[Adopted 10-28-2004 by Bill No. 9-04, effective 12-12-2004 (Ch. 182, Art. VII, of the 1984 Code)]
Authority. This article is authorized under the provisions of § 9-302(k) of the Tax-Property Article of the Annotated Code of Maryland (2001).
Jurisdiction. This article shall apply in both the unincorporated and incorporated areas of Allegany County.
Applicability. An owner of real property located within Allegany County may be eligible for a residential development tax credit to be applied to the County tax imposed on real property after satisfying the requirements of this article.
As used in this article, the following terms shall have the meanings indicated:
- IMMEDIATE FAMILY
- Individuals related as husband, wife, mother, father, son, daughter, brother, sister, stepparents, stepchildren, stepbrother or stepsister, grandparent and grandchild.
- ONE- AND TWO-FAMILY DWELLINGS
- A site-built or premanufactured structure, constructed in conformance with the Maryland Building Performance Standard with local amendments, arranged for the occupancy of one family per unit.
- Person, partnership, LLC or corporation owning real property in Allegany County, Maryland.
- RESIDENTIAL LOT
- A lot arranged for the construction of a single-family dwelling or a duplex unit.
- SUBDIVISION PLAT
- A document prepared in accordance with the Allegany County Code of Public Local Laws, Chapter 141, Part 1, Subdivision Regulations, and other public laws of municipal corporations, graphically depicting any land which is divided or proposed to be divided into one or more new lots, parcels, sites or plots for the purpose of transfer, sale, building development or resubdivision for the purpose of future residential development.
Subject to Subsection B and to regulations promulgated under this article, a property tax credit is available to property owners on undeveloped real property that is subdivided into five or more lots for purposes of future residential development.
A property tax credit granted under Subsection A of this section shall equal 100% of the tax imposed on the increase in the assessment of unimproved real property when the property is first revalued following the subdivision of the property. The difference between the old and new assessed value shall serve as the maximum amount the County will recognize for any year the subject property is part of this tax credit program.
Termination. The tax credit for individual lots shall cease upon transfer.
Recapture. In the event an owner sells or uses the property for a purpose other than residential development as permitted under this article, the County may compute the tax which would have been previously due and payable. Such amount shall be immediately due and payable to the County, and the County shall invoice the property owner said amount. Interest shall accrue at the rate normally charged by the County for delinquent taxes and shall begin to accrue 30 days from the date of the invoice.
Expiration. A tax credit granted under this article shall be valid for a period of five years. The Allegany County Commissioners may extend by resolution one additional five-year period. The maximum available tax credit per subdivided lot under this program shall not exceed 10 years.
The Board of County Commissioners of Allegany County, Maryland, may promulgate and adopt regulations for the administration and enforcement of this article's provisions.