Agenda Item 10
January 13,2015
Public Hearing
MEMORANDUM
TO:
FROM:
County Council
~.
~
Michael Faden, Senior Legislative Attorney
Public Hearing:
Bill 62-14, Taxation - Development Impact Taxes - Exemption
- Ancillary Facilities
SUBJECT:
Bill 62-14, Taxation - Development Impact Taxes - Exemption - Ancillary Facilities,
sponsored by then Council President Rice, was introduced on November 25, 2014. A Government,
Operations and Fiscal Policy Committee worksession is tentatively scheduled for January 29,
2015, at 9:30 a.m.
Bill 62-14 would exempt from development impact taxes certain ancillary facilities in
residential developments that do not increase the number of dwelling units in the development and
are not open to the public, such as clubhouses, fitness centers, or administration buildings.
This packet contains:
Bi1162-14
Legislative Request Report
Circle
#
1
5
F:\LAW\BILLS\1462 Impact Tax - Exemption - Ancillary Facilities\Public Hearing.Docx
 PDF to HTML - Convert PDF files to HTML files
Bill No.
62-14
Concerning: Taxation - Development
Impact Taxes - Exemptions -
Ancillary Facilities
Revised: 11-18-14
Draft No. 1
Introduced:
November 25, 2014
Expires:
May 25, 2016
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ __
Sunset Date:
-,N!..!.:o~n::::.e
_ _ _ _ __
Ch. _ _,
Laws
of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President Rice
AN
ACT
to:
(1)
(2)
exempt from development and school impact taxes certain ancillary facilities
in
certain residential developments; and
generally amend the law governing impact taxes.
By amending
Montgomery County Code
Chapter 52, Taxation
Sections 52-49 and 52-89
.,.
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 hill.
Added by amendment.
Deletedfrom existing law or the hill by amendment.
Existing law unaffected by bi/l.
The County Council for Montgomery County, Maryland approves the following Act:
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
62-14
1
2
3
4
5
6
7
8
9
Sec.
1.
Sections 52-49 and 52-89 are amended as follows:
52-49.
Imposition and applicability of development impact taxes.
*
(h)
(1)
*
*
The development impact tax does not apply to:
any reconstruction or alteration of an existing building or part of
a building that does not increase the gross floor area of the
building;
ill
any ancillary building in
~
residential development that:
(A) does not increase the number of dwelling units in that
development; and
(ill
is used only
Qy
residents of that development and their
guests, and is not open to the public; and
10
11
12
13
[(2)]
ill
any building that replaces an existing building on the same site
or in the same project (as approved by the Planning Board or the
equivalent body in Rockville or Gaithersburg) to the extent of the
gross floor area ofthe previous building, if:
(A) construction begins within one year after demolition or
destruction of the previous building was substantially
completed; or
(B) the previous building is demolished or destroyed, after the
replacement building is built, by a date specified in a
phasing plan approved by the Planning Board or
equivalent body.
However, if in either case the development impact tax that would
be due on the new, reconstructed, or altered building is greater
than the tax that would have been due on the previous building if
it were taxed at the same time, the applicant must pay the
@t.\law\bills\1462 impact
tax -
exemption - ancillary facilities\biI11.doc
14
15
16
17
18
19
20
21
22
23
24
25
26
27
 PDF to HTML - Convert PDF files to HTML files
BILL No.
62-14
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
52-89.
difference between those amounts.
Imposition and applicability of tax.
*
(d)
(1)
*
*
The
tax
under this Article does not apply to:
any reconstruction or alteration of an existing building or part of
a building that does not increase the number of dwelling units of
the building;
ill
any ancillary building
in
~
residential development that:
CA)
does not increase the number of dwelling units in that
development; and
lID
is used only
Qy
residents of that development and their
guests, and is not open to the public; and
[(2)]
ill
any building that replaces an existing building on the same site
or in the same project (as approved by the Planning Board or the
equivalent body
in
Rockville or Gaithersburg) to the extent of the
number of dwelling units ofthe previous building, if:
(A)
construction begins within one year after demolition or
destruction of the previous building was substantially
completed; or
(B)
the previous building is demolished or destroyed, after the
replacement building is built, by a date specified in a
phasing plan approved by the Planning Board or
equivalent body.
However, if in either case the
tax
that would be due on the new,
reconstructed, or altered building is greater than the tax that
would have been due on the previous building if it were taxed at
the same time, the applicant must pay the difference between
@t:\law'lbills\1462
impact
tax ­
exemption - ancillary facilities\bill1.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 62-14
55
56
57
58
Approved:
those amounts.
*
*
*
Craig
L.
Rice, President, County Council
Date
59
60
Approved:
Isiah Leggett, County Executive
Date
61
62
This is a correct copy ofCouncil action.
Linda M. Lauer, Clerk ofthe Council
Date
@lIaw\bills\1462
impact
tax - exemption - ancillary facilitieslbill1.doc
 PDF to HTML - Convert PDF files to HTML files
LEGISLATIVE REQUEST REPORT
Bill 62-14
Taxation
-
Development Impact Taxes
-
Exemption
-
Ancillary Facilities
DESCRIPTION:
Would exempt from development impact taxes ancillary facilities in
residential developments that do not increase the number of dwelling
units in the development or attract members of the public, such as
clubhouses, fitness centers, or administration buildings.
Under current interpretations of County law, development impact
taxes could be charged for new or enlarged ancillary facilities in
residential developments that do not increase the number of units in
the development or the traffic to or from the development.
To clarify the application of the development impact taxes to certain
ancillary facilities.
Finance Department, Department of Permitting Services
To be requested.
To be requested.
To be requested.
To be researched.
Michael Faden, Senior Legislative Attorney, 240-777-7905
Applies only to County impact taxes, which apply Countywide.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
Not applicable.
f:\Iaw\bills\1462 impact tax - exemption - ancillary facilities\lrr.doc
®