I
Expedited Bill No.
37-14
Concerning: Real Property Transfer Tax
- Exemption - Enterprise Zones
Revised: 9-24-14
Draft No.
_A_
Introduced:
July 15. 2014
Enacted:
September 30. 2014
Executive: - - - - - - - - -
Effective: - - - - - - - - - -
Sunset Date: ......:.....N=on=e.____ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmembers Navarro, Floreen, and Riemer,
Council President Rice, and Councilmember Berliner
AN EXPEDITED ACT
to:
(1)
exempt from a certain provision of the real property transfer tax certain transfers of
rezoned property located in an enterprise zone;
(2)
repeal archaic and obsolete language and references, and make conforming and
stylistic changes; and
(3)
generally amend County law regarding the real property transfer tax.
Byam.ending
Montgomery County Code
Chapter 52, Taxation
Article II, Real Property Transfer Tax
Section 52-21
Boldface
Underlining
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* * *
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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ExPEDITED BILL
No.
37-14
1
Sec
1.
Section 52-21 is amended as follows:
52-21.
Levied; amount.
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There is hereby levied a tax on (1) [all transfers] each transfer in the [county]
County of a fee simple interest in real property, except
~
transfer by [way of]
mortgage, deed of trust_,_ or deed of trust for the benefit of creditors, (2) the initial
transfer of stock or other evidence of ownership in a cooperative housing corporation
or similar entity, and (3) [all transfers] each transfer of a leasehold interest in real
property where the lease or instrument by which a leasehold interest is [demised]
transferred contains a covenant for perpetual renewal, known as ground rent. The tax
[shall] must be computed on the value of the full consideration for [such] each
transfer at the following rates:
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*
(e)
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On rezoned property, [six (6)]
.Q
percent of the value of the
consideration for any transfer of real property which[, after July 1,
1971,] has been rezoned to a more intensive use at the [instance] request
of the transferor, transferee, or any other person who has or had at the
time of application for rezoning a financial, contractual or proprietary
interest in the property, [excluding] not including the value of
[improvements] any improvement constructed after [such] the rezoning.
"Rezoned" as used [herein shall mean] in this subsection means the
classification, reclassification_,_ or change from one zone to another of
any property by local map ame1:1dment [by the county council sitting as
the district council for that portion of the Maryland-Washington
Regional District located
within
Montgomery County, on the "Zoning
Map of the Maryland-Washington Regional District in Montgomery
County, Maryland" dated May 31, 1958, and subsequent amendments
thereto] under Chapter 59. "Rezoned to a more intensive use" [shall
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EXPEDITED BILL NO.
37 -14
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mean] .as used in this subsection means a classification, reclassification,,,
or change in zone which permits a greater number of dwelling units per
acre in any residential zone, or which permits a greater number of
permitted uses regardless of area or allows more floor area in a
commercial~
[[zone]] commercial/residential. emplovment. or industrial
from
any residential zone to
any
commercial~
zone,
or is
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commercial/residential. emplovment. or industrial zone, or is from any
industrial zone to
emplovment. zone.
"Rezoned to a more intensive use" [shall] does not include:
(1)
A zoning from a residential zone to a [[Planned Unit
Development Zone]] [under division 59-C-7 granted after
January 1, 1980], residential floating zone if the approved
[[development]] floating zone plan, including any amendments to
the plan, does not increase the total number of permitted dwelling
units and does not permit commercial or industrial uses,
[provided however, that] but the transfer [shall] must be subject
to [additional] any tax otherwise due under this subsection if at
any time an amendment to the [[development]] floating zone plan
increases the total number of permitted dwelling units or permits
commercial or industrial uses;
(2)
A
zoning
from
a
residential
zone
to
a
commercial~
any
commercial~
commercial/residential.
or
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commercial/residential. or employment. zone
within
one [(1)]
year after the property was down zoned from a [[commercial]]
zone of equal or greater intensity to a residential zone by
sectional map amendment; [or]
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ExPEDITEDBILL
No. 37-14
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(3)
A rezorung from an industrial zone to a commercial.!
commercial/residential. or emplovment. zone which:
(i)
Is necessitated by a previously adopted amendment to [the
zoning ordinance text,] Chapter 59 that was not [upon
application or at the instance of] requested
.Qy
the
transferor, transferee, owner,, or former owner of the real
property, or by any person who has or has previously had
an interest of any kind in the property, including a
contractual interest; and
(ii)
Allows establishment or continuance of a use or uses
which were permitted uses on the property under the
industrial zone immediately [prior to] before the text
amendment, to which use or uses the property was
restricted by bona fide covenants recorded among the land
records [prior to] before July 1, 1971, and which covenants
are in effect at the time of a
transfer~
or
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.{±}
rezoning of any property that is located in an enterprise zone
when the property is transferred.
[The
tax
levied and imposed in this subsection shall not apply to
transfers which are made pursuant to a bona fide written contract or
agreement of sale entered into prior to July 1, 1971; provided, that the
director of finance may require satisfactory proof that the contract or
agreement was entered into prior to such date. There shall be deducted
from the consideration as defined in section 59-19 the] The taxpayer
may deduct from the consideration on which the
tax
is based any cost
[or expense]
actually incurred by the transferor
for public
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improvements,, such as sewer, water, roads, sidewalks, storm drainage
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ExPEDITED BILL
No. 37 -14
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structures,,_ and permanent soil erosion and sediment control measures,
[subject to the submission to the director of finance of] if the taxpayer
submits satisfactory proof of [such] costs [or expenses] documented by
certificates from public agencies where applicable[; provided, that],,_ but
the rate of [such] the tax on a single transfer [shall] must not exceed [six
(6)]
.Q
percent of the bona fide market value consideration for the
transfer. [Where]
If
a transfer is subject both to the tax imposed by this
subsection and the tax imposed by subsection (d), the tax imposed by
this subsection [shall] must be the only tax imposed on the transfer.
Any tax collected under this subsection [shall] must be collected only
once on the first taxable transaction after each rezoning to a more
intensive use, and [all transfers] any transfer that does not [subsequent
to] follow a rezoning to a more intensive use [shall] must be [taxable]
taxed at the rates applicable under other subsections of this section. The
[county executive] Executive may [from time to time] issue [written]
regulations under method (3) [of section 2A-15 of this Code, pertaining
to] regarding the collection of the tax levied in this subsection.
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*
Sec. 2.
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The Council declares that this
Expedited Effective Date.
legislation is necessary for the immediate protection of the public interest. This Act
takes effect on the date when it becomes law.
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ExPEDITED BILL NO.
37-14
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Approved:
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Approved:
Isiah Leggett, County Executive
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Linda M. Lauer, Clerk of the Council
Date
This is a correct copy ofCouncil action.
Date
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