[Adopted 7-6-2004 by Bill No. 2004-6]
In accordance with Article 24, § 9-1002
of the Annotated Code of Maryland (Chapter 401, Acts of the Maryland
General Assembly 2004), as amended:
A.
The County Council of Dorchester County may, by ordinance,
fix and impose a building excise tax on any building construction
within Dorchester County.
C.
The County Council may impose different rates of the
building excise tax on different types of building construction subject
to the building excise tax. The tax rates:
(1)
Shall relate to the development or growth-related
infrastructure needs in the County; and
D.
The revenues from the building excise tax shall be
deposited in a special fund. The special fund may only be used for
the capital costs of additional or expanded public works, improvements,
and facilities required to accommodate new construction or development,
including: emergency services; sheriff's offices; and schools.
E.
The building excise tax may be imposed throughout
the County, including within municipal corporations.
In accordance with Article 24, § 9-1002
of the Annotated Code of Maryland (Chapter 401, Acts of the Maryland
General Assembly of 2004), there is a building excise tax on all new
construction and addition construction within Dorchester County and
the incorporated municipalities of Dorchester County, which tax will
finance the costs for additional or expanded capital improvements
necessary to accommodate new residential and nonresidential construction
or development.
Words and phrases used in this article shall
have their usual meaning, unless otherwise defined in this section.
The construction, rehabilitation, renovation or alteration
to a building or structure where the work requires a Dorchester County
or municipality building permit and where the addition either:
[Amended 10-5-2010 by Bill No. 2010-18]
For a residential structure, increases the number of dwelling
units intended for occupancy of an existing structure, or converting
a nonresidential structure to a residential structure; or
For a nonresidential structure, increases the number of gross
square feet on the property and is intended occupancy.
Any individual, firm, partnership, corporation, association,
society, trust or other legal entity which files an application with
the County or with any municipality for a building permit/zoning certificate.
Any public facility acquisition, architectural, engineering
or site design, site development, equipment, facilities or other construction
activity and associated costs related to schools, public safety communication
systems and the sheriff's office. "Capital improvement" includes sheriff's
office vehicles and equipment.
A single unit providing complete, independent living facilities
for at least one person, including permanent provisions for sanitation,
cooking, eating, sleeping and other activities routinely associated
with daily life. "Dwelling unit" includes a living quarters for a
domestic or other employee or tenant, an in-law or accessory apartment,
a guest house or a caretaker residence. A dwelling unit shall be located
in a structure containing a minimum gross floor area of 600 square
feet.
[Added 10-5-2010 by Bill No. 2010-18]
Construction of a building or structure which requires a
Dorchester County or municipality building permit. For a residential
structure where the building replaces an existing residential building,
new construction does not include replacement of a building due to
casualty, loss or demolition within three years of that casualty,
loss or demolition, or replacement of a mobile home on a site. For
a nonresidential structure where the building replaces an existing
building, new construction does not include replacement of a building
ready for occupancy except to the extent that the gross square footage
of the replacement building exceeds the gross square footage of the
building being replaced.
Designed for human occupancy in which individuals may live,
work, or congregate for amusement, educational or similar purposes
and which is equipped with means of egress, light and ventilation
facilities.
A building which contains one or more dwelling units, including
boardinghouses but not including transient accommodations such as
hotels, country inns, bed-and-breakfast inns, camping trailers or
recreational vehicles (RVs). "Residential" includes all areas that
are contained within a residential building such as attached garages
or home occupations, but does not include nonresidential uses in mixed-use
structures. "Residential" does not include detached accessory buildings
such as detached garages or sheds which do not contain any living
quarters.
A.
Adopted by County Council. The County Council shall
adopt by resolution a schedule of rates for the building excise tax.
(1)
For residential development where building construction
is to occur (and a building permit is required), the rate may not
exceed $5,000 per unit.
(2)
For any nonresidential development where building
construction is to occur (and a building permit is required), the
rate may not exceed $1 per square foot, not to exceed $5,000 per lot
or parcel. The schedule shall specify the rates per gross square foot
of nonresidential addition construction and new construction.
B.
Adjustment to rates. The schedule of rates for the
building excise tax shall be reviewed annually by the Director of
Finance and the Director of the Department of Planning, who shall
recommend to the County Council by February 1 whether or not to modify
the schedule for the next fiscal year based on new data or technical
information.
C.
The building excise tax shall not apply to those uses
specifically exempted from the schedule of rates established under
this section.
A.
Calculation of amount. The amount of building excise
tax to be paid by an applicant shall he determined by the Director
of the Department of Planning, or his designee, from the building
excise tax schedule of rates approved by the County Council.
B.
Appeal of amount. An applicant aggrieved by a decision
of the Director of the Department of Planning regarding the calculation
of the amount of building excise tax may appeal the decision to the
Board of Appeals within 30 days of the Director's decision, provided
that either:
A.
Building excise tax paid when paying for building
permit. An applicant for a building permit for addition construction
or new construction shall pay the building excise tax to the Director
of Finance of Dorchester County, or his designee, at the same time
the applicant pays for the building permit. The applicant must submit
relevant documentation as the Department of Finance requires.
B.
When a person applies to an incorporated municipality
in Dorchester County for a building permit/zoning certificate for
a building or dwelling unit, the applicant must show that all payments
due under this article with respect to the building or unit have been
paid.
C.
Refunds.
(1)
The Director of Finance shall refund to the applicant
the building excise tax paid if the building permit is disapproved,
canceled or expires.
(2)
If, upon appeal by an applicant who has paid the building
excise tax, the Board of Appeals determines that the Director of the
Department of Planning has erred in calculating the building excise
tax, the Director of Finance shall refund to the applicant the difference
between the amount of building excise tax paid by the applicant and
the correct amount.
D.
Nothing in this article changes or supersedes any
other requirement of city, County, state or federal law that may apply
to the development, including County zoning and subdivision regulations
that may impose on-site and off-site infrastructure or other capital
improvement requirements.
E.
Nothing in this article shall be deemed to limit the
County's authority or ability to enter into development agreements
with applicants for new or expanded development which may provide
for dedication of land, payments in lieu of taxes or fees, or actual
infrastructure improvements.
F.
Unpaid building excise taxes are a lien against the
real property for which a building permit is issued and shall be levied,
collected, and enforced in the same manner as are County real property
taxes, and shall have the same priority and bear the same interest
and penalties as County real property taxes for lien purposes.
A.
An independent development impact analysis shall be
used to compute the building excise tax rate if:
(1)
The Director of the Department of Planning determines that there is not a comparable land use type for the development or project under the Schedule of Rates established pursuant to § 144-31 of this article; or
(2)
The Director of the Department of Planning requires it when the location, intensity, or unusual nature of the use indicates that the impacts on schools, public safety communication systems or the sheriff's office would be substantially higher than the impacts assumed for the purposes of the Schedule of Rates established pursuant to § 144-31 of this article.
B.
The applicant shall be responsible for the preparation
of the draft independent development impact analysis, and the Director
of the Department of Planning shall accept, reject or modify the draft
analysis.
C.
The person who prepares the draft independent development
impact analysis shall be approved by the Director of the Department
of Planning on the basis of professional training and experience in
preparation and development of impact analyses. The independent development
impact analysis shall follow standard methodologies and format and
be approved by the Director of the Department of Planning. Prior to
submission of the draft independent development impact analysis, the
applicant shall meet with the Director of the Department of Planning
to review the requirements for the preparation of an independent development
impact analysis.
A.
Establishment of fund. The Director of Finance shall
establish an account to be known as the "Building Excise Tax Fund."
All receipts from building excise taxes shall be deposited in the
Building Excise Tax Fund. Interest earned by money in the Building
Excise Tax Fund shall remain in the Building Excise Tax Fund.
B.
Use of Building Excise Tax Fund. All funds from the
Building Excise Tax Fund shall be expended only for capital improvements,
as defined in this article.
The Director of Finance shall prepare and submit
an annual report on or before July 31 of each fiscal year to the County
Council which shall include the following information:
[Added 5-20-2014 by Bill
No. 2014-7; 4-5-2016 by Bill No. 2006-1; amended 5-8-2018 by Bill No. 2018-3; 6-15-2020 by Bill No. 2020-3; 9-20-2022 by Bill No. 2022-9; 11-21-2023 by Bill No. 2023-9]
The applicability of the building excise tax imposed by this Article X of Chapter 144 of the Dorchester County Code is suspended for a period of one year commencing on July 1, 2023, and ending on June 30, 2024, and to provide that the building excise tax does not apply to building permits filed between July 1, 2023, and June 30, 2024.
