(a) Creation. There is a partial exemption from County property taxes levied on personal property that is machinery or equipment used to generate electricity or steam for sale or to generate hot or chilled water for sale that is used to heat or cool a building under the Tax-Property Article, § 7-237, of the State Code. That partial exemption is subject to modification by the County in accordance with the Tax-Property Article, § 7-514, of the State Code.
(b) Calculation. Personal property that is subject to the exemption described in subsection (a) shall be subject to the County property tax on:
(1) 65% of its value for the taxable year beginning July 1, 2008;
(2) 60% of its value for the taxable year beginning July 1, 2009; and
(3) 55% of its value for the taxable year beginning July 1, 2010.
(c) Expiration of County authority. Upon expiration of the authority of the County under the Tax-Property Article, § 7-514, of the State Code, to modify the partial exemption described in subsection (a), the percent of the assessment of any personal property that is subject to the exemption shall revert to the percent set forth in the Tax-Property Article, § 7-237, of the State Code.
(d) Payment in lieu of taxes.
(1) In accordance with the Tax-Property Article, § 7-514, of the State Code, the County Executive may negotiate an agreement for a payment in lieu of County real and personal property tax with the owner of a facility for the generation of electricity that is located in or locates in the County.
(2) The negotiated agreement for payment in lieu of County real and personal property tax shall not be final unless approved by resolution of the County Council.
(Bill No. 19-08)