Bill No.
37-16
Concerning: Taxation - Development
Impact Tax - Transportation and
Public School Improvements -
Amendments
Revised: November
15. 2016
Draft No.11
Introduced:
August
2. 2016
Enacted:
November
15. 2016
Executive: _ _ _ _ _ _ _ _ __
Effective:
March
1 2017
Sunset Date: ---'-'-No=n"""'e'--------
Ch. _ _ , Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President at the request of the Planning Board
AN ACT
to:
modify the method of calculating the transportation and public school impact tax;
(1)
(2)
create new transportation tax districts associated with policy area categories;
(3)
adjust the transportation impact tax for residential uses based on Non-Auto Driver
Mode Share associated with each tax district;
adjust the transportation impact tax for non-residential uses based on Vehicle Miles
(4)
of Travel associated with each tax district;
[[authorize an adjustment to the transportation impact tax for providing parking below
(5)
the minimum required under Chapter 59]] exempt certain student-built houses from
the impact tax;
(6)
[[modify the public school impact tax payable for property located in a former
enterprise zone]] eliminate the transportation mitigation payments for certain proiects:
ill
eliminate the school facilities payments for certain projects: [[and]]
exempt certain farm tenant dwelling units from the impact tax for
[[(7)]]
!fil
transportation improvements: and
generally amend County law concerning the development impact tax for
transportation and public school [[impact tax]] improvements.
By amending
Montgomery County Code
Chapter 52, Taxation
Sections 52-39, 52-40. 52-45, 52-47, 52-49, 52-50, 52,51, 52-52, 52-54, 52-55, 52-56, 52-
58, and 52-59.
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deleted.from 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.
37-16
1
Sec.
1.
Sections 52-39, 52-40, 52-45, 52-47, 52-49, 52-50, 52,51, 52-52, 52-
54, 52-55, 52-56, 52-58, and 52-59 are amended as follows:
52-39. Definitions.
In
this Article the following terms have the following meanings:
2
3
4
5
Additional capacity
means a new road, widening an existing road, adding an
additional lane or tum lane to an existing road, or another transportation
improvement that:
(1)
increases the maximum theoretical volume of traffic that a road or
intersection can accommodate.1 or implements or improves transit,
pedestrian and bike facilities or access to non-auto modes of travel; and
(2)
is classified as a minor arterial, arterial, parkway, major highway,
controlled major highway, or freeway in the County's Master Plan of
Highways, or is similarly classified by a municipality. The Director of
Transportation may find that a specified business district street or
industrial street also provides additional capacity as defined in this
prov1s10n.
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7
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9
1O
11
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13
14
15
16
17
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Additional capacity
is sometimes referred to as added
"highway capacity,"
"transportation capacity,"
or
"intersection capacity".
*
*
*
Charitable, philanthropic institution
means a private, tax-exempt organization
whose primary function is to provide services, research, or educational activities
in areas such as health, social service, recreation, or environmental conservation.
Clergv House
means a single-family dwelling unit provided for the designated
religious leader of a place of worship to live.
Construction
means the planning. design.
acquisition of land.
site
improvements. utility relocation. building. and initial furniture and equipment
for a capital proiect.
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No. 37-16
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*
*
*
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Farm tenant dwelling
means a dwelling unit under the control of the owner or
operator of the farm on which the dwelling unit is located and occupied by an
agricultural worker actively engaged in farming on a full-time or part-time basis.
Farm Tenant Dwelling includes up to three mobile homes. A Farm Tenant
Dwelling is not restricted by the definition of household.
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*
52-40. Findings; purpose and intent.
*
*
(a)
The master plan of [[highways]] transportation indicates that certain
[[roads]] transportation facilities are needed in planning policy areas.
Furthermore, the [[Growth]] Subdivision Staging Policy indicates that the
amount and rate of growth projected in certain planning policy areas will
place significant demands on the County for provision of [[major
highways]]
transportation
facilities
necessary
to
support
and
accommodate that growth.
*
(e)
*
*
The development impact tax [[will fund]] funds, in part, the
improvements necessary to increase the transportation system capacity,
thereby allowing development to proceed. Development impact taxes
[[will be]] are used exclusively for impact transportation improvements.
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51
52
53
54
(f)
In order to assure that the necessary impact transportation improvements
are constructed in a timely manner, the County [[intends to assure]]
assures the availability of funds sufficient to construct the impact
transportation improvements.
(g)
The County retains the power to determine the types of impact
transportation improvements to be funded by development impact
taxes[[; to estimate the cost of such improvements; to establish the proper
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timing of construction of the improvements so as to meet APFO policy
area transportation adequacy standards where they apply; to determine
when changes, if any, may be necessary in the County CIP;]] and to do
all things necessary and proper to effectuate the purpose and intent of this
Article.
(h)
The County intends to further the public purpose of ensuring that an
adequate transportation system is available in support of new
development.
(i)
[[The County's findings are based on the adopted or approved plans,
planning reports, capital improvements programs identified in this
Article, and specific studies conducted by the Department of
Transportation and its consultants.
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G)]]
The County intends to impose development impact taxes until the County
has attained build-out as defined by the General Plan.
52-41. Imposition and applicability of development impact taxes.
(a)
A development impact tax must be imposed before a building permit is
issued for development in the County.
'
I
i
I
(b)
An applicant for a building permit must pay a development impact tax in
the amount and manner provided in this Article, unless a credit in the full
amount of the applicable tax applies under Section 52-47 or an appeal
bond is posted under Section 52-48.
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(
c)
The following impact tax districts are established:
(1)
[Metro Station:
Friendship Heights, Bethesda CBD, Grosvenor,
White Flint, Twinbrook, Rockville Town Center, Shady Grove
Metro, Silver Spring CBD, Wheaton CBD, and Glenmont Metro
station policy areas, as defined in the most recent Subdivision
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Staging policy, except as modified by paragraph (3) for the White
Flint policy area;
(2)
Clarksburg:
Clarksburg policy area, as defined in the most recent
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Subdivision Staging Policy;
(3)]
White Flint:
The part of the White Flint Metro Station Policy Area
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included in the White Flint Special Taxing District in Section 68C-
2; [and]
ill
Red Policy Areas:
Bethesda CBD, Friendship Heights, Grosvenor,
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Glenmont, Rockville Town Center, Shady Grove Metro Station,
Silver Spring CBD, Twinbrook, and Wheaton CBD Metro Station
Policy Areas;
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ill
Orange Policy Areas:
Bethesda/Chevy Chase, Burtonsville
Crossroads. Chevy Chase Lake, Clarksburg Town Center,
Derwood, Gaithersburg
~
Germantown Town Center,
Kensington/Wheaton, Long Branch, North Bethesda, R
&
D
Village,
Rockville
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Q!L
Silver
Spring/Takoma
Park,
Takoma/Langley, White Flint. except the portion that is included
in the White Flint Special Taxing District in Section 68C-2. and
White Oak Policy Areas;
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ffi
Yellow
Policy Areas:
Aspen Hill,
Clarksburg.
Cloverly,
Fairland/Colesville, Germantown East, Germantown West,
Montgomery Village/Airpark, North Potomac, Olney, and
Potomac Policy Areas; and
ill
[(4)
Green Policy Areas:
Damascus, Rural East, and Rural West Policy
Areas.
General:
Any part of the County, including any municipality, not
located in an area listed in paragraphs ( 1) - (3 ). ]
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(d)
[[Reserved]] A Clergy House must pay the impact tax rate that applies to
a place of worship ifthe house:
ill
ill
is on the same lot or parcel. adjacent to. or confronting the property
on which the place of worship is located; and
is incidental and subordinate to the principal building used by the
religious organization as its place of worship.
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The place of worship tax rate does not apply to any portion of a Clergy
House that is nonresidential development.
*
(g)
*
*
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A development impact tax must not be imposed on:
*
(5)
*
*
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any non-exempt dwelling unit in a development in which at least
25% of the dwelling units are exempt under paragraph (1 ), (2), (3),
or (4), or any combination of them; [[and]]
(6)
any development located in an enterprise zone designated by the
State or in an area previously designated as an enterprise
[[and]]
zone~
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ill
a house built by high school students under a program operated by
the Montgomerv Countv Board of Education; and
LID
a farm tenant dwelling.
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*
*
*
*
*
*
52-45. Restrictions on use and accounting of development impact tax funds.
[[(h) Development impact tax funds collected from the [Clarksburg impact tax
district] Red Policy Areas must be used for impact transportation
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improvements located in or that directly benefit [the Clarksburg] those
policy [area] areas.]]
52-47. Credits.
(a)
[[( 1)]] A property owner is entitled to a credit if the owner, before July 1,
2002, entered into a participation agreement, or a similar
agreement with the state or a municipality, the purpose of which
was to provide additional transportation capacity. A property
owner is also entitled to a credit if the owner receives approval
before July 1, 2002, of a subdivision plan, development plan, or
similar development approval by the County or a municipality that
requires the owner to build or contribute to a transportation
improvement that provides additional transportation capacity. The
Department ofTransportationmust calculate the credit. The credit
must equal the amount of any charge paid under the participation
agreement. The Department may give credit only for building
permit applications for development on the site covered by the
participation agreement.
[[(2) (A)
An entity that received more than $20 million in credits
under this subsection that were certified before July 1, 2002,
may apply any unused credit to satisfy an obligation under
Policy Area Mobility Review, or any applicable successor
policy area transportation test, if:
(i)
the County Executive has identified the project for
which a credit would be applied under this paragraph
as a strategic economic development project; and
(ii)
the credit is used before November 1, 2015.
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(B)
The total of any credits used under this paragraph to satisfy
an obligation under Policy Area Mobility Review, or any
applicable successor policy area transportation test, much
not exceed $1. 7 million.]]
*
(d)
*
*
Any credit for building or contributing to an impact transportation
improvement does not apply to any development that [is] has been
previously approved under the Alternative Review Procedure for Metro
Station Policy Areas in the County Subdivision Staging Policy.
*
G)
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 defined in Section
52-107(a).
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ill
The credit allowed under this Section must be as follows:
(A)
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 $250 per residence.
Qi)
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 $500 per residence.
LQ
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 $750 per residence.
!Ill
If
at least 30% 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.
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(l)
Application for the credit and administration of the credit be in
accordance with Subsections 52-107Ce) and (f).
ill
A person must not receive a propertv tax credit under this Section
if the person receives any public benefit points for constructing
units with accessibility features under Chapter 59.
(k)
After a credit has been certified under this Section, the property owner or
contract purchaser to whom the credit was certified may transfer all or
part of the credit to any successor in interest of the same property.
However, any credit transferred under this subsection must only be
applied to the tax due under this Article with respect to the property for
which the credit was originally certified.
52-49. Tax rates.
(a)
The Council must establish the tax rates for each impact tax district,
except as provided in subsection (b). by resolution. after a public hearing
advertised at least 15 days in advance. [[are:]][
200
201
202
Tax per Dwelling Unit or per Square Foot
o/Gross Floor Area (GFA)
Building Type
Metro
Station
Clarksburg General
Single-family
detached
residential (per
dwelling unit)
Single-family
attached
residential (per
dwelling unit)
$2,750
$8,250
$5,500
$2,250
$6,750
$4,500
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Multifamily
residential
(except high-rise)
(per dwelling
unit)
High-rise
residential (per
dwelling unit)
Multifamily-
senior residential
(per dwelling
unit)
Office (per sq. ft.
GFA)
Industrial (per sq.
ft. GFA)
Bioscience
facility (per sq.
ft. GFA)
Retail (per sq. ft.
GFA)
Place of worship
(per sq. ft. GFA)
Private
elementary and
secondary school
(per sq. ft. GFA)
Hospital (per sq.
ft. GFA)
Cultural
institution
Charitable,
philanthropic
institution
Other
nonresidential
(per sq. ft. GFA)
203
] [[
$1,750
$5,250
$3,500
$1,250
$3,750
$2,500
$500
$1,500
$1,000
$2.50
$1.25
$0
$6
$3
$0
$5
$2.50
$0
$2.25
$0.15
$0.20
$5.40
$0.35
$0.50
$4.50
$0.30
$0.40
$0
$0.20
$0
$0
$0.50
$0
$0
$0.40
$0
$1.25
$3
$2.50
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BILL No. 37-16
Tax per Dwelling Unit
.Q!
per Square
Foot of Gross Floor Area (GFA}
Land Use
Red Policy
Areas
(Metro
Stations}
Orange
Policy
Areas
Yellow
Policy
Areas
Green
Policy
Areas
Residential
Uses
SF Detached
MF
-
Residential
$22552
$2J12
$72656
$62937
$122759
$112562
$20A15
$182499
$32653
$102959
$182266
$292225
SF Attached
Garden
A£artments
High=Rise
A£artments
Multi-Family
Senior
$L652
$42955
$82259
$132214
$661
$12982
$32303
$52286
Commercial
Uses
Office
Industrial
Bioscience
Retail
Place of
---
Worshi£
$10.08
$5.01
$0.00
$8.97
$0.53
$13.45
$6.69
$0.00
$11.96
$0.70
$16.81
$8.36
$0.00
$14.95
$0.88
$16.81
$8.36
$0.00
$14.95
$0.88
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Private School
Hos12ital
Social Service
Agencies
Other Non-
Residential
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205
206
207
]]
$0.80
$0.00
$0.00
$1.06
$0.00
$0.00
$1.33
$0.00
$0.00
$1.33
$0.00
$0.00
$5.02
$6.69
$8.36
$8.36
(b)
For any development located in the White Flint Impact Tax District, the
tax rates are $0. [[:
Tax per Dwelling Unit or per Square Foot of Gross Floor Area (GFA)
Building Type
White Flint
High-rise residential (per dwelling unit)
Multifamily-senior residential (per dwelling unit)
Office (per sq.ft. GFA)
Industrial (per sq.ft. GFA)
Bioscience facility (per sq.ft. GFA)
Retail (per sq.ft. GFA)
Building Type
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
White Flint
Tax per Dwelling Unit or per Square Foot of Gross Floor Area (GFA)
Place of worship (per sq.ft. GFA)
Private elementary and secondary school (per sq.ft. GF A)
Hospital (per sq.ft. GFA)
Other nonresidential (per sq.ft. GF A)
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210
211
]]
(
c)
$ 0
$ 0
$ 0
$ 0
[Any development that receives approval of a preliminary plan of
subdivision under any Alternative Review Procedure must pay the tax at
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(
d)]
double the rate listed in subsection (a). However, any development
approved under an Alternative Review Procedure that is located in a
Metro Station Policy Area must pay the tax at 75% of the rate listed in
subsection (a) for the same type of development in the General district.
Any Productivity Housing unit, as defined in Section 25B-1 7
G),
must pay
the tax at 50% of the applicable rate calculated in subsection (a).
[(
e)]
@
Any building that would be located within one-half mile of the
Germantown, Metropolitan Grove, Gaithersburg, Washington Grove,
Garrett Park, or Kensington MARC stations must pay the tax at 85% of
the applicable rate calculated in subsection (a).
[(t)]
.W
The County Council by resolution, after a public hearing
advertised at least 15 days in advance, may increase or decrease the rates
[[set in]] established under this Section.
[(g)]
ill
The Director of Finance, after advertising and holding a public
hearing as required by Section 52-17(c), must adjust the tax rates set in
or under this Section on [[July 1]] [[January 1]] July 1 of each odd-
numbered year by the annual average increase or decrease in a published
construction cost index specified by regulation for the two most recent
calendar years. The Director must calculate the adjustment to the nearest
multiple of 5 cents for rates per square foot of gross floor area or one
dollar for rates per dwelling unit. The Director must publish the amount
ofthis adjustment not later than [[May 1]] [[November l]] May 1 of each
[[odd]] [[even numbered]] odd-numbered year.
52-50.
Use of
impact tax funds.
Impact tax funds may be used for any:
(a)
new road, widening of an existing road, or total reconstruction of all or
part of an existing road required as part of widening of an existing road,
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that adds highway or intersection capacity or improves transit service or
bicycle commuting, such as bus lanes or bike lanes;
(b)
(c)
(
d)
(
e)
new or expanded transit center or park-and-ride lot;
bus added to the Ride-On bus fleet, but not a replacement bus;
new bus shelter, but not a replacement bus shelter;
hiker-biker trail [[or other bike facility]] and protected bike lanes used
primarily for transportation;
(f)
(g)
bicycle locker that holds at least 8 bicycles;
bikesharing station (including bicycles) approved by the Department of
Transportation;
[[Qr]]
(h)
sidewalk connector in a public right-of-way to or within a major activity
center or along an arterial or major highway; or
(i)
[[the operating expenses of any transit or trip reduction program]]
element of bus rapid transit. including exclusive bus lanes. shelters. and
buses.
52-51. [[Transportation Mitigation Payment]] Reserved.
[[(a)
In
addition to the tax due under this Article, an applicant for a building
permit for any building on which an impact tax is imposed under this
Article must pay to the Department of Finance a [Transportation] Transit
Accessibility Mitigation Payment if that building was included in a
preliminary plan of subdivision that was approved under the
Transportation Mitigation Payment provisions in the County Subdivision
Staging Policy adopted on __.]]
[[
(b) The amount of the Payment [for each building must be calculated by
multiplying the Payment rate by the total peak hour trips generated by the
development] is based upon the latest finding of adequacy for transit
accessibility for each Policy Area as approved and applicable under the
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Policy Area
County Subdivision Staging Policy process.
applicability and adequacy as adopted on
The initial findings of
are as follows:]) [.] [[
Transit
Accessibility
Mitigation
Red
Group
Bethesda CBD
Friendship Heights
Grosvenor
Glenmont
Rockville Town Center
Shady Grove Metro Station
Silver Spring CBD
Twinbrook
WheatonCBD
White Flint
Orange
Group
Bethesda/Cheyy Chase
Clarksburg
Derwood
Gaithersburg City
Germantown Town Center
Kensington/Wheaton
North Bethesda
R&DVillage
Rockville City
Silver Spring/Takoma Park
White Oak
Yellow
Group
Aspen Hill
Cloverly
Fairland/Colesville
Germantown East
Germantown West
Montgomery Village/Airpark
North Potomac
Olney
Potomac
Green
Group
Damascus
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Adeguate
Inadeguate, Full Mitigation
Inadeguate, Partial Mitigation
Inadeguate, Full Mitigation
Inadeguate, Full Mitigation
Inadeguate, Full Mitigation
Inadeguate, Full Mitigation
Inadeguate, Full Mitigation
Inadeguate, Full Mitigation
Inadeguate, Full Mitigation
Adeguate
Inadeguate, Full Mitigation
Inadeguate, Full Mitigation
Inadeguate, Partial Mitigation
Inadeguate, Full Mitigation
Inadeguate, Full Mitigation
Adeguate
Inadeguate, Full Mitigation
Inadeguate, Full Mitigation
Adeguate
Exempt
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IRural
East
Rural
West
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280
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282
283
284
285
286
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292
[[(
e)
[[(
c)
I
Exempt
Exempt
In
addition to the above, buildings in the Chevy Chase Lake, Langley
Park, and Takoma/Langley Policy Areas are considered to have adequate
transit accessibility
as~
result of programmed construction funds for the
Purple Line.]]
The Transit Accessibility Mitigation Payment is based
upon~
percentage
of the tax due under this Article according to the following schedule:
ill
ill
Full Mitigation Required
=
25% of tax due under this Article; and
Partial Mitigation Required
=
15% of tax due under this Article.
The rate must be set by Council resolution, including a resolution that
amends the Subdivision Staging Policy.]] [The Director of Finance must
adjust the then-applicable Payment rate as of July 1 of 2015 and each later
odd-numbered year by the annual average increase or decrease in a
published construction cost index specified by regulation for the two most
recent calendar years to the nearest multiple of $10. The Director must
publish the amount of this adjustment in the County Register not later
than May 1 of each odd numbered year. The Council by resolution, after
a public hearing advertised at least 15 days in advance, may increase or
decrease the Payment rate or set different rates for different types of
development.]
[[(d) The Payment must be paid at the same time and in the same manner as
the tax under this Article, and is subject to all provisions of this Article
for administering and collecting the tax.]]
The Department of Finance must retain funds collected under this Section
in an account to be appropriated for transportation improvements that
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result in added transportation capacity in the area where the development
for which the funds were paid is located.]]
52-52. Definitions.
In this Article all terms defined in Section 52-39 have the same meanings, and
the following terms have the following meanings:
Cost of a student seat
means the construction cost of a school. not including the
cost of land acquisition. divided by the program capacity of the school.
Development impact tax for public school improvements
means a tax imposed
to defray a portion of the costs associated with public school improvements that
are necessary to accommodate the enrollment generated by the development.
High-rise unit
means any dwelling unit located in a multifamily residential or
mixed-use building that is taller than 4 stories. and any I -bedroom garden
apartment.
Public school improvement
means any capital project of the Montgomery
County Public Schools that adds to the number of teaching stations in a public
school.
[[High-rise unit
includes any dwelling unit located in a multifamily residential
or mixed-use building that is taller than 4 stories, and any I -bedroom garden
apartment.]]
52-54. Imposition and applicability of
tax.
*
(c)
*
*
[[A portion of the development impact tax equal to IO% of the cost
of~
student seat must be dedicated to land acquisition for new schools.
@]]
The tax under this Article must not be imposed on:
(I)
any Moderately Priced Dwelling Unit built under Chapter 25A or
any similar program enacted by either Gaithersburg or Rockville;
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(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 equal to or 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;
(5)
any non-exempt dwelling unit in a development in which at least
25% of the dwelling units are exempt under paragraph ( 1), (2), (3 ),
or (4), or any combination of them; [[and]]
(6)
any development located in an enterprise zone designated by the
State or in an area previously designated as an enterprise zone: or
[[based upon the length of time since the expiration of its enterprise
zone status. Within
l
year of its expiration,
~
full exemption must
2.
years of its expiration, 25% of the applicable
development impact tax must apply. Within
J
years, 50% of the
applicable development impact tax must apply. Within
.4
years,
apply. Within
75% of the applicable development impact tax must apply. A
project within an area previously designated as an enterprise zone
must be required to
oo
100% of the applicable development
impact tax for public school improvements beginning
.4
years after
its expiration]]
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BILL No. 37-16
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ill
a house built by high school students under a program operated by
the Montgomery County Board of Education.
[(
d)]
[[W]]
(ill
The tax under this Article does not apply to:
(1)
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;
(2)
any ancillary building in a residential development that:
(A)
does not increase the number of dwelling units in that
development; and
(B)
is used only by residents of that development and their
guests, and is not open to the public; and
(3)
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 of the 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 those amounts.
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[( e)]
[[ffi]]
W
If
the type of proposed development cannot be categorized
under the residential definitions in Section 52-39 and 52-52, the
Department must use the rate assigned to the type of residential
development which generates the most similar school enrollment
characteristics.
LJ;)
A Clergy House must pay the impact tax rate that applies to a place of
worship under Section 52-41(d) ifthe house:
ill
is on the same lot or parcel. adiacent to. or confronting the property
on which the place of worship is located; and
ru
is incidental and subordinate to the principal building used by the
religious organization as its place of worship.
The place of worship tax rate does not apply to any portion of a Clergy
House that is nonresidential development.
52-55. Tax rates.
(a)
The Council must establish the Countywide rates for the tax under this
Article by resolution after a public hearing advertised at least 15 days in
advance. [[are:
Dwelling type
Single-family detached
Single-family attached
Multifamily (except high-rise)
High-rise
Multifamily senior
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391
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]]
Tax per dwelling unit
[$8000] $18,878
[$6000] $19,643
[$4000] $15,507
[$1600] $5,570
$
0
(b)
The tax on any single-family detached or attached dwelling unit must be
increased by $2 for each square foot of gross floor area that exceeds 3 ,500
square feet, to a maximum of 8,500 square feet.
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BILL NO.
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(
c)
Any Productivity Housing unit, as defined in Section 25B-17G), must pay
the tax at 50% of the otherwise applicable rate.
(
d)
[Any non-exempt dwelling unit located in a development where at least
30% of the dwelling units are exempt from this tax under Section 52-
54(c)(l)-(4) must pay the tax at 50% of the applicable rate in subsection
(a).]
[(e)]@
The County Council by resolution, after a public hearing
advertised at least 15 days in advance, may increase or decrease the rates
[[set in]] established under this Section.
[(t)]
(cl
The Director of Finance, after advertising and holding a public
hearing as required by Section 52-17(c), must adjust the tax rates set in
or under this Section effective on [[July 1]] [[Januarv 1]] July 1 of each
[odd-numbered]
[[even-numbered]]
odd-numbered year[[.1 or on
November 15,]] in accordance with the update to the Subdivision Staging
Policy using the latest student generation rates and school construction
cost data [by the annual average increase or decrease in a published
construction cost index specified by regulation for the two most recent
calendar years]. The Director must calculate the adjustment to the nearest
multiple of one dollar[[.1 except that the rate must not be increased or
decreased more than 5%]]. The Director must publish the amount of this
adjustment not later than [[May l]] [[November
l]]
May 1 of each [odd
numbered] [[even-numbered]] odd-numbered year.
52-56. Accounting; use of funds.
*
(d)
*
*
Revenues raised under this Article may be used to fund planning design.
acquisition of land. site improvements. utility relocation. construction.
and initial furniture and equipment for any:
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(1)
(2)
new public elementary or secondary school;
addition to an existing public elementary or secondary school that
adds one or more teaching stations; [or] or
(3)
modernization of an existing public elementary or secondary
school to the extent that the modernization adds one or more
teaching stations[[; or
8}
acquisition of land for£! public elementary or secondary school]].
[[.{fil
Any funds collected for the acquisition of land must be placed in the
MCPS Advance Land Acquisition Revolving Fund (ALARF), to be used
for the purchase of property for new public schools.]]
52-58. Credits.
(a)
Section 52-47 does not apply to the tax under this Article. A property
owner must receive a credit for constructing or contributing to an
improvement of the type listed in Section 52-56(d), including costs of site
preparation. [A credit must not be allowed for the cost of any land
dedicated for school use, including any land on which the property owner
constructs a school] A property owner may receive credit for land
dedicated for£! school site, if:
ill
ill
(b)
the density calculated for the dedication area is excluded from the
density calculation for the development site; and
the Montgomery County School Board agrees to the site
dedication.
If
the property owner elects to make a qualified improvement or
dedication, the owner must enter into an agreement with the Director of
Permitting Services, or receive a development approval based on making
the improvement, before any building permit is issued. The agreement
or development approval must contain:
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(1)
the estimated cost of the improvement or the fair market value of
the dedicated land, if known then;
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(2)
the dates or triggering actions to start and, if known then, finish the
improvement or land transfer; [.]
(3)
a requirement that the property owner complete the improvement
according to Montgomery County Public Schools standards; [,]
and
(4)
(c)
such other terms and conditions as MCPS finds necessary.
MCPS must:
(1)
(2)
(3)
review the improvement plan or dedication; [,]
verify costs or land value and time schedules; [,]
determine whether the improvement is a public school
improvement of the type listed in Section 52-56(d) or meets the
dedication requirements in subsection
~
[,]
(4)
determine the amount of the credit for the improvement or
dedication; [,] and
(5)
certify the amount of the credit to the Department of Permitting
Services before that Department or a municipality issues any
building permit.
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*
(e)
(1)
*
*
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 defined in Section
52-107(a).
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(2)
The credit allowed under this Section must be as follows:
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(A)
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]] $250 per residence.
(B)
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]] $500 per residence.
(C)
If
at least 25% of the single family residences built in the
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project meet Level I Accessibility Standards, then the owner
must receive a credit of [[$1,500]] $750 per residence.
(D)
If
at least 30% of the single family residences built in the
project meet Level I Accessibility Standards, then the owner
must receive a credit of [[$2,000]] $1.000 per residence.
(3)
Application for the credit and administration of the credit be in
accordance with Subsections 52-107(e) and (f).
(4)
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.
(f)
The Director of Finance must not provide a refund for a credit which is
greater than the applicable tax.
(g)
Any credit issued under this Section before December 31, 2015 expires 6
years after the Director certifies the credit. Any credit issued under this
Section on or after January 1, 2016 expires 12 years after the Director
certifies the credit.
iliJ
After a credit has been certified under this Section. the propertv owner or
contract purchaser to whom the credit was certified may transfer all or
part of the credit to any successor in interest of the same property.
However. any credit transferred under this subsection must only be
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No. 37-16
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[[ (
c)
applied to the tax due under this Article with respect to the property for
which the credit was originally certified.
52-59. [[School Facilities Payment]] Reserved.
[[(a) In addition to the tax due under this Article, an applicant for a building
permit for any building on which a tax is imposed under this Article must
pay to the Department of Finance a School Facilities Payment if that
building was included in a preliminary plan of subdivision that was
approved under the School Facilities Payment provisions in the County
Subdivision Staging Policy.]]
[[(b) The amount of the Payment for each building must be calculated by
multiplying the Payment rate by the latest per-unit student yield ratio for
any level of school or individual school found to be inadequate for the
purposes of imposing the School Facilities Payment in the applicable
Subdivision Staging Policy and for that type of dwelling unit and
geographic area issued by MCPS.]]
The Payment rates must be set by Council resolution. The Director of
Finance must adjust the then-applicable Payment rates]] [as of] [[on July
1 of]] [2015 and] [[each]] [later odd- numbered] [[even-numbered]]
[[odd-numbered year, or on November 15, in accordance with the update
to the Subdivision Staging Policy by using the latest student generation
rates and school construction cost data. The Director must calculate the
adjustment to the nearest multiple of one dollar.))
[based on the
construction cost of a student seat for each school level as certified by the
Superintendent of Montgomery County Public Schools for the two most
recent calendar years, to the nearest multiple of $10.] [[The Director must
publish the amount of this adjustment in the County Register not later
than May 1 of each]] [odd numbered] [[even-numbered]] [[odd-
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numbered year.
The Council by resolution, after a public hearing
advertised at least 15 days in advance, may increase or decrease the
Payment rate or set different rates for different types of housing unit.]]
[[The Council must not increase or decrease the rate
Qy
more than 5%.]]
[[(d) The Payment must be paid at the same time and in the same manner as
the tax under this Article, and is subject to all provisions of this Article
for administering and collecting the tax.]]
[[(e) The Department ofFinance must retain funds collected under this Section
in an account to be appropriated for MCPS capital improvements that
result in added student capacity for, to the extent possible, the affected
grade level in the school cluster, or, if no cluster is established, another
geographic administrative area, where the development for which the
funds were paid is located.]]
Sec. 2. Effective date; Transition.
This Act takes effect on March 1. 201 7. The amendments to the development
impact tax for transportation improvements and the development impact tax for public
school improvements added by Section
1
of this Act. must apply to any application for
a building permit filed on or after March
1.
2017. [[A property owner who applies for
subdivision approval before January
1.
2017 must pay a transportation mitigation
pavment and a school facilities payment at rates the Council establishes by resolution.
after a public hearing advertised at least 15 days in advance. unless the propertv owner
applies for a building permit on or after March
1.
201 7.]] Any propertv owner who is
required to pay the development impact tax rates for transportation or public school
improvements that take effect on March 1. 2017 must not be required to pay a
transportation mitigation payment or a school facilities payment.
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BILL No.
37-16
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Approved:
Date
I
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555
Approved:
Isiah Leggett, County Executive
Date
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557
This is a correct copy ofCouncil action.
Linda M. Lauer, Clerk of the Council
Date
558
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