(a) Taxpayers who own, in fee simple, and actually occupy residential real property as their principal place of residence may, upon written application approved as provided below, receive a deferral of due and payable county real property taxes on the property for the levy year July 1, 1981, and thereafter. For the purposes of this section, residential real property includes property owned by the taxpayer adjacent to his residence, provided it is unimproved and not assessed on the basis of agricultural use. The real property on which the residence is located must be included in the property for which deferral is sought, and not more than ten (10) acres in total shall be eligible for the deferral of real property taxes under this program. The amount of taxes which may be deferred pursuant to this section, for any one (1) year, is that amount, as determined by the county's director of finance, to be attributable to an assessment increase resulting directly from a government-initiated change in the zoning classification of the property to a higher intensity use. In determining the applicable increase in assessment, the director shall utilize information to be requested from the office of the supervisor of assessments for Montgomery County relative to the full cash value assessment of the subject property for each triennial cycle based on the residential zoning of the property prior to its reclassification.
(b) County real property taxes eligible for the deferral shall, where applicable, consist of:
(1) General county tax;
(2) Washington Suburban Transit District tax;
(3) Fire district tax;
(4) Advance land acquisition tax;
(5) Metropolitan district tax;
(6) Regional district tax;
(7) Recreation district tax;
(8) Washington Suburban Sanitary District tax;
(9) Storm drainage district tax; and
(10) Suburban district tax.
(c) Interest must accrue on the deferred taxes at the rate specified in the Tax-Property Article, section 14-603 of the Annotated Code of Maryland.
(d) At no time may the accumulation of deferred taxes and accrued interest exceed fifty (50) percent of the current full cash value of the property as determined by the supervisor of assessments for Montgomery County, or a lesser amount elected by the taxpayer by written notice to the director. The election of a lesser amount does not constitute a withdrawal from the program. Where such maximum amounts have been reached, they may continue to be deferred until any of the conditions of subsection (g) occurs.
(e) No penalty shall be charged during the period of the deferral on any taxes deferred pursuant to this section.
(f) All taxes deferred and interest accrued thereon shall be a first lien on the property, having the priority of real property taxes, until paid or otherwise extinguished by operation of law. The deferred taxes and accrued interest are collectible by suit or by tax sale, regardless of any period of limitations imposed under law. In the event of tax sale for nonpayment of taxes, the property shall be sold for all unpaid taxes and interest, including deferred taxes and interest. In addition to being a first lien on the property, the deferred taxes and accrued interest shall be a personal liability of the person or persons who owned the property immediately prior to the occurrence of any of the conditions listed in subsection (g) below.
(g) All taxes deferred and interest accrued thereon shall be due and payable upon any one of the following conditions:
(1) The taxpayer ceases to own the property in fee simple;
(2) The taxpayer ceases to occupy the property as his principal place of residence;
(3) The property becomes subject to tax sale; or
(4) The use of the property changes.
(h) A taxpayer shall be eligible for the tax deferral provided for by this section only if he had a fee simple ownership interest in the property and occupied the property at his principal place of residence for at least twenty-four (24) months immediately prior to the effective date of the zoning resolution as a result of which a tax deferral under this section is sought.
(i) Applications for a tax deferral under this section shall be submitted to the director of finance no later than September 1 of the first tax year in which the taxpayer wishes to participate in the program. The taxpayer may receive a refund, without interest, for deferrable taxes paid for the first tax year. Applications shall be on forms acceptable to the director and shall be sworn to by the taxpayer. The director shall notify the taxpayer of approval or disapproval. Once approved, no further applications are required.
(j) A taxpayer may withdraw from the program by giving written notice to the director and paying all deferred taxes and accrued interest, whereupon the director shall cease deferral of taxes, effective the following tax year; and the taxpayer shall not be eligible for further participation in the program.
(k) Any person who knowingly transmits a false or fraudulent application, or statement, or withholds information, in order to obtain a deferral under this section shall be guilty of a misdemeanor and upon conviction thereof shall be fined not more than one thousand dollars ($1,000.00) for each offense or six (6) months in jail or both. In addition, such persons shall be liable for and shall repay to the county any and all amounts of deferred taxes, and interest and penalties accrued thereon. The county may enforce this provision by appropriate civil action, and such persons shall be liable for all fees, costs and expenses of such proceedings.
(l) Where the council president notifies persons who may be affected by a pending comprehensive rezoning application, the notification shall include notice to the effect that in the event property is rezoned to a higher intensity use, the taxpayer may be eligible for a tax deferral and should contact the county division of revenue for further information.
(m) The county executive is authorized to adopt regulations, under method (2) of section 2A- 15 of this Code, for the administration of this deferral program. (1982 L.M.C., ch. 60, § 1; 1984 L.M.C., ch. 24, § 50; 1986 L.M.C., ch. 18, § 1; 1989 L.M.C., ch. 44, § 1; 1990 L.M.C., ch. 42, § 2; 2016 L.M.C., ch. 7, § 2.)
Editor's note-Section 2 of 1982 L.M.C., ch. 60, reads as follows: "Sec. 2. Notwithstanding anything in this Act to the contrary, applications for the deferral of taxes due and payable on or after July 1, 1981, and subsequent tax years, may be submitted during a sixty-day period beginning on the first day following the effective date of this Act [June 23, 1982]. That portion of the taxes due and payable for such tax years which the director determines could have been deferred and which have been paid may be refunded, without interest."
See also, § 52-22.