(a) The Council must establish the rates for each school impact tax district by resolution after a public hearing advertised at least 15 days in advance.
(b) Any Productivity Housing unit, as defined in Section 25B-17(j), must pay the tax at 50% of the otherwise applicable rate.
(c) The County Council by resolution, after a public hearing advertised at least 15 days in advance, may increase or decrease the rates established under this Section.
(d) (d) The Director of Finance, after advertising and holding a public hearing as required by Section 52-17(c), must adjust the tax rates set in or under this Section effective on July 1 of each odd-numbered year in accordance with the update to the Growth and Infrastructure Policy using the latest student generation rates and average Montgomery County Public School construction costs. The Director must calculate the adjustment to the nearest multiple of one dollar. The Director must publish in the County Register the amount of this adjustment not later than May 1 of each odd-numbered year.
(1) Inflation cap on tax rate increases. Notwithstanding subsection (d), the Director must cap the biennial tax rate adjustment not to exceed 20%.
(2) Carryover of biennial tax rate adjustments in excess of 20%. If the biennial tax rate adjustment exceeds 20%, the excess dollar amount must be carried over and added to the tax rate after calculating the next biennial adjustment. If this total adjustment, including any carried over value, again exceeds 20%, the excess dollar amount must be carried over and added to the tax rate after calculating the biennial adjustment.
(e) Any non-exempt dwelling unit in a development in which at least 25% of the dwelling units are exempt under Section 52-54(d)(1) must pay the tax discounted by an amount equal to the impact tax rate applicable in the Infill School Impact Area for that unit type up to the amount of the impact tax otherwise applicable.
(f) A three-bedroom multi-family dwelling unit located in an Infill Impact Area must pay the tax at 40% of the otherwise applicable rate. (2003 L.M.C., ch. 26, § 1; 2007 L.M.C., ch. 16, § 1; 2016 L.M.C., ch. 7, § 2; 2016 L.M.C., ch. 36, § 1; 2018 L.M.C., ch. 3, §1; 2020 L.M.C., ch. 37, § 1; 2021 L.M.C., ch. 3, §1; 2023 L.M.C., ch. 19, § 1.)
Editor’s note—2023 L.M.C., ch. 19
, § 3, states: Sec. 3. Transition. 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 the effective date of this Act.
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.