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:
December 17, 2013
Effective:
March 18,2014
Sunset Date:
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Ch.
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Laws of Mont. Co.
2013
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
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Heading or defined term.
Addedto 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. 30-13
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Sec. 1. Section 52-18T is added as follows:
[[52-18T]] 52-18U. Burtonsville Enterprise Zone Property.
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Definitions.
In
this Section, the following words have the meanings
indicated:
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Base year
means the taxable year immediately before the taxable year in
which
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credit under this Section is to be granted.
Base year value
means the value of the property used to determine the
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.
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Eligible assessment
means the difference between the base year value
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.
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Eligible business entity
means
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person who operates or conducts
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trade or business on qualifIed enterprise zone property but does not own
the qualifIed enterprise zone property.
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Qualified property
means real property that:
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is located within the area encompassed by the Burtonsville
Crossroads neighborhood Plan developed by the Montgomery
County Planning Department;
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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 January
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L2020.
Tax-Property Article
means the Tax-Property Article of the Maryland
Code.
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BILL
No. 30-13
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(Q)
Credit.
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Credit authorized
The Director of Finance must allow
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credit,
as authorized
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State law, to
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taxpayer against all County
property tax and [[special area tax]] imposed
on[[~
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improvements made
Qy
an eligible business entity to
qualified
property[[~
and
(Q)
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personal property owned
Qy
an eligible business entity
located on qualified property]].:.
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Duration g[ credit.
A credit under this Section is available to
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qualified property for no more than
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consecutive years
beginning with the taxable year following the calendar year
in
which the real property initially becomes
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qualified property.
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Amount g[credit.
The amount of the credit is equal to 80% of the
amount of property tax imposed on the eligible assessment of the
qualified property
in
each of the first
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taxable years following
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the calendar year in which the property initially becomes
qualified property.
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Nonresidential portions g[ qualified property.
The Department
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.
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For 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.
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BILL
No.
30-13
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Regulations.
The County Executive may adopt regulations under
. Method
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to administer this Section.
False or fraudulent applications.
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A person must not knowingly file
application to obtain
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false or fraudulent
tax credit under this Section. A violation .
of·this subsection is
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Class A violation.
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In addition to the penalties provided under paragraph
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a
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person who violates this subsection must
ImY
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:
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Date
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Approved:
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This is a correct copy ofCouncil action.
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Linda M. Lauer, Clerk of the Council
Date
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