Agenda Item 13
March 3, 2015
Public Hearing
MEMORANDUM
TO:
FROM:
SUBJECT:
County Council
//
Jeffrey
L.
Zyontz, Legislative Attorney
Public Hearing:
Bill 8-15, Taxation - Development Impact Tax - Exemptions
Bill 8-15, Taxation Development Impact Tax - Exemptions, sponsored by Council Vice­
President Floreen and Councilmembers Riemer, Rice, Katz and Navarro, was introduced on
February 3. A Government Operations and Fiscal Policy Committee worksession will be
scheduled at a later date.
Bill 8-15 would exempt the market-rate rental dwelling units in any development which
consists of at least 25% affordable housing units from the transportation and school development
impact taxes. This Bill is very similar to Bill 39-11 as that Bill was recommended to be amended
by the Government Operations and Fiscal Policy Committee. On May
7,
2013, the Council
considered Bill 39-11 and laid the bill on the table. Bill 39-11 expired without further action on
December 1,2014.
This packet contains:
Bill 8-15
Legislative Request Report
F:\LAW\BILLS\lS08 Taxations - Development Impact Tax-Exemptions\PH Memo.Docx
Circle
#
1
5
 PDF to HTML - Convert PDF files to HTML files
Bill No.
8-15 .
Concerning: Taxation -
Development
Impact Tax - Exemptions
Revised: 1-20-15
Draft No. _1_
Introduced:
February 3, 2015
Expires:
August 3,2015
Enacted: _ _ _ _ _ _ _ __
~~we:
_____________
EffectWe: ____
~
_____- - - - - - ­
Sunset
Date:
.......;...>.No=n=e'--_ _ _ __
Ch. _ _, Laws of Mont Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council Vice-President Floreen, and Councilmembers Riemer, Rice, and
Katz
AN
ACT to:
(1)
(2)
exempt certain housing
units
from certain development impact taxes;
and
generally amend the law governing development impact taxes.
By amending
Montgomery County Code
Chapter 52, Taxation
Sections 5249 and 52-89
Boldface
Underlining
[Single boldface brackets)
Double underljning
[[Double boldface brackets])
* * *
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 W14ffected by bill.
The
County Council for Montgomery County, Maryland approves the following Act:
 PDF to HTML - Convert PDF files to HTML files
BILL NO.8-15
1
2
3
4
5
6
7
8
9
10
11
Section
1.
Sections 52-49 and 52-89 are amended as follows:
52-49.
Imposition and applicability of development impact taxes.
*
*
*
(g) A development impact
tax
must not be imposed on:
(l)
any Moderately Priced Dwelling Unit built under Chapter 25A or
any similar program enacted by either Gaithersburg or Rockville;
(2) any other dwelling unit built under a ,government regulation or
binding agreement that limits for at least
IS
years the price or rent
charged for the unit in order to make the unit affordable
to
households earning less than 60% of the area median income,
adjusted for family size;
(3) any Personal Living Quarters unit built under Sec. 59-A-6.l5,
which meets the price or rent eligibility standards for a
moderately priced dwelling unit under Chapter 25A;
(4) any dwelling unit in an Opportunity Housing Project built under
Sections 56-28 through 56-32, which meets the price or rent
eligibility standards for a moderately priced dwelling unit under
Chapter 25A;
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
ill
any non-exempt rental dwelling unit in
~
development in which at
least 25% of the dwelling units are exempt under paragraph
01
m
Q1
or
ffi
or any combination ofthem, if:
(A) the development is not located on publicly-owned land or
land that was publicly-owned when the development was
proposed; and
ill)
the development has not received other benefits under
Chapter 59 because the development includes more than
the minimum required affordable housing; and
@f:\laW\billS\1508taxations-deVelopmentim
p
acttax-exemptionS\1508 biU1a.doc
 PDF to HTML - Convert PDF files to HTML files
BILL NO.8-1S
28
29
30
31
32
33
34
35
36
37
38
39
[(5)]
®
any development located in an enterprise zone designated by
the State or in an area previously designated as an enterprise
zone.
*
52-89. Imposition and applicability of tax.
*
*
*
*
(c)
*
The tax under this Article must not be imposed on:
(1)
any Moderately Priced Dwelling Unit built under Chapter 25A
or any similar program enacted by either Gaithersburg or
Rockville;
(2)
any other dwelling unit built under a government regulation or
binding agreement that limits for at least 15 years the price or
rent charged for the unit in order to make the unit affordable to
households earning less than 60% of the area median income,
adjusted for family size;
(3)
any Personal Living Quarters unit built under Sec. 59-A-6.15,
which meets the price or rent eligibility standards for a
moderately priced dwelling unit under Chapter 25A;
(4)
any dwelling unit in an Opportunity Housing Project built under
Sections 56-28 through 56-32, which meets the price or rent
eligibility standards for a moderately priced dwelling unit under
Chapter 25A;
40
41
42
43
44
45
46
47
48
49
50
51
ill
any non-exempt rental dwelling unit in
~
development in which at
least 25% of the dwelling units are exempt under paragraph
ill
52
53
G1
ill
or
.G1
or any combination ofthem, if:
(A)
the development is not located on publicly-owned land or
land that was publicly-owned when the development was
54
0;\law\biIlS\1508 taxations - development impact tax-exemptions\1508 bill1 a.doc
 PDF to HTML - Convert PDF files to HTML files
BILL NO.8-15
55
56
proposed; and
an
®
the development has not received other benefits under
Chapter 59 because the development includes more than
the minimum required affordable housing; and
57
58
59
60
[(5)]
any development located in an enterprise zone designated by
the State or in an area previously designated as an enterprise
zone.
61
62
63
*
*
*
rum.lY
to any development
Section 2. Applicability.
County Code Section 52-49(g){5) and Section 52­
89(c)(5), both inserted
Qy
Section
1
of this Act, do not
64
65
66
67
which received preliminary subdivision plan approval or site plan approval (or
!!
similar approval in
!!
municipality) before this Act took effect.
Approved:
68
George Leventhal, President. County Council
69
Approved:
Date.
70
Isiah Leggett, COWlty Executive
71
Date
This is a correct copy ofCouncil action.
72
Linda M. Lauer, Clerk ofthe Council
Date
@:\law\bills\1S08 taxations - development
impact
tax-exemptions\1508 bill1 a.doc
 PDF to HTML - Convert PDF files to HTML files
LEGISLATIVE REQUEST REPORT
Bill8-IS
Taxation
-
Development Impact Tax
-
Exemptions
DESCRIPTION:
Exempts the market-rate rental dwelling units in any development
which consists of at least
25%
affordable housing units from the
transportation and school development impact taxes.
Need to encourage provision of affordable housing.
To create further incentives to increase the share oflow- and moderate-
income housing in new developments
Department of Permitting Services, Department of Housing and
Community Mfairs, Planning Board
To be requested.
To be requested .
To be requested.
To be researched.
Robert H. Drummer, Senior Legislative Attorney,
240-777-7895
Impact taxes apply County-wide.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
. IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
Not applicable.
f:\law\bills\1508 taxations - development impact tax­
exemptions\legislative request report.docx