(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.)