Section 9-304 - Baltimore City.
§ 9-304. Baltimore City.
(a) County tax - Mandatory.-
(1) The Mayor and City Council of Baltimore City shall grant, by law, a property tax credit under this section against the county property tax imposed on real property that:
(i) is subject to a perpetual conservation easement donated to the Maryland Environmental Trust on or before June 30, 1986; and
(ii) is not eligible for a credit under § 9-107 of this title.
(2) The Mayor and City Council of Baltimore City shall provide, by law, for:
(i) the amount and duration of the property tax credit under this section; and
(ii) any other provisions necessary to carry out the property tax credit under this section.
(b) County tax - Optional.- The Mayor and City Council of Baltimore City may grant, by law, a property tax credit under this section against the county property tax imposed on:
(1) real property that is leased, occupied, and used only by the Baltimore Association for Retarded Citizens, Incorporated;
(2) personal property that is owned by the Northwest Family Sport Center, Inc.; and
(3) property that is:
(i) owned by the South Baltimore Little League;
(ii) located at 1101 E. Fort Avenue, Baltimore, Maryland; and
(iii) used for amateur sports.
(c) Vacant dwellings.-
(1) In this subsection, "vacant dwelling" means residential real property that:
(i) contains no more than four dwelling units; and
(ii) 1. has been cited as vacant and abandoned on a housing or building violation notice for 1 year; or
2. has been owned by the Mayor and City Council of Baltimore City for 1 year and is in need of substantial repair to comply with applicable city codes.
(2) The Mayor and City Council of Baltimore City may grant, by law, a property tax credit under this subsection against the county property tax imposed on real property that is owned by qualifying owners of vacant dwellings.
(3) A property tax credit granted under this subsection may not exceed the amount of county property tax imposed on the increased value of the residential real property that is due to the improvements made to the property immediately before the occupancy permit was issued, multiplied by:
(i) 100% for the first taxable year in which the property qualifies for the tax credit;
(ii) 80% for the second taxable year in which the property qualifies for the tax credit;
(iii) 60% for the third taxable year in which the property qualifies for the tax credit;
(iv) 40% for the fourth taxable year in which the property qualifies for the tax credit;
(v) 20% for the fifth taxable year in which the property qualifies for the tax credit; and
(vi) 0% for each taxable year thereafter.
(4) Owners of vacant dwellings may qualify for the tax credit authorized by this subsection by:
(i) substantially rehabilitating the vacant dwelling in compliance with the code and laws applied to dwellings;
(ii) occupying the dwelling after rehabilitation as their principal residence; and
(iii) satisfying other requirements as may be provided by the Mayor and City Council of Baltimore City.
(5) The Mayor and City Council of Baltimore City may provide for procedures necessary and appropriate for the submission of an application for and the granting of a property tax credit under this subsection.
(d) Newly constructed dwellings.-
(1) (i) In this subsection the following words have the meanings indicated.
(ii) 1. "Newly constructed dwelling" means residential real property that has not been previously occupied since its construction and for which the building permit for construction was issued on or after October 1, 1994.
2. "Newly constructed dwelling" includes a "vacant dwelling" as defined in subsection (c)(1) of this section that has been rehabilitated in compliance with applicable local laws and regulations and has not been previously occupied since the rehabilitation.
(iii) "Owner" means "homeowner" as defined in § 9-105 of this title.
(2) The Mayor and City Council of Baltimore City may grant, by law, a property tax credit under this subsection against the county property tax imposed on newly constructed dwellings that are owned by qualifying owners.
(3) A property tax credit granted under this subsection may not exceed the amount of county property tax imposed on the real property, less the amount of any other credit applicable in that year, multiplied by:
(i) 50% for the first taxable year in which the property qualifies for the tax credit;
(ii) 40% for the second taxable year in which the property qualifies for the tax credit;
(iii) 30% for the third taxable year in which the property qualifies for the tax credit;
(iv) 20% for the fourth taxable year in which the property qualifies for the tax credit;
(v) 10% for the fifth taxable year in which the property qualifies for the tax credit; and
(vi) 0% for each taxable year thereafter.
(4) Notwithstanding the credit amount calculated under paragraph (3) of this subsection, the Mayor and City Council of Baltimore City may establish, by law, maximum limits on the cumulative property tax credit allowed under this subsection or on the amount of the credit allowed for any year.
(5) Owners of newly constructed dwellings may qualify for the tax credit authorized by this subsection by:
(i) purchasing a newly constructed dwelling;
(ii) occupying the newly constructed dwelling as their principal residence;
(iii) filing a State income tax return during the period of the tax credit as a resident of Baltimore City; and
(iv) satisfying other requirements as may be provided by the Mayor and City Council of Baltimore City.
(6) (i) The Mayor and City Council of Baltimore City may provide, by law, for two application periods during which owners can apply for the property tax credit under this subsection, one that is based on the purchase date of the dwelling and one that is based on the date of the assessment notice.
(ii) 1. The Mayor and City Council of Baltimore City may provide, by law, for a one-time amnesty period for owners who were previously denied the tax credit for failing to meet the application deadline.
2. The amnesty period shall begin at the time the tax credit is reauthorized by the Mayor and City Council of Baltimore City and shall end 60 days thereafter.
3. Only owners who were eligible for the tax credit on or after January 1, 2005, may be eligible to apply for the credit during the amnesty period.
4. If granted, the tax credit shall be applied against the owner's property taxes as long as the owner remains the owner-occupant of the dwelling for which the credit is received.
(iii) The Mayor and City Council of Baltimore City shall provide for any procedures necessary and appropriate for implementing the application and amnesty periods.
(7) The Mayor and City Council of Baltimore City may provide for additional procedures necessary and appropriate for the submission of an application for and the granting of a property tax credit under this subsection, including procedures for granting partial credits for eligibility for less than a full taxable year.
(8) The estimated amount of all tax credits received by owners under this subsection in any fiscal year shall be reported by the Director of Finance of Baltimore City as a "tax expenditure" for that fiscal year and shall be included in the publication of the City's budget for any subsequent fiscal year with the estimated or actual City property tax revenue for the applicable fiscal year.
(9) (i) After June 30, 2014, additional owners of newly constructed dwellings may not be granted a credit under this subsection.
(ii) This paragraph does not apply to an owner's continuing receipt of a credit as allowed in paragraph (3) of this subsection, with respect to a property for which a tax credit under this subsection was received for a taxable year ending on or before June 30, 2014.
(e) Home improvements resulting in increased assessments.-
(1) (i) In this subsection the following words have the meanings indicated.
(ii) "Dwelling" has the meaning stated in § 9-105(a)(2) of this title.
(iii) "Homeowner" has the meaning stated in § 9-105(a)(3) of this title.
(2) The Mayor and City Council of Baltimore City may grant, by law, a property tax credit against the county property tax imposed on a dwelling that:
(i) is owned by a homeowner;
(ii) has been substantially improved since the last reassessment; and
(iii) is reassessed at a higher value.
(3) Subject to paragraph (4) of this subsection, a tax credit under this section shall equal the amount of county property tax imposed on the increased value of the dwelling that is due to the improvements made to the property, multiplied by:
(i) 100% for the first taxable year following the first reassessment after the improvements are made;
(ii) 80% for the second taxable year following the first reassessment after the improvements are made;
(iii) 60% for the third taxable year following the first reassessment after the improvements are made;
(iv) 40% for the fourth taxable year following the first reassessment after the improvements are made;
(v) 20% for the fifth taxable year following the first reassessment after the improvements are made; and
(vi) 0% for each taxable year thereafter.
(4) (i) To continue eligibility for a tax credit under this subsection, a dwelling must remain in compliance with the local housing code.
(ii) If a dwelling owned by a person who has received a tax credit under this subsection is found to be in violation of the local housing code, the property owner is not eligible for any further tax credit under this subsection until the dwelling is determined again to be in compliance with the local housing code.
(iii) A dwelling that is again brought into compliance is eligible for a tax credit at the rate it would have been eligible before the violation of the local housing code.
(5) If a dwelling that is eligible for a tax credit under this subsection is transferred, the grantee is eligible for the balance of the property tax credits under this subsection in the same manner and under the same conditions as the grantor of the property.
(6) The property tax credit may not apply to the value of the improvements to the dwelling that exceed $100,000.
(7) To receive the tax credit under this subsection, the homeowner shall have the burden of showing that the increase in assessment is due to the value of the improvements to the dwelling that were made since the last assessment of the dwelling.
(f) Newly constructed market-rate rental housing projects.-
(1) (i) In this subsection the following words have the meanings indicated.
(ii) "Market-rate rental housing project" means a multifamily dwelling containing five or more units in which none of the units are subject to government restrictions on the amount of rent charged or the income level of the tenant.
(iii) "Newly constructed" means that an occupancy permit is issued on or after October 1, 1995.
(2) The Mayor and City Council of Baltimore City may grant, by law, a property tax credit under this subsection against the county property tax imposed on newly constructed market-rate rental housing projects.
(3) A property tax credit granted under this subsection may not exceed the amount of county property tax imposed on the real property, less the amount of any other credit applicable in that year, multiplied by:
(i) 50% for the first taxable year in which the property qualifies for the tax credit;
(ii) 40% for the second taxable year in which the property qualifies for the tax credit;
(iii) 30% for the third taxable year in which the property qualifies for the tax credit;
(iv) 20% for the fourth taxable year in which the property qualifies for the tax credit;
(v) 10% for the fifth taxable year in which the property qualifies for the tax credit; and
(vi) 0% for each taxable year thereafter.
(4) The Mayor and City Council of Baltimore City may provide additional eligibility requirements.
(5) The Mayor and City Council of Baltimore City may provide for procedures for the submission of an application for a property tax credit under this subsection and the granting of the credit, including procedures for the granting of a partial credit for property qualifying for the credit for less than a full taxable year.
(6) A newly constructed market-rate rental housing project may not qualify for the first taxable year of a tax credit under this subsection after June 30, 2001.
(7) An ordinance of the Mayor and City Council authorizing tax credits in accordance with this subsection shall require:
(i) the development of a method, to be approved by the Board of Estimates, for analysis of the public costs and benefits of the tax credits; and
(ii) an annual report to the Board of Estimates and to the Mayor and City Council of the results and findings of that analysis.
[An. Code 1957, art. 81, § 9C; 1985, ch. 8, § 2; 1991, ch. 336; 1993, ch. 583; 1994, chs. 616, 617; 1995, ch. 3, § 1; ch. 543; 1998, chs. 309, 379, 584; 2000, ch. 137; 2002, ch. 493; 2005, ch. 474; 2007, ch. 228; 2009, ch. 373.]