(a) The date of finality for tax purposes, as that term is defined in state law, is January 1. The semiannual date of finality is July 1. The three-quarter date of finality is October 1 and the one-quarter date of finality is April 1.
(b) Ordinary taxes are due July 1 in each taxable year, except as provided in subsections (c), (d), (e) and (f). Unpaid taxes are overdue on October 1, and bear interest and penalties as specified in subsection (h).
(c) Taxes based upon an assessment made as of a semiannual date of finality are levied for the full taxable year beginning on the same day.
(d) Any real property completed after July 1 in any year and through September 30, or otherwise first added to the tax rolls during that period, is subject to the payment of property taxes for the 9 months beginning on October 1 and ending on the next June 30. Taxes for these 9 months must be computed by multiplying the assessed valuation of the property by three-fourths the current annual tax rate for the county. Taxes imposed for these 9 months are due on October 1. Taxes are overdue 30 days after the tax bill is mailed or made available, and bear interest and penalties as specified in subsection (h).
(e) Any real property completed after September 30 in any year and through December 31, or otherwise first added to the tax rolls during that period, is subject to the payment of property taxes for the 6 months beginning on January 1 and ending on the next June 30. Taxes for these 6 months must be computed by multiplying the assessed valuation of the property by one-half the current annual tax rate for the county. Taxes imposed for these 6 months are due on January 1. Taxes are overdue 30 days after the tax bill is mailed or made available, and bear interest and penalties as specified in subsection (h).
(f) Any real property completed after December 31 in any year and through March 31, or otherwise first added to the tax rolls during that period, is subject to the payment of property taxes for the 3 months beginning on April 1 and ending on the next June 30. Taxes for these 3 months must be computed by multiplying the assessed valuation of the property by one-quarter of the current annual tax rate for the county. Taxes imposed for these 3 months are due on April 1. Taxes are overdue 30 days after the tax bill is mailed or made available, and bear interest and penalties as specified in subsection (h).
(g) Improvements become assessable when they are substantially completed. For buildings under construction, "substantially completed" means when the building is under roof, plastered (or ceiled) and trimmed.
(h) Ordinary taxes when overdue are subject to interest at the rate specified in state law. In addition to interest, taxes are also subject to a penalty at the rate established by resolution of the County Council. Notice of the penalty and interest rates must be included with each tax bill. No interest or penalty may be charged or collected under this section until 30 days after the bill or revised bill for taxes has been mailed or otherwise made available to the taxpayer at the address shown on the tax rolls. As an additional penalty for failure to pay all taxes due within the thirty-day period, the penalty and interest revert to the dates specified in subsections (b), (d), (e), and (f). Interest and penalty when due are a lien on the property and must be collected in the manner provided in state law for the collection of delinquent ordinary taxes.
(i) Notwithstanding any provision of state law authorizing a service charge, the Director of Finance must not impose any service charge or other fee because a taxpayer pays the County real property tax in semiannual installments. (Mont. Co. Code 1965, § 84-7; 1973 L.M.C., ch. 1, § 5; 1982 L.M.C., ch. 39, § 1; 1983 L.M.C., ch. 45, § 1; 1989 L.M.C., ch. 38, § 1; , § 1.)
Editor's note—Section 52-2(h) is cited in Heartwood 88, Inc. v. Montgomery County, 156 Md. App. 333, 846 A.2d 1096 (2004). In Radin v. Supervisor of Assessments of Montgomery County, 254 Md. 294, the court ruled that paragraph (e) of a predecessor section to the above section applied to uncompleted work which would require the use of labor and materials. A former requirement of the above section which made improvements which became substantially completed between July 1 and September 30 subject to taxation at three-fourths the regular rate levied for state purposes was held unconstitutional in Casey Development Corporation v. Montgomery County, 212 Md. 138, 129 A.2d 63 (1957). This section is self-executing and requires no levy by the Council. Casey Development Corp. v. Montgomery County, 212 Md. 138, 129 A.2d63 (1957). Section 52-2 [formerly §84-7(f)] is cited in Thames Point Associates v. Supervisor of Assessments, 68 Md. App. 1, 509 A.2d 1207 (1986).
Res. No. 10-973, adopted Oct. 2, 1984, authorized the Director of Finance to issue estimated tax bills and to collect estimated corporate tangible personal property taxes pursuant to art. 81, §§ 13(b) and 49B of the Annotated Code of Maryland, which appear in Md. Code Ann., Tax-Prop. §§ 8-201, 10-210, 14-604, 14-608, 14-702, 14-906, and 14-917 (2001). Resolution No. 9-1590, enacted in 1982, addressed § 52-2(g) with the following text (note that 1989 LMC, ch. 38, § 1, renumbered § 52-2(g) to § 52-2(h)): “ . . . there shall be imposed a penalty of one (1) percent per month or any fraction of a month on the payment of all ordinary taxes and other charges collectible in the same manner as ordinary taxes which are overdue and in arrears. The penalty rate hereby established shall for all subsequent levies of all levy years apply to all ordinary taxes and charges collectible in the same manner as ordinary taxes, which are overdue and in arrears on or after October 1, 1982.”
2000 L.M.C., ch. 8, § 2, states: Subsection 52-2(i), added by Section 1 of this Act, applies to taxes due in any taxable year that begins on or after July 1, 2000.
