Bill No.
30-13
Concerning: Taxation - Prooertv Tax
Credit - Burtonsville Enterprise Zone
Property
Revised:
12/3/2013
Draft No.
2
Introduced:
November 5,2013
Enacted:
December 10, 2013
Executive: _ _ _ _ _ _ _ __
Effective: _--:-:---_ _ _ _ _ __
Sunset Date: -!...!N""'on:,,:.::e:-.._ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmember Ervin, Council Vice-President Rice, Councilmembers Berliner, Eirich,
and Floreen, Council President Navarro, and Councilmembers Leventhal, Riemer, and Andrews
AN
ACT
to:
(1)
(2)
create a property tax credit for certain property located in the Burtonsville Crossroads
Neighborhood Plan; and
generally amend the law relating to property
tax
credits.
By adding
Montgomery County Code
Chapter 52, Taxation
Section 52-18T
Boldface
Underlining
[Single boldface brackets]
Double underlining
[(Double boldface bracketsD
* * *
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:
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
30-13
1
Sec. 1. Section 52-18T is added as follows:
[[52-18TH 52-18U. Burtonsville Enterprise Zone Property.
2
3
4
tru
Definitions.
In
this Section, the following words have the meanings
indicated:
Base year
means the taxable year immediately before the taxable year in
5
6
7
which
£!
credit under this Section is to be granted.
Base year value
means the value of the property used to determine the
8
9
10
assessment on which the property tax on real property was imposed for
the base year.
Base year value
does not include any new real property
that was first assessed in the base year.
Eligible assessment
means the difference between the base year value
11
12
and the actual value as determined
by
the Department for the applicable
taxable year in which the tax credit under this Section is to be granted.
Eligible business entity
means
£!
person who operates or conducts
£!
13
14
15
16
trade or business on qualified enterprise zone property but does not own
the qualified enterprise zone property.
Qualified property
means real property that:
17
18
ill
is located within the area encompassed
by
the Burtonsville
Crossroads neighborhood Plan developed
by
the Montgomery
County Planning Department;
19
20
21
ill
ill
is zoned for commercial or commercial/residential mixed use
development[[;]] and is used for a commercial purpose; and
is improved after the effective date of this Bill and before Janu£!ry
22
23
24
25
.L2020.
Tax-Property Article
means the Tax-Property Article of the M£!ryland
26
Code.
-2­
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
30-13
27
!hl
Credit.
28
29
30
31
32
33
34
ill
Credit authorized.
The Director of Finance must allow
~
credit,
as authorized
Qy
State law, to
~
taxpayer against all County
property tax and [[special area tax]] imposed
on[~
fu}]]
improvements made
Qy
an eligible business entity to
qualified property[[; and
!hl
ill
personal property owned
Qy
an eligible business entity
located on qualified property]].:
35
36
37
38
Duration gf credit.
A credit under this Section is available to
~
qualified property for no more than
~
consecutive years
beginning with the taxable year following the calendar year in
which the real property initially becomes
f!:
qualified property.
39
ill
Amount gfcredit.
The amount of the credit is equal to 80% of the
40
41
42
43
44
amount of property tax imposed on the eligible assessment of the
qualified property in each of the first
~
taxable years following
the calendar year in which the property initially becomes
f!:
qualified property.
ill
Nonresidential portions gf qualified property.
The Department
45
46
must allocate the eligible assessment to the nonresidential part of
the qualified property at the same percentage as the square
footages of the nonresidential part is to the total square footage of
the building.
47
48
49
50
51
ill
F or purposes of calculating the amount of the credit allowed
under this Section, the amount of property tax imposed on the
eligible assessment must be calculated without reduction for any
credits allowed under the Tax-Property Article.
52
-3­
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 30-13
53
54
55
(£)
Regulations.
The County Executive may adopt regulations under
Method
ill
to administer this Section.
@
False orfraudulent applications.
56
57
ill
A person must not knowingly file
~
false or fraudulent
application to obtain
~
tax credit under this Section. A violation
ofthis subsection is
~
Class A violation.
58
59
ill
In
addition to the penalties provided under paragraph
ill
~
60
61
62
63
64
person who violates this subsection must
~
the County any
taxes, together with interest and penalties, offset
Qy
the credit,
any other penalty due, and the County's fees and costs in any
action to enforce this subsection.
Approved:
65
Date
66
Approved:
67
Isiah Leggett, County Executive
Date
68
This is a correct copy o/Council action.
69
Linda M. Lauer, Clerk of the Council
Date
-4­