North East Maryland Water Real Estate

Document Sample
North East Maryland Water  Real Estate Powered By Docstoc
					Property Tax Abatement & Impact Fee Waiver Practices
Among Maryland Municipalities With A History of Annexations

                                             Number             Percent
Property Taxes Abated

                                   No                  21             81%

                              Partially                  1             4%

                           Sometimes                     2             8%

                                  Yes                    2             8%

                                 Total                 26




Impact Fee Waived

                                   No                  18             69%

                                  Yes                    0             0%

            Not Applicable because the                   8            31%
municipality does not have impact fees
                                 Total                 26



Basis: A listing of 1997-2007 annexations by municipality was obtained from
the Maryland Department of Legislative Services. An inquiry was sent to the
60 municipalities which annexed three or more properties during this period.
The inquiry was specific to annexations involving proposed residential
development and consisted of two questions: Are impact fees ever waived for
annexations involving residential development only? Are property taxes ever
waived between the period when a property is first annexed and the
completion of residential development on the annexed property?
Survey of Maryland Municipalities Regarding Property Tax Abatement & Impact Fee
                                                                         Property
                                                                        Tax Abated
                                  Acres Annexed     Percent            For Proposed
    MUNICIPALITY   1997 ACRES       1997-2005       Change  Surveyed    Residential
Aberdeen                  3,809               631       17%   Yes          Partial




Annapolis                 4,274              256        6%    Yes          No


Bel Air                   1,777               29        2%    Yes          No



Berlin                    1,290             1,123      87%    Yes          No




Boonsboro                   976               192      20%    Yes
Bowie                     9,996             1,600      16%    Yes          Yes




Cambridge                 4,203             1,407      33%    Yes
Centreville               1,212               534      44%    Yes
Charlestown                 672               107      16%    Yes
Chesapeake Beach          1,719                83       5%    Yes          No
Chesapeake City             304                 0       0%    Yes          No
Cheverly                    802                17       2%    Yes
Church Hill                 322               119      37%    Yes          No

College Park              3,469                97       3%    Yes
Crisfield                 1,348                13       1%    Yes
Cumberland                5,855             1,575      27%    Yes
Delmar                      747               286      38%    Yes
Denton              1,596   1,547   97%   Yes   No




District Heights      537      18    3%   Yes
Easton              5,955   1,139   19%   Yes   No




Elkton              5,131     152    3%   Yes
Federalsburg        1,249       4    0%   Yes
Frederick          13,513   1,657   12%   Yes   Yes




Frostburg           1,853    205    11%   Yes
Fruitland           2,217     90     4%   Yes
Gaithersburg        6,309     23     0%   Yes
Greensboro            451    168    37%   Yes   No
Hagerstown           6,983    758    11%    Yes      No




Hampstead            1,716      32     2%   Yes
Havre de Grace       3,082   1,309    42%   Yes
Hebron                 390     443   114%   Yes
Hyattsville          1,402     201    14%   Yes      No




Keedysville            518    122    24%    Yes      No
La Plata             4,346    267     6%    Yes
Laurel               2,345    371    16%    Yes      No




Leonardtown          1,939    113     6%    Yes      No



Middletown           1,125    163    14%    Yes   Sometimes




Mount Airy           1,554    200    13%    Yes      No




Mountain Lake Park    913     572    63%    Yes
Myersville          593     145    24%    Yes      No



New Windsor          454     36     8%    Yes
North East           939     70     7%    Yes
Oakland            1,653    655    40%    Yes
Pocomoke City      1,707    486    28%    Yes
Princess Anne        854    295    35%    Yes
Ridgely              804    344    43%    Yes      No



Rising Sun           583     412   71%    Yes
Rockville          8,112      43    1%    Yes
Salisbury          6,988   1,087   16%    Yes   Sometimes



Smithsburg           592     17      3%   Yes
Snow Hill            866      0      0%   Yes
St. Michaels         538    204     38%   Yes
Sudlersville         149    294    197%   Yes      No
Takoma Park        1,300      0      0%   Yes      No




Taneytown          1,844      4     0%    Yes
Thurmont           1,717    279    16%    Yes
Union Bridge         543    127    23%    Yes
Walkersville       2,643    153     6%    Yes
Washington Grove     210     16     8%    Yes      No

Woodsboro          459      40     9%     Yes      No
batement & Impact Fee Waivers for Proposed Residential Annexations


          Impact Fee
            Waived                                          Remarks
             NA        We do not collect impact fees at this time but are contemplating that at this
                       time. We have in the past provided the petitioner with a 25 cent rate on their
                       real property taxes until pubic infrastructure (water and sewer) was extended
                       to service the proposed development. This has been codified and can be
                       found in our Aberdeen Code on our website www.aberdeen-md.org.

             No        We did endeavor once to annex a developed parcel and, as an incentive,
                       waive the city's portion of the property tax for five years. This annexation was
                       defeated by the city council.
             No        The Town of Bel Air has never waived impact fees for annexed property, nor
                       have we ever waived property taxes. Our residential annexations have been
                       limited and generally were requests brought by the property owners because
                       they needed connections to Town services.
             No        There is no provision for a waiver of impact fees, at this time. Our legal
                       counsel advised that unless we provided such a provision within the
                       ordinance, no waiver can be given. Tax waivers have been given in the past
                       but not for residential, only for non-residential as it relates to enterprise zone
                       incentives.

             NA        The City portion of the total property tax may be waived by annexation
                       agreement for a specific development. The typical time period is no more
                       than 5 years after the date of the agreement, but we have done less than
                       that. Many of our annexations in the past decade have involved existing
                       communities or have been triggered with the completion of the development
                       and bond release by the County, so the situation you describe would not
                       apply.



             No
             NA

             NA        We do not impose impact fees. Queen Anne's County does and they do not
                       waive their fee.
No   The Town adopted impact fees in spring of 2007 so there isn’t much history in
     that area, and the ordinance requires collection of the impact fee at building
     permit. None of the areas annexed since then have had an exemption from
     the impact fee in their annexation agreements. Your second question
     regarding the waiver of real estate taxes is often the subject of discussion in
     annexation agreements. The town can only offer a waiver of town taxes not
     county taxes. It is common for the town to offer a waiver of taxes for
     residential property not under contract for development. This has often been
     used as an incentive for annexation. I am not aware that this has ever been
     offered for commercially zoned property, or that property whose immediate
     interest is residential development. Typically, the language in the agreement
     is: The abatement continues until there is a transfer of the deed or sale of the
     property; or connection to municipal water or sewer. The Town does not offer
     water/sewer services to non-town properties nor does it waive real estate
     taxes for a property receiving those services. Each annexation agreement is
     customized to the petition so there may some unusual circumstance that

No   Easton has had a lot of experience with annexations, ,since 1990 there have
     been about 20 parcels brought into the town. We only recently adopted
     Impact fees but have never waived impact fees. There was a time when the
     Town Council did defer property taxes until utilities were extended to a
     development, however, for about the last 10 years it has been our policy not
     to waive any taxes.


No   The City of Frederick has not waived any impact fees for any development
     project as part of any annexation. The City of Frederick has routinely waived
     property taxes for the first seven years of a property being in the City or until
     the City provides water and sewer service to the property, which ever comes
     first.



No   The Town of Greensboro has had several annexations in the past couple of
     years, two different annexations are both connected to one project; a mixture
     of residential and commercial properties. The other annexations were simply
     a matter of cleaning up the town’s boundary and to bring in the Elementary
     School which was not being served by municipal water. I doubt that the
     Mayor and Council would ever waive the “impact” fees associated with a
     residential development or a commercial or industrial development. The
     Mayor and Council believe that any future development should pay its own
     way and should not be a financial burden to existing citizens. Sometimes
     property taxes will be waived in an annexation if the need is strong enough for
     the Town. An example of this would be the annexation that Greensboro had,
     that enabled us to Annex the Elementary School. In Order for the boundaries
     of the Town to be clean or not create a potential enclave situation, several
     existing houses needed to be annexed also. There was no true incentive for
     these properties to come into Town so the Mayor and Council agreed to
     waive town taxes as long as the current owners maintained owner of the
NA   The City does not have impact fees, but we do collect the County's excise tax
     within our jurisdiction (enacted in 2005 or a bit earlier). The excise tax has
     never been waived as part of an annexation. Before the City adopted an
     annexation policy in 2002, we would offer no property taxes until the site
     developed. Now that annexation is mandatory in order to receive City water,
     we do not waive the property taxes for the developer seeking annexation.
     We will grant property tax abatements upon occasion to other properties
     needed to gain contiguity to a proposed development and when that is offered
     it has been for a period of time ending when the property is sold or receiving
     City services.



NA   Impact fees are assessed by the County which oversees a bi-county planning
     commission at the time a project is going through initial review. The County
     has the authority to waive or reduce impact fees for residential property, not
     the City, however the City would be the recepient of some of the impact fees
     collected for public safety or transportation improvements. For our
     annexations this was not an annexation issue. We have not waived property
     taxes for any property from the time of annexation until a project is
     completed. We have phased in property taxes above the County basic tax
     rate for some commercial, not residential project properties.

No

No   Although our impact fee program is relatively new, it contains no provisions
     for waiver. The impact fee is paid a building permit, along with two other
     state/county fees for schools and public safety. To your second question, we
     have allowed a phase-in of property taxes of annexed properties for
     residential use, but this is used in conjunction with our Revitalization Overlay
     program only. We have allowed, during the phase-in period, for some
     property owners to pay only the municipal tax differential amount, which
     creates no new net taxes on the property for the initial period of the phase-in.
     This is done mostly for-non-residential properties

No   We have not waived impact fees on an annexation and the only time property
     taxes are waived would be for a property that was brought on but hadn’t
     requested it. They would not pay Leonardtown property taxes until such time
     that they sold or changed the use on their property.
No   They can be if the elected officials agree to it, but in all Middletown cases they
     have not been waived. The only time the Town has waived impact fees is
     when the improvements are for public facilities such as schools. Again they
     can be if the elected officials agree to it. Although, it is more typical to waive
     property taxes until the property is subdivided because that is typically when
     services begin to be provided by the local government.

No   The Town's impact fee is referred to as Capital Improvement Assessment
     Fee - as long as I have been employed - I don't recall any waiver of that fee.
     Not waived but Town code, "Section 101-7. Exemption for areas lacking
     Town Services" - does allow for a 50% reduction in municipal real estate tax
     for annexed areas not served with public water and sewer.
No   The answers to both of your questions are no. Impact fees have never been
     waived for annexations involving residential development only. And property
     taxes have never been waived for the development of annexed land for
     residential development.




No   Impact fees are not waived, but in a recent DRRA, a developer has agreed to
     pay for our entire upgrade utilizing the impact fees he nor,ally would have
     paid PLUS his own money. The project is a 10-15 year venture, but our new
     WWTP will be done before he is halfway thru.


NA   The City of Salisbury does not have impact fees, so the answer to your first
     question is no. We have waived property taxes after property is annexed but
     before it begins the development process. I hope this answers your
     questions.



No
No   In recent times, the City of Takoma Park has not annexed land as part of a
     development project. (I don't know if we ever have.) In 1995, three existing
     neighborhoods petitioned to be annexed to the City in advance of a change in
     the County line that would have left them in Prince George's County, but in an
     area isolated from Prince George's County services. By coming into Takoma
     Park, they became part of Montgomery County in 1997 when the County line
     was moved. Some time later, we annexed the roadway of Flower Avenue so
     that our police department could better handle speeding on the street. In that
     annexation, no privately owned property was annexed. While the City hasn't
     waived impact fees or property taxes, I don't think we would like to lose the
     authority to do so. I could imagine a case where we would waive some fees
     or taxes, at least temporarily, so as to meet community goals. There could
     be a situation where we would temporarily waive fees or taxes so as to get
     more revenue down the road, but we don't have a history of doing that.




NA   We have no impact fees. No, however, we have waived property taxes as an
     incentive to annexation of property with existing homes.
No

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:4
posted:11/14/2010
language:English
pages:9
Description: North East Maryland Water Real Estate document sample