Agenda Item 4A
October 31, 2017
Introduction
MEMOR ANDUM
October 27, 2017
TO:
FROM:
County Council
Robert H. Drummer, Senior Legislative Attorney ~'
\../
Introduction:
Expedited Bill 32-17, Taxation-De velopment Impact Tax for
SUBJECT:
Transportatio n and Public School Improvement s - Definitions - Senior Residential
Expedited Bill 32-17, Taxation - Development Impact Tax for Transportation and Public
School Improvement s - Definitions - Senior Residential, sponsored by Lead Sponsor
Councilmem ber Floreen, is scheduled to be introduced on October 31, 2017. A public hearing is
tentatively scheduled for December 5 at 1:30 p.m.
Bill 32-17 would replace the multifamily-s enior residential category used to impose the
development impact tax for transportation and public school improvement s with a senior
residential category.
Background
Development impact taxes are designed to require an applicant to construct a new
development to pay a portion of the County's cost to build transportation improvements and public
school improvement s needed to support the new development. The Council approved the initial
impact fee law in 1986, and at the time, applied it to developments in the fastest areas of growth in
the County (Germantown, Fairland, White Oak, and Cloverly). After the Court of Appeals found in
1
1990 that the County did not have authority to impose the impact fee it had enacted, the Council
enacted Expedited Bill 33-90, which converted the impact fee to an impact tax. In 2001, Bill 47-
01 (effective July 2002) established the transportation impact
tax
countywide.
The Council approved a countywide school impact
tax
in 2003 (effective 2004) which applied
only to residential development. Rates were set for single-family-detached houses, townhouses, low-
rise apartments (up to 4 stories) and high-rise apartments. The rates for single-family-detached houses
and townhouses also included a surcharge for larger homes. Multifamily-senior residential has a $0
school impact tax rate because it is assumed that these housing units would not add many students to
the public school system.
1
Eastern Diversified Properties, Inc. v. Montgomery County,
39 Md. 45, 570 A.2d 850 (1990).
 PDF to HTML - Convert PDF files to HTML files
Bill 32-17 would make 2 changes to the impact
tax
charged to age-restricted senior housing.
First, the Bill would replace the multifamily-senior residential category with a generic senior
residential category. Traditional age-restricted senior housing in the County has been multifamily
units. Recently, the County has received applications for age-restricted senior housing units
comprised of townhouses or villas. Since these age-restricted senior townhouse developments are
also expected to add few students to the public school system, Bill 32-17 would apply the senior
2
residential rate of $0 for the impact
tax
for public school improvements to these developments. Bill
32-17 would apply this senior residential
tax
rate for school impact taxes paid on or after June 22,
2017.
Bill 32-17 would also define the senior residential category for the impact tax for
transportation improvements. The new definition would include "a residential care facility as defined
in Section 59.3.3.2.E used solely for housing seniors or persons with a disability." Under current law,
a residential care facility that has a central kitchen for providing meals to residents and does not
include a kitchen in each housing unit is charged the higher "other non-residential" transportation
impact
tax
rate instead of the lower multifamily-senior transportation impact tax rate. The current
classification of this type of residential care facility is based upon an assumption that the staff needed
to serve the residents would approximate the impact on the transportation system that results from
other non-residential properties, such as a nursing home. Bill 32-17 would place this type of
residential care facility in the new senior residential category that carries a reduced transportation
impact
tax
rate.
Circle #
1
4
This packet contains:
Expedited Bill 32-17
Legislative Request Report
F:\LAW\BILLS\1732 Development Impact Tax For Trans. And School Improvement\Intro Memo.Docx
2
introduced
Bill 37-16 required the Council to set the impact
tax
rates by resolution. Therefore, Bill 32-17 is being
with a resoluti on that would implement this change in the resolution adopting the impact
tax
rates.
2
 PDF to HTML - Convert PDF files to HTML files
Expedited Bill No. _32_-~17 ~-----
Concerning: Taxation - Development
Impact Tax for Transportation and
Public School Improvements -
Definitions - Senior Residential
Revised: October 25, 2017 Draft No._8_
October 31, 2017
Introduced:
May 1, 2019
Expires:
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: ~No=n~e_ _ _ _ _ __
Ch. _ _ , Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Councilmember Floreen
AN EXPEDITED ACT
to:
replace the multifamily-senior residential category used to impose the development
(1)
impact tax for transportation and public school improvements with a senior residential
category;
define senior residential; and
(2)
generally amend the law governing the categories of residential dwelling units used
(3)
to impose the development impact tax for transportation and public school
improvements.
By amending
Montgomery County Code
Chapter 52, Taxation
Section 52-39
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, 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:
 PDF to HTML - Convert PDF files to HTML files
EXPEDITED BILL NO.
32-17
1
2
Sec.
1.
Section 52-39 is amended as follows:
52-39. Definitions.
3
4
In
this Article the following terms have the following meanings:
*
*
*
5
6
Property owner
means any person, group of persons, firm, corporation, or other
entity with a proprietary interest in the land on which a building permit has been
requested.
Residential
means the use of a building as a dwelling unit.
Single-family detached residential
includes detached single-family
7
8
9
( 1)
10
11
dwelling units.
(2)
Single-family attached residential
includes townhouses, duplexes
12
13
14
15
and other attached single-family dwelling units.
(3)
Multifamily residential
includes:
(A)
(B)
(C)
( 4)
garden apartments;
mid-rise and high-rise dwelling unit structures; and
mobile homes.
16
17
[Multifamily-senior] Senior residential
means:
18
19
20
(A)
[multifamily housing and related facilities for elderly or
handicapped persons, as defined in Section 59-1.4.2, with
occupancy restricted as provided in Section 59-3.3.2.C]
~
21
22
23
24
25
26
residential care facility as defined in Section 59 .3 .3 .2.E used
solely for housing seniors or persons with
~
disability;
(B)
[multifamily housing] dwelling units located in the age-
restricted section of a planned retirement community, as
defined in Section [59-8.3.5] 59.8.3.5; [and]
(C)
[a domiciliary care home, as defined in Section 59-1.4.2 and
subject to Section 59-3.3.2.E, which consists of separate
27
t:::)
f:\law\bills\173~1opm ent impact tax for trans. and school improvement\bill 8.docx
 PDF to HTML - Convert PDF files to HTML files
ExPEDITED BILL
No. 32-17
28
assisted living units] an independent living facility for
seniors or persons with
59.3.3.2.C; and
(D)
any household living unit constructed under Section
59.3.3.1 that is restricted by a covenant running with the
land for housing persons who are 55 years of age or older.
(5)
~
29
30
31
32
33
34
disability as defined in Section
35
36
37
38
39
40
High-rise residential
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.
Use and occupancy permi t
means a use and occupancy permit issued by the
Department of Permitting Services under Chapter 8.
*
*
*
Sec. 2. Effective Date.
The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on June 22, 2017. The
amendments in Section 1 must apply to development impact tax for public school
improvements paid on or after June 22, 2017. The development impact tax rate for
public school improvements imposed for a senior residential development, as defined
in Section 1, payable between June 22, 2017 and July 1, 2017, must be $0.
Approved:
41
42
43
44
45
46
47
48
Roger Berliner, President, County Council
49
Approved:
.Date
50
Isiah Leggett, County Executive
Date
~
f:\law\bills\1?~elop ment impact tax for trans. and school improvement\bill 8.docx
 PDF to HTML - Convert PDF files to HTML files
LEGISLATIVE REQUEST REPORT
Expedited Bill 32-17
Taxation
-
Development Impact Tax for Transportation and Public School Improvements
-
Definitions
-
Senior Residential
DESCRIPTION:
Bill 32-17 would replace the multifamily-senior residential category
used to impose the development impact tax for transportation and
public school improvements with a senior residential category.
Traditional age-restricted senior housing in the County has been
multifamily units. Recently, the County has received applications for
age-restricted senior housing units that is a townhouse development.
Since these age-restricted senior townhouse developments are also
expected to add few students to the public school system.
The current classification of a residential care facility is based upon an
assumption that the staff needed to serve the residents would
approximate the impact on the transportation system that results from
other non-residential properties, such as a nursing home. Bill 32-17
would place this type of residential care facility
in
the new senior
residential category that carries a reduced transportation impact tax rate
based upon analysis of the impact on the transportation system.
GOALSA ND
OBJECTIVES:
COORDINATION:
FISCAL IMP ACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
The goal is to properly classify age-restricted senior housing units for
the development impact tax for both public school and transportation
improvements.
Planning Board, County Attorney, Permitting Services
To be requested.
To be requested.
PROBLEM:
To be requested.
To be researched.
Robert H. Drummer, Senior Legislative Attorney
To be researched.
WITHIN
MUNICIPALITIES:
PENALTIES:
None.
f:\law\bills\1732 development impact tax for trans. and school improvement\lrr.docx
 PDF to HTML - Convert PDF files to HTML files
Agenda Item 4A
October 31, 2017
Introduction
MEMOR ANDUM
October 27, 2017
TO:
FROM:
County Council
Robert H. Drummer, Senior Legislative Attorney ~'
\../
Introduction:
Expedited Bill 32-17, Taxation-De velopment Impact Tax for
SUBJECT:
Transportatio n and Public School Improvement s - Definitions - Senior Residential
Expedited Bill 32-17, Taxation - Development Impact Tax for Transportation and Public
School Improvement s - Definitions - Senior Residential, sponsored by Lead Sponsor
Councilmem ber Floreen, is scheduled to be introduced on October 31, 2017. A public hearing is
tentatively scheduled for December 5 at 1:30 p.m.
Bill 32-17 would replace the multifamily-s enior residential category used to impose the
development impact tax for transportation and public school improvement s with a senior
residential category.
Background
Development impact taxes are designed to require an applicant to construct a new
development to pay a portion of the County's cost to build transportation improvements and public
school improvement s needed to support the new development. The Council approved the initial
impact fee law in 1986, and at the time, applied it to developments in the fastest areas of growth in
the County (Germantown, Fairland, White Oak, and Cloverly). After the Court of Appeals found in
1
1990 that the County did not have authority to impose the impact fee it had enacted, the Council
enacted Expedited Bill 33-90, which converted the impact fee to an impact tax. In 2001, Bill 47-
01 (effective July 2002) established the transportation impact
tax
countywide.
The Council approved a countywide school impact
tax
in 2003 (effective 2004) which applied
only to residential development. Rates were set for single-family-detached houses, townhouses, low-
rise apartments (up to 4 stories) and high-rise apartments. The rates for single-family-detached houses
and townhouses also included a surcharge for larger homes. Multifamily-senior residential has a $0
school impact tax rate because it is assumed that these housing units would not add many students to
the public school system.
1
Eastern Diversified Properties, Inc. v. Montgomery County,
39 Md. 45, 570 A.2d 850 (1990).
 PDF to HTML - Convert PDF files to HTML files
Bill 32-17 would make 2 changes to the impact
tax
charged to age-restricted senior housing.
First, the Bill would replace the multifamily-senior residential category with a generic senior
residential category. Traditional age-restricted senior housing in the County has been multifamily
units. Recently, the County has received applications for age-restricted senior housing units
comprised of townhouses or villas. Since these age-restricted senior townhouse developments are
also expected to add few students to the public school system, Bill 32-17 would apply the senior
2
residential rate of $0 for the impact
tax
for public school improvements to these developments. Bill
32-17 would apply this senior residential
tax
rate for school impact taxes paid on or after June 22,
2017.
Bill 32-17 would also define the senior residential category for the impact tax for
transportation improvements. The new definition would include "a residential care facility as defined
in Section 59.3.3.2.E used solely for housing seniors or persons with a disability." Under current law,
a residential care facility that has a central kitchen for providing meals to residents and does not
include a kitchen in each housing unit is charged the higher "other non-residential" transportation
impact
tax
rate instead of the lower multifamily-senior transportation impact tax rate. The current
classification of this type of residential care facility is based upon an assumption that the staff needed
to serve the residents would approximate the impact on the transportation system that results from
other non-residential properties, such as a nursing home. Bill 32-17 would place this type of
residential care facility in the new senior residential category that carries a reduced transportation
impact
tax
rate.
Circle #
1
4
This packet contains:
Expedited Bill 32-17
Legislative Request Report
F:\LAW\BILLS\1732 Development Impact Tax For Trans. And School Improvement\Intro Memo.Docx
2
introduced
Bill 37-16 required the Council to set the impact
tax
rates by resolution. Therefore, Bill 32-17 is being
with a resoluti on that would implement this change in the resolution adopting the impact
tax
rates.
2
 PDF to HTML - Convert PDF files to HTML files
Expedited Bill No. _32_-~17 ~-----
Concerning: Taxation - Development
Impact Tax for Transportation and
Public School Improvements -
Definitions - Senior Residential
Revised: October 25, 2017 Draft No._8_
October 31, 2017
Introduced:
May 1, 2019
Expires:
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: ~No=n~e_ _ _ _ _ __
Ch. _ _ , Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Councilmember Floreen
AN EXPEDITED ACT
to:
replace the multifamily-senior residential category used to impose the development
(1)
impact tax for transportation and public school improvements with a senior residential
category;
define senior residential; and
(2)
generally amend the law governing the categories of residential dwelling units used
(3)
to impose the development impact tax for transportation and public school
improvements.
By amending
Montgomery County Code
Chapter 52, Taxation
Section 52-39
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, 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:
 PDF to HTML - Convert PDF files to HTML files
EXPEDITED BILL NO.
32-17
1
2
Sec.
1.
Section 52-39 is amended as follows:
52-39. Definitions.
3
4
In
this Article the following terms have the following meanings:
*
*
*
5
6
Property owner
means any person, group of persons, firm, corporation, or other
entity with a proprietary interest in the land on which a building permit has been
requested.
Residential
means the use of a building as a dwelling unit.
Single-family detached residential
includes detached single-family
7
8
9
( 1)
10
11
dwelling units.
(2)
Single-family attached residential
includes townhouses, duplexes
12
13
14
15
and other attached single-family dwelling units.
(3)
Multifamily residential
includes:
(A)
(B)
(C)
( 4)
garden apartments;
mid-rise and high-rise dwelling unit structures; and
mobile homes.
16
17
[Multifamily-senior] Senior residential
means:
18
19
20
(A)
[multifamily housing and related facilities for elderly or
handicapped persons, as defined in Section 59-1.4.2, with
occupancy restricted as provided in Section 59-3.3.2.C]
~
21
22
23
24
25
26
residential care facility as defined in Section 59 .3 .3 .2.E used
solely for housing seniors or persons with
~
disability;
(B)
[multifamily housing] dwelling units located in the age-
restricted section of a planned retirement community, as
defined in Section [59-8.3.5] 59.8.3.5; [and]
(C)
[a domiciliary care home, as defined in Section 59-1.4.2 and
subject to Section 59-3.3.2.E, which consists of separate
27
t:::)
f:\law\bills\173~1opm ent impact tax for trans. and school improvement\bill 8.docx
 PDF to HTML - Convert PDF files to HTML files
ExPEDITED BILL
No. 32-17
28
assisted living units] an independent living facility for
seniors or persons with
59.3.3.2.C; and
(D)
any household living unit constructed under Section
59.3.3.1 that is restricted by a covenant running with the
land for housing persons who are 55 years of age or older.
(5)
~
29
30
31
32
33
34
disability as defined in Section
35
36
37
38
39
40
High-rise residential
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.
Use and occupancy permi t
means a use and occupancy permit issued by the
Department of Permitting Services under Chapter 8.
*
*
*
Sec. 2. Effective Date.
The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on June 22, 2017. The
amendments in Section 1 must apply to development impact tax for public school
improvements paid on or after June 22, 2017. The development impact tax rate for
public school improvements imposed for a senior residential development, as defined
in Section 1, payable between June 22, 2017 and July 1, 2017, must be $0.
Approved:
41
42
43
44
45
46
47
48
Roger Berliner, President, County Council
49
Approved:
.Date
50
Isiah Leggett, County Executive
Date
~
f:\law\bills\1?~elop ment impact tax for trans. and school improvement\bill 8.docx
 PDF to HTML - Convert PDF files to HTML files
LEGISLATIVE REQUEST REPORT
Expedited Bill 32-17
Taxation
-
Development Impact Tax for Transportation and Public School Improvements
-
Definitions
-
Senior Residential
DESCRIPTION:
Bill 32-17 would replace the multifamily-senior residential category
used to impose the development impact tax for transportation and
public school improvements with a senior residential category.
Traditional age-restricted senior housing in the County has been
multifamily units. Recently, the County has received applications for
age-restricted senior housing units that is a townhouse development.
Since these age-restricted senior townhouse developments are also
expected to add few students to the public school system.
The current classification of a residential care facility is based upon an
assumption that the staff needed to serve the residents would
approximate the impact on the transportation system that results from
other non-residential properties, such as a nursing home. Bill 32-17
would place this type of residential care facility
in
the new senior
residential category that carries a reduced transportation impact tax rate
based upon analysis of the impact on the transportation system.
GOALSA ND
OBJECTIVES:
COORDINATION:
FISCAL IMP ACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
The goal is to properly classify age-restricted senior housing units for
the development impact tax for both public school and transportation
improvements.
Planning Board, County Attorney, Permitting Services
To be requested.
To be requested.
PROBLEM:
To be requested.
To be researched.
Robert H. Drummer, Senior Legislative Attorney
To be researched.
WITHIN
MUNICIPALITIES:
PENALTIES:
None.
f:\law\bills\1732 development impact tax for trans. and school improvement\lrr.docx