Loading...
(a) In this section:
(1) Excise tax:
a. Is any tax not directly imposed on property; and
b. Includes but is not limited to fuel-energy taxes, telephone taxes, room rental transient taxes, beverage container taxes, and transfer taxes.
(2) Taxpayer means any person or persons paying or liable to pay, remit, or collect any tax, or against whom any liability for taxes is claimed or asserted, or could be claimed or asserted, whether on the behalf of the taxpayer or of others.
(3) Person means an individual, receiver, trustee, guardian, personal representative, fiduciary, or representative of any kind and any partnership, firm, corporation, or other entity.
(b) If a taxpayer fails to pay to the county any excise tax when due and payable, that tax and any interest, penalties, fees, and costs are a lien in favor of the county on all property, real or personal, and all rights to the property that belongs to the taxpayer.
(c) A lien under this section:
(1) Arises from and after the date that notice is given that the tax is due and payable;
(2) Continues until the liability is satisfied and the lien is released by the county;
(3) Attaches to real property only after notice is filed by the county with the circuit court where the real property is located;
(4) Has the full force and effect of a lien of judgment.
(d) The clerk of the circuit court under subsection (c)(3) of this section must record and index all notices of lien and file the lien in the judgment records.
(e) To enforce the lien and judgment on the property of the taxpayer for the tax, interest, penalties, fees, and costs, the county may:
(1) File a civil action by way of attachment, execution, or otherwise in any of the courts; and/or
(2) Sell the real property at tax sale in the same manner as real property is sold for nonpayment of taxes. (1986 L.M.C., ch. 36, § 1; 2016 L.M.C., ch. 7, § 2.)
Editor’s note—The above section is cited in Montgomery County v. Waters Landing Limited Partnership, 99 Md.App. 1, 635 A.2d 48 (1994). The Court held that the impact tax was valid.
Section 52-21 (formerly § 52-18D, 2016 L.M.C., ch. 7, § 1) was derived from 1984 L.M.C., ch. 13, § 1, as amended by 1984 L.M.C., ch. 24, § 50, and 1984 L.M.C., ch. 27, § 33. It granted a tax exemption for certain land owned by Great Hope Homes Limited for the tax year commencing July 1, 1983, and terminating June 30, 1984. Subsequently, 1986 L.M.C., ch. 36, § 1, added a new § 52-18D.
(a) Definitions. In this Section the following words have the meanings indicated:
Dependent means a dependent under Section 152 of the Internal Revenue Code.
Director means the Director of the Department of Finance.
Legal interest has the meaning stated in Section 9-104 of the Tax-Property Article of the Maryland Code.
Owner means an individual who has a legal interest in residential real property.
(b) Authorization; Amount of Deferral. An owner may defer payment of County property taxes due on residential real property occupied by the owner as the owner’s principal residence if the owner meets the requirements of this Section. The amount of taxes that may be deferred for any one year is the amount that County taxes due exceeds the amount of County property taxes paid in the prior taxable year.
(c) Program Eligibility. An owner is eligible for a payment deferral under this Section if:
(1) (A) the gross income or combined gross income of all individuals who actually reside in the dwelling (except a dependent or a person who pays reasonable fixed charges for rent or room and board), did not exceed $120,000 for the calendar year that immediately precedes the taxable year for which the deferral is sought; and
(B) the owner, or at least one of the owners, has resided in the dwelling as that person’s principal place of residence for 5 consecutive years and continues to occupy the property for that purpose; or
(2) (A) the owner is at least 65 years old; and
(B) the gross income or combined gross income of all individuals who actually reside in the dwelling (except a dependent or a person who pays reasonable fixed charges for rent or room and board), did not exceed $80,000 for the calendar year that immediately precedes the taxable year for which the deferral is sought.
For purposes of income determination under paragraph (c), and to the extent consistent with this Section, gross income or combined gross income must be calculated in accordance with Section 9-104 of the Tax-Property Article of the Maryland Code.
(d) Eligible Residential Property. The amount of the property eligible for a deferral is limited to the real property on which the residence is located, the curtilage, as determined by the Supervisor of Assessments, and any adjacent unimproved land on the same lot or parcel that is not assessed on the basis of agricultural use. A deferral must not be granted for taxes attributable to any improvement to the property that was not reflected in the assessment used for the base year for which taxes were paid to determine the amount of tax deferral under subsection (b).
(e) Eligible Taxes. County real property taxes that are eligible for deferral are the general County tax and, where applicable, special service area taxes.
(f) Interest.
(1) Except as provided in paragraph (2), interest accrues on the deferred taxes at a rate set annually by the Director that does not exceed the prime lending rate generally available on June 1 of the preceding fiscal year. The regulations adopted under subsection (q) must specify the source or sources that the Director must use to calculate the prime rate generally available on June 1 of each year. The annual interest rate set by the Director applies to any tax deferred that year, regardless of the year when the tax was first deferred.
(2) Notwithstanding paragraph (1), for deferrals for owners eligible under paragraph (c)(2), the interest accrues on the deferred taxes at a rate of 0.0% or another amount set by Council resolution.
(g) Annual Tax Bills. The cumulative amount of the payment deferral and accrued interest must be specified in the taxpayer’s annual property tax bill. The Director must record the amount of that deferral in the County tax records.
(h) Limits on Deferrals. The accumulation of deferred taxes and accrued interest must not exceed 50% of the full cash value of the property, as determined by the Supervisor of Assessments, or a lesser amount elected by the taxpayer and specified in the agreement required under subsection (l). When the maximum amounts have been reached, those amounts may continue to be deferred until any of the events specified in subsection (k) occur. An owner who receives a tax deferral under this Section must not also receive a tax deferral under Section 52-20.
(i) Penalties. A penalty must not be charged during the period of the deferral on any taxes deferred under this Section.
(j) Liens. All taxes deferred and interest accrued on the taxes are a first lien on the property, with 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 must 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 constitutes a personal liability of the person or persons who owned the property immediately before the occurrence of any event specified in subsection (k).
(k) Events Accelerating Payment. Except as otherwise provided in this subsection, all deferred taxes and accrued interest become due and payable if:
(1) ownership of the property is transferred;
(2) an owner no longer occupies the property as that person’s principal residence;
(3) the property becomes subject to tax sale; or
(4) the use of the property changes.
However, the property tax deferral remains available to a surviving spouse, or to a spouse or former spouse in possession of the residence under a written separation agreement or divorce decree, for amounts previously deferred. A spouse or former spouse may continue to defer taxes if that person is otherwise eligible under subsection (c).
(l) Applications; Agreement with Director of Finance. An application for a tax deferral under this Section must be submitted to the Director no later than September 1 of the tax year in which the taxpayer seeks to obtain a tax deferral, or any other date established by regulations. An eligible owner may receive a refund, without interest, for deferrable taxes paid for the first tax year. Applications must be on forms acceptable to the Director and must be sworn to as true by the owner or each joint owner. The Director may request information to verify eligibility under this Section, including income tax records, and may require a certification by the applicant of all joint owners, persons having an equitable interest in the property, and parties having a secured interest in the property. If the applicant is eligible, the Director or the Director’s designee must execute a written agreement with the owner or each joint owner before a tax deferral can be made. The agreement must reflect the terms and conditions of the deferral including notice of the lien. The agreement may provide for repayment of the deferred taxes and accrued interest in installments if the owner ceases to occupy the property as that owner’s principal residence but maintains ownership. Interest must be assessed at the rate specified under subsection (f). The Director must record the written agreement in the County’s land records. The agreement must include a conspicuous statement that indicates it is being recorded by or on behalf of the County.
(m) Notification of Secured Parties. The Director must notify all mortgagees or beneficiaries under any deed of trust of a payment deferral under this Section and of the amount of tax to be deferred. In selecting who to notify, the Director may rely on any certification made by the taxpayer under subsection (l). Notification must also be given when participation in the payment deferral program terminates.
(n) Program Withdrawal. A taxpayer may terminate the deferral at any time by giving written notice to the director and paying all deferred taxes and accrued interest. If a taxpayer terminates a deferral, the Director must record a notice of a termination of deferral in the County’s land records. The notice must include a conspicuous statement that indicates it is being recorded by or on behalf of the County.
(o) Penalties for False or Fraudulent Information. A person who knowingly submits a false or fraudulent application or statement, or withholds information, in order to obtain a deferral under this Section has committed a class A violation. In addition, the person is liable for and must repay to the County deferred taxes and accrued interest and penalties applicable to overdue taxes. The County may enforce this subsection by appropriate judicial action. A person who violates this Section is liable for all court costs and expenses of the County in a civil action.
(p) Appeals. Any owner aggrieved by a decision of the Director under this Section may appeal to the Maryland Tax Court. An appeal must be filed within 30 days after the owner receives written notice of the decision from the Director.
(q) Regulations. The County Executive must adopt regulations under method (2) to administer this tax deferral program.
(r) Annual Report. The Director must provide an annual report to the County Council by January 1 of each year that describes the extent of program participation, aggregate amounts of taxes deferred, interest accrued, administrative costs, and other relevant information. (1990 L.M.C., ch. 42, § 1; 2005 L.M.C., ch. 6, § 1; 2016 L.M.C., ch. 17, §1; 2016 L.M.C., ch. 7, § 2.)
Editor’s note—Section 52-22 (formerly § 52-18F, 2016 L.M.C., ch. 7, § 1) was added by § 1 of 1990 L.M.C., ch. 42; section 3 made the effectiveness of the act contingent on the enactment of House Bill 1137. It was adopted as 1990, ch. 652.
See also § 52-20.
The Director of Finance must refund to each disabled veteran or blind person who qualifies for a property tax exemption under state law county property taxes paid for the three taxable years before the year for which the exemption was first granted, as provided in state law, if:
(1) the Supervisor of Assessments certifies that the taxpayer has qualified for the exemption;
(2) the taxpayer was qualified for an exemption during the entire taxable year for which the refund is claimed; and
(3) the taxpayer claims a refund from the Director not later than 3 years after the tax to be refunded was paid. (1994 L.M.C., ch. 1, § 1; 2016 L.M.C., ch. 7, § 2.)
Editor’s note—Section 52-23 (formerly § 52-18G, 2016 L.M.C., ch. 7, § 1), relating to a homestead property tax credit, derived from FY 1991 L.M.C., ch. 27, § 1, was repealed by CY 1991 L.M.C., ch. 41, § 1. Section 2 of ch. 41 gave a credit percentage for the taxable years beginning July 1, 1991, and July 1, 1992, of 110%. Subsequently, 1994 L.M.C., ch. 1, § 1, added a new § 52-18G (now § 52-23, 2016 L.M.C., ch. 7, § 1).
(a) Definitions. In this Section, the following words have the following meanings.
Area median income means the median household income for the Washington, DC metropolitan area as estimated by the U.S. Department of Housing and Urban Development, adjusted by household size based on the occupancy standard for the unit.
Director means the Director of Finance or the Director’s designee.
Payment in lieu of taxes means an authorized payment made by the owner of a qualifying housing development instead of paying the County real property tax, including a County real property tax levied under a special area taxing law, that would otherwise be due.
Section 8 Project-Based Rental Assistance means a program operated by the U.S. Department of Housing and Urban Development that provides housing assistance payments under a contract with the owner of a multi-family rental housing property to make up the difference between rent affordable to a low income household earning between 50 and 80 percent of the area median income and the approved rent for an adequate housing unit pursuant to 42 U.S.C. §1437f, as amended.
(b) When authorized by state law, the Director may agree to accept a negotiated payment in lieu of the real property tax that would otherwise be levied on a qualifying housing development. A qualifying housing development is any housing development of which the owner is expressly eligible under state law to make payments in lieu of taxes.
(c) When authorized by state law, the Director must offer a payment in lieu of taxes for a qualifying housing development:
(1) owned or controlled by the Housing Opportunities Commission that exempts 100% of the real property tax that would otherwise be levied;
(2) owned or controlled by a non-profit housing developer if at least 50% of the dwelling units located on the property receiving the payment in lieu of taxes are built under a government regulation or binding agreement with the County limiting the rent charged for the unit for at least 15 years to make the unit affordable to households earning 60% or less of the area median income. The offer must exempt 100% of the real property tax that would otherwise be levied for a period of at least 15 years, but no more than the number of years that rents charged for 50% of the dwelling units must remain restricted to households earning 60% or less of the area median income; or
(3) owned or controlled by a non-profit housing developer if all of the dwelling units are subject to a Section 8 Project-Based Rental Assistance Payment contract. The offer must exempt 100% of the real property tax that would otherwise be levied as long as the Section 8 Project-Based Rental Assistance Payment contract is in effect.
(d) The Director must not offer a payment in lieu of taxes for a qualifying housing development under this Section for any property that has already received a payment in lieu of taxes under any Section.
(e) Any payment accepted by the Director must conform to guidelines included in a regulation adopted by the Executive under method (1). Before the Director accepts a payment in lieu of taxes, the Director must consult the Director of the Department of Housing and Community Affairs on whether:
(1) the subject of the payment is a qualifying housing development; and
(2) the amount of the payment complies with applicable guidelines.
(f) The Executive, in each annual operating budget submitted to the Council, must calculate the amount of pending payments in lieu of taxes already approved under this Section, including payments for housing developments owned or operated by the Housing Opportunities Commission. (2002 L.M.C., ch. 26, § 1; 2016 L.M.C., ch. 7, § 2; 2021 L.M.C., ch. 37, §1.)
Editor’s note—2021 L.M.C., ch. 37, § 2, states: Sec. 2. Transition. Except for Subsection (c)(3), the amendments in Section 1 establishing a mandatory payment in lieu of taxes must only apply to a property that is eligible for a payment in lieu of taxes due to affordable dwelling units that come under a government regulation or binding agreement limiting the rent charged on or after this Act takes effect.
2002 L.M.C., ch. 26, § 2, states, in part: This Act applies to taxes due during the tax year that began on July 1, 2002, and any later tax year. 2002 L.M.C., ch. 26, § 3, states: Until October 31, 2002, any payment accepted by the Director of Finance under County Code Section 52-18M (now § 52-24, 2016 L.M.C., ch. 7, § 1), inserted by Section 1 of this Act, need not conform to guidelines included in a regulation adopted by the County Executive, as required by Section 52-18M(b) (now § 52- 24(b)).
(a) Definitions. In this Section, the following words have the following meanings:
Director means the Director of the Department of Finance or the Director’s designee.
High-rise residential apartment building means a multi-family building with an occupied floor that is more than 8 stories above ground level and is used primarily for dwelling units for rent to the public.
Metro station means a mass transit train station owned and operated by the Washington Metropolitan Area Transit Authority.
Qualifying development means a project where at least 50% of the project consists of the construction of one or more high-rise residential apartment buildings located on land leased from WMATA at a metro station. A qualifying development must include at least 25% of the moderately priced dwelling units required by Chapter 25A affordable to households at 50% of the area median income.
Washington Metropolitan Area Transit Authority or WMATA means the regional transit instrumentality of the State of Maryland, Commonwealth of Virginia, and the District of Columbia created by Compact and described in Md. Transportation Code Ann. §10-204, as amended.
(b) When authorized by state law, the Director must offer a payment in lieu of taxes for a qualifying development.
(c) The payment in lieu of taxes must exempt 100% of the real property tax that would otherwise be levied for a period of 15 years. The Director may begin the payment in lieu of taxes in the year a use and occupancy permit is issued for the qualifying development or in the second year property tax for the qualifying development is levied, regardless of subleases or assignments executed by the lessee. The payment in lieu of taxes must not include an exemption for any tax levied under an applicable special taxing area law.
(d) Any payment accepted by the Director must conform to guidelines included in a regulation adopted by the Executive under method (1) to implement this Section. The regulation must require the developer of the qualifying project, as a condition of receiving a payment in lieu of taxes under subsection (c), to agree in writing that, to the best of its knowledge, information, and belief:
(1) none of the contractors or subcontractors hired to perform work on the qualifying development site had three (3) or more final, non-appealable penalties assessed against it in the amount of $5,000.00 or more in the 3 years prior to being hired for the project for violations of applicable wage and hour laws, including the County’s prevailing wage law and any applicable Maryland wage and hour laws; and
(2) at least 25% of the workers constructing the qualifying project were residents of the County while performing the work.
The regulation must also require the developer to provide quarterly reports to the Executive during construction demonstrating compliance with the conditions for receiving a payment in lieu of taxes.
(e) A developer of a qualifying project who violates the guidelines included in the regulation adopted under subsection (d) has committed a Class A violation.
(f) This Act must be known as the “Housing at Metrorail Stations Act.”
(g) Sunset. A qualifying development is eligible and includes all buildings within its preliminary plan so long as the preliminary plan’s approval occurs before December 31, 2032. For single buildings not part of a multi-building preliminary plan, the building is eligible so long as the sketch or site plan approval occurs before December 31, 2032. (2020 L.M.C., ch. 32, §1.)
ARTICLE II. TAX SALES.*
*State law reference—Conditions for tax sales generally, Ann. Code of Md., Tax-Property Article, § 14-801, et seq.
At any time after March 1 next succeeding the date taxes are due and unpaid, payment may be enforced by sale, as provided by law. The director of finance shall make or cause to be made up a list of all taxes which are due and unpaid, which shall contain the amount thereof, the interest and penalties thereon, the property affected thereby, the name of the owner thereof as such name appears on the assessment records of the county, a brief description of the property sufficient to identify the same and such references to conveyances or other records of title as will identify the property. To such list shall be appended a notice that if taxes, penalties and interest thereon are not paid on or before the second Monday in June next ensuing, together with the expenses of sale allowable by state law, the director of finance will, commencing on the second Monday in June at an hour and place specified in such notice, offer or cause to be offered for sale to the highest bidder upon the terms provided by public general law each and every parcel of property contained in such notice. Such notice and list shall be published in accordance with the applicable provisions of the public general laws, and the last publication thereof shall appear on or before the second Monday in June. Commencing on the second Monday in June, the director of finance shall proceed to sell or cause to be sold at auction to the highest bidder all such properties upon which the taxes are due and unpaid; but no such property shall be sold for a sum less than the total amount provided by applicable public general law. In addition to the expenses of sale allowable by state law and such interest and penalties as provided for elsewhere in this chapter, the director of finance shall impose on each parcel of property published a penalty charge of twenty dollars ($20.00). (Mont. Co. Code 1965, § 2-130; 1906, ch. 171, § 62-I; 1912, ch. 790, § 137; 1931, ch. 461; 1933, ch. 541, § 207; 1935, ch. 250; 1941, ch. 916, § 199; 1982 L.M.C., ch. 39, § 4; 2016 L.M.C., ch. 7, § 2.)
Editor’s note—Pursuant to Montgomery County Council Resolution 9-1591, commencing with the tax sale of real property in June 1982 for ordinary taxes overdue, in arrears and unpaid, in accordance with the provisions of Ann. Code of Md., Tax-Property Article, §§ 14-820 and 14-828, the rate of redemption shall be the sum of the interest rate on late payment of taxes and the penalty rate on late payment of delinquent taxes as fixed by resolution of the County Council.
Section 52-25 (formerly § 52-36, 2016 L.M.C., ch. 7, § 1) is interpreted in Heartwood 88, Inc. v. Montgomery County, 156 Md. App. 333, 846 A.2d 1096 (2004).
Loading...