Sec. 52-59. Utilization Premium Payment.
Montgomery County, Md., Code § 52-59 (2026)
Sec. 52-59. Utilization Premium Payment.LinkCopy Citation
(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.