Bill No.
5-13
Concerning: Property Tax Credit ­
Accessibility Features
Revised:
11/19/2013
Draft No.
3
Introduced:
February 5, 2013
Enacted:
November 19. 2013
Executive: _--:--:--:----:-::-:-:-_ _ __
Effective:
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Sunset Date:
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_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmember Leventhal
AN
ACT to:
(1)
(2)
provide for a property tax credit for an accessibility feature installed on an existing
residence; [[and]]
provide for
f!
property
meeting
f!
Level
1
or Level
11
~~~~
standard on
f!
new
~ ~~ ~~~
provide for an impact
Public
f!
Levell accessibility standard;
and
School Improvements
fur
generally amend County law regarding property tax credits.
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By adding
Montgomerv County Code
Chapter
~
Real Property
Section 40-12D
Chapter 52, Taxation
[[Section]] Sections 52-18T"
=='~
amending
Montgomery County Code
Chapter
~
Taxation
Section 52-93
Boldface
Underlining
[Single boldface brackets]
Double undedining
[[Double boldface brackets]]
* * *
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. 5-13
Sec. 1. [Section] Sections 40-12D, 52-18T and 52-18U [is] are added and
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Section 52-93 is amended as follows:
40-12D. Disclosure
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availability of property tax credits for accessibility
improvements.
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Before the buyer
family residential
~
contract for the purchase
~
~===~=
single­
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property in the County, the seller
real property tax
~~
disclose
may be
or
to each prospective buyer that
available to the
the cost of Levell
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the cost of installing accessibility
Uaccessibility standards to the
nrr'\n""rl'U
defined in Section 52-18UCa).
(hl
The disclosure must include [[a description ot]] general information
about the types of improvements for which the credits are available
and an estimate of the [[amount of credit]] general cost to make the
improvements.
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(£l
A seller 9r the
disclosed under this
is not liable for any il1correct information
if the seller or the seller's agent
~=
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good faith on information provided
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the County to describe
credit or to estimate
ofthe credit.
52-18T. Property Tax Credit Accessibility Features
=
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Definitions.
In
this Section, the following terms have the meaning
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indicated.
Department
means the Department of [[Finance]] Permitting Services.
Director
means the Director of the Department or the Director's
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designee.
Eligible costs
means costs that are:
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incurred within 12 months before the property owner submits
an application to the Department for the credit;
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for
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feature authorized under this Section, including reasonable
costs to install the feature;
paid
by
the applicant and not, or will not be, reimbursed
by
any
entity; and
in excess of$500.
Feature
means
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permanent modification to
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residence that results in:
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no-step front door entrance with
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threshold that does not
exceed
1'2
inch in depth with tapered advance and return
surfaces
QL.
if
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no-step front entrance is not feasible,
~
no-step
entrance to another part of the residence that provides access to
the main living space of the residence;
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an installed ramp creating
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no-step entrance;
an interior doorway that provides
clearing opening;
an exterior doorway that provides
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36-inch wide or wider clear
opening, but only if accompanied
by
exterior lighting that is
either controlled from inside the residence, automatically
controlled, or continuously on;
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32-inch wide or wider
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walls around
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toilet, tub, or shower reinforced to allow for the
proper installation of grab bars with grab bars installed in
accordance
- - - ­
Americans
- ­
Disabilities
-
Act Standards
with the
with
for Accessible Design;
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®
maneuvering space of at least 30 inches
by
48 inches in
bathroom or kitchen so that
~
~
person using
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mobility aid may
enter the room, open and close the door, and operate each
fixture or appliance;
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an exterior or interior elevator or lift
[[0:01
or stair glide unit;
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BILL
No. 5-13
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®
(.2.)
an accessibility-enhanced bathroom, including!l walk-in or roll­
in shower or tub; or
an alarm, appliance, and control structurally integrated into the
unit designed to assist an individual with !l sensory disability.
(hl
Credit established.
In accordance with Section 9-250 of the Tax­
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Property Article of the Maryland Code, the owner of real property
may receive !l property tax credit against the County property tax for !l
feature that is installed on an existing residence that is the owner's
principal residence when the feature is installed.
i£)
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Credits.
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[[Amount
gf
Credit.]]
The tax credit allowed under this Section
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is the lesser of:
[[ill]]
(A) 50% of the eligible costs; or
[[illJHID
$2,500 less any subsidy received from a governmental.
quasi-governmental. or non-profit entity for the feature.
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Any credit that is received [[that]] which exceeds the annual tax
liability of the property may be carried over to the next tax year.
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The credit runs with the propertY upon the transfer of title. and
~~~~~~~~
[[will]] must be applied to the tax bill
of the subsequent owner of the property.
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Annual Limit on Amount
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Credits Granted.
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During any fiscal year, the total of all tax credits granted under
this Section must not exceed $100,000.
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Credits must be granted in the order in which the Department
[[receives]]
the [[complete applications]] amount of the
Section]]~
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credit under subsection (e)(3) [[of this
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[[A complete application that, if granted, would cause the limit
set forth in paragraph
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of this subsection to be exceeded,
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must be granted in the next fiscal year or years and in the order
received.]] A certification of a credit that would cause the limit
in subsection (d)(l) [[of this Section]]
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granted in the next tax year or years. subject to subsections (c)
and (d)(1) [[of this Section]],;
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Application for the Credit.
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To receive the credit,
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property owner must submit an
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application to the Department:
®
in the format the Department requires;
that includes
feature;
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fQllY
au
.cg
lID
of the building permit to install the
that includes any document that the Department requires;
and
on or before the date the Department sets.
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The Department must only accept one application for
!!
credit
under this Section for each property during
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single tax year.
The Department must certify to the Department of Finance that
the property is eligible for the credit and the amount of the
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A property owner may submit an application on or after March
Administration.
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The County Executive may adopt regulations under Method
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to administer this Section.
The Department must submit
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written report to the Council
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October
1
of each year for the preceding fiscal year. The report
must include the following:
(A)
number of applicants;
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BILL No. 5-13
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ill}
number of applications approved;
[[income range of applicants;]]
{Q
[[{ill]] modification made
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the applicant;
[[(ill
reason for the modification]]
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[[ill]]
!Ill
other sources from which the applicant received
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funds or applied for assistance for the modification;
[[{Q}]] (E)
efforts to advertise the credit; and
[[(H)]]
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any program recommendations.
{g}
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Publicity.
The Department must publicize the credit in
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way designed
to inform those most likely to benefit from the credit.
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(hl
Effective Date.
The credit authorized
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this Section applies to tax
years beginning [[June 30, 2013]] on or after July
1.
2014.
52-18U. Property Tax Credit ; ; ; Level
I
and Level
n
Accessibility Standards
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Definitions.
In this Section. the following terms have the meaning
indicated:
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Department
means the Department of Permitting Services.
Director
means the Director of the Department or the Director's
designee.
Eligible costs
means costs that are:
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!ZJ
incurred within 12 months before the property owner submits
an application to the Department for the credit:
for an accessibility feature authorized under this Section.
including reasonable costs to install the feature:
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paid by the applicant and not. or will not be. reimbursed by any
entity: and
in excess of $500.
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Accessibility Feature
means a pennanent addition to a single family
residence that is a requirement under a Level I or Level II
Accessibilitv Standard.
Level I Accessibility Standard
means a pennanent addition to a single
family residence that include at least one no-step entrance located at
any entry door to the house that is connected to an accessible route to
a place to visit on the entry level. a usable powder room or bathroom.
and a 32-inch nominal clear width interior [[doors]] door as further
defined and described in Executive Regulations adopted under
Method 2.
Level II Accessibility Standard
means pennanent additions to a single
family residence that provide all of the Level I Accessibility Standards
plus an accessible circulation path that connects the accessible
entrance to an accessible kitchen. a full bath. and at least one
accessible bedroom. [[and]] as [[i§]] further defined and described in
Executive Regulations adopted under Method 2.
Single family residence
means an attached or detached single family
home.
(hl
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Credit established
As authorized by Section 9-250 of the Tax­
Property Article of the Maryland Code. the owner of a single family
residence located in Montgomery County may receive a property tax
credit against the County real property tax for the cost of features that
achieve Level I or Level II Accessibility Standards.
!£1
Amount of Credit.
The tax credit pennitted by this Section [[wil1J]
must be as follows:
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For features meeting Level I Accessibility Standards. certified
costs of up to $3.000 less any credit received against the
Development Impact Tax for School Improvements under
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BILL
No. 5-13
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Section 52-93 for those features and less any funds or
assistance received for the accessibility feature.
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For features meeting Level II Accessibilitv Standards. certified
costs of up to $10,000 less any credit received against the
Development Impact Tax for School Improvements under
Section 52-93 for those features and less any funds or
assistance received for the accessibility feature.
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The maximum amount of credit that may be applied in anyone
tax year is $2,000.
The amount of credit that may be applied in anyone tax year
must not exceed the amount of County property tax imposed on
the property in that year.
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Any credit that is granted that exceeds the limit set in
subsection (c)(3) [[of this Section]] or exceeds the annual tax
liability of the pf.9perty maybe carried over to the next tax year.
~ubject
to subsection (c)(3) [[of this Section]], until the entire
amount of the credit is applied.
Uil
The credit runs with the property upon transfer of title and the
balance of any credit [[will]] must be applied to the tax bill of
the subsequent owner of the property.
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Annual Limit on Amount ofCredits Granted.
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During any tax year. the total of all tax credits granted under
this Section must not exceed $500,000.
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Credits must be granted in the order in which the Department
certifies the amount of the credit under subsection (e)(3) [[of
this
Section]]~
(l)
A certification of a credit that would cause the limit [[set forth]]
in subsection (d)(1) [[of this Section]] to be exceeded must be
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granted in the next tax year or years subiect to subsections
(c)(3) and (d)(l) [[of this
Section]]~
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Application for the Credit.
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To receive the credit. a property owner must submit an
application to the Department:
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!1ll
(Cl
in the format the Department requires:
that includes a copy of the building permit to install the
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that includes any document that the Department requires;
and
all
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on or before the date set in the regulations.
The Department must only accept one application for a credit
under this Section for each property during a single tax year.
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The Department must certify to the Department of Finance that
the property is eligible for the credit and the amount of the
credit.
A property owner may apply for a credit on or after March 1,
2014.
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Administration.
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The County Executive may adopt regulations under Method
(2)
to administer this Section.
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The Department must submit a written report to the Council by
October 1 of each year for the preceding tax year. The report
must include the following:
(A)
number of applicants;
number of applications approved:
modification made by the applicant; and
efforts to promote the credit.
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BILL No.
5-13
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£h)
Publicity.
The Department must publicize the credit in a way designed
to inform those most likely to benefit from the credit.
Effective Date.
The credit authorized by this Section applies to tax
years beginning on or after July
1.
2014.
Sec. 52-93. Credits.
(e)
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A property owner must receive a credit for constructing or
contributing to the cost of building a new single family
residence that meets Level I Accessibility Standards. as defined
in Section 52-18llial.
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The credit allowed under this Section must be as follows:
CA)
If at least 5% of the single family residences built in the
project meet Level I Accessibility Standards. then the
owner must receive a credit of $500 per residence.
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If at least 10% of the single family residences built in the
project meet Level I Accessibility Standards. then the
owner must receive a credit of $1.000 per residence.
LCJ
If at least 25% of the single family residences built in the
project meet Level I Accessibility Standards. then the
owner must receive a credit of$1.500 per residence.
CD)
If at least 30% of the single family residences built in the
project meet Level I Accessibility Standards, then the
owner must receive a credit of $2,000 per residence.
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Application for the credit and administration of the credit
[[will)] be in accordance with [[the provisions ofl] Subsections
52-18UCe) and CO.
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Approved:
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A person must not receive a property tax credit under this
Section if the person receives any public benefit points for
constructing units with accessibility features under Chapter 59.
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The Director of Finance must not provide a refund for a credit which
is greater than the applicable tax.
[(f)]
(g)
Sec. 2. Effective date.
*
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*
This Act takes effect on July 1, 2014.
Approved:
/~
Date
Leggett, County Executive
This is a correct copy ofCouncil action.
Date
Linda M. Lauer, Clerk ofthe Council
Date
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