Brownfields Tax Credit Legislation

Emergency Bill No. 32-98

Concerning: Property Tax - Brownfields Credit

Revised: 11-19-98 Draft No. 3

Introduced: September 22, 1998

Enacted: November 24, 1998

Executive:

Effective:

Sunset Date: None

County Council

For Montgomery County, Maryland

By: Council President at the request of the County Executive

AN EMERGENCY ACT to:

(1) enable the County to participate in the state Brownfields Voluntary Cleanup and Revitalization Program;

(2) provide a property tax credit for the redevelopment of certain brownfields properties; and

(3) generally provide for a brownfields property tax credit as authorized by State law.

By adding to

Montgomery County Code

Chapter 52, Taxation

Article XI, Brownfields Property Tax Credit

Sections 52-75 through 52-80

The County Council for Montgomery County, Maryland approves the following Act:

Sec 1. Article XI, Brownfields Property Tax Credit, is added to Chapter 52 as follows:

Article XI

Brownfields Property Tax Credit

52-75. Definitions. In this Article, the following words have the meanings indicated.

(a) Corrective action plan means a corrective action plan for a Qualified Brownfields Site under Title 4 of the Environment Article of the Maryland Code.

(b) Director means the Director of the Department of Finance or the Director’s designee.

(c) Enterprise zone means an area designated under Article 83A, Section 9-103 of the Maryland Code, or any successor provision.

(d) Increased Property Tax Liability means the increase in the property tax levied on a Qualified Brownfields Site resulting from an increased assessment due to a voluntary cleanup of the Qualified Brownfields Site or due to a corrective action plan for the Qualified Brownfields Site. Increased Property Tax Liability includes increases in property taxes levied due to an increased assessment for additional improvements to a Qualified Brownfields Site. Increased Property Tax Liability [[does not include]] is calculated after deducting any other property tax credit applicable to the Qualified Brownfields Site. For a Qualified Brownfields Site with a prior use value, the Increased Property Tax Liability must be determined as if the Qualified Brownfields Site had no use value limitation.

(e) Property tax means the total County real property tax levied on the Qualified Brownfields Site annually under the Tax-Property Article. Property tax does not include parking district and urban district taxes.

(f) Qualified Brownfields Site has the meaning given in Article 83A, Section 3-901 of the Maryland Code.

(g) Tax-Property Article means the Tax-Property Article of the Maryland Code.

(h) Tax year means the 12-months beginning July 1 and ending on June 30.

(i) Use value means a special value of land for assessment purposes specified in Sections 8-209 through 8-217 and 8-220 through 8-225 of the Tax-Property Article.

(j) Voluntary cleanup means a voluntary cleanup of a Qualified Brownfields Site under Title 7, Subtitle 5 of the Environment Article of the Maryland Code.

52-76. Participation.

The County may participate in the Brownfields Incentive Program under Section 9-229 of the Tax Property Article.

52-77. Property Tax Credits.

(a) For each of the 5 tax years immediately after the first revaluation of a Qualified Brownfields Site after completion of a voluntary cleanup or corrective action plan, the Director must allow a property tax credit of 50% of the Increased Property Tax Liability for a Qualified Brownfields Site.

(b) For each of the 5 tax years immediately after the first revaluation of a Qualified Brownfields Site after completion of a voluntary cleanup or corrective action plan, the Director must allow an additional property tax credit of 20% of the Increased Property Tax Liability for a Qualified Brownfields Site located in:

(1) an enterprise zone; or

(2) a neighborhood designated by the County Council for participation in the Neighborhood Business Development Program under state law.

52-78. Applicability (application).

(a) The tax credits in Section 52-77 apply for:

(1) (a) 5 tax years; or

(2) (b) if the property is in an enterprise zone, 10 tax years.

(b) An application for a tax credit under Section 52-77 must be filed with the Director each year on forms prepared by the Director and must be accompanied by supporting information required by the Director.

(c) The Director must consult with the Directors of the Departments of Environmental Protection and Economic Development before acting on an application.]]

52-79. Contribution to Fund.

As provided in Subsection 9-229(e)(2) of the Tax-Property Article, for each tax year of the credit period the County must, after property taxes for a Qualified Brownfields Site have been paid, contribute to the Brownfields Revitalization Incentive Fund established under Maryland Code, Article 83A, Section 3-904. The contribution must be equal to 30% of the Increased Property Tax Liability of the Qualified Brownfields Site.

52-80. Termination of Credit.

A recipient of a property tax credit under this Article is no longer eligible if:

(a) the recipient of the property tax credit withdraws from the voluntary cleanup program under Section 7-512(A) or (B) of the Environment Article of the Maryland Code; or

(b) the Maryland Department of the Environment withdraws approval of a Response Action Plan or a Certificate of Completion under Section 7-512(E) and (F) of the Environment Article of the Maryland Code.

Sec. 2. Emergency Effective Date.

The Council declares that an emergency exists and that this legislation is necessary for the immediate protection of the public health and safety. This act takes effect on the date on which it becomes law.

Approved:

Isiah Leggett, President, County Council Date

Approved:

Douglas M. Duncan, County Executive Date

This is a correct copy of Council action.

Mary A. Edgar, CMC, Secretary of the Council Date

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