Agenda Item 4A
October 31, 2017
October 27, 2017
Robert H. Drummer, Senior Legislative Attorney ~'
Expedited Bill 32-17, Taxation-De velopment Impact Tax for
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
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
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
The Council approved a countywide school impact
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.
Eastern Diversified Properties, Inc. v. Montgomery County,
39 Md. 45, 570 A.2d 850 (1990).