Corrected
AGENDA ITEM #4A
June 11,2013
Introduction
MEMORANDUM
TO:
FROM:
SUBJECT:
County Council
Jeffrey
L.
Zyontz, Legislative Attorney
Introduction:
Expedited Bill 14-13, Historic Preservation
Tax Credit
Bill 14-13, Historic Preservation - Tax Credit, sponsored by Council members Rice, Floreen, and
EIrich, is scheduled to be introduced on June 11,2013. A public hearing is tentatively scheduled
for June 25 at 1:30 p.m.
Bill 14-13 would amend the law related to the percentage of improvement costs on a historic
property that is eligible for a property tax credit. Currently, the historic preservation tax credit is
the maximum allowed by state law (10%). On July 1, 2013, state law will allow a 25% tax
credit. The sponsors of the Bill wish to maximize the· tax credit for qualified historic
preservation improvements.
This packet contains:
Expedited Bill 14-13
Legislative Request Report
1
3
F:\LA w\BILLS\1314 Historic Pres Tax Credit\lntro Memo.Doc
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Corrected
Expedited Bill No.
~~14-,--....:.;13=--
_ _
=-­
Concerning: Historic Preservation - Tax
Credit
Revised: May 13. 2013 Draft No. _1_
Introduced:
June 11. 2013
Expires:
December 11. 2014
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: -.:..:.No=n:'-:::e'-:---:::--_ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmembers Rice, Floreen, and EIrich
AN EXPEDITED ACT
to:
(1) amend the law related to the percentage of improvement costs on a historic property
that are eligible for a property tax credit; and
(2) generally amend the laws a tax credit for qualified improvement to historic
properties.
By amending
Montgomery County Code
Chapter 52, Taxation
Section 52-43
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[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 hill.
The County Council for Montgomery County, Maryland approves the following Act:
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EXPEDITED BILL
No. 14-13
1
Sec. 1.
Section 52-43 is amended as follows:
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Sec. 52-43. Use of tax credit.
(a)
The tax credit is
[10]
25 percent of the taxpayer's qualified expenses under
section 52-42.
5
(b)
The tax credit applies to the next tax year after the year in which the work or
any part is completed. Any unused tax credit may be carried forward to as
many as 5 subsequent tax years. However, if the property is removed as an
historic site or excluded from an historic district on the applicable County or
municipal master plan or zoning map, any unused tax credit must lapse.
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10
11
*
Sec. 2.
Expedited Effective Date.
*
*
12
The Council declares that this legislation is necessary for the immediate protection of
the public interest. This Act takes effect on the date on which it becomes law.
Approved:
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14
15
16
Nancy Navarro, President, County Council
Date
17
Approved:
18
Isiah Leggett, County Executive
Date
19
This is a correct copy o/Council action.
20
Linda M. Lauer, Clerk of the Council
Date
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-f:\law\bills\1314 historic pres tax credit\expedited bill 14-13 corrected.doc
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LEGISLATIVE REQUEST REPORT
Expedited
Bill
14-13
Historic Preservation
-
Tax Credit
DESCRIPTION:
The Expedited Bill would amend Charter 42 to allow an increased tax
credit for qualified improvements to a historic property. As
introduced, the tax credit would be increased from 10 percent to 25
percent.
The designation of a property as historic makes improvements
subject to an additional regulatory review. To offset this burden,
Maryland law allows a tax credit for a percentage of the
improvement. The law governing the allowable
tax
credit for
improvements to historic property was changed in 2013 (Chapter 189
of the 2013 Laws of Maryland). In the absence of amending the
Code, the allowable tax credit would be less than the state allows.
The state law becomes effective on July 1,2013.
It
is the goal of this Bill to allow the maximum allowable tax credit
for improvements to historic property.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENAL TIES:
Historic Preservation Commission and Planning Department
To be requested.
To be requested.
To be requested.
To be researched.
Jeffrey
L.
Zyontz, 240-777-7896
To be researched.
None.
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