Montgomery County Register
May 1, 2023, Montgomery County Register Notice
Pursuant to Chapter 52, Article IV and Article V of the Montgomery County Code (Development Impact Tax for Transportation Improvements and Development Impact Tax for Public School Improvements, respectively), the Director of Finance has adjusted the tax rates set under Sections 52-49, 52-55, and 52-59. As prescribed by law, the Director must adjust the Transportation Improvements tax rates 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. Based on the change in the Engineering-News Record's Baltimore Construction Cost Index for calendar years 2021 and 2022, the existing rates were increased by a rate of 9.47%. The rates were adjusted to the nearest 5 cents for rates calculated per square foot of gross floor area (GFA) or adjusted to the nearest dollar for rates calculated per dwelling unit.
The revised Public School Improvements Impact Tax Rates were developed by the Montgomery County Planning Board staff, with input from Montgomery County Public Schools staff, and are based on 2021-2022 school year construction costs and enrollment data.
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TABLE 1
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| Transportation Impact Taxes | ||
| New Rates for the Period 7/1/2023 through 6/30/2025 | ||
| Existing Rates | New Rates | |
| Residential Uses ($/unit) | ||
| Red Policy Areas | ||
| Single-Family Detached | $8,071 | $8,835 |
| Single-Family Attached | $6,603 | $7,228 |
| Multi-Family Low Rise | $5,134 | $5,620 |
| Multi-Family High-Rise | $3,667 | $4,014 |
| Multi-Family Senior | $1,466 | $1,605 |
| Student-Built Houses | $0 | $0 |
| Orange Policy Areas | ||
| Single-Family Detached | $20,173 | $22,084 |
| Single-Family Attached | $16,506 | $18,069 |
| Multi-Family Low Rise | $12,835 | $14,051 |
| Multi-Family High-Rise | $9,168 | $10,036 |
| Multi-Family Senior | $3,668 | $4,015 |
| Student-Built Houses | $0 | $0 |
| Yellow Policy Areas | ||
| Single-Family Detached | $25,217 | $27,605 |
| Single-Family Attached | $20,633 | $22,587 |
| Multi-Family Low Rise | $16,044 | $17,563 |
| Multi-Family High-Rise | $11,460 | $12,545 |
| Multi-Family Senior | $4,584 | $5,018 |
| Student-Built Houses | $0 | $0 |
| Green Policy Areas | ||
| Single-Family Detached | $25,217 | $27,605 |
| Single-Family Attached | $20,633 | $22,587 |
| Multi-Family Low Rise | $16,044 | $17,563 |
| Multi-Family High-Rise | $11,460 | $12,545 |
| Multi-Family Senior | $4,584 | $5,018 |
| Student-Built Houses | $0 | $0 |
| Commercial Uses ($/SF) | ||
| Red Policy Areas | ||
| Office | $7.35 | $8.05 |
| Industrial | $3.70 | $4.05 |
| Bioscience Facility | $0.00 | $0.00 |
| Retail | $6.55 | $7.15 |
| Place of Worship | $0.00 | $0.00 |
| Clergy House | $0.00 | $0.00 |
| Private Elementary and Secondary School | $0.60 | $0.65 |
| Hospital | $0.00 | $0.00 |
| Charitable/Philanthropic Institution | $0.00 | $0.00 |
| Other Non-Residential | $3.70 | $4.05 |
| Agricultural Facility | $0.00 | $0.00 |
| Orange Policy Areas | ||
| Office | $18.45 | $20.20 |
| Industrial | $9.15 | $10.00 |
| Bioscience Facility | $0.00 | $0.00 |
| Retail | $16.45 | $18.00 |
| Place of Worship | $0.00 | $0.00 |
| Clergy House | $0.00 | $0.00 |
| Private Elementary and Secondary School | $1.50 | $1.65 |
| Hospital | $0.00 | $0.00 |
| Charitable/Philanthropic Institution | $0.00 | $0.00 |
| Other Non-Residential | $9.15 | $10.00 |
| Agricultural Facility | $0.00 | $0.00 |
| Yellow Policy Areas | ||
| Office | $23.05 | $25.25 |
| Industrial | $11.55 | $12.65 |
| Bioscience Facility | $0.00 | $0.00 |
| Retail | $20.55 | $22.50 |
| Place of Worship | $0.00 | $0.00 |
| Clergy House | $0.00 | $0.00 |
| Private Elementary and Secondary School | $1.90 | $2.10 |
| Hospital | $0.00 | $0.00 |
| Charitable/Philanthropic Institution | $0.00 | $0.00 |
| Other Non-Residential | $11.55 | $12.65 |
| Agricultural Facility | $0.00 | $0.00 |
| Green Policy Areas | ||
| Office | $23.05 | $25.25 |
| Industrial | $11.55 | $12.65 |
| Bioscience Facility | $0.00 | $0.00 |
| Retail | $20.55 | $22.50 |
| Place of Worship | $0.00 | $0.00 |
| Clergy House | $0.00 | $0.00 |
| Private Elementary and Secondary School | $1.90 | $2.10 |
| Hospital | $0.00 | $0.00 |
| Charitable/Philanthropic Institution | $0.00 | $0.00 |
| Other Non-Residential | $11.55 | $12.65 |
| Agricultural Facility | $0.00 | $0.00 |
| TABLE 2 | ||
| Public School Improvements Impact Taxes | ||
| New Rates for the Period 7/1/2023 through 6/30/2025 | ||
| Existing Rates | New Rates | |
| Infill Impact Areas | ||
| Single-Family Detached | $20,837 | $30,343 |
| Single-Family Attached | $18,053 | $26,028 |
| Multi-Family Low Rise | $5,487 | $9,275 |
| Multi-Family High Rise | $3,116 | $4,911 |
| Farm Tenant House | $20,837 | $30,343 |
| Senior Residential | $0 | $0 |
| Turnover Impact Areas | ||
| Single-Family Detached | $21,737 | $30,719 |
| Single-Family Attached | $24,547 | $35,018 |
| Multi-Family Low Rise | $11,354 | $17,827 |
| Multi-Family High Rise | $5,061 | $11,601 |
| Farm Tenant House | $21,737 | $30,719 |
| Multi-Family Senior | $0 | $0 |
| TABLE 3 | ||||||
| Public School Utilization Premium Payments | ||||||
| New Rates for the Period 7/1/2023 through 6/30/2025 | ||||||
| Existing Rates | New Rates | |||||
| Elementary | Middle | High | Elementary | Middle | High | |
| Residential TIER 1 UPP (per unit) | ||||||
| Infill Impact Areas | ||||||
| Single-Family Detached | $3,473 | $2,084 | $2,778 | $5,057 | $3,034 | $4,046 |
| Single-Family Attached | $3,009 | $1,805 | $2,407 | $4,338 | $2,603 | $3,470 |
| Multi-Family Low Rise | $915 | $549 | $732 | $1,546 | $928 | $1,237 |
| Multi-Family High Rise | $519 | $312 | $415 | $819 | $491 | $655 |
| Turnover Impact Areas | ||||||
| Single-Family Detached | $3,623 | $2,174 | $2,898 | $5,120 | $3,072 | $4,096 |
| Single-Family Attached | $4,091 | $2,455 | $3,273 | $5,836 | $3,502 | $4,669 |
| Multi-Family Low Rise | $1,892 | $1,135 | $1,514 | $2,971 | $1,783 | $2,377 |
| Multi-Family High Rise | $844 | $506 | $675 | $1,934 | $1,160 | $1,547 |
| Residential TIER 2 UPP (per unit) | ||||||
| Infill Impact Areas | ||||||
| Single-Family Detached | $6,946 | $4,167 | $5,557 | $10,114 | $6,069 | $8,091 |
| Single-Family Attached | $6,018 | $3,611 | $4,814 | $8,676 | $5,206 | $6,941 |
| Multi-Family Low Rise | $1,829 | $1,097 | $1,463 | $3,092 | $1,855 | $2,473 |
| Multi-Family High Rise | $1,039 | $623 | $831 | $1,637 | $982 | $1,310 |
| Turnover Impact Areas | ||||||
| Single-Family Detached | $7,246 | $4,347 | $5,797 | $10,240 | $6,144 | $8,192 |
| Single-Family Attached | $8,182 | $4,909 | $6,546 | $11,673 | $7,004 | $9,338 |
| Multi-Family Low Rise | $3,785 | $2,271 | $3,028 | $5,942 | $3,565 | $4,754 |
| Multi-Family High Rise | $1,687 | $1,012 | $1,350 | $3,867 | $2,320 | $3,094 |
| Residential TIER 3 UPP (per unit) | ||||||
| Infill Impact Areas | ||||||
| Single-Family Detached | $10,419 | $6,251 | $8,335 | $15,172 | $9,103 | $12,137 |
| Single-Family Attached | $9,027 | $5,416 | $7,221 | $13,014 | $7,808 | $10,411 |
| Multi-Family Low Rise | $2,744 | $1,646 | $2,195 | $4,638 | $2,783 | $3,710 |
| Multi-Family High Rise | $1,558 | $935 | $1,246 | $2,456 | $1,473 | $1,964 |
| Turnover Impact Areas | ||||||
| Single-Family Detached | $10,869 | $6,521 | $8,695 | $15,360 | $9,216 | $12,288 |
| Single-Family Attached | $12,274 | $7,364 | $9,819 | $17,509 | $10,505 | $14,007 |
| Multi-Family Low Rise | $5,677 | $3,406 | $4,542 | $8,914 | $5,348 | $7,131 |
| Multi-Family High Rise | $2,531 | $1,518 | $2,024 | $5,801 | $3,480 | $4,640 |