CHAPTER 24.

TAXATION.

Article I. Credit for Senior Citizens.

24-1. Definitions

24-2. Authorized; amount.

24-3. Notice of possible tax credit.

24-4. Application generally; approval; appeal.

24-5. Time for filing application; refund of tax paid.

Article II. Penalties for Delinquent Taxes.

24-6. Penalties for Delinquent Taxes.

Article III. 

24.7. Tax Credits for Manufacturing, Fabrication, Assembling, Research and Development Facilities.

Article I. Credit for Senior Citizens.

Sec. 24-1. Definitions.

As used in this Article, the following words have the meanings herein specified:

"Combined gross income."  The combined gross income of all homeowners, if more than one, and all persons residing in the same dwelling, except persons whose contributions, reasonably apportionable towards the cost of upkeep, maintenance and repair of the dwelling, are in the form of fixed rental charges.

"Dwelling."  The dwelling house of one or more homeowners and the lot or curtilage where the same is erected, which is used as the principal residence of such homeowner or homeowners.  No dwelling shall be deemed a principal residence which is not actually occupied or expected to be actually occupied by such homeowner or homeowners for more than six (6) months of some twelve (12) month period including the date of application of credit.  A homeowner or homeowners may claim credit on only one such dwelling.  The City Manager may qualify a homeowner otherwise eligible for the tax credit if he does not actually reside in the dwelling the required time period for reason of illness or need of special care.

"Gross income."  Total gross income from all sources, including but not limited to gifts, and whether or not included in the definitions of gross income for federal or state income tax purposes.

"Homeowner."  Every person who actually resides in a dwelling in which such person has a legal interest, including any life estate, whether as sole owner, joint tenant, tenant in common or tenant by the entireties.

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Sec. 24-2. Authorized; amount.

There shall be allowed a single tax credit upon the application of any person who actually resides in a dwelling in which such person has a legal interest, including any life estate, whether as sole owner, joint tenants, tenants in common or tenants by the entirety, who has attained the age of fifty-five (55) years on or before the first day of the fiscal year for which taxes are payable, and whose gross income or combined gross income, as the case may be, shall not be in excess of Five Thousand Dollars ($5,000) for the calendar year immediately preceding the fiscal year of application.  The credit shall apply to City real estate taxes upon the dwelling for which application for tax credit is made, and shall be equal to fifty percent(50%) of the assessed value of such dwelling or Five Thousand Dollars ($5,000), whichever is the lesser amount, multiplied by the applicable City tax rate; provided, that the tax credit shall be increased, in the event the valuation and assessment of the property to which the tax credit applies is increased over its valuation and assessment at the time of the original grant of a tax credit to the same taxpayer or taxpayers under this Section, in such amount as is required to produce the same tax for City purposes as would have been produced at the City tax rate for any given year if the valuation and assessment had not been increased.

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Sec. 24-3. Notice of possible tax credit.

The City Manager is hereby authorized to send notice of any possible tax credit to all taxpayers with the tax bill.

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Sec. 24-4. Application generally; approval; appeal.

The City Manager shall provide and keep on hand application forms for tax credit.  The application shall be made under oath or affirmation and elicit such information as will enable the City Manager to determine whether the applicant qualifies as a homeowner whose gross income complies with the standards as enumerated in Section 24-2.  The applicant shall be notified in writing whether his application is approved or not.  In the event the City Manager determines that the application does not qualify the applicant for the tax credit, the reason for his failure to qualify shall be stated.  Any applicant who does not qualify shall have the right of appealing the decision of the City Manager if he gives notice of his appeal within thirty (30) days after receipt of the notice of nonqualification.  The appeal shall be directed to the Council or a board designated by the Council to hear such appeals and if not made within thirty (30) days shall be deemed to have been waived.

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Sec. 24-5. Time for filing application; refund of tax paid.

The applicant shall not be required to apply in person, but such application shall be made to the City Manager at City Hall not later than September 1 of the taxable year for which the credit is sought.  No credit shall be allowed if the applicant applies after September 1.  In the event the applicant, prior to his application, paid the full amount of the tax and if the application is approved and filed timely then in such event the applicant should be entitled to a refund from the City Manager if the applicant would have qualified for the tax credit under this Article.  No purchaser of property at a tax sale, the owner of which may be entitled to a credit, is allowed such a credit, it being the intent of this Section that the credit follows the applicant and not the property.  Each tax year shall be considered separately and a new application shall be filed each year by the homeowner.

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Article II. Penalties for Delinquent Taxes.

Sec. 24-6. Penalties for Delinquent Taxes.

Pursuant to Section 14-703 of the Tax Property Article of the Annotated Code of Maryland there is hereby imposed on all taxes which are overdue and in arrears, a penalty of the rate of one percent (1%) of the amount overdue and in arrears for each month or fraction thereof until paid.  This Section shall apply to all such taxes based upon assessments made by either the State Department of Assessments and Taxation or any other authority, and applies to taxes upon tangible personal property by whomsoever assessed and subject to taxation in the City.

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Article III.

Sec. 24-7. Tax Credits for Manufacturing, Fabrication, Assembling, Research and Development Facilities.

(a)  In accordance with the provisions of Section 9-205 of the tax-property article of the Annotated Code of Maryland, there is a tax credit against the real property tax imposed on real property that is used as the premises of manufacturing, fabricating, or assembling facilities that locate or expand in the County and meet the qualifications herein.  As used in this section, “high technology” means any business entity that is primarily involved with the applications of engineering, life sciences, computer sciences, research and development, or produces materials, parts, or equipment used in the type of applications noted above.  This Article shall not apply to the portion of real property taxes imposed pursuant to the provisions of Chapter 23 of the Code “Special Taxing Districts”.

(b)  To qualify for real property tax credit under this section, a business entity must:

(1) Be primarily involved in high technology manufacturing, fabrication, assembling, or research and development, as determined by the County Executive applying the criteria set forth in the County regulations;

(2) Construct, expand, or cause to be constructed or expanded, a building or buildings within the County, to include at least 5,000 square feet of gross floor area (as defined in Subtitle 27 of the County Code) to be occupied by said business entity;

(3)  Invest at least $500,000 in construction or expansion of said building or buildings; and

(4)  Create at least ten (10) new permanent, full-time positions for said business entity to be located within said building or buildings.  Neither the relocation of an existing position from any other location within the City to the new or expanded building or buildings nor the reclassification of a preexisting position shall constitute new positions for the purpose of this section.

(5)  Determinations of qualifications and eligibility by the County shall be subject to review by the Bowie City Council for purposes of determining eligibility for tax credits under this Section 24-7.

(c)  For the first tax year immediately following the year in which the construction or expansion is completed and assessed, the tax credit shall be in an amount equal to one hundred percent (100%) of the amount of the City property tax imposed on the increased assessment attributable to the construction or expansion as determined by the Supervisor of Assessment.  The tax credit shall be reduced to eighty percent (80%) in the second taxable year, sixty percent (60%) in the third taxable year, forty percent (40%) in the fourth, twenty percent (20%) in the fifth year, and zero percent (0%) each taxable year thereafter.  If the subject new or expanded building or buildings are leased to an eligible business entity, the lessor shall reduce by the amount of the tax credit computed under this section the taxes which the eligible business entity is contractually liable under a lease agreement.  A property tax granted hereunder may not be granted for more than five (5) consecutive years.  The total value of the tax credit over five (5) years may not exceed an amount equal to one hundred percent (100%) of the cost of the construction or expansion.

(d)  A real property tax credit, except that granted by the County pursuant to Section 9-205, Annotated Code of Maryland, shall not be granted under this section if the new or expanded premises have otherwise been granted a tax credit or exemption, under the Tax-Property Article, Annotated Code of Maryland, or the County Code for the taxable year.

(e)  Application for the City tax credit established herein shall be made under oath on an application provided by the City Manager and shall include a copy of the application filed with the Director of Finance for the County.  The application shall provide a legal description of the property, proof of a properly issued Use and Occupancy Permit applicable to the eligible improvements, and such other information or documentation as the City Manager may required to establish that the applicant can quality for the tax credit.

(f)  The City Manager, upon a determination by the City Council of the eligibility of the taxpayer for the tax credit, shall make such arrangements as may be required through notification to the State Department of Assessments and Taxation that a taxpayer has been approved for a property tax credit and the assessed value of the new or expanded premises.

(g)  The City Manager shall verify that the taxpayer continues to satisfy the applicable thresholds to quality for the property tax credit by requiring submission of reports by the taxpayer, as the City Manager deems necessary.

(h)  A taxpayer that fails to satisfy the applicable threshold to quality for a property tax credit required under the section during any year in which a credit was earned, must repay the tax credit to the City.

(1)  The City Manager shall notify the taxpayer of the failure to qualify, that the credit must be repaid and take such action as may be necessary to cause the repayment of the tax credit.

(2)  Interest accrues on the tax credit repayment at the rate established for overdue property taxes from 30 days after the date of notification by the City Manager.

(i)  The City shall adopt such regulations as may be necessary to implement this section.

(j)  A determination of qualifications and/or eligibility by the County shall not be binding on the City.  The City shall have the right to consider covenants and agreements to which the City is a party with individual land owners in determining the qualification and eligibility of business entities applying for tax credit to this Section 24-7.

(Article III added by O-7-00, adopted 11/20/00, effective 12/21/00.)

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