2023 Maryland Statutes › Tax - Property › Title 9 - Property Tax Credits and Property Tax Relief › Subtitle 3 - Counties to Which General Provisions Are Applicable › Section 9-317 - Montgomery County

(a)    The governing body of Montgomery County and of a municipal corporation in Montgomery County shall grant a property tax credit under this section against the county and municipal corporation property tax imposed on:
(1)    personal property that is owned by a nonprofit, nonstock cooperative housing corporation; and
(2)    real property that is:
(i)    leased, if the payment to the lessor under the lease is limited to:
1.    interest;
2.    amortization of the mortgage; and
3.    expenses that do not include profit or return to the lessor of investment in the real property;
(ii)    used only as a theater that contains at least 175 seats; and
(iii)    used by a nonprofit community theatrical organization that, except for any clerical or maintenance employee, does not have any paid officer, director, or employee. The organization may be required by the governing body to pay an annual charge for any actual public service rendered.
(b)    (1)    The governing body of Montgomery County or of a municipal corporation in Montgomery County may grant, by law, a property tax credit under this section against the county or municipal corporation property tax imposed on:
(i)    real property that is:
1.    a structure or project constructed or substantially rehabilitated under § 8 of the United States Housing Act of 1937 primarily for occupancy by elderly individuals;
2.    receiving a rent subsidy;
3.    operated on a nonprofit or limited dividend distribution basis; and
4.    A.    located in an area designated by the governing body of Montgomery County or of the municipal corporation in Montgomery County as a commercial revitalization district; and
B.    on application of the property owner, certified by the Montgomery County Department of Housing and Community Development or the municipal corporation department responsible for certification, whichever is applicable, as meeting the qualifications for a tax credit pursuant to the criteria established by Montgomery County or a municipal corporation in Montgomery County under paragraph (3) of this subsection; and
(ii)    personal property that is used to improve, replace, or maintain a road, common area, or common facility that is:
1.    owned by a nonprofit organization that is formed only to improve, replace, or maintain the road, common area, or common facility;
2.    established under a town sector, planned retirement community zone, or planned residential community zone of an enacted county zoning ordinance; and
3.    dedicated for the use of all the residents without payment of fee or admission.
(2)    The amount of a property tax credit granted under paragraph (1)(i)4 of this subsection may not exceed 25% of the county property tax or the municipal corporation property tax due on the property.
(3)    The governing body of Montgomery County or of the municipal corporation shall specify the qualifications for eligibility and conditions of certification for the tax credit under paragraph (1)(i)4 of this subsection.
(4)    On application of the governing body of a municipal corporation and approval by the governing body of Montgomery County, the property eligible for a credit against the municipal corporation property tax, under this subsection, shall also receive a credit against the county property tax.
(c)    (1)    The governing body of Montgomery County may grant, by law, a property tax credit under this section against the county property tax imposed on:
(i)    real property on which an improvement is made to an existing structure in a neighborhood improvement plan area that the governing body of Montgomery County determines to be a special target area for residential, business, and community redevelopment because of blight or deterioration;
(ii)    real property that is:
1.    owned by Bannockburn Cooperators, Incorporated;
2.    leased by Bannockburn Community Club, Incorporated; and
3.    used only for community, civic, educational, and recreational purposes and to promote social welfare; or
(iii)    real property for which the county has determined there are development impact tax credits that exceed the amount that can be used under county law.
(2)    A property tax credit granted under paragraph (1)(i) of this subsection shall be:
(i)    a percentage of the actual cost of the improvements as the governing body of Montgomery County determines for the 1st 4 taxable years that the improved property is subject to county property tax; and
(ii)    not allowed after the 1st 4 taxable years that the improved property is subject to property tax.
(d)    The governing body of Montgomery County may grant, by law, a property tax credit under this section against the county property tax imposed on the portion of real property that is owned by the American Association of Blood Banks, Incorporated or leased by the American Association of Blood Banks, Incorporated under a lease of 50 years or more and that is necessary for and actually used exclusively for the charitable or educational purposes of that organization.
(e)    (1)    In this subsection, “dwelling unit” means a building or portion of a building providing complete living facilities for not more than one family, including, at a minimum, facilities for cooking, sanitation, and sleeping.
(2)    The governing body of Montgomery County may grant, by law, to a total of 1,500 dwelling units, a property tax credit against the county property tax imposed on owner-occupied, residential real property that is purchased from July 1, 2000 through June 30, 2002, in specific geographic areas of Montgomery County that:
(i)    contain not fewer than 50 dwelling units; and
(ii)    are designated by the County Executive of Montgomery County for participation in a demonstration project for neighborhood preservation and stabilization.
(3)    In order to qualify for the credit under this subsection:
(i)    for the 12-month period immediately prior to purchasing the property, the individual’s principal residence may not have been located in the geographic areas designated under this subsection, unless the individual was not an owner of the property that was the individual’s principal residence; and
(ii)    the residential real property must have been purchased in conformance with regulations adopted by the County Executive that are approved by the County Council.
(4)    The property tax credit shall equal:
(i)    40% of the county property tax for each of the first 5 taxable years after the purchase of the real property;
(ii)    35% of the county property tax for the 6th taxable year after the purchase of the real property;
(iii)    30% of the county property tax for the 7th taxable year after the purchase of the real property;
(iv)    25% of the county property tax for the 8th taxable year after the purchase of the real property;
(v)    20% of the county property tax for the 9th taxable year after the purchase of the real property;
(vi)    15% of the county property tax for the 10th taxable year after the purchase of the real property; and
(vii)    0% of the county property tax for each taxable year thereafter.
(5)    The property tax credit shall first apply to the taxable year beginning after the date of the purchase of the eligible real property.
(6)    The governing body of Montgomery County may provide, by law, for any other provision necessary to carry out the property tax credit under this subsection.
(7)    (i)    The County Executive of Montgomery County shall hold a public hearing prior to the final designation of the geographic areas under paragraph (2) of this subsection.
(ii)    Designation of geographic areas shall be made by regulation adopted by the County Executive and approved by the County Council.
(iii)    A geographic area may be designated within a municipality only with the approval of the municipality’s governing body.
(8)    The Montgomery County Department of Finance shall provide, on an annual basis to those individuals qualifying for the property tax credit under this subsection, a statement certifying qualification for the property tax credit and the amount of the property tax credit being granted. The statement may be provided on or with the annual property tax bill or in another manner as chosen by the local government.
(9)    In order to be eligible for a property tax credit under this subsection, an individual shall apply for the credit within 6 months after the title to the residential property has been transferred to the individual.
(10)    (i)    The property tax credit granted under this subsection terminates on the sale of the residential real property granted the credit.
(ii)    A property owner who purchases residential real property for which the property tax credit has been terminated under this paragraph may apply for, and may be granted, a separate property tax credit if the property owner and the residential real property otherwise meet the conditions of this subsection.
(f)    (1)    (i)    In this subsection the following words have the meanings indicated.
(ii)    “Eligible business entity” means a person who operates or conducts a trade or business on qualified enterprise zone property but does not own the qualified enterprise zone property.
(iii)    “Qualified enterprise zone property” means real property that:
1.    A.    is not used for residential purposes;
B.    is used in a trade or business by an eligible business entity;
C.    is located in an enterprise zone that is designated under Title 5, Subtitle 7 of the Economic Development Article; and
D.    is eligible for the property tax credit under § 9–103 of this title;
2.    A.    is located within the area encompassed by the Burtonsville Crossroads Neighborhood Plan developed by the Montgomery County Planning Department;
B.    is zoned for commercial or commercial/residential mixed use development; and
C.    has had improvements made on it on or before January 1, 2025; or
3.    A.    is located within the area encompassed by the Glenmont Shopping Center area, the Metro Station/Layhill Triangle Block, the Winexburg Manor Apartments area, the Glenmont Forest Apartments area, and the Privacy World area of the Glenmont Sector Plan developed by the Montgomery County Planning Department;
B.    is zoned for commercial or commercial/residential mixed use development; and
C.    has had improvements made on it on or before January 1, 2025.
(2)    Subject to paragraphs (4) and (5) of this subsection, the governing body of Montgomery County or of a municipal corporation in Montgomery County may grant, by law, a property tax credit against the county or municipal corporation property tax imposed on:
(i)    improvements made by an eligible business entity to qualified enterprise zone property; and
(ii)    personal property owned by an eligible business entity located on qualified enterprise zone property.
(3)    (i)    The governing body of Montgomery County or of a municipal corporation in Montgomery County may provide, by law, for:
1.    the amount and duration of a credit under this subsection;
2.    additional eligibility criteria for a credit under this subsection; and
3.    any other provision necessary to carry out a credit under this subsection.
(ii)    The governing body of Montgomery County or of a municipal corporation in Montgomery County shall define, by law, the improvements eligible for a credit under this subsection.
(4)    The lessor of real property granted a credit under paragraph (2)(i) of this subsection shall reduce the amount of taxes for which an eligible business entity is contractually liable under the lease agreement by the amount of any credit granted under paragraph (2)(i) of this subsection for improvements made by the eligible business entity.
(5)    The lessor of real property that receives a credit under § 9–103 of this title may not be granted a credit under this subsection.
(g)    (1)    (i)    In this subsection the following words have the meanings indicated.
(ii)    “Benefit corporation” means a Maryland corporation that elects to be a benefit corporation and complies with Title 5, Subtitle 6C of the Corporations and Associations Article.
(iii)    “Benefit limited liability company” means a Maryland limited liability company that elects to be a benefit limited liability company and complies with Title 4A, Subtitle 12 of the Corporations and Associations Article.
(2)    The governing body of Montgomery County may grant, by law, a property tax credit under this subsection against the county property tax imposed on real or personal property that is:
(i)    owned or leased by a benefit corporation or benefit limited liability company;
(ii)    not used for residential purposes; and
(iii)    used in a trade or business by a benefit corporation or benefit limited liability company.
(3)    The governing body of Montgomery County may provide, by law, for:
(i)    criteria for eligibility and certification for the tax credit;
(ii)    the amount of the tax credit;
(iii)    the duration of the tax credit, for a period not to exceed 10 years;
(iv)    regulations and procedures for the application, certification, and uniform processing of requests for the tax credit;
(v)    limited aggregate amounts of tax credits granted under this subsection; and
(vi)    any other provision necessary to carry out the tax credit under this subsection.
(h)    (1)    (i)    In this subsection the following words have the meanings indicated.
(ii)    “Dwelling” has the meaning stated in § 9–105 of this title.
(iii)    “Public safety officer” means:
1.    a firefighter or an emergency medical technician employed full time by the Montgomery County Fire and Rescue Service;
2.    a law enforcement officer employed full time by the Montgomery County Department of Police or by the Montgomery County Sheriff’s Office;
3.    a corrections officer employed full time by the Montgomery County Department of Correction and Rehabilitation; or
4.    a firefighter or an emergency medical technician volunteering at the Montgomery County Fire and Rescue Service who is eligible for an annual stipend under the Length of Service Award Program.
(2)    The governing body of Montgomery County may grant, by law, a property tax credit under this subsection against the county property tax imposed on a dwelling located in Montgomery County that is owned by a public safety officer if the public safety officer is otherwise eligible for the credit authorized under § 9–105 of this title.
(3)    In any taxable year, the credit under this subsection may not exceed:
(i)    $2,500 per dwelling; and
(ii)    the amount of property tax imposed on the dwelling.
(4)    (i)    The Department shall be responsible for the administrative duties that relate to the application and determination of eligibility for the property tax credit under this subsection.
(ii)    Montgomery County shall reimburse the Department for the reasonable cost of administering the credit under this subsection.
(5)    The governing body of Montgomery County may establish, by law:
(i)    subject to paragraph (3) of this subsection, the amount of the credit under this subsection;
(ii)    the duration of the credit; and
(iii)    additional eligibility requirements for public safety officers to qualify for the credit.