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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2016 L.M.C., ch. 7, § 1), relating to a homestead property tax credit, derived from FY 1991 L.M.C., ch. 27, § 1, was repealed by CY 1991 L.M.C., ch. 41, § 1.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).
(a) The county is hereby authorized and empowered to purchase any real estate offered for sale for the payment of taxes and special assessments; provided, it shall not bid a sum greater than the taxes and special assessments in arrears on such property and the interest and expenses of sale and costs and fees, and to sell or lease the same as shall be deemed to be in the best interests of the county. The county is authorized and empowered to issue upon its faith and credit at one time or from time to time as may be necessary, certificates of indebtedness in an amount not exceeding the amount of such taxes or special assessments, interest, penalties, costs and fees, in anticipation of the receipt of money from the redemption and from the sale of property sold for such taxes or special assessments; provided, however, that the amount of such certificates of indebtedness shall not in the aggregate at any time exceed twenty (20) percent of the total amount of taxes or special assessments levied for the year for which such certificates are issued.
(b) The certificates of indebtedness so issued in anticipation of the receipt of money from the redemption and from the sale of property sold for taxes or special assessments in any year shall be identified by the year in which such sale is made and designated “Certificates of Indebtedness, 19___,” and shall mature not later than October 1 of the fifth year after the year in which such sale for taxes or special assessment is made. Such certificates of indebtedness shall bear interest at a rate to be determined by the county executive, with the approval of the council, payable semiannually or at shorter intervals, and shall be sold in such manner and on such terms as the county executive shall determine to be for the best interests of the county, and if for any reason certificates of indebtedness issued against property purchased by the county at any tax sale have been retired in whole or in part before the time limit for maturity as specified in this section new certificates may be issued, the total principal of which shall exceed neither the amount of principal previously retired nor the amount of taxes, interest, penalties, expenses of sale, costs and fees on property purchased by the county for such year remaining unredeemed at the time of issuance of such new certificates, but all such certificates of indebtedness shall mature within the time herein limited for the maturity of the original certificates of indebtedness.
(c) The county executive shall by regulation fix the form of such certificates of indebtedness, the officers by whom they shall be executed, the amounts, the medium of payment and the place in Maryland or elsewhere at which they shall be payable. Such certificates of indebtedness may be renewed from time to time by endorsement thereon or new certificates of indebtedness may be issued from time to time for the payment of such certificates issued hereunder as may mature and all such new certificates may be issued in the same manner as herein provided not exceeding the total principle of the maturing certificates and shall mature within the time herein limited for the maturity of the original certificates of indebtedness. All money received from the redemption and from the sale of property sold for taxes or special assessments in any year shall be kept in a separate fund, identified by the year in which the sale for taxes or special assessments is made and designated as “19___ Tax Sale Fund,” and shall be applied solely to the payment of the principal and interest of certificates of indebtedness and renewals thereof or new certificates, issued in anticipation of the receipt of such money. The county may purchase or redeem before maturity any of such certificates offered.
(d) In each year in which property is sold for taxes or special assessments there shall be included in the annual tax levy an amount sufficient to pay one (1) year’s interest on all certificates of indebtedness authorized or to be authorized by the county in anticipation of the receipts of money from the redemption and from the sale of property sold for such taxes or special assessments. In each year thereafter there shall be included in the annual tax levy an amount sufficient to provide for the payment of the principal and interest of all certificates of indebtedness as the same shall fall due; provided, however, that the amount of such tax shall be reduced by the amount received into the fund which is pledged to the payment of such certificates of indebtedness. After the payment of the principal and interest of all certificates of indebtedness issued in anticipation of the receipt of money from the redemption and sale of property sold for taxes or special assessments in any year, all funds received from the sale or redemption of property sold for such taxes or special assessments shall be paid into the general fund of the county. Money received from the sale of certificates of indebtedness shall be used so far as necessary for the payment of appropriations made for the fiscal year in which the tax sale occurs or for the payment of loans or interest thereon made for the purpose of paying such appropriations. (Mont. Co. Code 1965, § 2-131; 1906, ch. 171, § 62-O; 1912, ch. 790, § 143; 1931, ch. 52; 1933, ch. 163; 1933 (Sp. Sess.), ch. 11; 1969 L.M.C., ch. 40, § 3; 2016 L.M.C., ch. 7, § 2.)
Editor’s note—Ch. 7 of 1933 (Sp. Sess.) validated all certificates of indebtedness issued pursuant to this section.
(a) On or before October 15 of each year, the county shall cause to be offered for sale at public auction all properties which it has purchased at tax sale and which are no longer subject to redemption. One (1) or more of the properties may be so offered at such other times as the county executive may determine. Each such property shall be offered at such auction at an upset price equal in amount to all taxes and assessments thereon which are due and unpaid, together with interest thereon to the date of the sale, plus all costs and penalties allowable by law, plus the cost of advertising and selling such property at auction sale. Upon a finding by the county executive that such upset price is, in the case of a particular piece of property, either too high or too low, the county executive may, by regulation fix an upset price at a figure other than that provided for in this section; provided, that such finding and the basis therefor are recited in the regulation. At any time prior to the date of any such auction the county executive may withdraw any of the properties from the sale for the purpose of
(1) Conveying properties to any governmental agency or political subdivision; or
(2) For retention for use by the county; or
(3) Whenever there was no bid equal to or greater than the upset price at a previous public auction, the county executive may dispose of the property in the manner prescribed by subsection(b) of this section.
(b) After any such property has been offered for sale at public auction one (1) or more times, it may be sold at private sale at the best price obtainable by the county executive, subject to the approval of the council. (Mont. Co. Code 1965, § 2-132; 1935, ch. 542; 1969 L.M.C., ch. 40, § 4; 2016 L.M.C., ch. 7, § 2.)
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