(a) A property owner is entitled to a credit if the owner, before July 1, 2002, entered into a participation agreement, or a similar agreement with the state or a municipality, the purpose of which was to provide additional transportation capacity. A property owner is also entitled to a credit if the owner receives approval before July 1, 2002 of a subdivision plan, development plan, or similar development approval by the County or a municipality that requires the owner to build or contribute to a transportation improvement that provides additional transportation capacity. The Department of Transportation must calculate the credit. The credit must equal the amount of any charge paid under the participation agreement. The Department may give credit only for building permit applications for development on the site covered by the participation agreement.
(b) Except as provided in subsection (l), a property owner must receive a credit for constructing or contributing to an improvement of the type listed in Section 52-50, including the cost of an improvement in a Unified Mobility Program or the White Oak Local Area Transportation Improvement Program, if the improvement reduces traffic demand or provides additional transportation capacity and to the extent the cost of the improvement exceeds the property owner’s fee under a Unified Mobility Program or the White Oak Local Area Transportation Improvement Program.
(1) If the property owner elects to make the improvement, the owner must enter into an agreement with a municipality or the County or receive a development approval based on making the improvement, before any building permit is issued. The agreement or development approval must contain:
(A) the estimated cost of the improvement, if known then;
(B) the dates or triggering actions to start and, if known then, finish the improvement;
(C) a requirement that the property owner complete the improvement according to applicable municipal or County standards; and
(D) any other term or condition that the municipality or County finds necessary.
(2) The Department of Transportation must:
(A) review the improvement plan;
(B) verify costs and time schedules;
(C) determine whether the improvement is an impact transportation improvement;
(D) determine the amount of the credit for the improvement that will apply to the development impact tax; and
(E) certify the amount of the credit to the Department of Permitting Services before that Department or a municipality collects the applicable impact tax.
(3) An applicant for subdivision, site plan, or other development approval from the County, Gaithersburg, or Rockville, or the owner of property subject to an approved subdivision plan, development plan, floating zone plan, or similar development approval, may seek a declaration of allowable credits from the Department of Transportation. The Department must decide, within 30 days after receiving all necessary materials from the applicant, whether any transportation improvement which the applicant has constructed, contributed to, or intends to construct or contribute to, will receive a credit under this subsection. If, during the initial 30-day period after receiving all necessary materials, the Department notifies the applicant that it needs more time to review the proposed improvement, the Department may defer its decision an additional 15 days. If the Department indicates under this paragraph that a specific improvement is eligible to receive a credit, the Department must allow a credit for that improvement when taking action under paragraph (2).
(4) Any credit that was certified under this subsection on or after March 1, 2004, and before December 31, 2015, expires 6 years after the Department certifies the credit. Any credit that was certified under this subsection on or after January 1, 2016, expires 12 years after the Department certifies the credit.
(5) The property owner must notify the Department of Transportation of the actual cost of each improvement for which a credit was certified within 180 days after the improvement is completed. Any cost of dedicating land or another right-of-way is not eligible unless the owner shows that the improvement resulted in a loss of density for the development.
(6) If the actual cost of an improvement for which a credit was certified differs from its estimated cost:
(A) if the actual cost is greater than the estimate, the amount of the credit must be increased to cover the actual cost of the improvement;
(B) if the actual cost is less than the estimate:
(i) the amount of any credit that has not been used must be reduced by the difference between the estimate and the actual cost; and
(ii) if any impact tax on the development is owed, the property owner must pay the additional tax.
(c) Any property owner who, before May 1, 2001, built all or part of a project in the Clarksburg policy area which is listed in the impact tax transportation program (including building any road which would be widened under the program) is entitled to a credit equal to the reasonable cost of the improvement. The Department of Transportation must calculate the credit.
(d) Any credit for building or contributing to an impact transportation improvement does not apply to any development that has been previously approved under the Alternative Review Procedure for Metro Station Policy Areas in the Growth and Infrastructure Policy.
(e) A refund must not be granted when any credit certified under this Section exceeds the applicable tax.
(f) (1) If an improvement has not been completed and the impact tax credit is based on an estimated cost, the property owner must post a surety bond or similar instrument for the estimated cost of the improvement unless the owner has already filed a bond in at least that amount with the County for the same improvement.
(2) If the property owner does not construct or complete the improvement for which a credit has been issued, the County may use the bond as necessary to construct or complete the improvement.
(3) The Department may revoke a credit when the property owner does not build the improvement for which a credit was certified.
(g) Any credit certified for an improvement located in a municipality must be applied to impact tax payable on development in the same municipality.
(h) Any road or other transportation improvement that primarily serves the residents or occupants of one development or a small number of developments is not eligible for a credit under this Section.
(i) Any contribution to a transportation improvement must be to a specific project that is fully funded in the County capital improvement program or the similar program of a municipality to be eligible for a credit under this Section, except a credit issued under subsection (a).
(j) (1) A property owner must receive a credit for constructing or contributing to the cost of building a new single family residence that meets Level I Accessibility Standards, as defined in Section 52-107(a).
(2) The credit allowed under this Section must be as follows:
(A) If at least 5% of the single family residences built in the project meet Level I Accessibility Standards, then the owner must receive a credit of $250 per residence.
(B) If at least 10% of the single family residences built in the project meet Level I Accessibility Standards, then the owner must receive a credit of $500 per residence.
(C) If at least 25% of the single family residences built in the project meet Level I Accessibility Standards, then the owner must receive a credit of $750 per residence.
(D) If at least 30% of the single family residences built in the project meet Level I Accessibility Standards, then the owner must receive a credit of $1,000 per residence.
(3) Application for the credit and administration of the credit must be in accordance with Subsections 52-107(e) and (f).
(4) A person must not receive a tax credit under this Section if the person receives any public benefit points for constructing units with accessibility features under Chapter 59.
(k) After a credit has been certified under this Section, the property owner or contract purchaser to whom the credit was certified may transfer all or part of the credit to any successor in interest of the same property. However, any credit transferred under this subsection must only be applied to the tax due under this Article with respect to the property for which the credit was originally certified.
(l) The Department must not certify a credit for:
(1) the cost of a project in a Unified Mobility Program or the White Oak Local Area Transportation Improvement Program up to the property owner’s fee under a Unified Mobility Program or the White Oak Local Area Transportation Improvement Program; or
(2) any improvement in the right-of-way of a State road, except:
(A) a transit program that operates on or relieves traffic on a State road or an improvement to a State road that is included in a memorandum of understanding between the County and either Rockville or Gaithersburg; or
(B) the cost of an improvement in a Unified Mobility Program or the White Oak Local Area Transportation Improvement Program to the extent it exceeds the property owner’s fee under a Unified Mobility Program or the White Oak Local Area Transportation Improvement Program. (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; 1996 L.M.C., ch. 4, § 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; 2001 L.M.C., ch. 10, § 1; 2002 L.M.C., ch. 4, § 1; 2002 L.M.C., ch. 16, § 2; 2003, ch. 27, § 1; 2008 L.M.C., ch. 5, § 1; 2008 L.M.C., ch. 34, § 2; 2010 L.M.C., ch. 44, § 1; 2010 L.M.C., ch. 50, § 1; 2015 L.M.C., ch. 56, § 1; 2016 L.M.C., ch. 7, § 2; 2016 L.M.C., ch. 8, § 1; 2016 L.M.C., ch. 36, § 1; 2017 L.M.C., ch. 4, § 1; 2017 L.M.C., ch. 12, §1; 2018 L.M.C., ch. 24, §1;
2019 L.M.C., ch. 23
, §1; 2021 L.M.C., ch. 3, §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
(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.
2002 L.M.C., ch. 4, § 2, states:
(a) This Act takes effect on July 1, 2002, and applies to any development for which an application for a building permit is filed on or after that date.
(b) Each taxpayer in the County District must pay the development impact tax at 25% of the rates set in Section 52-57 (now Section 52-49, 2016 L.M.C., ch. 7, § 1), as amended by Section 1 of this Act, for building permit applications filed between July 1, 2002 and December 31, 2002; 50% of the rates set in Section 52-57 (now Section 52-49, 2016 L.M.C., ch. 7, § 1) for building permit applications filed between January 1, 2003, and June 30, 2003; 75% of the rates set in Section 52-57 (now Section 52-49, 2016 L.M.C., ch. 7, § 1) for building permit applications filed between July 1, 2003 and December 31, 2003; and 100% of the rates set in Section 52-57 (now Section 52-49, 2016 L.M.C., ch. 7, § 1) for building permit applications filed on or after January 1, 2004. To the extent that any taxpayer pays a lower rate than that set in Section 52-57 (now Section 52-49, 2016 L.M.C., ch. 7, § 1) because this subsection applies, any credit claimed under Section 52-55 (now Section 52-47, 2016 L.M.C., ch. 7, §1) must be reduced by the same ratio.
(c) In the County District, the development impact tax does not apply to any building if:
(1) a subdivision plan, project plan, or an equivalent development approval mechanism in Gaithersburg or Rockville, which includes that building was approved before July 1, 2002, and
(2) a building permit is issued before July 1, 2003.
Annotation to Ed. note (uncodified section of Bill): 2002 L.M.C., ch. 4, § 2(a) is quoted in F.D.R. Srour Partnership v. Montgomery County, 179 Md. App. 109, 944 A.2d 1149, cert. granted, 405 Md. 290, 950 A.2d 828 (2008).
Formerly, § 49A-10.