(a) An applicant for a building permit for a residential development must pay a development impact tax for public school improvements in the amount and manner provided in this Article before a building permit is issued for any residential development in the County unless:
(1) a credit for the entire tax owed is allowed under Section
52-58; or
(2) an appeal bond is posted under Section
52-48.
(b) Except as expressly provided in this Article, this tax must be levied, collected, and administered in the same way as the tax imposed under Article IV. All provisions of Article IV apply to this tax unless the application of that Article would be clearly inconsistent with any provision of this Article. This tax is in addition to the tax imposed under Article IV, and any tax paid under this Article must not be credited against any tax due under Article IV.
(c) The tax under this Article must not be imposed on:
(1) any Moderately Priced Dwelling Unit built under
Chapter 25A or any similar program enacted by either Gaithersburg or Rockville,
(2) any other dwelling unit built under a government regulation or binding agreement that limits for at least 15 years the price or rent charged for the unit in order to make the unit affordable to households earning equal to or less than 60% of the area median income, adjusted for family size;
(3) any Personal Living Quarters unit built under Section 59-3.3.2.D, which meets the price or rent eligibility standards for a moderately priced dwelling unit under Chapter 25A;
(4) any dwelling unit in an Opportunity Housing Project built under Sections 56-28 through 56-32, which meets the price or rent eligibility standards for a moderately priced dwelling unit under Chapter 25A;
(5) any non-exempt dwelling unit in a development in which at least 25% of the dwelling units are exempt under paragraph (1), (2), (3), or (4), or any combination of them;
(6) any development located in an enterprise zone designated by the State or in an area previously designated as an enterprise zone; or
(7) a house built by high school students under a program operated by the Montgomery County Board of Education.
(d) The tax under this Article does not apply to:
(1) any reconstruction or alteration of an existing building or part of a building that does not increase the number of dwelling units of the building;
(2) any ancillary building in a residential development that:
(A) does not increase the number of dwelling units in that development; and
(B) is used only by residents of that development and their guests, and is not open to the public; and
(3) any building that replaces an existing building on the same site or in the same project (as approved by the Planning Board or the equivalent body in Rockville or Gaithersburg) to the extent of the number of dwelling units of the previous building, if:
(A) construction begins within one year after demolition or destruction of the previous building was substantially completed; or
(B) the previous building is demolished or destroyed, after the replacement building is built, by a date specified in a phasing plan approved by the Planning Board or equivalent body.
However, if in either case the tax that would be due on the new, reconstructed, or altered building is greater than the tax that would have been due on the previous building if it were taxed at the same time, the applicant must pay the difference between those amounts.
(e) If the type of proposed development cannot be categorized under the residential definitions in Section
52-39 and
52-52, the Department must use the rate assigned to the type of residential development which generates the most similar school enrollment characteristics.
(f) A Clergy House must pay the impact tax rate that applies to a place of worship under Section
52-41(d) if the house:
(1) is on the same lot or parcel, adjacent to, or confronting the property on which the place of worship is located; and
(2) is incidental and subordinate to the principal building used by the religious organization as its place of worship.
The place of worship tax rate does not apply to any portion of a Clergy House that is nonresidential development. (, § 1; , § 1; , § 1; , § 1; , § 2; , § 1; , § 1.)
Editor’s note—, § 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.
, § 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.
, § 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.
, § 1, amends 2015 L.M.C., ch. 37, § 2, to state: Sec. 2. Applicability.
(a) Except as provided in paragraph (b) or (c), County Code Section 52-41(g)(5), formerly 52-49(g)(5), and Section 52-54(c)(5), formerly 52-89(c)(5), both inserted by Section 1 of this Act, do not apply to any development which received preliminary subdivision plan approval or site plan approval (or a similar approval in a municipality) before October 22, 2015.
(b) If a development approved before October 22, 2015 is amended any time thereafter to include additional dwelling units and at least 25% of the additional dwelling units are exempt under paragraph (1), (2), (3), or (4) of Section 52-54(c), or any combination of them, then Section 52-41(g)(5) and Section 52-54(c)(5), apply to the additional units.
(c) If the relevant preliminary subdivision plan was approved before January 1, 2008, Sections 52-41(g)(5) and 52-54(c) apply to building permit applications for the unbuilt portion of the development.
, § 3, states: Reporting. When a development proposes at least 25% affordable dwelling units under Section 52-41(g)(5) and Section 52-54(c)(5), the Department of Housing and Community Affairs must report to the Council the location of the development, the total number of units in the development, and the number of affordable units within 30 days from the date of the agreement to build MPDUs. If a development with 25% of affordable dwelling units does not obtain an agreement to build MPDUs with the Department of Housing and Community Affairs, then the Department of Permitting Services must report to the Council the use of any impact tax exemption under Section 52-41(g)(5) and Section 52-54(c)(5) within 30 days from the date the exemption is granted.
, § 2, states: Applicability. County Code Section
52-49(g)(5) and Section
52-89(c)(5) (now Section
52-41(g)(5) and
52-54(c)(5), , § 1), both inserted by Section 1 of this Act, do not apply to any development which received preliminary subdivision plan approval or site plan approval (or a similar approval in a municipality) before this Act took effect.
2015 L.M.C., ch. 37, § 3, states: Reporting. When a development proposes at least 25 percent affordable dwelling units under Section
52-49(c)(5) and Section
52-89(c)(5) (now Section
52-41(g)(5) and
52-54(c)(5), , § 1), the Department of Housing and Community Affairs must report to the Council the location of the development, the total number of units in the development, and the number of affordable units within 30 days from the date of the agreement to build MPDUs. If a development with 25 percent of affordable dwelling units does not obtain an agreement to build MPDUs with the Department of Housing and Community Affairs, then the Department
of Permitting Services must report to the Council the use of any impact tax exemption under Section 52-49(c)(5) and Section 52-89(c)(5) within 30 days from the date the exemption is granted.
, § 2, states: Effective Date; Transition.
(a) This Act takes effect on March 1, 2004, and the development impact tax for public school improvements imposed under Section 52-89 (now Section
52-54, , § 1), added by Section 1 of this Act, applies to any building for which an application for a building permit is filed on or after that date.
(b) The development impact tax for public school improvements does not apply to any residential building located in a Metro Station Policy Area or Town Center Policy Area if:
(1) a site plan which includes that building was approved by vote of the County Planning Board, or the equivalent body in any municipality, before May 1, 2003; and
(2) (A) a building permit is issued for that building before September 1, 2006; or
(B) if the building is part of a mixed use project, a building permit is issued for any building or structure in that project before March 1, 2005.
