Section 7-514 - Increase in assessment for machinery or equipment used to generate electricity, steam for sale, hot or chilled water for sale subject to county property tax.
§ 7-514. Increase in assessment for machinery or equipment used to generate electricity, steam for sale, hot or chilled water for sale subject to county property tax.
(a) Scope.- This section shall be applicable to all taxable years beginning after June 30, 2008.
(b) In general.-
(1) Notwithstanding § 7-237 of this title, and subject to paragraph (2) of this subsection, for a taxable year beginning before July 1, 2011, the governing body of a county may increase to not more than 65%, by law, the percent of the assessment of any personal property described in § 7-237 of this title that is subject to county property tax.
(2) The governing body of a county may not increase the percent of assessment of personal property described in § 7-237 of this title that is subject to county personal property tax to more than:
(i) 65% for the taxable year beginning July 1, 2008;
(ii) 60% for the taxable year beginning July 1, 2009; and
(iii) 55% for the taxable year beginning July 1, 2010.
(3) (i) A county that increases the percent of assessment of taxable personal property under paragraph (1) of this subsection shall submit a copy of the law to the Department.
(ii) If the Department receives a copy of the law on or before May 1, the change shall be effective for the taxable year following the date the law is enacted.
(c) Agreement with owner of facility for generation of electricity.-
(1) The governing body of a county may enter into an agreement with the owner of a facility for the generation of electricity that is located or locates in the county for a negotiated payment by the owner in lieu of taxes on the facility.
(2) An agreement for a negotiated payment in lieu of taxes under this section shall provide that, for the term specified in the agreement:
(i) the owner shall pay to the county a specified amount each year in lieu of the payment of county real and personal property tax; and
(ii) all or a specified part of the real and personal property at the facility shall be exempt from county property tax for the term of the agreement.
(d) Exemption for real and personal property located in county.- As specified in the agreement for a negotiated payment in lieu of taxes under this section, for the term specified in the agreement, the real and personal property at a facility for the generation of electricity that is located or locates in the county is exempt from county property tax.
(e) Washington County.- For each taxable year, Washington County shall distribute to the Town of Williamsport an amount equal to 35% of:
(1) any county property tax revenue attributable to increasing the percent of assessment of any personal property described in § 7-237 of this title that is subject to county property tax, as authorized under subsection (b) of this section; or
(2) any amount received by the county under a negotiated payment in lieu of taxes under this section.
[2007 Sp. Sess., ch. 2, § 4.]