Agenda Item 6
December 6, 2011
Introduction
MEMORANDUM
TO:
FROM:
County Council
~MiChael
Faden, Senior Legislative Attorney
Introduction:
Bill 39-11, Taxation
Development Impact Tax - Exemptions
SUBJECT:
Bill 39-11, Taxation - Development Impact Tax - Exemptions, sponsored by
Councilmember Floreen, is scheduled to be introduced on December 6, 2011. A public hearing
is tentatively scheduled for January 24, 2012 at 1:30 p.m.
Bill 39-11 would exempt the market-rate dwelling units in any development which
consists of at least 25% affordable housing units from the transportation and school development
impact taxes.
This packet contains:
Bill 39-11
Legislative Request Report
Circle #
1
5
F;\LAW\BILLS\1139 Impact Tax - Exemptions Affordable Housing\Intro Memo.Doc
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CORRECTED COPY
Bill No.
39-11
Concerning: Taxation -
Development
Impact Tax - Exemptions
Draft No.
_3_
Revised: 12--6-11
Introduced:
December 6, 2011
Expires:
June 6,2013
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: -:...:.No;::.:n..:..>:e:....-_:--_ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmembers Floreen, Rice and Council Vice President Navarro
AN
ACT to:
(1)
(2)
exempt certain market-rate dwelling units from certain development impact taxes;
and
generally amend the law governing development impact taxes.
By amending
Montgomery County Code
Chapter 52, Taxation
Sections 52-49 and 52-89
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* *
1<
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment,
Deletedfrom 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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BILL NO.39-11
1
Section 1. Sections 52-49 and 52-89 are amended as follows:
52-49.
Imposition and applicability of development impact taxes.
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* *
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(g)
A development impact tax must not be imposed on:
(1) any Moderately Priced Dwelling Unit built under Chapter 25A or
any similar program enacted by either Gaithersburg or Rockville,
(2)
any 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 less than 60% of the area median income,
adjusted for family size;
(3)
any Personal Living Quarters unit built under Sec. 59-A-6.15,
which meets the price or rent eligibility standards for a
moderately priced dwelling unit under Chapter 25A;
(4)
any 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 25 A;
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ill
any non-exempt rental dwelling unit in
f!
development in which at
least 25% of the dwelling units are exempt under paragraph
ill
mID
or
ID
or any combination of them; and
[(5)] @ any development located in an enterprise zone designated by
the State or in an area previously designated as an enterprise
zone.
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*
*
52-89. Imposition and applicability of tax.
*
- 2
-f:\Iaw\bills\1139 impact tax - exemptions
affordable housing\1139 bill 3.doc
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BILL
NO.39-11
27
*
(c)
(1)
*
*
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The tax under this Article must not be imposed on:
any Moderately Priced Dwelling Unit built under Chapter 25A
or any similar program enacted by either Gaithersburg or
Rockville,
(2)
any 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 less than 60% of the area median income,
adjusted for family size;
(3)
any Personal Living Quarters unit built under Sec. 59-A-6.15,
which meets the price or rent eligibility standards for a
moderately priced dwelling unit under Chapter 25A;
(4)
any 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;
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ill
any non-exempt rental dwelling unit in
~
development in which at
least 250/0 of the dwelling units are exempt under paragraph
ill
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ill
Q1
or
l±h
or any combination ofthem; and
[(5)]
®
any development located in an enterprise zone designated by
the State or in an area previously designated as an enterprise
zone.
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Approved:
*
*
*
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Valerie Ervin, President, County Council
Date
- 3
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BILL NO.39-11
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Approved:
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Isiah Leggett, County Executive
Date
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This is a correct copy ofCouncil action.
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Linda M. Lauer, Clerk of the Council
Date
-4
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LEGISLATIVE REQUEST REPORT
Bill 39-11
Taxation
-
Development Impact Tax
-
Exemptions
DESCRIPTION:
Exempts the market-rate dwelling units in any development which
consists of at least 25% affordable housing units from the
transportation and school development impact taxes.
Need to encourage provision of affordable housing.
To create further incentives to increase the share of low- and
moderate-income housing in new developments
Department of Permitting Services, Department of Housing and
Community Affairs, Planning Board
To be requested.
To be requested.
To be requested.
To be researched.
Michael Faden, Senior Legislative Attorney, 240-777-7905
To be researched.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
Not applicable.
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