Building Sustainability Tax Credit is sought, verified documentation demonstrating qualification within the past year for the Building Sustainability Tax Credit in subsection (f). (e) Energy Reduction Tax Credit authorized under Section 9-203 of the Tax-Property Article of the Maryland Code. (1) An energy-efficient building may receive an Energy Reduction Tax Credit for achieving energy use reductions under this subsection and, if that credit is granted, may receive: (A) an additional Building Sustainability Tax Credit under subsection (f); and (B) an expanded credit under subsection (g) for buildings located in Equity Emphasis Areas. (2) For the Energy Reduction Tax Credit, the percentage of the annual County property tax credit, awarded for 2 years, is calculated by subtracting an energy-efficient building’s 12-month baseline ENERGY STAR score from the improved 12-month ENERGY STAR score, then multiplying the difference by the multiplier below based on the improved ENERGY STAR score: (A) if the improved ENERGY STAR score falls between 1-24, multiply the difference by 1.0; (B) if the improved ENERGY STAR score falls between 25-49, multiply the difference by 1.5; (C) if the improved ENERGY STAR score falls between 50-74, multiply the difference by 2.0; or (D) if the improved ENERGY STAR score falls between 75-100, multiply the difference by 2.5. (3) Baseline and Improved ENERGY STAR Score 12-month time periods must not: (A) overlap; (B) include the energy conservation device installation period; or (C) be more than 6 calendar years apart. (4) The Baseline ENERGY STAR Score 12-month time period must not begin earlier than August 26, 2018. Baseline and Improved ENERGY STAR Score 12-month time periods must use the same ENERGY STAR score metric reference data. (5) If a building is not able to earn the ENERGY STAR score due to the property use type, the Director may accept the USGBC alternative compliance path for Energy Use Intensity (EUI). (f) Building Sustainability Tax Credit authorized under Section 9-242(a) of the Tax-Property Article of the Maryland Code. (1) The owner of an energy-efficient building seeking the Building Sustainability Tax Credit must apply for that tax credit simultaneously with the Energy Reduction Tax Credit. The amount of the Building Sustainability Tax Credit must be added to the Energy Reduction Tax Credit. The Building Sustainability Tax Credit must be equal to: (A) 25% of the property tax owed on the building for 2 years, if the building achieves the most recent version available of LEED O+M Gold, BREEAM In-Use Excellent or an equivalent standard; or (B) 50% of the property tax owed on the building for 2 years, if the building achieves the most recent version available of LEED O+M Platinum, BREEAM In-Use Outstanding or an equivalent standard. (2) To be approved for the Building Sustainability Tax Credit, an energy-efficient building must also be approved for the Energy Reduction Tax Credit. (g) Expanded credit for buildings in Equity Emphasis Areas. (1) The owner of an energy-efficient building located within an Equity Emphasis Area at the time of application may qualify for an expanded credit under this subsection. (2) The owner must apply for a credit under this subsection simultaneously with an application for the Energy Reduction Tax Credit. (3) The amount of the tax credit under this subsection must be added to the Energy Reduction Tax Credit for each year that the Energy Reduction Tax Credit is granted. (4) The amount of the tax credit under this subsection must be equal to 10% of the annual property tax owed on the building. (h) Total Maximum Credit. The maximum credit that an energy-efficient building may be granted in any year must not exceed 100% of the building’s annual County property tax liability. (i) Annual limits. In any fiscal year, the Director must not award more than $5 million in total tax credits granted to all buildings under this Section. (j) Reapplications. (1) The owner of an energy-efficient building awarded a tax credit under this Section may reapply twice after the initial 2-year credit cycle. The maximum number of applications a building owner may submit is 3, consisting of 1 initial application and 2 reapplications. (2) For any reapplications, the building owner must submit a new Baseline ENERGY STAR Score for the building and describe the improvements performed to achieve the energy reduction. The Baseline ENERGY STAR Score for a reapplication may not be older than the 12-month time period used for the Improved ENERGY STAR Score for the previously approved tax credit. If an owner received a Building Sustainability Tax Credit based upon certification as LEED O+M Gold, BREEAM In-Use Excellent or an equivalent standard, the building must achieve a higher certification, such as LEED O+M Platinum, BREEAM In-Use Outstanding or an equivalent standard, upon reapplication. (k) Credit Review. (1) On or before October 1 of each year, the Director of Finance must prepare a report on the status of the Energy Reduction Tax Credit and Building Sustainability Tax Credit. (2) Every 3 years, the County Executive must submit a report to the County Council reviewing the effectiveness of the Energy Reduction Tax Credit and Building Sustainability Tax Credit and make recommendations on any credit alterations. (l) Regulations. The County Executive may issue regulations under method (2) to administer the Energy Reduction Tax Credit and the Building Sustainability Tax Credit. **Sec. 52-103B. Property tax credit — newly constructed energy-efficient buildings.** (a) Intent. The intent of this Section is to: (1) encourage building owners to increase the energy performance of newly constructed buildings beyond current Building and Zoning Code requirements at time of application; (2) incentivize building owners to reduce the energy and climate impacts of newly constructed buildings, as the built environment generates more than half of the County’s measured community-wide greenhouse gas emissions; (3) advance the County’s aggressive climate goals of an 80 percent reduction in greenhouse gas emissions by 2027 and zero emissions by 2035; (4) institute regular review of the tax credits outlined in this Section to ensure that they are meeting the goals under paragraphs (1) through (3); and (5) implement a tax credit under Section 9-242(a) of the Tax-Property Article of the Maryland Code, as amended. (b) Applicability. The credit authorized by this Section applies to any tax year beginning January 1, 2022. (c) Definitions. In this Section the following words have the meanings indicated: BRE Global means the Building Research Establishment Global. BREEAM means the Building Research Establishment Environmental Assessment Method rating system administered by BRE Global. Building Code requirement means any code, standard, zoning ordinance, or other requirement related to commercial and multi-family building construction and permitting processes that applies to a newly constructed energy-efficient building. Equity Emphasis Area means an area identified as an equity emphasis area by National Capital Region Transportation Planning Board. New Building Sustainability Tax Credit is the property tax credit received for earned building certifications described in this Section. Director means the Director of the Department of Finance or the Director’s designee. Newly constructed energy-efficient building means: (A) An unoccupied non-residential or multi-family residential “core and shell” building, of at least 10,000 square feet in gross floor area, with full mechanical systems, electrical distribution infrastructure, and a weather-sealed thermal envelope that has achieved substantial completion and received a Certificate of Occupancy from the Department of Permitting Services within the past year; (B) A newly constructed non-residential or multi-family building, of at least 10,000 square feet in gross floor area, that has achieved substantial completion and received a Certificate of Occupancy from the Department of Permitting Services within the past year; or (C) A non-residential or multi-family building, of at least 10,000 square feet in gross floor area, that has undergone a major renovation that warrants bringing the entire building up to current Building Code standards and has received final inspection and approval from the Department of Permitting Services. New Building Energy Reduction Tax Credit is the property tax credit received for energy performance improvements described in this Section. LBC or Living Building Certification means the Living Building Certification administered by the International Living Future Institute. LEED means the Leadership in Energy and Environmental Design rating system administered by the USGBC. In this Section, LEED building certification includes all eligible rating systems for newly constructed non-single-family-residential buildings. NGBS means the National Green Building Standard rating system administered by Home Innovation Research Labs. PassiveHouse means the PassiveHouse standard administered by PHIUS. PHIUS means the PassiveHouse Institute US. Property tax means the general County property tax and all special service area taxes. USGBC means the United States Green Building Council. (d) Credit. The Director must allow a tax credit each eligible year against the property tax imposed on a newly constructed energy-efficient building under this Section. (e) Application. (1) An application by the owner of a newly constructed energy-efficient building for a tax credit must be in the form prescribed by the Director and must include: (A) a certification from the Department of Permitting Services within the past year indicating the percentage performance above current Building Code requirements at time of application demonstrated by the newly constructed energy-efficient building for the New Building Energy Reduction Tax Credit; and (B) if the New Building Sustainability Tax Credit is sought after receiving the New Building Energy Reduction Tax Credit, verified documentation by the newly constructed energy-efficient building demonstrating qualification for the New Building Sustainability Tax Credit within two years after obtaining a use and occupancy permit. (2) A building owner that has received either a New Building Energy Reduction Tax Credit or a New Building Sustainability Tax Credit may not reapply for either credit for the same newly constructed building in any later tax year. (f) New Building Energy Reduction Tax Credit. (1) A newly constructed energy-efficient building may receive a New Building Energy Reduction Tax Credit for achieving energy use reductions as outlined in this subsection and, if that credit is granted, may receive an additional New Building Sustainability Tax Credit as described in subsection (g). (2) To be eligible for the New Building Energy Reduction Tax Credit, a newly constructed energy-efficient building owned by the applicant must achieve a minimum 10 percent increase in energy performance above the current applicable building code requirements at time of application using an energy modeling software approved by the Department of Permitting Services. (3) For the New Building Energy Reduction Tax Credit, the percentage of the annual County property tax credit awarded for 4 years is calculated by rounding a newly constructed energy-efficient building’s performance above building code requirements to the nearest whole number and multiplying it by the multiplier below: (A) if the building’s performance above Code is between 10 and 20 percent, multiply the building performance percentage figure by 0.5; (B) if the building’s performance above Code is between 21 and 30 percent, multiply the building performance percentage figure by 1.0; (C) if the building’s performance above Code is between 31 and 40 percent, multiply the building performance percentage figure by 1.5; or (D) if the building’s performance above Code is above 40 percent, multiply the building performance percentage figure by 2.0. (g) New Building Sustainability Tax Credit. The owner of a newly constructed energy-efficient building seeking the New Building Sustainability Tax Credit must apply for that tax credit after receiving the New Building Energy Reduction Tax Credit. (1) The amount of the New Building Sustainability Tax Credit must be equal to: (A) 25% of the property tax owed on the building for 4 years if the building achieves the most recent version available of LEED Gold, NGBS Gold, PHIUS+/PassiveHouse, BREEAM-NC Excellent or an equivalent standard; (B) 75% of the property tax owed on the building for 4 years if the building achieves the most recent version available of LBC Petal Certification, LEED Platinum, NGBS Emerald, BREEAM-NC Outstanding or an equivalent standard; or (C) 75% of the property tax owed on the building for 5 years if the building achieves the most recent version available of Living Building Certification. (2) To be approved for the New Building Sustainability Tax Credit, an energy-efficient building must first be approved for the New Building Energy Reduction Tax Credit. (h) Expanded credit for buildings in Equity Emphasis Areas. (1) The owner of a newly constructed energy-efficient building located within an Equity Emphasis Area at the time of application may qualify for an expanded credit under this subsection. (2) The owner must apply for a credit under this subsection simultaneously with an application for the New Building Energy Reduction Tax Credit. (3) The amount of the tax credit under this subsection must be added to the New Building Energy Reduction Tax Credit for each year that the New Building Energy Reduction Tax Credit is granted. (4) The amount of the tax credit under this subsection must be equal to 10% of the annual property tax owed on the building. (i) Total Maximum Credit. The maximum credit under this Section that an energy-efficient building may be granted in any fiscal year must not exceed 100% of the building’s annual property tax liability. (j) Credit Review. (1) By October 1 of each year, the Director must prepare a report on the status of the New Building Energy Reduction Tax Credit and the New Building Sustainability Tax Credit. (2) Every 3 years, the County Executive must submit a report to the Council reviewing the effectiveness of the New Building Energy Reduction Tax Credit and the New Building Sustainability Tax Credit and making recommendations on any credit alterations. (k) Regulations. The County Executive may issue regulations under method (2) to administer the New Building Energy Reduction Tax Credit and the New Building Sustainability Tax Credit. **Sec. 52-104. Property tax credit — renewable energy.** (a) Definitions. In this Section, the following words have the meanings indicated: Director means the Director of the Department of Finance or the Director’s designee. Eligible cost means the cost of buying or installing a solar or geothermal energy device or energy conservation device, including any part, component, or accessory necessary to operate the device, that is installed within 12 months before a property owner submits an application to the Department of Finance under subsection (f). Energy conservation device means a device that: (1) reduces the demands for conventional fuels or efficiency of these fuels, including: (A) caulking and weatherstripping doors and windows; (B) furnace efficiency modifications, including: (i) replacing a burner, furnace, heat pump, or boiler if the replacement substantially increases the energy efficiency of the heating system; (ii) a device to modify flue openings that increases the energy efficiency of the heating system; and (iii) any electrical or mechanical furnace ignition system which replaces a standing gas pilot light; (C) a programmable thermostat; (D) ceiling, attic, wall, or floor insulation; (E) water heater insulation; (F) storm windows or doors, multiglazed windows or doors, and heat- absorbed or heat-reflective glazed window or door materials; (G) any device which controls demand of appliances and aids load management; and (H) any other conservation device, renewable energy technology, and specific home improvement that the Director finds necessary to assure that energy conservation measures are effective; and (2) meets safety and performance standards set by a nationally recognized testing laboratory for that kind of device. Energy conservation device does not include a standard household appliance, such as a washing machine or clothes dryer. Geothermal energy device means a device that: (1) uses geothermal energy to heat or cool a structure, to provide hot water for use in the structure, or to generate electricity to be used in the structure; and (2) meets safety and performance standards set by a nationally recognized testing laboratory for that kind of device. Solar energy device means a device that: (1) uses solar energy to heat or cool a structure, to provide hot water for use in the structure, or to generate electricity to be used in the structure; and (2) meets safety and performance standards set by a nationally recognized testing laboratory for that kind of device. Tax-Property Article means the Tax-Property Article of the Maryland Code. (b) Credit. As authorized by § 9-203 of the Tax-Property Article, an individual who owns and occupies a single-family home that uses a solar or geothermal energy device or an energy conservation device may receive a credit against the County property tax. An individual must only receive a credit for a device that the individual owns. (c) Amount of Credit. (1) The credit allowed under this Section for a geothermal or solar energy device is the lower of: (A) 50% of the eligible costs; or (B) $5,000 for a heating or cooling system, $1,500 for a hot water supply system, or $5,000 for a device that generates electricity. (2) In any fiscal year, a person must not receive a credit for more than 1 geothermal or solar energy device per property. (3) In any fiscal year, the credit allowed under this Section for eligible costs for all energy conservation devices must not exceed $250 per property. (d) Annual aggregate limit. (1) Unless a larger amount is approved in the annual operating budget or a Council resolution, during any fiscal year, the total credits granted under this Section must not exceed: (A) $400,000 for solar and geothermal energy devices; and (B) $100,000 for energy conservation devices. (2) Credits must be granted in the order in which the Department of Finance receives complete applications under subsection (f). (3) A complete application that, if granted, would cause the limit set in paragraph (1) of this subsection to be exceeded, must be granted in the next fiscal year or years based on the order in which the Department of Finance received the application. (e) Carry Over. (1) The amount of credit in any tax year must not exceed the amount of the County property tax imposed on the property in that tax year. (2) Any amount of credit not taken in the tax year in which an application is approved may be carried over for an additional two years. (3) When a credit is carried over under this subsection, the full amount of the credit must be counted towards the annual aggregate limit established in subsection (d) in the year in which an application is approved. (f) Application. (1) A property owner must submit an application to the Director on or before the date that the Director sets. (2) An application must: (A) be on the form that the Director requires; (B) demonstrate that the taxpayer is entitled to the credit; and (C) include a certification from the Department of Permitting Services, indicating that the device for which the credit is sought: (i) is a solar or geothermal energy device; and (ii) has been properly installed. (3) The Department of Permitting Services must accept a certification by another government agency, including a municipality, that the device has been properly installed. (g) Applicability. The credit authorized by this Section applies to any tax year beginning after June 30, 2008. However, the Director must not grant a credit for a solar or geothermal energy device for any application received after November 8, 2011, unless an individual: (1) enters into a contract for eligible costs on or before November 8, 2011; and (2) applies for the credit on or before November 8, 2012. **Sec. 52-105. Property tax credit — publicly sponsored business incubator.** (a) In this section “business incubator” has the meaning in the State law which authorizes this property tax credit. (b) The Director of Finance must allow a tax credit, as authorized by State law, to a taxpayer against all County property tax and special area tax imposed on property that is used as a business incubator if the State, the County, or an agency or instrumentality of the State or County: (1) owns, controls, or leases the space that is used as a business incubator; or (2) provides at least 50% of the total funding received by the business incubator from all sources, not including rents received from incubator tenant firms. (c) The Department of Finance must administer this credit. (d) The taxpayer must apply annually for the tax credit by the first day of March before the tax year when the tax credit would be allowed. An application must be filed on forms that the Department prescribes. The applicant must submit any supporting document, information, or certification required by the Department. (e) Any taxpayer aggrieved by a decision of the Director to deny a credit under this Section may appeal that decision to the Maryland Tax Court. Each appeal must be filed within 30 days after the taxpayer receives written notice of the decision from the Director. (f) The County Executive may adopt regulations under method (2) to administer this Section. (g) The County Executive must report annually to the County Council on the use of this tax credit. (h) (1) A person must not knowingly file a false or fraudulent application to obtain a tax credit under this Section. A violation of this subsection is a class A violation. (2) In addition to the penalties provided under paragraph (1), a person who violates this subsection must pay the County any taxes, together with interest and penalties, offset by the credit, any other penalty due, and the County’s fees and costs in any action to enforce this subsection. **Sec. 52-106. Property tax credit — accessibility features.** (a) Definitions. In this Section, the following terms have the meaning indicated. Department means the Department of Permitting Services. Director means the Director of the Department or the Director’s designee. Eligible costs means costs that are: (1) incurred within 12 months before the property owner submits an application to the Department for the credit; (2) for a feature authorized under this Section, including reasonable costs to install the feature; (3) paid by the applicant and not, or will not be, reimbursed by any entity; and (4) in excess of $500. Feature means a permanent modification to a residence that results in: (1) a no-step front door entrance with a threshold that does not exceed ½ inch in depth with tapered advance and return surfaces or, if a no-step front entrance is not feasible, a no-step entrance to another part of the residence that provides access to the main living space of the residence; (2) an installed ramp creating a no-step entrance; (3) an interior doorway that provides a 32-inch wide or wider clearing opening; (4) an exterior doorway that provides a 32-inch wide or wider clear opening, but only if accompanied by exterior lighting that is either controlled from inside the residence, automatically controlled, or continuously on; (5) walls around a toilet, tub, or shower reinforced to allow for the proper installation of grab bars with grab bars installed in accordance with the Americans with Disabilities Act Standards for Accessible Design; (6) maneuvering space of at least 30 inches by 48 inches in a bathroom or kitchen so that a person using a mobility aid may enter the room, open and close the door, and operate each fixture or appliance; (7) an exterior or interior elevator or lift or stair glide unit; (8) an accessibility-enhanced bathroom, including a walk-in or roll-in shower or tub; or (9) an alarm, appliance, and control structurally integrated into the unit designed to assist an individual with a sensory disability. (b) Credit established. In accordance with Section 9-250 of the Tax-Property Article of the Maryland Code, the owner of real property may receive a property tax credit against the County property tax for a feature that is installed on an existing residence that is the owner’s principal residence when the feature is installed. (c) Credits. (1) The tax credit allowed under this Section is the lesser of: (A) 50% of the eligible costs; or (B) $2,500 less any subsidy received from a governmental, quasi-governmental, or non-profit entity for the feature. (2) Any credit that is received which exceeds the annual tax liability of the property may be carried over to the next tax year. (3) The credit runs with the property upon the transfer of title, and the balance of any credit must be applied to the tax bill of the subsequent owner of the property. (d) Annual Limit on Amount of Credits Granted. (1) During any fiscal year, the total of all tax credits granted under this Section must not exceed $100,000. (2) Credits must be granted in the order in which the Department certifies the amount of the credit under subsection (e)(3). (3) A certification of a credit that would cause the limit in subsection (d)(1) to be exceeded must be granted in the next tax year or years, subject to subsections (c) and (d)(1). (e) Application for the Credit. (1) To receive the credit, a property owner must submit an application to the Department: (A) in the format the Department requires; (B) that includes a copy of the building permit to install the feature; (C) that includes any document that the Department requires; and (D) on or before the date the Department sets. (2) The Department must only accept one application for a credit under this Section for each property during a single tax year. (3) The Department must certify to the Department of Finance that the property is eligible for the credit and the amount of the credit. (4) A property owner may submit an application on or after March 1, 2014 for a credit. (f) Administration. (1) The County Executive may adopt regulations under Method (2) to administer this Section. (2) The Department must submit a written report to the Council by October 1 of each year for the preceding fiscal year. The report must include the following: (A) number of applicants; (B) number of applications approved; (C) modification made by the applicant; (D) other sources from which the applicant received funds or applied for assistance for the modification; (E) efforts to advertise the credit; and (F) any program recommendations. (g) Publicity. The Department must publicize the credit in a way designed to inform those most likely to benefit from the credit. (h) Effective Date. The credit authorized by this Section applies to tax years beginning on or after July 1, 2014. **Sec. 52-107. Property tax credit — level I and level II accessibility standards.** (a) Definitions. In this Section, the following terms have the meaning indicated: Department means the Department of Permitting Services. Director means the Director of the Department or the Director’s designee. Eligible costs means costs that are: (1) incurred within 12 months before the property owner submits an application to the Department for the credit; (2) for an accessibility feature authorized under this Section, including reasonable costs to install the feature; (3) paid by the applicant and not, or will not be, reimbursed by any entity; and (4) in excess of $500. Accessibility Feature means a permanent addition to a single family residence that is a requirement under a Level I or Level II Accessibility Standard. Level I Accessibility Standard means a permanent addition to a single family residence that include at least one no-step entrance located at any entry door to the house that is connected to an accessible route to a place to visit on the entry level, a usable powder room or bathroom, and a 32-inch nominal clear width interior door as further defined and described in Executive Regulations adopted under Method 2. Level II Accessibility Standard means permanent additions to a single family residence that provide all of the Level I Accessibility Standards plus an accessible circulation path that connects the accessible entrance to an accessible kitchen, a full bath, and at least one accessible bedroom, as further defined and described in Executive Regulations adopted under Method 2. Single family residence means an attached or detached single family home. (b) Credit established. As authorized by Section 9-250 of the Tax-Property Article of the Maryland Code, the owner of a single family residence located in Montgomery County may receive a property tax credit against the County real property tax for the cost of features that achieve Level I or Level II Accessibility Standards. (c) Amount of Credit. The tax credit permitted by this Section must be as follows: (1) For features meeting Level I Accessibility Standards, certified costs of up to $3,000 less any credit received against the Development Impact Tax for School Improvements under Section 52-58 for those features and less any funds or assistance received for the accessibility feature. (2) For features meeting Level II Accessibility Standards, certified costs of up to $10,000 less any credit received against the Development Impact Tax for School Improvements under Section 52-58 for those features and less any funds or assistance received for the accessibility feature. (3) The maximum amount of credit that may be applied in any one tax year is $2,000. (4) The amount of credit that may be applied in any one tax year must not exceed the amount of County property tax imposed on the property in that year. (5) Any credit that is granted that exceeds the limit set in subsection (c)(3) or exceeds the annual tax liability of the property may be carried over to the next tax year, subject to subsection (c)(3), until the entire amount of the credit is applied. (6) The credit runs with the property upon transfer of title and the balance of any credit must be applied to the tax bill of the subsequent owner of the property. (d) Annual Limit on Amount of Credits Granted. (1) During any tax year, the total of all tax credits granted under this Section must not exceed $500,000. (2) Credits must be granted in the order in which the Department certifies the amount of the credit under subsection (e)(3). (3) A certification of a credit that would cause the limit in subsection (d)(1) to be exceeded must be granted in the next tax year or years subject to subsections (c)(3) and (d)(1). (e) Application for the Credit. (1) To receive the credit, a property owner must submit an application to the Department: (A) in the format the Department requires; (B) that includes a copy of the building permit to install the feature; (C) that includes any document that the Department requires; and (D) on or before the date set in the regulations. (2) The Department must only accept one application for a credit under this Section for each property during a single tax year. (3) The Department must certify to the Department of Finance that the property is eligible for the credit and the amount of the credit. (4) A property owner may apply for a credit on or after March 1, 2014. (f) Administration. (1) The County Executive may adopt regulations under Method (2) to administer this Section. (2) The Department must submit a written report to the Council by October 1 of each year for the preceding tax year. The report must include the following: (A) number of applicants; (B) number of applications approved; (C) modification made by the applicant; and (D) efforts to promote the credit. (g) Publicity. The Department must publicize the credit in a way designed to inform those most likely to benefit from the credit. (h) Effective Date. The credit authorized by this Section applies to tax years beginning on or after July 1, 2014. **Sec. 52-108. Burtonsville Enterprise Zone Property.** (a) Definitions. In this Section, the following words have the meanings indicated: Base year means the taxable year immediately before the taxable year in which a credit under this Section is to be granted. Base year value means the value of the property used to determine the assessment on which the property tax on real property was imposed for the base year. Base year value does not include any new real property that was first assessed in the base year. Eligible assessment means the difference between the base year value and the actual value as determined by the Department for the applicable taxable year in which the tax credit under this Section is to be granted. Eligible business entity means a person who operates or conducts a trade or business on qualified enterprise zone property but does not own the qualified enterprise zone property. Qualified property means real property that: (1) is located within the area encompassed by the Burtonsville Crossroads neighborhood Plan developed by the Montgomery County Planning Department; (2) is zoned for commercial or commercial/residential mixed use development and is used for a commercial purpose; and (3) is improved after the effective date of this Bill and before January 1, 2020 or another date provided in Section 9-317 of the Tax-Property Article. Tax-Property Article means the Tax-Property Article of the Maryland Code. (b) Credit. (1) Credit authorized. The Director of Finance must allow a credit, as authorized by State law, to a taxpayer against all County property tax and imposed on: (A) improvements made by an eligible business entity to qualified property; and (B) personal property owned by an eligible business entity located on qualified property. (2) Duration of credit. A credit under this Section is available to a qualified property for no more than 5 consecutive years beginning with the taxable year following the calendar year in which the real property initially becomes a qualified property. (3) Amount of credit. The amount of the credit is equal to 80% of the amount of property tax imposed on the eligible assessment of the qualified property in each of the first 5 taxable years following the calendar year in which the property initially becomes a qualified property. (4) Nonresidential portions of qualified property. The Department must allocate the eligible assessment to the nonresidential part of the qualified property at the same percentage as the square footages of the nonresidential part is to the total square footage of the building. (5) For purposes of calculating the amount of the credit allowed under this Section, the amount of property tax imposed on the eligible assessment must be calculated without reduction for any credits allowed under the Tax-Property Article. (c) Regulations. The County Executive may adopt regulations under Method (2) to administer this Section. (d) False or fraudulent applications. (1) A person must not knowingly file a false or fraudulent application to obtain a tax credit under this Section. A violation of this subsection is a Class A violation. (2) In addition to the penalties provided under paragraph (1), a person who violates this subsection must pay the County any taxes, together with interest and penalties, offset by the credit, any other penalty due, and the County’s fees and costs in any action to enforce this subsection. **Sec. 52-109. Property tax credit — reduced rent for elderly or disabled tenants.** (a) Definitions. In this Section: Director means the Director of Finance or the Director’s designee. Elderly or disabled tenant means a tenant who meets the income- and asset-based eligibility requirements established by regulation under subsection (f) and: (1) is at least 65 years old; (2) has been found permanently and totally disabled and has qualified for benefits under: (A) the Social Security Act; (B) the Railroad Retirement Act; (C) any federal act for members of the United States armed forces; or (D) any federal retirement system; or (3) has been found permanently and totally disabled by the County health officer. Market rent means an amount, determined by the Department of Housing and Community Affairs, equal to: (1) the rent charged to other tenants for comparable units in the same property; or (2) if there are no other comparable units in the same property, the rent charged for comparable units in the same market area. Reduced rent means rent charged to an elderly or disabled tenant that is at least 15% less than market rent. Rent reduction means the difference between the market rent and reduced rent for the dwelling. Tax-Property Article means the Tax-Property Article of the Maryland Code. (b) Credit. As authorized by §9-219 of the Tax-Property Article, the owner of a rental dwelling who provides reduced rent to an elderly or disabled tenant may receive a credit against the County property tax. (c) Amount of Credit. (1) The credit allowed under this Section is 50% of the total rent reductions provided by the owner to elderly or disabled tenants during the tax year. (2) A credit granted to a person under this Section must not exceed the amount of County property tax paid by the person in the tax year in which the credit is granted. (d) Annual aggregate limit. (1) Unless a larger amount is approved in the annual operating budget or a Council resolution, during any fiscal year, the total credits granted under this Section must not exceed $250,000. (2) Credits must be granted in the order in which the Department of Finance receives complete applications under subsection (e). (3) A complete application that, if granted, would cause the limit set in paragraph (1) of this subsection to be exceeded, must be granted in the next fiscal year or years based on the order in which the Department of Finance received the application. (e) Application. (1) A property owner must submit an application to the Director on or before the date that the Director sets. (2) An application must: (A) be on the form that the Director requires; and (B) demonstrate that the taxpayer is entitled to the credit. (f) Regulations. The County Executive must adopt regulations under method (2) to administer this Section, including income- and asset-based tenant eligibility requirements. **Sec. 52-110. Property tax credit — individuals 65 and above and retired military services members.** (a) Definitions. In this Section, the following words have the meanings indicated: Department means the Department of Finance. Director means the Director of the Department or the Director’s designee. Dwelling has the same meaning as in § 9-105 of the Tax-Property Article of the Maryland Code. (b) Credit. As authorized by § 9-258 of the Tax-Property Article of the Maryland Code, an eligible individual may receive a credit against the County property tax imposed on the dwelling of an eligible individual. (c) Eligibility. An individual is eligible to receive a property tax credit if: (1) (A) the individual is at least 65 years old; (B) the individual has lived in the same dwelling for at least the preceding 40 years; and (C) the dwelling for which a property tax credit is sought has a maximum assessed value of $700,000 at the time the individual first applied for the credit; (2) (A) the individual is at least 65 years old; (B) the individual is a retired member of the uniformed services of the United States as defined in 10 U.S.C. §101, the military reserves, or the national guard; and (C) the dwelling for which a property tax credit is sought has a maximum assessed value of $550,000 at the time the individual first applied for the credit; or (3) (A) the individual is a surviving spouse of a retired member of the uniformed services of the United States as defined in 10 U.S.C. §101, the military reserves, or the national guard; (B) the surviving spouse is at least 65 years old; and (C) the surviving spouse has not remarried. (d) Amount and duration of credit. (1) The credit allowed under this Section is 20% of the County property tax imposed on the dwelling. (2) The credit must be granted each year for 7 years if the individual remains eligible for the credit. (e) Application. (1) A property owner must submit an application to the Director on or before April 1 before the tax year that the individual first seeks to receive the credit. An annual application is not required for an individual to receive the credit. (2) An application must: (A) be on the form that the Director requires; and (B) demonstrate that the taxpayer is entitled to the credit. (f) Regulations. The County Executive may issue regulations under Method 2 to administer this tax credit. (a) The Council declares that this legislation is necessary for the immediate protection of the public interest. Section 52-110, as amended by Section 1 of this Act, takes effect on July 1, 2019. (b) Notwithstanding Section 52-110(e), an individual that meets the eligibility criteria of Section 52-110(c)(3) must submit an application to the Director on or before October 1, 2019 if the individual seeks to receive the tax credit for Fiscal Year 2020. (a) Section 1 of this Act takes effect on the date on which it becomes law and applies retroactively to March 31, 2018. (b) Section 2 of this Act takes effect on July 1, 2018. Notwithstanding Section 52-110(e), an individual that meets the eligibility criteria of Section 52-110(c)(3) must submit an application to the Director on or before September 1, 2018 if the individual seeks to receive the tax credit for Fiscal Year 2019. **Sec. 52-111. Urban Agricultural Tax Credit.** (a) Definitions. In this Section: Gross income means the revenue received from the sale of products grown or raised on the property, including the fair market value of food products grown or raised on the property donated to an organization registered as a charitable organization with the Maryland Secretary of State. Urban agricultural property means real property in a residential zone that is: (1) at least one-half of an acre and not more than 3 acres; (2) located within 1000 feet of or in a Metro Station Policy Area, as defined in the most recent Growth and Infrastructure Policy adopted under Section 33A-15, including the: (A) Bethesda Central Business District; (B) Friendship Heights; (C) Glenmont; (D) Grosvenor; (E) Rockville Town Center; (F) Shady Grove; (G) Silver Spring Central Business District; (H) Twinbrook; (I) Wheaton Central Business District; and (J) White Flint; and (3) used for urban agricultural purposes. Urban agricultural purposes means (1) the cultivation of fruits, vegetables, flowers, and ornamental plants; (2) the limited keeping and raising of fowl or bees; or (3) the practice of aquaculture. (b) Credit required. The Director of Finance must allow each eligible taxpayer a credit against County real property taxes due in each tax year in which the taxpayer is eligible for the credit. (c) Eligibility. A property owner is eligible for the tax credit each year: (1) the urban agricultural property is used solely for urban agricultural purposes, except an individual may also reside on the property; (2) the property owner has more than $5000 in gross income from the sale of products grown or raised on the urban agricultural property; and (3) the property owner files a timely application for the credit with proof of eligibility. (d) Amount of credit. The credit must equal 80% of the County property tax otherwise due on the property. (e) Application. In order to receive the credit, a property owner must apply for the credit with the Office of Agriculture on or before April 1 of the tax year before the first tax year the tax credit is sought on a form containing the information required by the Office of Agriculture. A property owner must apply to continue the credit on or before April 1 of the tax year before each subsequent tax year. The Director of Finance must determine taxpayer eligibility for the credit based upon the recommendation from the Office of Agriculture. (f) Term of credit. (1) The term of the credit is 5 tax years, unless renewed. (2) A taxpayer may apply to renew the credit no later than 90 days before the expiration of the credit for another 5 tax years. (g) Continuous agricultural use required. If, at any time during the term of the credit or the renewal of the credit, the property is no longer used for agricultural purposes: (1) the credit granted to the property must be terminated; and (2) the owner of the property is liable for all property taxes that would have been due if the credit had not been granted for any year that the property was not used for agricultural purposes. (h) Contiguous lots. A property owner may combine 2 or more contiguous subdivision lots under common ownership into one property to satisfy the minimum lot size for an urban agricultural property in subsection (a). (i) Appeal. The Director must take all actions necessary to apply the credit to each eligible taxpayer who applies for the credit and is certified as eligible by the Office of Agriculture. A taxpayer may appeal a final decision by the Director denying or terminating the credit to the Maryland Tax Court within 30 days after receiving a notice of denial or termination from the Director. **Sec. 52-112. Police Officer Property Tax Credit.** (a) Definitions. In this Section: Active volunteer means a local fire and rescue department volunteer who was eligible for a nominal fee for active service for the preceding tax year. Correctional officer means a Correctional Officer I, Correctional Officer II, Correctional Officer III, Correctional Dietary Officer I, Correctional Dietary Officer II, Resident Supervisor I, Resident Supervisor II, Resident Supervisor III, Correctional Supervisor-Sergeant, Correctional Dietary Supervisor, Correctional Shift Commander-Lieutenant, Correctional Unit Commander- Captain, Deputy Warden, or Warden employed by the County. Deputy sheriff means a deputy sheriff of the Office of the Sheriff for Montgomery County. Director means the Director of the Department of Finance or the Director’s designee. Dwelling means as defined in Md. Tax-Property Code Ann. § 9-105. Public safety emergency communication specialist means a full-time County employee responsible for providing mission critical services between the general public in crisis and law enforcement, fire, emergency medical, and animal control providers in the 9-1-1 emergency communications center. Public safety officer means a full-time sworn police officer, firefighter, emergency medical technician or correctional officer employed by the County, the Maryland-National Capital Park and Planning Commission (M-NCPPC), the Washington Suburban Sanitary Commission (WSSC), the Washington Suburban Transit Commission (WSTC), or by a County municipality. Public safety officer also includes a full-time County employee assigned to the Department of Health and Human Services Crisis Center and responsible for providing emergency response services as certified annually by the Chief of Behavioral Health and Crisis Services within the Department of Health and Human Services. (b) Credit required. The Director must allow each eligible taxpayer a credit against County real property taxes due in each tax year in which the taxpayer is eligible for the credit. (c) Eligibility. A taxpayer is eligible for the tax credit each year for residential property located in the County if the taxpayer: (1) is a public safety officer, a public safety emergency communication specialist, a deputy sheriff, or an active volunteer; (2) is using the property as the employee’s principal residence; (3) occupies or is expected to occupy the property for more than 6 months of a 12-month period beginning with the date of finality for the taxable year for which the property tax credit under this section is sought; and (4) is a legal owner of the property. (d) Amount of credit. The credit must equal the lesser of $2,500 or the amount of the County property tax otherwise due on the property. (e) Application. In order to receive the credit, a public safety officer or a public safety emergency communications specialist must apply for the credit with the Director on or before April 1 of the tax year before the first tax year the tax credit is sought on a form containing the information required by the Director. An employee must apply to continue the credit on or before April 1 of the tax year before each subsequent tax year. The Chief of Behavioral Health and Crisis Services within the Department of Health and Human Services must provide the annual certification required under Section 52-112(a) by April 1. The Director must determine taxpayer eligibility for the credit. (f) Continuous eligibility required. If, at any time during the term of the credit or the renewal of the credit, the property is no longer eligible for the credit: (1) the credit granted to the property must be terminated; and (2) the owner of the property is liable for all property taxes that would have been due if the credit had not been granted for any year that the property was not eligible for the credit. (g) Appeal. The Director must take all actions necessary to apply the credit to each eligible taxpayer who applies for the credit and is certified as eligible by the Director. A taxpayer may appeal a final decision by the Director denying or terminating the credit to the Maryland Tax Court within 30 days after receiving a notice of denial or termination from the Director. **Sec. 52-113. Property tax credit — disabled veterans.** (a) Definitions. In this Section, the following words have the meanings indicated: Annual income means the federal adjusted gross income of a tax filer for the immediately preceding taxable year. Department means the Department of Finance. Director means the Director of the Department or the Director’s designee. Disabled veteran means an individual who: (1) is honorably discharged or released under honorable circumstances from active military, naval, or air service as defined in 38 U.S.C. Section 101, as amended; and (2) either: (A) has been declared by the U.S. Department of Veterans Affairs, or its successor, to have a permanent service-connected disability of at least 50 percent that results from blindness or any other disabling cause that: (i) is reasonably certain to continue for the life of the veteran; and (ii) was not caused or incurred by misconduct of the veteran; or (B) has been declared by the U.S. Department of Veterans Affairs to have a nonpermanent service-connected disability of 100 percent that results from blindness or any other disabling cause that was not caused or incurred by misconduct of the veteran. Dwelling house means real property that is: (1) the legal residence of a disabled veteran; and (2) occupied by not more than two families. Dwelling house includes the lot or curtilage and structures necessary to use the real property as a residence. Surviving spouse means an individual who: (1) was married to an eligible disabled veteran at the time of the disabled veteran’s death; (2) has not remarried; and (3) has a legal interest in the dwelling house. If the disabled veteran was unmarried at the time of death, or if the individual married to the veteran died simultaneously with or predeceased the veteran, then surviving spouse includes a person with a legal interest in the dwelling house who is: (1) a minor child of the veteran, a trust for the benefit of the minor child, or a legal guardian of the minor child; or (2) if the veteran does not have a minor child, any other legal dependent of the veteran. (b) Credit. As authorized by Section 9-265 of the Tax-Property Article of the Maryland Code, as amended, a disabled veteran, or surviving spouse of the disabled veteran, may receive under this Section a credit against the County property tax imposed on a dwelling house. (c) Eligibility. A disabled veteran is eligible to receive a property tax credit under this Section if: (1) the dwelling house is owned by the disabled veteran; (2) the federal adjusted gross income of the disabled veteran for the immediately preceding taxable year does not exceed $100,000; and (3) the application requirements of subsection (d) are met. (d) Application. (1) A property owner must submit an application to the Director on or before April 1 before the tax year that the individual seeks to receive the credit. (2) An application must: (A) be on the form that the Director requires; (B) include a copy of the disabled veteran’s discharge certificate from active military, naval, or air service; and (C) on the form provided by the Director, include a certification of the disabled veteran’s disability from the U.S. Department of Veterans Affairs or its successor. (3) The disabled veteran’s certificate of disability must not be inspected by individuals other than: (A) the disabled veteran; and (B) appropriate employees of the County as needed to process the application. (4) If a person requests to inspect the veteran’s certificate of disability, or any other information related to the eligibility of a disabled veteran or a surviving spouse, the County immediately must notify the disabled veteran or the surviving spouse of the request. (e) Amount and duration of credit. (1) The property tax credit granted under this section must equal: (A) 50 percent of the County property tax imposed on the dwelling house if the disabled veteran’s service-connected disability rating is at least 75 percent and the disabled veteran does not qualify for a property tax exemption under Section 7-208 of the Tax-Property Article of the Maryland Code, as amended; or (B) 25 percent of the County property tax imposed on the dwelling house if the disabled veteran’s service-connected disability rating is at least 50 percent but not more than 74 percent. (2) The credit must be granted each year the individual remains eligible for the credit. (3) If a disabled veteran to whom the County granted the credit dies, the County must grant the same credit amount to the surviving spouse of the veteran. (f) Regulations. The County Executive may issue regulations under Method (2) to administer this tax credit.