Montgomery County Council Unanimously Approves Parking Lot District Tax Exemption Bill

December 2, 2014

Linowes and Blocher LLP is pleased to report that on November 25, 2014, by a unanimous 9-0 vote, the Montgomery County Council approved Expedited Bill 43-14 regarding tax exemptions in the County's Parking Lot Districts (PLDs).  This legislation could be of benefit if you own or lease property in a County PLD  (Silver Spring, Bethesda, Wheaton, and Montgomery Hills) that is providing the Code required parking.

The County charges a PLD tax for all properties in the PLDs, with an exemption for properties that satisfy County Code parking requirements (with a partial taxation scenario for partial satisfaction).  The Code currently includes provisions for a property owner or lessee to file for a PLD tax exemption by April 1st of the tax year starting July 1st.  Earlier this year, we discovered that many clients were unaware that it was their obligation to file a PLD tax exemption application, and that taxes were being levied and collected unbeknownst to the property owners.  Given the embedded nature of the PLD tax in the tax bill, the lack of any noticing to property owners that they may be eligible for exemptions, and the magnitude of the financial impacts, we sought legislative relief from the Council.  Specifically, because the time period for applying for an exemption for the current tax year had already passed, we sought to have the opportunity to file for exemptions re-opened for this tax year to address the unfair collection of taxes that should not have been collected.  Nancy Floreen and Roger Berliner co-sponsored Bill 43-14, with George Leventhal and Hans Reimer joining as co-sponsors, to provide the requested limited opportunity. 

As passed, Bill 43-14 amends Section 60-14 of the County Code to allow property owners or lessees in the PLDs to apply for an exemption from PLD taxes for this current tax year that started July 1, 2014, during a one-time window ending February 28, 2015 (re-opening the window for filing that closed under the current statute on April 1, 2014), and obtaining a refund for any qualified PLD tax exemption that was already paid.

If you own or lease property in a County PLD that is providing the Code required parking but does not reflect a credit from the PLD tax on the July 1st tax bill or reflects only a minimal partial PLD credit, your rights could be affected, and this new legislation could potentially be of benefit.  

Please contact one of the attorneys below if you have questions about whether your property is in a PLD, whether your property is subject to the PLD tax, your rights regarding any imposition of the tax, or how to determine whether Bill 43-14 as approved may impact your property. 

Todd D. Brown at 301-961-5218 or tbrown@linowes-law.com

Yum Yu Cheng at 301-961-5219 or ycheng@linowes-law.com

C. Robert Dalrymple at 301-961-5208 or bdalrymple@linowes-law.com 

Heather Dlhopolsky at 301-961-5270 or hdlhopolsky@linowes-law.com

Stephen P. Elmendorf at 301-961-5110 or selmendorf@linowes-law.com

Erin E. Girard at 301-961-5153 or egirard@linowes-law.com

Nathan J. Greenbaum at 301-961-5196 or ngreenbaum@linowes-law.com 

Stephen Z. Kaufman at 301-961-5156 or skaufman@linowes-law.com

Anne M. Mead at 301-961-5127 or amead@linowes-law.com

Barbara A. Sears at 301-961-5157 or bsears@linowes-law.com

Emily J. Vaias at 301-961-5174 or evaias@linowes-law.com

Scott C. Wallace at 301-961-5124 or swallace@linowes-law.com

Gabrielle M. Duvall at 301-961-5264 or gduvall@linowes-law.com 

Robert C. Park at 301-961-5175 or rpark@linowes-law.com 

   

Linowes and Blocher LLP has prepared this e-blast for general information purposes only, and the information contained in it does not constitute legal advice. This e-blast is not an offer to represent you and does not create an attorney-client relationship with Linowes and Blocher LLP or any of the firm's lawyers. You should not act, or refrain from acting, in a manner that changes your legal position based upon any information contained in this e-blast without first consulting with an attorney.