Bill No.
5-13
Concerning: Prooertv Tax Credit ­
Accessibility Features
3
Revised:
11/19/2013
Draft No.
Introduced:
February 5. 2013
Enacted:
November 19.2013
Executive:
December 2. 2013
Effective:
July 1. 2014
Sunset Date:
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_ _ _ _ __
ChI
~,
Laws of Mont. Co.
2013
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmember Leventhal
AN
ACT to:
(1)
(2)
Ql
ill
provide for a property
tax
credit for an accessibility feature installed on an existing
residence; [[and)]
provide
~
property
tax
credit for
~
Level
1
or Level
II
accessibility
standard
~
new single family residence:
provide
impact
tax
credit &ainst the
Impact Tax For Public
School Improvements for meeting
~
Levell
standard: and
generally amend County law regarding property
tax
credits.
By adding
Montgomery
Code
Chapter
~
Real Property
Section 40-12D
Chapter 52, Taxation
52-18T.\ 52-18U
[[Section)]
~amending
Montgomery
~~
Chapter
g
Taxation
Section 52-93
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.'
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BILL No. 5-13
1
Sec.
1.
[Section] Sections 40-12D, 52-18T and 52-18U [is] are added and
Section 52-93 is amended as follows:
40-12D. Disclosure of availability of property tax credits for accessibility
improvements.
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Before the buyer signs
~
contract for the purchase of a new single-
family residential real property in the County, the seller must disclose
to each prospective buyer that
~
real property tax credit may be
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available to the buyer for the cost of installing accessibility features or
the cost of Level! or Level II accessibility standards to the property as
defined in Section 52-18U(a).
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au
The disclosure must include [[a description otl] 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 or the seller's agent is not liable for any incorrect information
disclosed under this Section if the seller or the seller's agent relied in
good faith on information provided
Qy
the County to describe the
credit or to estimate the amount of the credit.
52-18T. Property Tax Credit
=
Accessibility Features
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ill
Definitions.
In this Section, the following terms have the meaning
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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ill
incurred within
II
months before the property owner submits
an application to the Department for the credit;
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BILL
No. 5-13
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ill
ill
ill
ill
for
£!
feature authorized under this Section, including reasonable
costs to install the feature;
paid
Qy
the applicant and not, or will not be, reimbursed
Qy
any
entity; and
in excess of $500.
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Feature
means
£!
permanent modification to
£!
residence that results in:
£!
no-step front door entrance with
£!
threshold that does not
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exceed
Yz
inch in depth with tapered advance and return
surfaces
QLt
if
£!
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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ill
ill
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an installed ramp creating
£!
no-step entrance;
an interior doorway that provides a 32-inch wide or wider
clearing opening;
an exterior doorway that provides
£!
36-inch wide or wider clear
opening, but only if accompanied
Qy
exterior lighting that is
either controlled from inside the residence, automatically
controlled, or continuously on;
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walls around
£!
toilet, tub, or shower reinforced to allow for the
proper installation of grab bars with grab bars installed in
accordance with the Americans with Disabilities Act Standards
for Accessible Design;
maneuvering space of at least 30 inches
Qy
48 inches in
£!
bathroom or kitchen so that
£!
person using
£!
mobility aid may
enter the room, open and close the door, and operate each
fixture or appliance;
@
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ill
an exterior or interior elevator or lift
[[oft]
or stair glide unit;
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BILL
No. 5-13
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([}
an accessibility-enhanced bathroom, including g walk-in or roll­
in shower or tub; or
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(2)
an alarm, appliance, and control structurally integrated into the
unit designed to assist an individual with g sensory disability.
!hl
Credit established.
In accordance with Section 9-250 of the Tax­
Property Article of the Maryland Code, the owner of real property
may receive g property tax credit against the County property tax for g
feature that is installed on an existing residence that is the owner's
principal residence when the feature is installed.
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Credits.
ill
[[Amount
g[
Credit.]]
The tax credit allowed under this Section
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is the lesser of:
[[ill])
(A)
[[Ql]]®
50% of the eligible costs; or
$2,500 less any subsidy received from a governmental,
quasi-governmental. or non-profit entity for the feature.
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!2l
ill
Any credit that is received [[that]] which exceeds the annual tax
liability ofthe property may be carried over to the next tax year.
The credit runs with the property upon the 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
g[
Credits Granted.
ill
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]] certifies the [[complete applications]] amount of the
credit under subsection (e)(3) [[illthis Section]].:.
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ill
[[A complete application that, if granted, would cause the limit
set forth in paragraph
ill
of this subsection to be exceeded,
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Bill
No.
5-13
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must be granted in the next fiscal year or years and in the order
received.]] A certification of a credit
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that
would cause the limit
in subsection (d)(l) [[of this Section]] to be exceeded must be
granted in the next tax year or years. subject to subsections (c)
and (d)(l) [[of this
Section]]~
ill
Application tor the Credit.
ill
To receive the credit,
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property owner must submit an
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application to the Department:
fA}
in the format the Department requires;
that includes
feature;
~
£.QPY
ill.)
of the building permit to install the
(Q
that includes any document that the Department requires;
and
ill)
on or before the date the Department sets.
~
ill
The Department must only accept one application for
credit
under this Section for each property during
~
single tax year.
m
ill
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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 submit an application on or after March
1, 2014 for a credit.
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Administration.
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The County Executive may adopt regulations under Method
ill
to administer this Section.
The Department must submit
~
written report to the Council
.Qy
October
1
of each year for the preceding fiscal year. The report
must include the following:
fA}
number of applicants;
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BILL No. 5-13
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all
(Q
number of applications approved;
[[income range of applicants;]]
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[[{ill]] modification made
Qy
the applicant;
[[an
reason for the modification]]
[[(D]]
Q;;;ll
other sources from which the applicant received
funds or applied for assistance for the modification;
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[[{Q2]]
lID
efforts to advertise the credit; and
[[(H)]] (f) any program recommendations.
(g)
Publicity.
The Department must publicize the credit in
!!
way designed
to inform those most likely to benefit from the credit.
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.Q:ll
Effective Date.
The credit authorized
Qy
this Section applies to tax
years beginning [[June 30, 2013]] on or after July
1.
2014.
52-18U. Property Tax Credit;;;;;; Levell and Level II Accessibility Standards
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125
W
Definitions.
In this Section, the following terms have the meaning
indicated:
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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ill
incurred within 12 months before the property owner submits
an application to the Department for the credit:
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L2l
for an accessibility feature authorized under this Section,
including reasonable costs to install the feature;
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ill
ill
paid by the applicant and not. or will not be. reimbursed by any
entity; and
in excess of $500.
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BILL
No. 5-13
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Accessibility Feature
means a permanent addition to a single family
residence that is a requirement under a Level I or Level II
Accessibility Standard.
Level I Accessibility Standard
means a permanent addition to a single
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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 entrv 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 permanent 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 familv residence
means an attached or detached single family
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home.
!hl
Credit established.
As authorized by Section 9-250 of the Tax­
Property Article of the MaITland 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.
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Uil
Amount of Credit.
The tax credit permitted by this Section [[wiIU]
must be as follows:
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F or 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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~
~
Section 52-93 for those features and less any funds or
assistance received for the accessibility feature.
ru
For features meeting Level II Accessibility 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.
ill
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.
ill
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 property may be carried over to the next tax year,
subject to subsection (c)(3) [[of this Section]], until the entire
amount of the credit is applied.
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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un
Annual Limit on Amount ofCredits Granted.
ill
During any tax year. the total of all tax credits granted under
this Section must not exceed $500.000.
ru
ill
Credits must be granted
in
the order in which the Department
certifies the amount of the credit under subsection (e)(3)
[[Qf
this Section]],;
A certification of a credit that would cause the limit [[set forth))
in subsection (d)O) [[of this Section]] to be exceeded must be
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granted in the next tax year or years subject to subsections
(c)(3) and (d)(l) [[of this Section]],;
Application for the Credit.
ill
To receive the credit. a property owner must submit an
application to the Department:
(Al
in the format the Department requires;
that includes a copy of the building permit to install the
feature;
all
(Q
that includes any document that the Department requires;
and
(Ill
on or before the date set in the regulations.
ill
ill
The Department must only accept one application for a credit
under this Section for each property during a 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
credit.
til
ill
A property owner may apply for a credit on or after March 1,
2014.
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Administration.
ill
al
The County Executive may adopt regulations under Method
to administer this Section.
(2)
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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:
(Al
number of applicants;
number of applications approved;
modification made by the applicant; and
efforts to promote the credit.
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all
(Q
(Ill
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!hl
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)
*
*
ill
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 defmed
in Section 52-18UCa).
m
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.
au
(Q
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.
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.
(D)
If at least 300/0 of the single family residences built in the
protect meet Level I Accessibility Standards. then the
owner must receive a credit of $2,000 per residence.
ill
Application for the credit and administration of the credit
[[willl1 be in accordance with [[the provisions of]] Subsections
52-18Ufe) and
(0.
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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.
ill
[(f)]
The Director of Finance must not provide a refund for a credit which
is greater than the applicable tax.
W
*
*
*
Sec. 2. Effective date.
This Act takes effect on July
1.
2014.
Approved:
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This is a correct copy ofCouncil action.
7
/3
Date
Approved:
Date
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Linda M. Lauer, Clerk of the Council
Date
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