[Adopted 5-20-2003 by Ord. No. 15-03[1]]
[1]
Editor's Note: This resolution also repealed the provisions of the former building excise tax adopted 10-30-2001 by Res. No. 43-01.
In accordance with Article 25, § 9G, of the Annotated Code of Maryland, there is a building excise tax on all new building construction and building construction resulting in a change in use from any other use to residential use in Calvert County.
The following words have the meanings indicated for purposes of this article only:
AFFORDABLE HOUSING
Housing available for rental or purchase to households earning up to 55% of the state median income.
APPLICANT
The individual, partnership, corporation or other legal entity whose signature appears on a building permit application.
BONA FIDE ELDERLY UNIT
A residential unit whose occupation is restricted, by covenant recorded among the land records of Calvert County, to persons age 55 or over.
PERSON
Does not include a County, state or federal governmental entity.
TAX
The building excise tax as established by this article, unless indicated otherwise by context.
A. 
The tax on residential structures shall be based on the type of residential structure or unit as follows:
Excise Tax Fund
Type of Residential Structure or Unit
School
Recreation
Road
Solid Waste Fund
Total Tax
Single-family detached
$7,800
$1,300
$3,500
$350
$12,950
Single-family attached
$5,175
$1,300
$3,500
$350
$10,325
Manufactured (mobile) home
$3,900
$1,300
$3,500
$350
$9,050
Apartment
$2,600
$1,300
$3,500
$350
$7,750
Bona fide elderly unit
n/a
$1,300
$3,500
$350
$5,150
B. 
The tax on commercial, industrial, or institutional construction (including places of worship and public facilities) shall be $0.11 per square foot of gross floor space. Revenue generated by commercial, industrial, or institutional construction (including places of worship and public facilities) shall be credited to the Solid Waste Enterprise Fund.
Type of Structure
School
Recreation
Solid Waste
Total Tax
Commercial, industrial, or institutional
n/a
n/a
$0.11 per square foot of gross floor space
$0.11 per square foot of gross floor space
[Amended 6-21-2005 by Ord. No. 31-05]
A. 
An applicant for a building permit for new residential construction or for building construction that results in the change in the use of a property from any other use to residential use shall pay the building excise tax at the time of the issuance of the permit or in installments as shown in the table below. The first installment shall be paid by check made payable to the Calvert County Treasurer before the issuance of a building permit or for a change of use. Except as otherwise provided herein, the second and third payments shall be billed on the tax bill for the property for the two tax years immediately following the tax year in which the first payment was made. If the second installment becomes due and payable within six months of the first installment, the second and third installments shall not become due until the second and third tax years, respectively, following the tax year in which the first payment was made.
[Amended 6-23-2015 by Ord. No. 24-15]
Type of Residential Structure or Unit
Total Tax
Due at Permit Issuance
Second Installment
Third Installment
Single-family detached
$12,950
$4,550
$4,200
$4,200
Single-family attached
$10,325
$3,675
$3,325
$3,325
Manufactured (mobile) home
$9,050
$3,250
$2,900
$2,900
Apartment
$7,750
$2,817
$2,467
$2,466
Bona fide elderly unit
$5,150
$1,950
$1,600
$1,600
B. 
The building excise tax, which appears on the tax bill, is a lien against the real property and shall be 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.
C. 
Replacement of dwellings.
(1) 
No tax is due upon replacement of a dwelling for which an excise tax or an impact fee has been paid, even if the house is no longer standing, provided the new dwelling is placed on the same lot as the original dwelling.
(2) 
For dwellings for which no excise tax or impact fee has been paid:
(a) 
No tax is due upon replacement of a habitable dwelling.
[1] 
A building shall be deemed habitable if it meets the requirements of § 75-10C(1) through (5) inclusive of the Calvert County Code.
[2] 
A dwelling need not have plumbing and electrical service to be deemed habitable.
(b) 
No tax is due upon replacement of a habitable dwelling that has been totally destroyed or rendered uninhabitable by unintentional fire, vandalism or an act of God provided the new dwelling is placed on the same lot as the original dwelling. The permit for the new dwelling shall be obtained within two years of the occurrence of the event rendering the house uninhabitable. The Zoning Officer may grant an extension for up to an additional two-year period if insurance, legal or regulatory barriers prevent the owners from obtaining the permit within the initial two-year period.
A. 
If the application for the building permit is for the construction of a residence on a lot within a recorded subdivision that has been exempted from payment of the recreational impact fee, the applicant shall be given the credit towards the tax that appears on the subdivision plat.
B. 
Upon application, the Board of County Commissioners may grant a full or partial waiver of the tax applicable to new construction of affordable housing funded in whole or in part by a local, state or federal government agency, or to new construction of affordable housing undertaken by a bona fide 501(c)(3) organization.
A. 
The revenues generated by the building excise tax shall be deposited into the County's general fund and credited to the specific funds as provided below.
(1) 
All revenue generated by commercial, industrial, or institutional construction and $350 of each residential assessment shall be credited to the Solid Waste Enterprise Fund and used in accordance with the mandates of that fund.
(2) 
The balance of the revenue generated by each residential assessment shall be credited to the Excise Tax Fund, which shall contain a Recreation Account and a School Account, and a Road Account, according to the provisions below.
(a) 
One thousand three hundred dollars of each residential assessment shall be credited to the Recreation Account.
(b) 
Three thousand five hundred dollars of all residential construction shall be paid to the Road Account.
(c) 
All sums generated by the building excise tax on residential construction remaining after allocation of the monies to Solid Waste Enterprise Fund and the Recreation Account and the Road Account of the Excise Fund shall be credited to the School Account of the Excise Fund.
B. 
Allocation of funds pursuant to Subsection A(1) above shall be made out of the funds collected at the time a building permit is issued. Allocations of funds pursuant to Subsection A(2) shall be made as the funds are received. Each of the Accounts in the Excise Tax Fund shall have credited to it 1/3 of the amount allocated to it whenever an installment payment is made.
C. 
Funds credited to the Recreation Account of the Excise Fund shall be subject to the following restrictions:
(1) 
All funds shall be applied to active and passive recreational use, including, but not limited to, the acquisition of land, capital improvements to recreational facilities, and other improvements related to all types of recreation, as determined by the Board of County Commissioners.
(2) 
Any funds collected pertaining to property in any municipality in Calvert County and credited to the Recreation Account shall be expended within the municipality from which the tax was collected, unless the governing body of the municipality approves the expenditure of such funds for the benefit of a location outside the municipality. Expenditure of funds collected within the municipality shall not be permitted unless the governing body of the municipality approves of the expenditure.
(3) 
Revenues shall be expended in the election district from which they were collected, exclusive of the municipalities, unless the Board of County Commissioners makes a finding that expenditure outside the district, or within a municipality within the district, would benefit the inhabitants of the district. Funds may be borrowed from the fund reserved for one election district and used in another district. However, if such funds are borrowed, all taxes collected from the receiving district shall be allocated toward repayment of the loan until the loan is fully paid. If a loan is received from more than one district, repayment shall be proportional to the amount of the loan from each contributing district.
D. 
Funds credited to the School Account of the Excise Fund shall be subject to the following restrictions:
(1) 
The funds in the School Account of the Excise Tax Fund shall be used to finance capital improvements and infrastructure; replace, expand and maintain existing facilities; and for any other lawful purpose as determined by the Board of County Commissioners.
(2) 
Funds credited to the School Account of the Excise Tax Fund shall be expended in the school impact district from which they were collected unless the Board of County Commissioners makes a finding that an expenditure outside the district would benefit the inhabitants of the district. For the purposes of this subsection, "impact district" shall refer to the geographical area identified in § 62-9B of the Calvert County Code. Use of the term "impact district" shall not be interpreted as limiting the use of funds credited to the School Account to the uses set forth in Chapter 62 of the Calvert County Code.
E. 
Funds credited to the Road Account of the Excise Tax Fund shall be used to finance the construction of County roads and for any other lawful purpose as determined by the Board of County Commissioners.
If a building permit expires and construction under the permit has not commenced, the applicant shall be entitled to a refund of any building excise tax paid. The applicant shall apply to the Division of Inspections and Permits for the refund within 60 days of the expiration of the building permit. The County shall retain 6% of the tax collected to offset the costs of collection and refund.
This article shall apply to all persons who receive a building permit or change of use permit on or after May 21, 2003.[1]
[1]
Editor's Note: This ordinance also provided that the increased taxes in this ordinance shall apply to all permits approved and issued on and after May 21, 2003, the effective date of the ordinance. A permit shall be deemed "issued" when it has received all necessary approvals and when either the first installment or the entire building excise tax has been received by the County. Permits that have been approved prior to the effective date but for which no tax payment has been received by the County shall be subject to the amount of tax reflected in this ordinance.
If any word, phrase, clause, sentence, paragraph, or section of this article, or the application of such to any person or circumstance, is declared invalid or unconstitutional by a court of competent jurisdiction, the invalidity or unconstitutionality shall not affect any of the remaining words, phrases, clauses, sentences, paragraphs, or sections of this article, since the same would have been enacted without the incorporation into this article of the invalid or unconstitutional word, phrase, clause, sentence, paragraph, or section, and to that end all provisions of this article are determined to be severable.
This article shall be known as the "Building Excise Tax Ordinance."