Loading...
(a) Tax credits. The Director of Finance must allow a new jobs tax credit or an enhanced new jobs tax credit against the County property tax imposed on real property owned or leased by a business entity or its affiliate and on personal property owned by that business entity or its affiliate if the business entity qualifies for either credit under this Article.
(b) Definitions. In this Article, the following words have the meanings indicated:
Affiliate, Business Entity, New or Expanded Premises, New Permanent Full-Time Position, and Notification Date have the meanings defined in Section 9-230, Tax- Property Article, Maryland Code, or any successor provision.
Finance Director means the Director of the Department of Finance or the Director’s designee.
New Jobs Tax Credit means the credit granted under this Article to a qualified business entity against the County property tax imposed on the new or expanded premises and the personal property located on those premises.
Enhanced New Jobs Tax Credit means the credit granted under this Article to a qualified business entity against the County property tax imposed on the new or expanded premises that qualify under state law for an enhanced new jobs credit and the personal property located on those premises.
(c) Eligibility for tax credit.
(1) To qualify for a new jobs tax credit under this Article, a business entity must, on or after July 1, 1998:
(A) construct, or expand by at least 5,000 square feet, premises in the County on which it conducts business by buying, building, or leasing new premises; and
(B) employ at least 25 persons in new permanent full-time positions located in the new or expanded premises in the County during a 24-month period when it occupies the new or expanded premises.
(2) To qualify and be certified for an enhanced new jobs tax credit under this Article, a business entity must, on or after December 31, 1998:
(A) notify the Finance Director as required under state law; and
(B) meet all requirements under state law to qualify for an enhanced new jobs tax credit.
(3) A business entity does not qualify for a new jobs tax credit or enhanced tax credit if:
(A) the business entity has moved the operations which are located on new or expanded premises from another county (including Baltimore City) in Maryland;
(B) the business entity or another taxpayer has been given a tax credit or exemption for the new or expanded premises during the same taxable year under any other state or County law;
(C) the new permanent full-time positions are solely or primarily involved in retail sales of goods or services, except when a small number of positions involved in retail sales are incidental to the primary purpose of a building;
(D) the business entity is a type of business entity that the County Council by resolution before the Notification Date has made ineligible for a new jobs tax credit or enhanced new jobs tax credit, or the new permanent full-time positions are a type of position that the Council by resolution before the Notification Date has made ineligible for a new jobs tax credit or enhanced new jobs tax credit, or the new or expanded premises are located in a geographic area that the Council by resolution before the Notification Date has made ineligible for a new jobs tax credit or enhanced new jobs tax credit; or
(E) the location of the new or expanded premises is inconsistent with any applicable land use master plan.
(4) To qualify for a credit against property tax imposed on personal property, a business entity must certify that the personal property is located on premises that qualify for a new jobs tax credit or enhanced new jobs tax credit under this Article.
(d) Amount of tax credit; pass-through to lessees.
(1) The new jobs tax credit that a taxpayer may claim against County property taxes under this Article is the following percentage of the property tax imposed on the assessment of the new or expanded premises:
(A) 52% during the first and second taxable years in which a credit is allowed;
(B) 39% during the third and fourth taxable years in which a credit is allowed; and
(C) 26% during the fifth and sixth taxable years in which a credit is allowed.
After the sixth taxable year, the Finance Director must not allow a new jobs tax credit under this Article.
(2) The enhanced new jobs tax credit that a taxpayer may claim against County property taxes under this Article is 58.5% of the property tax imposed on the increase in assessment of:
(A) the new or expanded premises; and
(B) any substantially renovated real property adjoining or neighboring the new or expanded premises. A renovation is substantial for purposes of this subsection if the renovation results in a complete rehabilitation of at least 50% of each building on the property.
The taxpayer may claim this credit in each of the first 24 taxable years after the Director certifies that the taxpayer is eligible for the credit.
(3) A lessor of real property must reduce the amount of taxes for which an eligible business entity is contractually liable under a lease or rental agreement by the amount of any tax credit allowed under this Article.
(e) Recapture of tax credit.
(1) A business entity which does not satisfy all applicable requirements under this Article to qualify for a tax credit during the three taxable years after any year when a credit was allowed must repay the tax credit to the County after receiving notice from the Finance Director that the credit must be repaid.
(2) Interest must accrue on any repayable tax credit at the rate established for overdue property taxes, beginning 30 days after the notice from the Finance Director.
(3) Any unrepaid tax credit is a lien on real and personal property owned by the business entity in the same manner as unpaid real property taxes under state and County law.
(f) Administration of tax credit.
(1) A business entity must apply for either tax credit on a form furnished by the Finance Director, and must state which tax credit it intends to request and when and how it expects to qualify for the credit.
(2) When a business entity believes it has met all requirements for the tax credit, it may apply for certification on a form furnished by the Director and must provide sufficient information to show that all requirements under this Article and applicable state law have been met.
(3) The Finance Director must:
(A) determine the eligibility of the business entity for the tax credit;
(B) notify the State Department of Assessments and Taxation that a business entity has been approved for the tax credit; and
(C) require submission of reports by the business entity during the three taxable years after any year when the tax credit was earned to verify that the business entity continues to satisfy all applicable requirements under this Article.
(4) A person who submits a false or fraudulent application, or withholds information, to obtain a tax credit under this Article has committed a Class A violation. In addition, the person must repay the County for all amounts credited and all accrued interest and penalties that would apply to those amounts as overdue taxes. A person who violates this subsection is liable for all court costs and expenses of the County in any civil action brought by the County against the violator. The County may collect any repayable tax credit, and otherwise enforce this Article, by any appropriate legal action.
(5) The County Executive may adopt regulations under method (2) to administer this Article. (1998 L.M.C., ch. 9, § 1; 1999 L.M.C., ch. 16, § 1; 2001 L.M.C., ch. 28, §§ 12, 15 and 16; 2016 L.M.C., ch. 7, § 2; 2016 L.M.C., ch. 18, § 1.)
Editor’s note—The effective date of the amendments made to this section by 2001 L.M.C., ch. 28, § 12, is the same effective date as 1999 L.M.C., ch. 16, § 1.
(a) Definitions. In this Article, the following words have the meanings indicated.
Corrective action plan means a corrective action plan for a Qualified Brownfields Site under Title 4 of the Environment Article of the Maryland Code.
Director means the Director of the Department of Finance or the Director’s designee.
Enterprise zone means an area designated under Article 83A, Section 9-103 of the Maryland Code, or any successor provision.
Increased Property Tax Liability means the increase in the property tax levied on a Qualified Brownfields Site resulting from an increased assessment due to a voluntary cleanup of the Qualified Brownfields Site or due to a corrective action plan for the Qualified Brownfields Site. Increased Property Tax Liability includes increases in property taxes levied due to an increased assessment for additional improvements to a Qualified Brownfields Site. Increased Property Tax Liability is calculated after deducting any other property tax credit applicable to the Qualified Brownfields Site. For a Qualified Brownfields Site with a prior use value, the Increased Property Tax Liability must be determined as if the Qualified Brownfields Site had no use value limitation.
Property tax means the total County real property tax levied on the Qualified Brownfields Site annually under the Tax-Property Article. Property tax does not include parking district and urban district taxes.
Qualified Brownfields Site has the meaning given in Article 83A, Section 3-901 of the Maryland Code.
Tax-Property Article means the Tax-Property Article of the Maryland Code.
Tax year means the 12-months beginning July 1 and ending on June 30.
Use value means a special value of land for assessment purposes specified in Sections 8-209 through 8-217 and 8-220 through 8-225 of the Tax-Property Article.
Voluntary cleanup means a voluntary cleanup of a Qualified Brownfields Site under Title 7, Subtitle 5 of the Environment Article of the Maryland Code.
(b) Participation. The County may participate in the Brownfields Incentive Program under Section 9-229 of the Tax-Property Article.
(c) Property tax credits.
(1) For each of the 5 tax years immediately after the first revaluation of a Qualified Brownfields Site after completion of a voluntary cleanup or corrective action plan, the Director must allow a property tax credit of 50% of the Increased Property Tax Liability for a Qualified Brownfields Site.
(2) For each of the 5 tax years immediately after the first revaluation of a Qualified Brownfields Site after completion of a voluntary cleanup or correction action plan, the Director must allow an additional property tax credit of 20% of the Increased Property Tax Liability for a Qualified Brownfields Site located in:
(A) an enterprise zone; or
(B) a neighborhood designated by the County Council for participation in the Neighborhood Business Development Program under state law.
(d) Applicability. The tax credits in paragraph (c) apply for:
(1) 5 tax years; or
(2) if the property is in an enterprise zone, 10 tax years.
(e) Contribution to Fund. As provided in Subsection 9-229(e)(2) of the Tax-Property Article, for each tax year of the credit period the County must, after property taxes for a Qualified Brownfields Site have been paid, contribute to the Brownfields Revitalization Incentive Fund established under Maryland Code, Article 83A, Section 3-904. The contribution must be equal to 30% of the Increased Property Tax Liability of the Qualified Brownfields Site.
(f) Termination of credit. A recipient of a property tax credit under this Article is no longer eligible if:
(1) the recipient of the property tax credit withdraws from the voluntary cleanup program under Section 7-512(A) or (B) of the Environment Article of the Maryland Code; or
(2) the Maryland Department of the Environment withdraws approval of a Response Action Plan or a Certificate of Completion under Section 7-512(E) and (F) of the Environment Article of the Maryland Code. (1998 L.M.C., ch. 28, § 1; 2016 L.M.C., ch. 7, § 2.)
(a) The Director of Finance must allow a tax credit each year against the general County tax and all special service area taxes imposed on any real property that is owned by, and is the principal residence of, an individual who:
(1) is at least 65 years old; and
(2) qualifies to receive either the state Homeowners’ Property Tax Credit or the County supplement to the Homeowners’ Property Tax Credit under Section 52-85, or both.
(b) For each taxable year, the credit under this Section equals 50% of the total state and County credit awarded for that tax year under state law and Section 52-85.
(c) The Director must apply this credit automatically each year to the property tax due from any eligible taxpayer. A taxpayer need not file an application, other than the application filed to receive the Homeowners’ Property Tax Credit, to receive this credit. To qualify for this tax credit, the taxpayer must show in that application that at least one individual who owns and resides in the applicable residence is at least 65 years old.
(d) The County Executive may issue regulations under method (2) to administer this tax credit. (2006 L.M.C., ch. 41, § 1; 2014 L.M.C., ch. 34, § 1; 2016 L.M.C., ch. 7, § 2.)
Editor’s note—2014 L.M.C., ch. 34, § 2, states: The amendment to Section 52-11C (now § 52-92, 2016 L.M.C., ch. 7, § 1) in Section 1 of this Act takes effect on July 1, 2015, and applies to any tax year that begins on or after that date.
2006 L.M.C., ch. 41, §2, states: Section 52-11C (now § 52-92, 2016 L.M.C., ch. 7, § 1), inserted by Section 1 of this Act, takes effect on July 1, 2007, and applies to any tax year that begins on or after that date.
(a) The Director of Finance must grant a single tax credit against the amount of the ordinary County taxes or any other special charges or assessments levied against:
(1) the personal property owned by any nonprofit, nonstock cooperative housing corporation;
(2) leased real property and improvements in the County used exclusively as a theater by nonprofit community theatrical organizations under Titles 6 and 9 of the Tax-Property Article of the Maryland Code; and
(3) tangible personal property used to improve, replace, or maintain the roads, common areas, or other common facilities owned by a nonprofit organization, association, or foundation which was formed solely to improve, replace, and maintain the roads, common areas, or other common facilities established under the town sector or planned retirement community zones of Chapter 59 where the common facilities are dedicated for the use of all residents of the development without payment of fees or admissions for their use.
(b) The Director of Finance must administer the tax credits granted under Titles 6 and 9 of the Tax-Property Article of the Maryland Code.
(c) The County Executive may adopt regulations under method (2) to administer the tax credits consistent with Titles 6 and 9 of the Tax-Property Article of the Maryland Code.
(d) Each taxpayer entitled to a credit shall be given a notice of the credit at the time the tax bill is sent to the taxpayer. The credit may be applied for at any time up to October 1 of the taxable year; but if application has not been made on or before that date, the credit shall not be allowed. Application shall be made under oath or affirmation. (Res. No. 8- 1197, §§ 1—3; 1982 L.M.C., ch. 44, § 1; 1984 L.M.C., ch. 24, § 50; 1984 L.M.C., ch. 27, § 33; 2010 L.M.C., ch. 49, § 1; 2016 L.M.C., ch. 7, § 2.)
(a) Credit for day care provider.
(1) A taxpayer may receive a property tax credit against the general County tax and special service area taxes for an improvement on real property if the improvement is used exclusively for day care services under state law as a:
(A) registered family day care home;
(B) licensed child care center;
(C) licensed day care center for the elderly; or
(D) licensed day care center for medically handicapped adults.
(2) For each improvement, the credit must not exceed in each year the lesser of:
(A) $3,000; or
(B) the amount of the general county tax and special service area taxes attributable to the improvement.
(3) A taxpayer may only receive credit for an improvement completed and assessed after July 1, l987.
(4) The Department of Finance administers this subsection. A taxpayer must apply for the tax credit with the Department of Finance by April 1 to receive the credit in the next taxable year. The taxpayer must certify in writing that the day care provider:
(A) is licensed or registered by the State; and
(B) will accept clients whose care is subsidized by the County, State, or federal government, if the day care provider has space.
(5) A taxpayer must not receive a credit under this subsection if the real property qualifies for a credit under subsection (b).
(b) Credit for family day care home or group day care center on business property.
(1) A taxpayer may receive a property tax credit against the general County tax and special service area taxes for an improvement on real property owned by a business with at least 25 employees if the improvement is used exclusively for day care services under state law as a:
(A) registered family day care home; or
(B) licensed child care center.
(2) For each improvement, the credit must not exceed in each year the lesser of:
(A) $3,000; or
(B) the amount of the general County tax and special service area taxes attributable to the improvement.
(3) A taxpayer may only receive credit for an improvement completed and assessed after July 1, 1988.
(4) The Department of Finance administers this subsection. A taxpayer must apply for the tax credit with the Department of Finance by April 1 to receive the credit in the next taxable year. The taxpayer must certify in writing that the day care provider is licensed or registered by the State.
(c) Executive regulations.
The County Executive must adopt regulations under method (3) to implement this Section.
(d) Reports.
The County Executive must report annually to the County Council on the use of the day care property tax credit. (1988 L.M.C., ch. 15, § 1; CY 1991 L.M.C., ch. 22, § 1; 2016 L.M.C., ch. 7, § 2.)
(a) Definitions. In this Section, the following words have the meanings indicated.
(1) Research and development means:
(A) basic and applied research in the sciences and engineering; and
(B) the design, development, and governmentally required pre-market testing of prototypes, products, and processes.
(2) Research and development does not include:
(A) market research;
(B) research in the social sciences or psychology and other nontechnical activities;
(C) routine product testing;
(D) sales services;
(E) technical and nontechnical services; or
(F) research and development of a public utility.
(3) Director means the Director of the Department of Finance or the Director’s designee.
(b) General. Any machinery, equipment, materials, and supplies consumed in or used primarily in research and development are exempt from the County property tax to the extent authorized in this section.
(c) Amount. The exemption is equal to the County property tax imposed on the assessment of the property which exceeds 25% of the original cost of the property.
(d) Applicability. The exemption applies to taxable years beginning July 1, 1996. (1994 L.M.C., ch. 3, § 1; 1996 L.M.C., ch. 3, § 1; 2006 L.M.C., ch. 33, § 1; 2016 L.M.C., ch. 7, § 2.)
Editor’s note—Section 1 of 1994 L.M.C., ch. 3, added a new § 52-18I, which the editor designated as § 52-18H to maintain consistency in the code.
(a) (1) This Section applies only where a religious organization is contractually liable as a lessee under a lease to pay real property taxes of the property.
(2) For purposes of this Section, the term “religious organization” means a religious organization that is certified under Section 501(c)(3) or (d) of the United States Internal Revenue Code.
(b) Beginning with the tax year starting on July 1, 1995, a tax credit may be granted to the lessor of real property against County ad valorem property taxes, including special service area taxes, up to the amount of property taxes levied by the County:
(1) for that portion of the property that is leased, occupied, and used by a religious organization during the tax year exclusively for:
(A) public religious worship;
(B) educational purposes; or
(C) office space necessary to support or maintain public religious worship or educational purposes; and
(2) for which the religious organization is contractually liable.
(c) The tax credit under this Section does not apply:
(1) to property that is leased, occupied, or used by the religious organization for the purpose of making a profit; or
(2) when the religious organization no longer occupies the property.
(d) The lessor of property eligible for a tax credit under this Section must reduce by the amount of the tax credit the amount of taxes for which the religious organization is contractually liable under the lease agreement with the lessor.
(e) If a religious organization no longer occupies property during a tax year for which a tax credit has been allowed, or if the organization no longer uses the property for the purposes listed in subsection (b)(1), the tax credit expires and the organization must immediately notify the Department. The Department must then issue a bill for the additional tax due, which is the pro rata share of the credit for the remainder of the tax year.
(f) (1) The Department of Finance administers this Section.
(2) A taxpayer must apply for the tax credit by the first day of April which precedes the tax year in which the tax credit is used. An application must be made on such forms as the Department of Finance prescribes. The applicant must submit a copy of the lease agreement with the religious organization and any other supporting information or certification required by the Department of Finance.
(3) The County Executive must adopt regulations under method (2) for administration of this Section.
(4) The County Executive must report on the number and dollar value of all applications submitted and tax credits granted under this Section. This information should be included as part of the County Executive’s recommended budget and should cover the fiscal year before the fiscal year for which the budget is submitted.
(g) A denial of a tax credit may be appealed to the Maryland Tax Court.
(h) (1) A person must not knowingly file a false or fraudulent application to obtain a tax credit under this Section. A violation of this subsection is a Class A violation.
(2) In addition to penalties provided under paragraph (1) of this subsection, a person who violates this subsection must pay the County any taxes and interest offset by the credit, any other penalty due, and the County’s fees and costs in any action to enforce this subsection. (1994 L.M.C., ch. 22, § 1; 2006 L.M.C., ch. 33, § 1; 2010 L.M.C., ch. 49, § 1; 2016 L.M.C., ch. 7, § 2.)
Loading...