Chapter 05. Country Clubs
Regulation .01 Definitions.LinkCopy Citation
A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Family” means those individuals recognized by a country club's or golf course's organizational documents as being in a member's family, but does not include more individuals than those listed in COMAR 18.02.01.01D.
(2)
“General public” means those individuals or organizations using a country club's or golf course's facilities who are not:
(a)
Members;
(b)
A member's family;
(c)
A member's guests; or;
(d)
Employees of the club or course.
(3)
“Guests” means those individuals recognized by a country club's or golf course's organizational documents as being a member's guest, subject to the following:
(a)
When club or course facilities are used by a group of eight individuals or less and one of the group is a member or family who pays for the use of the facilities, then any individual in the group who is not a member or family is considered a guest;
(b)
When club or course facilities are used by a group of more than eight individuals at least 75 percent of whom are members or family, the other individuals are considered guests;
(c)
When a club's or course's facilities are used by a group of more than eight individuals and the activity serves a personal, social, or business purpose directly benefiting a member, family, or employer of a member and is paid for by either the member or the employer, the individuals who are not members or family are considered guests.
(4)
“Members” means those individuals or organizations recognized by a country club's or golf course's organizational documents as belonging to the club or course, including their spouses.
(5)
“Primarily used” for a country club means:
(a)
At least 50 percent of the use of the club facility must be by members, family, or guests; and
(b)
Not more than 49 percent of the use of that facility may be by the general public.
(6)
“Primarily used” for a golf course means:
(a)
At least 50 percent of the use of the course facility must be by the general public; and
(b)
Not more than 49 percent of the use of that facility may be by members, family, or guests.
Regulation .02 Qualification.LinkCopy Citation
A.
For a country club to qualify for a country club agreement the:
(1)
Club must be located on at least 50 acres of land maintaining a regular or championship golf course of at least 9 holes and a clubhouse;
(2)
Golfing facilities within the area covered by the agreement must be primarily used by members, family, or guests;
(3)
Dining, ballroom, and meeting facilities within the area covered by the agreement must be primarily used by members, family, or guests;
(4)
Other club facilities within the area covered by the agreement must be primarily used by members, family, or guests;
(5)
Club shall submit the Department's application before the commencement of the agreement and each renewal term; and
(6)
Club shall submit the Department's questionnaire before the commencement of the agreement and each renewal term, and at other times the Department requires.
B.
Except for the golf course, the clubhouse, and a minimum of 50 acres of land, any club facility that is not primarily used by members, family, or guests may be excluded from an agreement.
C.
For a golf course to qualify for a golf course agreement the:
(1)
Course shall be located on at least 50 acres of land maintaining a regular or championship golf course of at least nine holes;
(2)
Golfing facilities within the area covered by the agreement shall be primarily used by the general public;
(3)
Other course facilities within the area covered by the agreement shall be primarily used by the general public in connection with the use of the golf facilities;
(4)
Course shall submit the Department's application before the commencement of the agreement and each renewal term; and
(5)
Course shall submit the Department's application questionnaire before the commencement of the agreement and each renewal term, and at other times the Department requires.
D.
Except for the golf course and a minimum of 50 acres of land, any course facility which is not primarily used by the general public in connection with the use of the golf facilities may be excluded from an agreement.
Regulation .03 Percentage Use — Country Clubs.LinkCopy Citation
A.
The percentage use of golfing facilities is determined by comparing the number of rounds played by members, family, and guests and by the general public with the total number of rounds played at the club.
B.
The percentage use of the dining, ballroom, and meeting facilities is determined by comparing the income generated by general public use with the total income attributed by the club to the use of those facilities.
C.
The percentage use of all other club facilities is determined by comparing the use by the members, family, and guests and the use by the general public with the total use of those facilities.
Regulation .04 Percentage Use — Golf Courses.LinkCopy Citation
A.
The percentage use of golfing facilities is determined by comparing the number of rounds played by members, family, and guests and the number of rounds played by the general public with the total number of rounds played on the course.
B.
The percentage use of any dining, ballroom, and meeting facilities is determined by comparing the:
(1)
Income generated by member, family, and guest use connected with the use of the golfing facilities;
(2)
Income generated by all use of those facilities that is also connected with the use of the golf facilities; and
(3)
Total income generated by all use of those facilities.
C.
The percentage use of all other club facilities is determined by comparing the use by the general public connected with the use of the golf facilities and the use by members, family, and guests connected with the use of the golf facilities with the total use of those facilities.
Regulation .05 Application.LinkCopy Citation
A.
The Department shall provide an application and questionnaire relative to a country club or golf course agreement.
B.
The application shall set forth the requirements for a country club or golf course use valuation.
Regulation .06 Valuation — Use Value.LinkCopy Citation
A.
Land values shall be based upon Tax-Property Article, §8-213, Annotated Code of Maryland.
B.
Course improvements such as tees, greens, fairways, and similar items shall be based upon the cost of these improvements less applicable depreciation.
C.
Any land and improvements that are not devoted to country club or golf course use shall be valued at market value.
D.
The land used as a country club or golf course clubhouse site shall be valued at use value.
Regulation .07 Notices.LinkCopy Citation
When country club or golf course land is reassessed according to its use value, country club or golf course land shall also be valued according to its market value. If the market value exceeds the use value, the owner shall be notified of both values.
Regulation .08 Termination of Agreement.LinkCopy Citation
After an agreement terminates, dual use and market valuations cease, and the market valuation is effective for the subsequent tax year.
Regulation .09 Termination by Club or Course Prohibited.LinkCopy Citation
A.
Except as otherwise provided in this regulation, when a country club or golf course makes an agreement with the Department under Tax-Property Article, §8-213(b), Annotated Code of Maryland, it may not terminate the agreement during its original term or any extension of the term, as provided by Tax-Property Article, §8-213(d), Annotated Code of Maryland, without the written consent of the Department.
B.
A country club or golf course may not enter into or continue an agreement if it:
(1)
Allows or practices discrimination under Tax-Property Article, §8-214, Annotated Code of Maryland;
(2)
Fails to meet the qualifications for a country club or golf course under Tax-Property Article, §8-212, Annotated Code of Maryland; or
(3)
Fails to meet the qualifications under Regulation .02 of this chapter.
C.
Land may not continue under an agreement if it:
(1)
Is conveyed to a new owner who does not accept the obligation of an agreement pursuant to Tax-Property Article, §8-217, Annotated Code of Maryland;
(2)
Ceases to be used as a country club and is not immediately subjected to a golf course agreement; or
(3)
Ceases to be used as a golf course and is not immediately subjected to a country club agreement.
Chapter annotations
Authority: Tax-Property Article, §§2-201, 2-202, 8-213, 8-218, and 8-219, Annotated Code of Maryland
History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
History: Regulation .01 amended and Regulations .02—.04 adopted effective March 11, 1996 (23:5 Md. R. 382)
History: Chapter revised effective October 19, 1998 (25:21 Md. R. 1575)
History: Regulation .05A amended effective May 26, 2003 (30:10 Md. R. 668)
History: Regulation .05B amended effective April 15, 2002 (29:7 Md. R. 622)
History: Regulation .08C amended effective May 26, 2003 (30:10 Md. R. 668)
History: Chapter revised effective March 15, 2004 (31:5 Md. R. 451)
History: Regulation .06A amended effective January 24, 2022 (49:2 Md. R. 78)