EXPLANATION: CAPITALS indicate matter added to existing law.
[Brackets] indicate matter deleted from existing law.
* WARNING: THIS IS AN UNOFFICIAL, INTRODUCTORY COPY OF THE BILL.
THE OFFICIAL COPY CONSIDERED BY THE CITY COUNCIL IS THE FIRST READER COPY.
INTRODUCTORY*
CITY OF BALTIMORE
COUNCIL BILL
Introduced by: Councilmember Kraft
A BILL ENTITLED
AN ORDINANCE concerning
Title
Property Tax Credits - Newly Constructed Dwellings
FOR the purpose of extending the time for filing applications for a credit against the tax imposed on newly constructed dwellings; providing a grace period for certain dwellings previously purchased; repealing an obsolete provision; altering the termination date of the credit program; and generally relating to property tax credits for newly constructed dwellings.
Body
BY repealing and reordaining, with amendments
Article 28 - Taxes
Section(s) 10-5(c), (d), and (j)
Baltimore City Code
(Edition 2000)
BY repealing
Article 28 - Taxes
Section(s) 10-5(e)
Baltimore City Code
(Edition 2000)
SECTION 1. BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF BALTIMORE, That the Laws of Baltimore City read as follows:
Baltimore City Code
Article 28. Taxes
Subtitle 10. Credits
§ 10 5. Newly constructed dwellings.
(c) Qualifications.
The owner of a newly constructed dwelling may qualify for the tax credit authorized by this section by:
(1) purchasing a newly constructed dwelling;
(2) occupying that dwelling as his or her principal residence;
(3) filing an application for the credit no later than [90 days] 1 YEAR after settling on the purchase of the dwelling;
(4) for each taxable year for which the credit is sought, filing a state income tax return as a resident of Baltimore City; and
(5) satisfying all other conditions imposed by the regulations of the Director of Finance.
(d) Amount of credit [- in general].
A property tax credit granted under this section may not exceed the amount of property tax imposed on the real property, less the amount on any other credit applicable in that year, multiplied by:
(1) 50% for the 1st taxable year in which the property qualifies for the tax credit;
(2) 40% for the 2nd taxable year in which the property qualifies for the tax credit;
(3) 30% for the 3rd taxable year in which the property qualifies for the tax credit;
(4) 20% for the 4th taxable year in which the property qualifies for the tax credit;
(5) 10% for the 5th taxable year in which the property qualifies for the tax credit; and
(6) 0% for each SUBSEQUENT taxable year [thereafter].
[(e) Amount of credit - certain dwellings for which permits issued July October 1994.
(1) Notwithstanding any other provision of this section, the property tax credit granted by this section applies to a newly constructed dwelling for which a building permit was issued before October 1, 1994, but on or after July 1, 1994, if an application for the credit is submitted on or before August 31, 1998.
(2) A property tax credit granted under this subsection may not exceed the amount of the property tax imposed on the real property, less the amount of any other credit applicable in that year, multiplied by:
(i) 30% for the taxable year beginning on July 1, 1998;
(ii) 20% for the taxable year beginning on July 1, 1999;
(iii) 10% for the taxable year beginning on July 1, 2000; and
(iv) 0% for all subsequent taxable years.]
(j) Termination of program.
(1) After June 30, [2009] 2011, additional owners of newly constructed dwellings may not be granted a credit under this section.
(2) This subsection does not apply to an owner's continuing receipt of a credit as allowed in subsection (d) with respect to a property for which a tax credit under this section was received for a taxable year ending on or before June 30, [2009] 2011.
SECTION 2. AND BE IT FURTHER ORDAINED, That, notwithstanding the requirements of Article 28, § 10-5(c)(3), the property tax credit granted by Article 28, § 10-5 applies to any newly constructed dwelling purchased on or after July 1, 2007, if (i) an application for the credit is filed within 1 year of the effective date of this Ordinance, and (ii) the dwelling and homeowner otherwise qualify for the credit.
SECTION 3. AND BE IT FURTHER ORDAINED, That the catchlines contained in this Ordinance are not law and may not be considered to have been enacted as a part of this or any prior Ordinance.
SECTION 4. AND BE IT FURTHER ORDAINED, That this Ordinance takes effect on the 30th day after the date it is enacted.
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