Sec. 52-49. Tax rates.
Montgomery County, Md., Code § 52-49 (2026)
Sec. 52-49. Tax rates.LinkCopy Citation
(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: