Allegany County, MD
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Table of Contents
Table of Contents
[Adopted 6-29-2017 by Bill No. 4-17, effective 8-13-2017[1]]
Editor's Note: This bill also repealed former Art. VIII, Real Estate Tax Set-Aside Program (RETSA), adopted 4-14-2005 by Bill No. 2-05, effective 5-29-2005 (Ch. 182, Art. VIII, of the 1984 Code).
This article shall apply to the incorporated and unincorporated areas of Allegany County.
Applicability. A property owner, firm or corporation, as below defined, may be eligible for a real estate tax set-aside after satisfactorily executing the criteria set forth by this article.
As used in this article, the following terms shall have the meanings indicated:
A structure where individual units may be sold to occupants and the developed lot is held in common ownership or retained by the developer or an association.
A formal agreement outlining the terms and conditions of the local government's programs; identifying specific parties of interest; identifying segregated account details, formal payment processes, and terms and conditions required for special assessment revenues.
For the purposes of this article, infrastructure shall include public streets, water, and sewer treatment facilities, water and sewer distribution systems, sidewalks, stormwater management facilities, lighting, curbs and gutters.
A structure built in conformance with the Maryland Building Performance Standards, housing three or more independent dwelling units.
Structures built in conformance with the Maryland Building Performance Standards, containing separate and independent facilities for a single family.
Person, firm or corporation owning real property in Allegany County, Maryland.
A combination of single-family, two-family, multifamily housing, condominiums, townhouses, cluster residential development, convenience centers, recreational facilities, having water and or/sewer systems, and an internal road system to be maintained by the developer or a property owners' association, or accepted for maintenance by a local government.
A lot arranged for the development of a single-family detached dwelling or duplex.
A document, prepared in accordance with the Allegany County Code of Public Local Laws, Chapter 141, Part 1, Subdivision Regulations, or the subdivision regulations approved by a municipal corporation and executed in accordance with public local law, graphically depicting any land which is divided or proposed to be divided into lots for the purpose of transfer, sale or building development.
A self-contained unit forming one of a series of a least three attached single-family dwellings on individual lots or a common lot, separated from one another by a common wall, constructed in conformance with the Maryland Building Performance Standards.
RETSA. There shall be authorized a real estate tax set-aside on County real property taxes for properties meeting the qualifications contained herein.
[Amended 8-23-2018 by Bill No. 3-18, effective 10-7-2018]
Percentage. For an approved project, the County will enter into a development agreement with an owner which will provide for a real estate tax set-aside consisting of 75% of actual taxes collected on account of the increased assessments over the assessments for the tax year prior to the date of the development agreement.
Duration; start date deferral. An owner may opt to proceed under one of the following alternatives, subject to the approval of the Board of County Commissioners as provided for hereinafter.
Alternative A. The real estate tax set-aside shall be applied over a continuous ten-year period commencing on July 1 of the tax year immediately following the date of the development agreement; provided, however, that the start date may be deferred up to five years if such a request is approved by the Board of County Commissioners.
Alternative B. As to each subdivided parcel, the real estate tax set-aside shall be applied over a continuous ten-year period commencing on July 1 of the tax year immediately following the date of the issuance of an occupancy permit for that parcel (thereby deferring the start date of the real estate tax set-aside accordingly); provided, however, that no taxes shall be set aside after the June 30 following the 25th anniversary of the development agreement.
Board of County Commissioners approval. In making determinations relative to the approval of deferral requests, the Board of County Commissioners shall consider the financial effect deferral may have on County finances and such other factors as the Board of County Commissioners deems relevant. The amount of the RETSA shall not exceed the actual cost of the public infrastructure.
A set-aside shall be paid to an owner, a developer, third-party lender, investor, or trustee, consistent with the terms of the development agreement.
[Amended 8-23-2018 by Bill No. 3-18, effective 10-7-2018]
Funds to be paid into a segregated account shall be earmarked exclusively for debt service on funds borrowed by or invested by a nongovernmental entity, for the expressed purpose of developing infrastructure supporting a planned residential community.
Eligibility requirements. A real estate tax set-aside provided for under this section shall be subject to the following criteria:
A special taxing district may be established by a municipal corporation and/or by Allegany County prior to the disbursement of funds.
Allegany County may accept applications of interest for a RETSA effective July 1, 2017, through June 30, 2027.
Properties targeted for development shall meet all current subdivision regulations and contain building lots that are suitable for development.
The Board of Commissioners of Allegany County may establish from time to time regulations that define the minimum number of newly created building lots for the application of a RETSA; provided, however, that the minimum number of newly created building lots may not be less than 10.
[Amended 8-23-2018 by Bill No. 3-18, effective 10-7-2018]
Allegany County shall not guarantee any indebtedness by an applicant to support the development of necessary infrastructure.
Dwelling units must be built in conformance with the Maryland Building Performance Code as adopted by Allegany County.
Applications must include a detailed engineering cost estimate, verified by an independent Maryland-licensed engineer, of all public infrastructure required for the development.
[Amended 8-23-2018 by Bill No. 3-18, effective 10-7-2018]
Application. Any owner, agent or contract purchaser desirous of a RETSA option for a planned community shall submit an application to the Allegany County Commissioners.
Approval. The County may adopt policies and procedures for the formal review and rating of projects for consideration. The County may identify persons to formally review requests and identify specific criteria for consideration prior to formal public action by the Commissioners.
Report. Any owner who has entered into a formal development agreement with Allegany County in conjunction with this program shall provide an annual report to the County, on a form approved by the Department of Finance of the County, containing a list of all properties subject to the agreement, and status thereof.