Expedited Bill No. =26=<..-1..:....;1'--_ _ __
Concerning: Taxation -
Development
Impact Tax - Payment
Revised: 11-1-11
Draft No. 6
Introduced:
September 13, 2011
Enacted:
November 1, 2011
Executive: _ _ _ _ _ _ _ __
Effective:
December 1. 2011
Sunset Date: [[December 1. 20161]
~
ChI _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: COtlllcilmember Riemer, Cotlllcil President Ervin, and Cotlllcilmembers Berliner, Floreen,
Leventhal, Navarro, and Rice
AN EXPEDITED ACT
to:
(1)
(2)
(3)
[ftemoorarily]] require any development impact tax to be paid before a [[use and
occupancy permit is issued]] certain date;
[[temporarily]] require any transportation mitigation payment or school facilities
payment to be paid before a [[use and occupancy permit is issued]) certain date; and
generally amend the law governing development impact taxes.
By amending
Montgomery COtlllty Code
Chapter 52, Taxation
Sections 52-47[[, 52-49,]] and 52-50[[,52-51,52-54,52-55,52-56,52-59,52-89,52-93,52­
94]]
Boldface
Underlining
[Single boldface brackets]
QmJble underlining
[[Double boldface brackets]]
* *
*
Heading or defined term.
Added to existing law by original bill.
DeletedJrom existing law by original bill,
Added by amendment
DeletedJrom existing law or the bill by amendment.
Existing law unaffected
by
bill
The County Council for Montgomery County, Maryland approves the following Act.'
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EXPEDITED BILL
No. 26-11
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Section 1. Sections 52-47[[,52-49,]] and 52-50[[, 52-51, 52-54, 52-55, 52­
56, 52-59, 52-89, 52-93, and 52-94]] are amended as follows:
52-47. Definitions.
In this Article the following telTIlS have the following meanings:
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Applicant
means the property owner, or duly designated agent of the property
owner, of land on which a [building] [[use and occupancy]] building pelTIlit
has been requested for development.
*
*
*
Development
means the carrying out of any building activity or the making of
any material change in the use of any structure or land which requires issuance
of a [building] [[use and occupancy]] building pelTIlit and:
(1)
(2)
Increases the number of dwelling units; or
Increases the gross floor area ofnonresidential development.
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Development impact tax
means a pro rata per unit or per square foot of gross
floor area tax imposed before a [building] [[use and occupancy]] building
pelTIlit is issued for development which is intended to defray a portion of the
costs associated with impact transportation improvements that are necessary to
accommodate the traffic generated by the development.
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Property owner
means any person, group of persons, filTIl, corporation, or
other entity with a proprietary interest in the land on which a [building] [[use
and occupancyl1 building pelTIlit has been requested.
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Use and occupancy permit
means
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use and occupancy pelTIlit issued
Qy
the
Department ofPelTIlitting Services under Chapter 8.
52-49. Imposition and applicability of development impact taxes.
(a)
A development impact tax must be imposed before a [building] [[use
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EXPEDITED Bill
No. 26-11
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and occupancy]] building permit
Coun~.
IS
issued for development in the
(b)
An
applicant for a [building] [[use and occupancy]] building permit
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must pay a development impact tax in the amount and manner provided
in this Article, unless a credit in the full amount of the applicable tax
applies under Section 52-55 or an appeal bond is posted under Section
52-56.
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(b)
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52-50. Collection of development impact taxes.
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[Applicants] Each applicant for [building permits]
[[use and
occupancy]] building permit for development that is not exempt from
the development impact tax must supply to the Department of
Permitting Services for each requested [building] [[use and occupancy]]
building permit:
(I)
The number and
development; and
(2)
The gross floor area and type of development for nonresidential
development.
The
applicant
must
submit
for
inspection
relevant
support
~pe
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of dwelling units for residential
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documentation as the Department requires.
(c)
The Department of Permitting Services must not issue a [building] [[use
and occupancy]] building permit for development that is not exempt
from the development impact tax unless:
(I)
(2)
the applicant has paid the applicable development impact tax;
the applicant is entitled to a credit under Section 52-55 in the
amount of the applicable development impact tax; or
(3)
an appeal has been taken and a bond or other
sure~
posted under
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BILL
No. 26-11
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Section 52-56.
(d)
When a person applies to a municipality in the County for a [building]
[[use and occupancyJ] building permit for a building or dwelling unit,
the applicant must show that all payments due imder this Section with
respect to the building or unit have been paid. The Director of Finance
must promptly refund any payment made for any building or part of a
building for which a [building] [[use and occupancyJ] building permit is
not issued by the municipality.
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(k)
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If, within 10 years after a [building] [[use and occupancy]] building
permit is issued, any person changes the use of all or part of a building
to a use for which a higher tax would have been due under this Article
when the [building] [[use and occupancy]] building permit was issued
(including a change from a status, use, or ownership that is exempt from
payment to a status, use, or ownership that is not so exempt), the owner
of the building must within 10 days after the change in status, use, or
ownership pay all additional taxes that would have been due if the
building or part of the building had originally been used as it is later
used. If the building owner does not pay any additional tax when due,
each later owner is liable for the tax, and any interest or penalty due,
until all taxes, interest, and penalties are paid.
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ill
Notwithstanding any other provision of this Chapter, an applicant for a
building permit need not pay any development impact tax,
Transportation Mitigation Payment. or School Facilities Payment due
until:
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ill
if the building is a single-family detached or attached residential
building, the earlier of:
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EXPEDITED BILL
No. 26-11
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CA)
the final inspection of the building by the Department of
Permitting Services: or
LID
(2J
6 months after the building permit is issue<i: and
if the building is a multi-family residential or non-residential
development. the earlier of:
CA)
the final inspection of the building by the Department of
Permitting Services: or
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12 months after- the building permit is issued.
The rate of the
tax
or Payment due is the rate in effect when the
tax
or
Payment is paid. A permittee may appeal the imposition or calculation
of the tax or Payment under Section
52-56.
If the Department of
Permitting Services or a municipality revokes or suspends a building
permit or issues a stop-work order solely because the permittee did not
pay any tax or Payment due under. this Article. the permittee or any
other party must not appeal the permit revocation or suspension or the
stop work order issuance. or any modification of either, under Chapter
8.
If the appealing party posts a bond or other sufficient surety
satisfactory to the County Attorney as provided in Section
52-56,
the
Department or municipality must reissue or reinstate the building permit
or revoke the stop-work order.
52-51. Calculation of development impact tax.
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(a)
The Department of Permitting Services must calculate the amount of the
applicable development impact tax due for each [building] [[use and
occupancyJ] building permit by:
(1)
determining the applicable impact tax district and whether the
permit is for development that is exempt from the tax under
Section 52-49(f);
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(2)
verifying the number and type of dwelling units and the gross
floor area and type of nonresidential development for which each
[building] [[use and occupancy]] building permit is sought;
(3)
(4)
determining the applicable tax under Section 52-57; and
multiplying the applicable
tax
by:
(A)
(B)
the appropriate number of dwelling units; and
the gross floor area of nonresidential development.
(b)
If the development for which a [building] [[use and occupancy]]
building permit is sought contains a mix of uses, the Department must
separately calculate the development impact tax due for each type of
development.
(c)
If the type of proposed development cannot be categorized under the
defmitions of nonresidential and residential in Section 52-47, the
Department must use the rate assigned to the type of development
which generates the most similar traffic impact characteristics.
(d)
The Department must calculate the amount of the development impact
tax
due under this Article in effect when the [building] [[use and
occupancy]] building permit application is submitted to the Department,
or before a [building] [[use and occupancy]] building permit is issued
by a municipality.
(e)
A [building] [[use and occupancy]] building permit application, or if the
property is located in a municipality with authority to issue [building]
[[use and occupancy]] building permits, a request to determine the
amount of the impact tax, must be resubmitted to the Department if the
applicant changes the project by:
(1)
(2)
increasing the number of dwelling units;
increasing the gross floor area of nonresidential development; or
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EXPEDITED BILL No. 26-11
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(3)
changing the type of development so that the development impact
tax would be increased.
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The Department must recalculate the development impact tax based on
the plans contained in the resubmitted [building] [[use and occupancy]]
building permit application.
52-54. Refunds.
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(a)
Any person who has paid a development impact tax may apply for a
refund of the impact tax if:
(1)
the County has not appropriated the funds
for impact
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transportation improvements of the types listed in Section 52-58,
or othetwise formally designated a specific improvement of a
type listed in Section 52-58 to receive funds, by the end of the
sixth fiscal year after the tax is collected;
(2)
the [building] [[use and occupancy]] building permit has been
revoked or has lapsed because construction did not start; or
(3)
the prqject has been physically altered, resulting in a decrease in
the amount of impact
tax
due.
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52-55. Credits.
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(a)
(1)
A property owner is entitled to a credit if the owner, before July
I, 2002, entered into a participation agreement, or a similar
agreement with the state or a municipality, the purpose of which
was to provide additional transportation capacity. A property
owner is also entitled to a credit if the owner receives approval
before July 1, 2002, of a subdivision plan, development plan, or
similar development approval by the County or a municipality
that requires the owner to build or contribute to a transportation
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improvement that provides additional transportation capacity.
The Department of Transportation must calculate the credit. The
credit must· equal the amount of any charge paid under the
participation agreement. The Department may give credit only
for [building] [[use and occupancy]] building pennit applications
for development on the site covered by the participation
agreement.
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(b)
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A property owner must receive a credit for constructing or contributing
to an improvement of the type listed in Section 52-58 if the
improvement
reduces
traffic
demand
or
provides
additional
transportation capacity. However, the Department must not certify a
credit for any improvement in the right-of-way of a State road, except a
transit or trip reduction program that operates on or relieves traffic on a
State road or an improvement to a State road that is included in a
memorandum of understanding between the County and either
Rockville or Gaithersburg.
(I)
If the property owner elects to make the improvement, the owner
must enter into an agreement with a municipality or the County,
or receIve a development approval based on making the
improvement, before any [building] [(use and occupancy]]
building pennit is issued.
approval must contain:
(A)
(B)
the estimated cost of the improvement, ifknown then;
the dates or triggering actions to start and, if knovvn then,
finish the improvement;
The agreement or development
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exPEDITED BILL
No. 26-11
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(C)
a requirement that the property owner complete the
improvement according to applicable municipal or County
standards; and
(D)
any other term or condition that the municipality or County
fmds necessary.
(2)
The Department of Transportation must:
(A)
(B)
(C)
review the improvement plan;
verifY costs and time schedules;
determine whether the improvement
transportation improvement;
(D)
determine the amount of the credit for the improvement
that will apply to the development impact tax; and
(E)
certifY the amount of the credit to the Department of
Permitting
Services
before
that
Department
or
a
IS
an impact
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municipality issues any [building] [[use and occupancy]]
building permit.
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52-56. Appeals.
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After determination of the amount of the development impact tax or credit due,
an applicant for a [building] [[use and occupancy]] building permit or a property
owner may appeal to the Maryland Tax Court to the extent permitted by state law or,
if the Maryland Tax Court does not have jurisdiction, to the Circuit Court under the
Maryland Rules of Procedure that regulate administrative appeals. If the appealing
party posts a bond or other sufficient surety satisfactory to the County Attorney in an
amount equal to the applicable development impact tax as calculated by the
Department of Permitting Services, the Department or municipality must issue the
[building] [[use and occupancy]] building permit if all other applicable conditions
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exPEDITED BILL
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have been satisfied. The filing of an appeal does not stay the collection of the
development impact tax until a bond or other surety satisfactory to the County
Attorney has been filed with the Department ofPermitting Services.
52-59. Transportation Mitigation Payment.
(a)
In addition to the
tax
due under this Article, an applicant for a [building]
[[use and occupancy]] building permit for any building on which an
impact
tax
is imposed under this Article must pay to the Department of
Finance a Transportation Mitigation Payment if that building was
included in a preliminary plan of subdivision that was approved under
the Transportation Mitigation Payment provisions in the County
Subdivision Staging Policy.
*
52-89. Imposition and applicability of tax.
(
a)
*
*
An
applicant for a [building] [[use and occupancy]] building permit for
a residential development must pay a development impact tax for public
school improvements in the amount and manner provided in this Article
before a [building] [[use and occupancy]] building permit is issued for
any residential development in the County unless:
(1)
(2)
52-93. Credits.
(b)
a credit for the entire tax owed is allowed under Section 52-93; or
an appeal bond is posted under Section 52-56.
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'"
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Ifthe property owner elects to make a qualified improvement, the owner
must enter into an agreement with the Director of Permitting Services,
or receive a development approval based on making the improvement,
before any [building] [[use and occupancy]] building permit is issued.
The agreement or development approval must contain:
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ExPEDITED BILL NO.
26-11
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(1)
(2)
the estimated cost ofthe improvement, if known then,
the dates or triggering actions to start and, if known then, finish
the improvement.
(3)
a requirement that the property owner complete the improvement
according to Montgomery County Public Schools standards, and
(4)
(c)
such other terms and conditions as MCPS finds necessary.
MCPS must:
(1)
(2)
(3)
review the improvement plan,
verify costs and time schedules,
determine whether the improvement
IS
a public school
improvement of the type listed in Section 52-91(d),
(4)
(5)
determine the amount ofthe credit for the improvement, and
certify the amount of the credit to the Department of Permitting
Services before that Department or a municipality issues any
[building] [[use and occupancy]] building permit.
*
52-94. School Facilities Payment.
*
*
(a)
In addition to the
tax
due under this Article, an applicant for a [building]
[[use and occupancy]] building permit for any building on which a
tax
is
imposed under this Article must pay to the Department of Finance a
School Facilities Payment if that building was included in a preliminary
plan of subdivision that was approved under the School Facilities
Payment provisions in the County Subdivision Staging Policy.
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Section 2.
*
*
The Council declares that this
Expedited Effective date.
legislation is necessary for the immediate protection of the public welfare. This Act
takes effect
[[91
days after it becomes law]] on December
1.
2011. The payment
date for the development impact tax imposed under Article,§ VII and XII of Chapter
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exPEDITED BILL
No. 26-11
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52, as amended by Section 1 of this Act, applies to any building for which an
application for a [[use and occupancy]] building permit is filed on or after that date.
The payment date for the Transportation Mitigation Payment and School Facilities
Payment. imposed respectively under Section 52-59 and 52-94. apply to any
Payment required on or after that date. [[However, an applicant need not pay the tax
before receiving a use and occupancy permit for development if the applicant paid
the tax before receiving a building permit for the same development.]]
([Section 3. Expiration.
Section 52-50(1), inserted by Section 1 of this Act.
expires on December 1. 2016.)]
Approved:
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Date
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Approved:
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Isiah Leggett, County Executive
289
Date
This is a correct copy ofCouncil action.
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Linda M. Lauer, Clerk ofthe Council
Date
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