Maryland Code, Tax - Property 2-222
Maryland Code > Tax - Property > § 2-222
Current as of: 2010
(a) (1) In this section the following words have the meanings indicated.
(2) "Base year" means the taxable year immediately before the taxable year in which property first becomes qualified property under this section.
(3) (i) "Base year value" means the value of the property used to determine the assessment on which the property tax on real property was imposed for the base year.
(ii) "Base year value" does not include any new real property that was first assessed in the base year.
(4) "BRAC Revitalization and Incentive Zone" has the meaning stated in § 5–1301 of the Economic Development Article.
(5) "BRAC Revitalization and Incentive Zone Tax Rate" means the property tax rate of the political subdivision where a BRAC Revitalization and Incentive Zone is located for the taxable year when the Secretary of Business and Economic Development first designates the area as a BRAC Revitalization and Incentive Zone.
(6) "Eligible assessment" means the difference between the base year value and the actual value as determined by the Department for the applicable taxable year.
(7) "Property tax increment" means the property tax attributable to the eligible assessment of qualified property.
(8) "Qualified property" means real property that is:
(i) located in a BRAC Revitalization and Incentive Zone that is designated under Title 5, Subtitle 13 of the Economic Development Article; and
(ii) in one of the categories of commercial or residential property that the Department of Business and Economic Development has determined, in consultation with the Base Realignment and Closure Subcabinet and as provided in regulations adopted by the Department of Business and Economic Development, enhance the economic development of the BRAC Revitalization and Incentive Zone.
(9) "Tax increment financing bonds" means bonds issued:
(i) by a county or municipal corporation under Title 12, Subtitle 2 of the Economic Development Article; or
(ii) by Baltimore City under Article II, § 62 of the Charter of Baltimore City.
(b) (1) The amounts received by a political subdivision under this section may be used only for the purposes provided in § 5–1306 of the Economic Development Article.
(2) Subject to subsections (c) and (f) of this section, for each fiscal year for a period of 10 consecutive fiscal years beginning in fiscal 2010, the State shall provide to each political subdivision in which a BRAC Revitalization and Incentive Zone has been established an amount equal to:
(i) the State property tax increment on the qualified properties in the BRAC Revitalization and Incentive Zone; and
(ii) one–half of the political subdivision’s property tax increment on qualified properties, determined using the BRAC Revitalization and Incentive Zone Tax Rate for the political subdivision.
(c) (1) The total amount paid to all political subdivisions for any fiscal year under this section may not exceed the lesser of:
(i) the amount appropriated for the purpose of this section for that fiscal year in the State budget as approved by the General Assembly; or
(2) If the total amount to be paid to all political subdivisions as determined under subsection (b)(2) of this section without regard to the limitation
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