Sec. 52-43. Calculation of development impact tax.

(a) The master plan of transportation indicates that certain transportation facilities are needed in planning policy areas. Furthermore, the Growth and Infrastructure Policy indicates that the amount and rate of growth projected in certain planning policy areas will place significant demands on the County for provision of transportation facilities necessary to support and accommodate that growth.

(b) Montgomery County, through its adoption of the Capital Improvements Program, indicates its commitment to provide transportation infrastructure.

(c) Montgomery County has determined that a combination of approaches will be necessary to fully achieve the level of impact transportation improvements needed to accommodate growth in the County. Thus, Montgomery County proposes to fund a program of transportation improvements through development impact taxes to allow new growth in the County.

(d) Imposing a development impact tax that requires new development to pay its pro rata share of the costs of impact transportation improvements necessitated by that development in conjunction with other public funds is a reasonable method of raising the funds to build improvements in a timely manner.

(e) The development impact tax funds, in part, the improvements necessary to increase the transportation system capacity, thereby allowing development to proceed. Development impact taxes are used exclusively for impact transportation improvements.

(f) In order to assure that the necessary impact transportation improvements are constructed in a timely manner, the County assures the availability of funds sufficient to construct the impact transportation improvements.

(g) The County retains the power to determine the types of impact transportation improvements to be funded by development impact taxes and to do all things necessary and proper to effectuate the purpose and intent of this Article.

(h) The County intends to further the public purpose of ensuring that an adequate transportation system is available in support of new development.

(i) The County intends to impose development impact taxes until the County has attained build-out as defined by the General Plan. (1986 L.M.C., ch. 54, § 1; 1989 L.M.C., ch. 17, § 1; 1990 L.M.C., ch. 40, § 1; 1996 L.M.C., ch. 4, § 1; 1999 L.M.C., ch 3, § 1; 2002 L.M.C., ch. 4, § 1; 2004 L.M.C., ch. 2, § 2; 2007 L.M.C., ch. 16, § 1; 2008 L.M.C., ch. 5, § 1; 2016 L.M.C., ch. 7, § 2; 2016 L.M.C., ch. 36, §1; 2021 L.M.C., ch. 3, §1.)

Editor’s note—Section 52-40 (formerly Section 52-48, 2016 L.M.C., ch. 7, § 1) is cited in F.D.R. Srour Partnership v. Montgomery County, 179 Md. App. 109, 944 A.2d 1149 (2008) aff’d., 407 Md. 233, 964 A.2d 650 (2009). Section 52-40 (formerly Section 52-48, 2016 L.M.C., ch. 7, § 1) [formerly §49A-2] is cited in Wielepski v. Harford County, 98 Md. App. 721, 635 A.2d 43 (1994).

2018 L.M.C., ch. 18, § 1, states: Sec. 2. Effective date; Transition. This Act takes effect on March 1, 2017. The amendments to the development impact tax for transportation improvements and the development impact tax for public school improvements added by Section 1 of this Act, must apply to any application for a building permit filed on or after March 1, 2017. If a property owner is required to pay the development impact tax rates for transportation or public school improvements that take effect on March 1, 2017, the Director of Finance:

(a) must not require the payment of a transportation mitigation payment or a school facilities payment for the same development; and

(b) must refund the payment or give the property owner a credit against the development impact tax for transportation due for the development in the amount of any transportation mitigation payment made for the same development prior to March 1, 2017.

2018 L.M.C., ch. 18, § 2 states: Expedited Effective Date. .... This Act takes effect on the date on which it becomes law and must apply to any transportation mitigation payment made on or after November 29, 2016.

2016 L.M.C., ch. 36, § 2, states: Effective date; Transition. This Act takes effect on March 1, 2017. The amendments to the development impact tax for transportation improvements and the development impact tax for public school improvements added by Section 1 of this Act, must apply to any application for a building permit filed on or after March 1, 2017. Any property owner who is required to pay the development impact tax rates for transportation or public school improvements that take effect on March 1, 2017 must not be required to pay a transportation mitigation payment or a school facilities payment.

2008 L.M.C., ch. 5, § 3, states: Sec. 3. Any regulation in effect when this Act takes effect that implements a function transferred to another Department or Office under Section 1 of this Act continues in effect, but any reference in any regulation to the Department from which the function was transferred must be treated as referring to the Department to which the function is transferred. The transfer of a function under this Act does not affect any right of a party to any legal proceeding begun before this Act took effect.

Formerly, § 49A-2.

Sec. 52-41. Imposition and applicability of development impact taxes.

(a) A development impact tax must be imposed before a building permit is issued for development in the County.

(b) An applicant for a building permit must pay a development impact tax in the amount and manner provided in this Article, unless a credit in the full amount of the applicable tax applies under Section 52-47 or an appeal bond is posted under Section 52-48.

(1) White Flint: The part of the North Bethesda Metro Station Policy Area included in the White Flint Special Taxing District in Section 68C-2;

(2) Red Policy Areas: Bethesda CBD, Chevy Chase Lake, Forest Glen, Friendship Heights, Great Seneca Life Science Center, Grosvenor, Glenmont, Lyttonsville, Medical Center, North Bethesda Metro Station, Purple Line East, Rock Spring, Rockville Town Center, Shady Grove, Silver Spring CBD, Takoma, Twinbrook, Wheaton CBD, White Oak Downtown, and Woodside Metro Station Policy Areas;

(3) Orange Policy Areas: Aspen Hill, Bethesda/Chevy Chase, Burtonsville Crossroads, Clarksburg East, Clarksburg Town Center, Derwood, Fairland/Briggs Chaney, Gaithersburg City, Germantown East, Germantown Town Center, Germantown West, Great Seneca Communities, Kensington/Wheaton, North Bethesda, Olney Town Center, Rockville City, and Silver Spring/Takoma Park Policy Areas;

(4) Yellow Policy Areas: Clarksburg West, Cloverly, Damascus, Colesville, Montgomery Village/Airpark, North Potomac, Olney, and Potomac Policy Areas; and

(5) Green Policy Areas: Rural East and Rural West Policy Areas.

(d) A Clergy House must pay the impact tax rate that applies to a place of worship if the house:

(1) is on the same lot or parcel, adjacent to. or confronting the property on which the place of worship is located; and

(2) is incidental and subordinate to the principal building used by the religious organization as its place of worship.

The place of worship tax rate does not apply to any portion of a Clergy House that is nonresidential development.

(e) Development impact taxes collected from developments located in the cities of Gaithersburg and Rockville must be accounted for separately according to the municipality where the funds originated. These tax revenues must be used only to fund transportation improvements listed in a memorandum of understanding between the County and the respective City, which must be approved by the County Council. If the County and the respective City do not agree on a memorandum of understanding regarding the use of impact tax revenues, the County Council may appropriate funds to improvements which are consistent with the master plan of the respective City after holding a separate hearing on any specific improvement if the City so requests.

(f) A development impact tax must not be imposed on any building owned, and used primarily, by any agency or instrumentality of federal, state, County, or municipal government.

(g) A development impact tax must not be imposed on:

(1) any Moderately Priced Dwelling Unit built under Chapter 25A or any similar program enacted by either Gaithersburg or Rockville;

(2) any other dwelling unit built under a government regulation or binding agreement that limits for at least 15 years the price or rent charged for the unit in order to make the unit affordable to households earning less than 60% of the area median income, adjusted for family size;

(3) any Personal Living Quarters unit built under Section 59-3.3.2.D, which meets the price or rent eligibility standards for a moderately priced dwelling unit under Chapter 25A;

(4) any dwelling unit in an Opportunity Housing Project built under Sections 56-28 through 56-32, which meets the price or rent eligibility standards for a moderately priced dwelling unit under Chapter 25A;

(5) any development located in an enterprise zone designated by the State;

(6) except for a development located in the City of Rockville, any development located in a Qualified Opportunity Zone certified by the United States Treasury Department or in an area previously designated as an Opportunity Zone, including a development located in the following census tracts as defined by their 2010 Census Boundaries: Silver Spring – 25.00, 26.01; Takoma Park – 17.03, 20.00, 23.01; White Oak – 15.05, 15.09, 14.21; Wheaton – 38.00; Rockville – 9.04; Gaithersburg – 7.24, 7.23, 7.13, 8.13; and Germantown – 8.30;

(7) a house built by high school students under a program operated by the Montgomery County Board of Education;

(8) a farm tenant dwelling;

(9) a bioscience facility;

(10) a multifamily dwelling unit with 3 or more bedrooms in a multifamily structure;

(11) any single-family attached or detached dwelling units with a gross floor area of 1,800 square feet or less, or a gross floor area of 2,200 square feet or less including an attached garage; or

(12) any development that is within one-half mile of a Metro station, within a Parking Lot District, and that provides no onsite parking.

(h) The development impact tax does not apply to:

(1) any reconstruction or alteration of an existing building or part of a building that does not increase the gross floor area of the building;

(2) any ancillary building in a residential development that:

(A) does not increase the number of dwelling units in that development; and

(B) is used only by residents of that development and their guests, and is not open to the public; and

(3) any building that replaces an existing building on the same site or in the same project (as approved by the Planning Board or the equivalent body in Rockville or Gaithersburg) to the extent of the gross floor area of the previous building, if:

(A) an application for a building permit is filed within four years after demolition or destruction of the previous building was substantially completed;

(B) the Director of the Department of Permitting Services or the Director’s designee finds that the applicant was unable to apply for a building permit or commence construction within four years after demolition or destruction of the previous building was substantially completed due to circumstances beyond the control of the applicant or the applicant’s agents; or

(C) the previous building is demolished or destroyed, after the replacement building is built, by a date specified in a phasing plan approved by the Planning Board or equivalent body.

(4) office-to-residential conversions when the building is adaptively reused or renovated for multi-family housing; and

(5) the conversion of office to multi-family, single-family detached, or single-family attached housing when demolition is involved.

However, if in any case the development impact tax that would be due on the new, reconstructed, or altered building is greater than the tax that would have been due on the previous building if it were taxed at the same time, the applicant must pay the difference between those amounts. (1986 L.M.C., ch. 54, § 1; 1989 L.M.C., ch. 17, § 1; 1990 L.M.C., ch. 40, § 1; 1992 L.M.C., ch. 17, § 1; 1995 L.M.C., ch. 25, § 1; 2001 L.M.C., ch. 10, § 1; 2002 L.M.C., ch. 4, § 1 § 1; 2003 L.M.C., ch. 27, § 1; 2004 L.M.C., ch. 2, § 2; 2007 L.M.C., ch. 16, § 1; 2010 L.M.C., ch. 35, § 2; 2011 L.M.C., ch. 1, § 1; 2015 L.M.C., ch. 4, § 1; 2015 L.M.C., ch. 37, § 1; 2016 L.M.C., ch. 7, § 2; 2016 L.M.C., ch. 36, § 1; 2020 L.M.C., ch. 37, §1; 2024 L.M.C., ch. 22, § 1.)

Editor’s note—Section 52-41 (formerly Section 52-49, 2016 L.M.C., ch. 7 , § 1) is cited in F.D.R. Srour Partnership v. Montgomery County, 179 Md. App. 109, 944 A.2d 1149 (2008), aff’d., 407 Md. 233, 964 A.2d 650 (2009).

See County Attorney Opinion dated 3/28/91 commenting and proposing legislation to amend the County Code so that it will not conflict with State law regarding development impact tax.

(a) must not require the payment of a transportation mitigation payment or a school facilities payment for the same development; and

2018 L.M.C., ch. 2, § 1, amends 2015 L.M.C., ch. 37, § 2, to state: Sec. 2. Applicability.

(a) Except as provided in paragraph (b) or (c), County Code Section 52-41(g)(5), formerly 52-49(g)(5), and Section 52-54(c)(5), formerly 52-89(c)(5), both inserted by Section 1 of this Act, do not apply to any development which received preliminary subdivision plan approval or site plan approval (or a similar approval in a municipality) before October 22, 2015.

(b) If a development approved before October 22, 2015 is amended any time thereafter to include additional dwelling units and at least 25% of the additional dwelling units are exempt under paragraph (1), (2), (3), or (4) of Section 52-54(c), or any combination of them, then Section 52-41(g)(5) and Section 52-54(c)(5), apply to the additional units.

(c) If the relevant preliminary subdivision plan was approved before January 1, 2008, Sections 52-41(g)(5) and 52-54(c) apply to building permit applications for the unbuilt portion of the development.

2016 L.M.C., ch. 7, § 3, states: Reporting. When a development proposes at least 25% affordable dwelling units under Section 52-41(g)(5) and Section 52-54(c)(5), the Department of Housing and Community Affairs must report to the Council the location of the development, the total number of units in the development, and the number of affordable units within 30 days from the date of the agreement to build MPDUs. If a development with 25% of affordable dwelling units does not obtain an agreement to build MPDUs with the Department of Housing and Community Affairs, then the Department of Permitting Services must report to the Council the use of any impact tax exemption under Section 52-41(g)(5) and Section 52-54(c)(5) within 30 days from the date the exemption is granted.

2015 L.M.C., ch. 37, § 2, states: Applicability. County Code Section 52-49(g)(5) (now Section 52-41(g)(5), 2016 L.M.C., ch. 7, § 1) and Section 52-89(c)(5) (now Section 52-54(c)(5), 2016 L.M.C., ch. 7, § 1), both inserted by Section 1 of this Act, do not apply to any development which received preliminary subdivision plan approval or site plan approval (or a similar approval in a municipality) before this Act took effect.

2011 L.M.C., ch. 1, § 2, amended by 2013 L.M.C., ch. 4, § 3, states, in part: ... Applicability; Refunds. ... This Act takes effect on December 1, 2010, and applies to any development located in the White Flint impact tax district for which a building permit is issued on or after December 1, 2010. If any development impact tax was collected under Article VII (now Article IV, 2016 L.M.C., ch. 7, § 1) of County Code Chapter 52 before this Act took effect for any development to which this Act applies, the Director of Finance must promptly refund that tax as if a refund were due and claimed under County Code Section 52-54 (now Section 52-46, 2016 L.M.C., ch. 7, § 1).

Formerly, § 49A-4.

Sec. 52-42. Collection of development impact taxes.

(a) The Department of Permitting Services must determine the amount of the applicable development impact tax.

(b) Each applicant for a building permit for development that is not exempt from the development impact tax must supply to the Department of Permitting Services for each requested building permit:

(1) The number and type of dwelling units for residential development; and

(2) The gross floor area and type of development for nonresidential development.

The applicant must submit for inspection relevant support documentation as the Department requires.

(c) The Department of Permitting Services must not issue a building permit for development that is not exempt from the development impact tax unless:

(1) the applicant has paid the applicable development impact tax;

(2) the applicant is entitled to a credit under Section 52-47 in the amount of the applicable development impact tax; or

(3) an appeal has been taken and a bond or other surety posted under Section 52-48.

(d) When a person applies to a municipality in the County for a building permit for a building or dwelling unit, the applicant must show that all payments due under this Section with respect to the building or unit have been paid. The Director of Finance must promptly refund any payment made for any building or part of a building for which a building permit is not issued by the municipality.

(e) Nothing in this Article changes or supercedes any other requirement of City, County, state or federal law that may apply to the development, including county zoning and subdivision regulations that may impose on-site and off-site transportation improvement requirements and local area review requirements implemented by the Planning Board.

(f) If any person fails to pay the tax due under Section 52-43, that person is liable for:

(1) interest on the unpaid tax at the rate of one percent per month for each month or part of a month after the date for payment of the tax; and

(2) a penalty of 5 percent of the amount of the tax per month or part of a month after the date for payment of the tax, not to exceed 25 percent of the tax.

The Director of Finance must collect any interest and penalty as a part of the tax.

(g) If any person fails to pay the tax when due, the Director of Finance must obtain information on which to calculate the tax due. As soon as the Director obtains sufficient information to calculate any tax due, the Director must assess the tax and penalties against the person. The Director must notify the person by mail sent to the person's last known address of the total amount of the tax, interest, and penalties. The total amount must be paid within 10 days after the notice is mailed.

(h) Every person liable for any tax under this Article must preserve for 2 years all records necessary to determine the amount of the tax. The County may inspect the records at any reasonable time.

(i) Any failure to pay the tax due under this Article, and any violation of this Section, is a Class A violation. Each violation is a separate offense. A conviction does not relieve any person from payment of the tax.

(j) Section 52-21 applies to this tax. The lien imposed under this Article has the same priority and may be enforced in the same manner as a lien imposed in case of nonpayment of County real property taxes.

(k) If, within 10 years after a building permit is issued, any person changes the use of all or part of a building to a use for which a higher tax would have been due under this Article when the building permit was issued (including a change from a status, use, or ownership that is exempt from payment to a status, use, or ownership that is not so exempt), the owner of the building must within 10 days after the change in status, use, or ownership pay all additional taxes that would have been due if the building or part of the building had originally been used as it is later used. If the building owner does not pay any additional tax when due, each later owner is liable for the tax, and any interest or penalty due, until all taxes, interest, and penalties are paid.

(l) Notwithstanding any other provisions of this Chapter, an applicant for a building permit need not pay any development impact tax, Transportation Mitigation Payment, or School Facilities Payment due until:

(1) if the building is a single-family detached or attached residential building, the earlier of:

(A) the final inspection of the building by the Department of Permitting Services; or

(B) 6 months after the building permit is issued; and

(2) if the building is a multi-family residential or non-residential development, the earlier of:

(A) the final inspection of the building by the Department of Permitting Services; or

(B) 12 months after the building permit is issued.

The rate of the tax or Payment due is the rate in effect when the tax or Payment is paid. A permittee may appeal the imposition or calculation of the tax or Payment under Section 52-48. If the Department of Permitting Services or a municipality revokes or suspends a building permit or issues a stop-work order solely because the permittee did not pay any tax or Payment due under this Article, the permittee or any other party must not appeal the permit revocation or suspension or the stop work order issuance, or any modification of either, under Chapter 8. If the appealing party posts a bond or other sufficient surety satisfactory to the County Attorney as provided in Section 52-48, the Department or municipality must reissue or reinstate the building permit or revoke the stop-work order.. (1986 L.M.C., ch. 54, § 1; 1990 L.M.C., ch. 40, § 1; 1992 L.M.C., ch. 17, § 1; 1996 L.M.C., ch. 20, § 1; 1998 L.M.C., ch. 12, § 1; 1999 L.M.C., ch. 3, § 1; 2001 L.M.C., ch. 14, § 1; 2002 L.M.C., ch. 4, § 1; 2002 L.M.C., ch. 16 § 2; 2011 L.M.C., ch. 19, § 1; 2016 L.M.C., ch. 7, § 2.)

Editor’s note—Section 52-39 (formerly Section 52-47, 2016 L.M.C., ch. 7, § 1) is quoted and cited in F.D.R. Srour Partnership v. Montgomery County, 179 Md. App. 109, 944 A.2d 1149 (2008), aff’d., 407 Md. 233, 964 A.2d 650 (2009).

See County Attorney Opinion dated 3/28/91 commenting and proposing legislation to amend the County Code so that it will not conflict with State law regarding development impact tax.

Formerly, § 49A-5.

Sec. 52-43. Calculation of development impact tax.

(a) The Department of Permitting Services must calculate the amount of the applicable development impact tax due for each building permit by:

(1) determining the applicable impact tax district and whether the permit is for development that is exempt from the tax under Section 52-41(f);

(2) verifying the number and type of dwelling units and the gross floor area and type of nonresidential development for which each building permit is sought;

(3) determining the applicable tax under Section 52-49; and

(4) multiplying the applicable tax by:

(A) the appropriate number of dwelling units; and

(B) the gross floor area of nonresidential development.

(b) If the development for which a building permit is sought contains a mix of uses, the Department must separately calculate the development impact tax due for each type of development.

(c) If the type of proposed development cannot be categorized under the definitions of nonresidential and residential in Section 52-39, the Department must use the rate assigned to the type of development which generates the most similar traffic impact characteristics.

(d) The Department must calculate the amount of the development impact tax due under this Article in effect when the building permit application is submitted to the Department, or before a building permit is issued by a municipality.

(e) A building permit application, or if the property is located in a municipality with authority to issue building permits, a request to determine the amount of the impact tax, must be resubmitted to the Department if the applicant changes the project by:

(1) increasing the number of dwelling units;

(2) increasing the gross floor area of nonresidential development; or

(3) changing the type of development so that the development impact tax would be increased.

(f) A 1-bedroom garden apartment must be calculated using the high-rise residential rate if the preliminary plan was approved before January 1, 2025.

The Department must recalculate the development impact tax based on the plans contained in the resubmitted building permit application. (1986 L.M.C., ch. 54, § 1; 1990 L.M.C., ch. 40, § 1; 1996 L.M.C., ch. 20, § 1; 1998 L.M.C., ch. 12, § 1; 2001 L.M.C., ch. 14, § 1; 2002 L.M.C., ch. 4, § 1; 2002 L.M.C., ch. 16, § 2; 2016 L.M.C., ch. 7, § 2; 2024 L.M.C., ch. 22, § 1.)

Editor’s note—Section 52-43 (formerly Section 52-51, 2016 L.M.C., ch. 7, § 1) is cited in F.D.R. Srour Partnership v. Montgomery County, 179 Md. App. 109, 944 A.2d 1149 (2008), aff’d., 407 Md. 233, 964 A.2d 650 (2009).

Formerly, § 49A-6.

Sec. 52-44. Annual report.

The County Executive must submit a report to the Council on the development impact tax not later than April 1 of each year. The report must include:

(a) a summary of the revenue collected from the tax in the previous calendar year in each impact tax district;

(b) a list of each building exempted from the tax during the previous calendar year under Section 52-41(g) or taxed at a rate of $0 under Section 52-49, and the tax that otherwise would have been paid for that building; and

Editor’s note—2002 L.M.C., ch. 4, § 1, repealed former § 52-52 (now Section 52-44, 2016 L.M.C., ch. 7, § 1), “Biennial recalculation of development impact tax,” which was derived from 1986 L.M.C., ch. 54, § 1; 1989 L.M.C., ch. 17, § 1; 1990 L.M.C., ch. 40, § 1; 1996 L.M.C., ch. 4, § 1.

Formerly, § 49A-7.

Sec. 52-45. Restrictions on use and accounting of development impact tax funds.

(a) The funds collected by the development impact tax must be used solely to fund County or municipal transportation improvements of the types listed in Section 52-50 located anywhere in the County, except as provided in subsections (c) and (h). In appropriating funds collected by the development impact tax, the Council should, to the extent feasible, designate funds to be used for transportation improvements in the policy area from which the funds were collected or an adjacent policy area.

(b) Upon receipt of development impact taxes, the Department of Permitting Services must transfer the taxes to the Department of Finance for crediting to the appropriate account.

(c) The Department of Finance must establish separate accounts for the City of Gaithersburg and the City of Rockville, and must maintain records for each account so that development impact tax funds collected can be segregated by each city.

(d) The Department of Finance must maintain and keep adequate financial records for each account that must:

(1) Show the source and disbursement of all revenues;

(2) Account for all monies received; and

(3) Ensure that the disbursement of funds from each account is used exclusively for the financing of the transportation improvements listed in Section 52-50.

(e) Interest earned by each account must be credited to that account and must be used solely for the purposes specified for funds of the account.

(f) The Department of Finance must annually issue a statement for each account.

(g) Development impact taxes must be disbursed from an account only for the purposes for which the tax has been imposed, including reimbursement to the County or Gaithersburg or Rockville of advances made for these purposes from other available funds. (1986 L.M.C., ch. 54, § 1; 1990 L.M.C., ch. 40, § 1; 1996 L.M.C., ch. 20, § 1; 1998 L.M.C., ch. 12, § 1; 2001 L.M.C., ch. 14, § 1; 2002 L.M.C., ch. 4, § 1; 2002 L.M.C., ch. 16, § 2; 2003 L.M.C., ch. 27, § 1; 2007 L.M.C., ch. 16, § 1; 2013 L.M.C., ch. 4, § 1; 2016 L.M.C., ch. 7, § 2; 2016 L.M.C., ch. 36, § 1.)

Editor’s note—2018 L.M.C., ch. 18, § 1, states: Sec. 2. Effective date; Transition. This Act takes effect on March 1, 2017. The amendments to the development impact tax for transportation improvements and the development impact tax for public school improvements added by Section 1 of this Act, must apply to any application for a building permit filed on or after March 1, 2017. If a property owner is required to pay the development impact tax rates for transportation or public school improvements that take effect on March 1, 2017, the Director of Finance:

(a) must not require the payment of a transportation mitigation payment or a school facilities payment for the same development; and

Note-Formerly, § 49A-8.

Sec. 52-46. Refunds.

(a) Any person who has paid a development impact tax may apply for a refund of the impact tax if:

(1) the County has not appropriated the funds for impact transportation improvements of the types listed in Section 52-50, or otherwise formally designated a specific improvement of a type listed in Section 52-50 to receive funds, by the end of the twelfth fiscal year after the tax is collected;

(2) the building permit has been revoked or has lapsed because construction did not start; or

(3) the project has been physically altered, resulting in a decrease in the amount of impact tax due.

(b) Only the current owner of property may petition for a refund of the impact tax. A petition for refund of the impact tax must be filed within the time established for filing a claim for refund of a local tax under state law.

(c) The petition for refund of the impact tax must be submitted to the Director of Permitting Services on a form provided by the County. The petition must contain at least:

(1) A statement that petitioner is the current owner of the property;

(2) A copy of the dated receipt for payment of the development impact tax issued by the Department of Permitting Services;

(3) A certified copy of the latest recorded deed for the subject property; and

(4) The reasons why a refund of the impact tax is sought.

(d) The Director of Permitting Services must investigate each claim and hold a hearing if the petitioner requests a hearing. Within 3 months after receiving a petition for refund of the impact tax, the Director of Permitting Services must provide the petitioner, in writing, with a decision on the impact tax refund request. The decision must include the reasons for the decision, including, as appropriate, a determination of whether impact tax funds collected from the petitioner, calculated on a first-in-first-out basis, have been appropriated or otherwise formally designated for impact transportation improvements of the types listed in Section 52-50 within 12 fiscal years. If a refund of the impact tax is due the petitioner, the Director of Permitting Services must notify the Department of Finance and, if the property is located in Gaithersburg or Rockville, the finance director of that city.

(e) The Department of Finance must not pay a refund of the impact tax unless the petitioner has paid all other state, county, or municipal taxes, fees, or charges that the Department is responsible for collecting.

(f) The petitioner may appeal the determination of the Director of Permitting Services in accordance with Article 24, Title 9, of the Maryland Code or any successor law. (1986 L.M.C., ch. 54, § 1; 1989 L.M.C., ch. 17, § 1; 1990 L.M.C., ch. 40, § 1; 1996 L.M.C., ch. 20, § 1; 1998 L.M.C., ch. 12, § 1; 1999 L.M.C., ch. 3, § 1; 2001 L.M.C., ch. 14, § 1; 2002 L.M.C., ch. 4, § 1; 2002 L.M.C., ch. 16, § 2; 2008 L.M.C., ch. 34, § 2; 2010 L.M.C., ch. 44, § 1; 2016 L.M.C., ch. 7, § 2; 2018 L.M.C., ch. 24, § 1.)

Editor’s note—2011 L.M.C., ch. 1, § 2, amended by 2013 L.M.C., ch. 4, § 3, states, in part: ... Applicability; Refunds. ... This Act takes effect on December 1, 2010, and applies to any development located in the White Flint impact tax district for which a building permit is issued on or after December 1, 2010. If any development impact tax was collected under Article VII of County Code Chapter 52 before this Act took effect for any development to which this Act applies, the Director of Finance must promptly refund that tax as if a refund were due and claimed under County Code Section 52-54 (now Section 52-46, 2016 L.M.C., ch. 7, § 1).

Note—Formerly, § 49A-9.

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