Sec. 52-45. Restrictions on use and accounting of development impact tax funds.

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.

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.

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.

The Department of Finance must maintain and keep adequate financial records for each account that must:

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.

The Department of Finance must annually issue a statement for each account.

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.

must not require the payment of a transportation mitigation payment or a school facilities payment for the same development; and

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.