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 Ramos
A Bill Entitled
An Ordinance concerning
title
High-Performance Inclusionary Housing Tax Credit
For the purpose of establishing a High-Performance Inclusionary Housing Tax Credit; providing for the eligibility criteria of the tax credit; establishing the amount of the tax credit; requiring a certain annual report; defining certain terms; and generally relating to the High-Performance Inclusionary Housing Tax Credit.
body
By authority of
Tax - Property Article
Section 9-242
Annotated Code of Maryland
By repealing and re-ordaining, with amendments,
Article 28 - Taxes
Section 10-18(h)
Baltimore City Code
(Edition 2000)
By adding
Article 28 - Taxes
Section 10-18.2
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
§ 10-18. High-performance market-rate rental housing - Citywide.
(h) No tax subsidy duplication allowed.
Except for the Maryland State Enterprise Zone Tax Credit Program and the
High-Performance Inclusionary Housing Tax Credit, the tax credit authorized by this section does not apply to any property for which any other tax subsidy from the City, whether in the form of a tax credit, payment in lieu of taxes, tax incremental financing, or otherwise, is being received or has been applied for.
§ 10-18.2. High-performance inclusionary housing tax credit.
(a) Definitions.
(1) In general.
In this section, the following words have the meanings indicated.
(2) High-performance building.
“High-performance building” means a high performance building as defined in State Tax - Property Article § 9-242.
(3) Newly-constructed or converted.
“Newly-constructed or converted” means a high-performance
market-rate rental housing project:
(i) that is either:
(A) newly-constructed on a vacant lot, cleared site, or parking
lot; or
(B) converted from a non-residential use; and
(ii) for which the cost of the construction or conversion exceeded $60,000 per rental unit.
(b) Credit granted.
In accordance with State Tax - Property article § 9-242, a high-performance inclusionary housing tax credit is granted against the City property tax imposed on high-performance rental properties that are in full compliance with Subtitle 2B {“Inclusionary Housing Requirements”} of
Article 13 - Housing and Urban Development of the City Code.
(c) Credit granted.
A tax credit granted to a property owner under this subsection shall:
(1) be for a period of 15 years;
(2) start with the completed building’s first assessment after issuance of the occupancy permit established by the City Building Code;
(3) be fully transferrable to a new owner for the remaining life of the tax credit; and
(4) terminate if, during the period of the tax credit, the building:
(i) fails to maintain its high-performance rating; or
(ii) fails to comply with the provisions of Subtitle 2B {“Inclusionary Housing Requirements”} of Article 13 - Housing and Urban Development of the City Code.
(d) Amount.
(1) In general.
A property owner of a building described under this section is eligible for a 15% High-Performance Inclusionary Housing Tax Credit.
(2) Additional credits.
A property owner may receive another residential rental project tax credit for which the building is eligible, provided that the total amount of City tax credits the property owner has received does not exceed 100% of the total tax liability for the building.
(e) Application.
(1) Property owner to submit.
A property owner shall submit an application to the Department of Finance in the form required by the Department of Finance.
(2) Application fee.
A property owner applying for the tax credit established by this subtitle shall pay an application fee, which shall be set by the Board of Estimates.
(3) Application to continue.
If a property owner receiving the tax credit transfers ownership of the building at any time, the new property owner shall file an application to continue the credit in the form required by the Department of Finance.
(f) Rules and regulations.
(1) In general.
Subject to title 4 {“Administrative Procedure Action - Regulations”}of the City General Provisions Article, the Director of Finance shall adopt rules and regulations to carry out the provisions of this section.
(2) Procedures required.
These regulations shall include procedures necessary and appropriate for the submission of an application and the granting of a property tax credit under this section.
(g) Reporting credits.
Each fiscal year, the estimated amount of all tax credits received by property owners under this section:
(1) shall be reported by the Director of Finance as a tax expenditure; and
(2) shall be included in the publication of the City’s budget for any subsequent fiscal year with the estimated or actual city property tax revenue.
(h) Annual report.
On or before July 1 of each year, the Director of Finance shall submit a report to the Board of Estimates, Mayor, and City Council that includes the following:
(1) an analysis of the tax credit, if any was conducted, and its findings and results;
(2) the steps taken to promote and further the use of the tax credit; and
(3) proposed future steps the Department of Finance can take to promote and further the use of the tax credit.
Section 2. And be it further ordained, That this Ordinance takes effect on the 30th day after the date it is enacted.