Article I. General.

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.

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).

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.

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).

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).

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).

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.

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.

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.

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.

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.

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.

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.

Separate fund required. The Department of Finance must segregate funds received under this Section from other revenue the County collects.

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.

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.

The estimated personal property tax must be calculated by applying the applicable current property tax rate to the most recent assessment of the property.

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.

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.

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.

The county executive may make tax anticipation certificates available at:

If warranted, the county executive may pay a bank for the service of issuing and accepting tax anticipation certificates.

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.

Interest shall accrue on tax anticipation certificates in the amount that the county executive determines by regulation.

The purchase of a tax anticipation certificate by a property owner:

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.

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.

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.

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.

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.

When return to be filed. Returns of all tangible personal property other than automobiles shall be filed prior to April 15 of each year.

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.

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.

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.

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.

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.

65% for the taxable year beginning July 1, 2008;

60% for the taxable year beginning July 1, 2009; and

55% for the taxable year beginning July 1, 2010.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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:

In this section:

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.

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:

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.

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.

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.

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.

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.

The following words and phrases, when used in this Section, have the following meanings:

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.

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:

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.

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.

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.

All taxes paid within three years prior to the effective date of this Act.

All taxes due and/or assessable for periods within four years prior to the effective date of this Act.

All taxes due, payable, billed or assessed where legal action has been instituted and is pending on the effective date of this Act.

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.

In addition to the exemptions listed in Section 4-103 of the Tax-General Article, the following gross receipts are exempt from this tax:

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.

Rates. The rates and the allocations of the recordation tax, levied under Md. Tax- Property Code §§12-101 to 12-118, as amended, are:

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.

the cost of County government capital improvements; and

rental assistance programs for low- and moderate-income households, which must not be used to supplant any otherwise available funds.

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.

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.

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.

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:

There is hereby created an appeal tax court to be known as "the appeal tax court for Montgomery County, Maryland."

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.

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.

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.

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:

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.

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.

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.

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.

All taxes deferred and interest accrued thereon shall be due and payable upon any of the following conditions:

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.

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.

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.

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.

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.

County real property taxes eligible for the deferral shall, where applicable, consist of:

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.

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.

No penalty shall be charged during the period of the deferral on any taxes deferred pursuant to this section.

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.

All taxes deferred and interest accrued thereon shall be due and payable upon any one of the following conditions:

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.

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.

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.

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.

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.

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.

In this section:

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.

A lien under this section:

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.

To enforce the lien and judgment on the property of the taxpayer for the tax, interest, penalties, fees, and costs, the county may:

Definitions. In this Section the following words have the meanings indicated:

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.

Program Eligibility. An owner is eligible for a payment deferral under this Section if:

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).

Eligible Taxes. County real property taxes that are eligible for deferral are the general County tax and, where applicable, special service area taxes.

Interest.

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.

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.

Penalties. A penalty must not be charged during the period of the deferral on any taxes deferred under this Section.

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).

Events Accelerating Payment. Except as otherwise provided in this subsection, all deferred taxes and accrued interest become due and payable if:

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.

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.

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.

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.

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.

Regulations. The County Executive must adopt regulations under method (2) to administer this tax deferral program.

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.

the Supervisor of Assessments certifies that the taxpayer has qualified for the exemption;

the taxpayer was qualified for an exemption during the entire taxable year for which the refund is claimed; and

the taxpayer claims a refund from the Director not later than 3 years after the tax to be refunded was paid.

Definitions. In this Section, the following words have the following meanings.

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.

When authorized by state law, the Director must offer a payment in lieu of taxes for a qualifying housing development:

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.

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:

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.

Definitions. In this Section, the following words have the following meanings:

When authorized by state law, the Director must offer a payment in lieu of taxes for a qualifying development.

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.

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:

A developer of a qualifying project who violates the guidelines included in the regulation adopted under subsection (d) has committed a Class A violation.

This Act must be known as the “Housing at Metrorail Stations Act.”

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.