Expedited Bill No.
37~14
Concerning: Real Property Transfer Tax
- Exemption - Enterprise Zones
Revised:
9-2~
14
Draft No.
~
Introduced:
July 15. 2014
Enacted:
September 30, 2014
Executive:
October 6,2014
Effective:
October6,2014
Sunset Date: -.:..:.No=ne:.:::..:-_-::--_----:--:-:-_
Ch.~,
Laws
of Mont Co.
2014
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: COllllcilmembers Navarro, Floreen, and Riemer,
COllllcil President Rice, and COllllcilmember 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 COllllty law regarding the
real
property transfer tax.·
By amending
Montgomery Collllty Code
ChapU752,Taxation
Article II, Real Property Transfer Tax
Section 52-21
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double
boldface bracketsD
* *
*
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 wu:ifJected
by
bill
The County Councilfor Montgomery County, Maryland approves thefollowing Act:
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ExPEDITED BILL
No.
37 -14
1
Sec 1. Section 52-21 is amended as follows:
52-21.
Levied; amount.
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
trus~
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)
*
On rezoned property, [six (6)]
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,
reclassificatio~
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or change from one zone to another of
[by the county council sitting as
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any property by local map
ame~dment
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.1
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]] C2mmercial/residential. employment or industrial
zone,
or is
from
any residential
zone to
any
commercial"
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commercial/residential. employment or industrial zone, or is from any
industrial
zone to
any commercial" commercial/residential.
or
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employment. 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
otheIWise 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"
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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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ExPEDITED BILL
No.
37 -14
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(3)
A rezoning from an industrial zone to a commercial,.
~mmerciaUresidential.
or employment. 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.'1 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
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(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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ill
!!
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.'1 such as sewer, water, roads, sidewalks, storm drainage
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ExPEDITED BILL
No.
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structures:J, and pennanent soil erosion and sediment control measures,
[subj ect
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]:J, 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
~
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 ofthis section. The
[county executive] Executive may [from time to time] issue [written]
regula~ions
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under method (3) [of section
2A-1S
of this Code, pertaining
to] regarding the collection ofthe tax levied in this subsection.
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*
Sec. 2.
*
*
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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108
Approved'
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113
ISi~CouA~
This is a correct copy ofCouncil action.
~V
/h.~
ift;),8
r
~
,
Date
Linda M. Lauer, Clerk ofthe Council
~
/t;/8J~t>/¥-
I
Date
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