A planned development land use assessment is at least 500 acres in size, designated for planned development on an approved master plan, and zoned in a planned development land classification:
(A) that requires the development plan to consider:
(1) land use
(2) utility requirements
(3) highway needs
(4) water and sewers
(5) industrial uses
(6) economic and job opportunities
(7) recreation and civic life, and
(B) that requires the owner(s) of the land to pay for or provide:
(1) streets, roads, walkways
(2) open spaces, parks
(3) school sites, and other property needed for public use
For the land to be eligible, the owner(s) must apply for this use assessment with the local assessment office. The Supervisor of Assessments is responsible for determining whether or not the lands meet the criteria provided for in the zoning ordinance by contacting the local planning and zoning agencies. Local planning and zoning agencies shall provide the Supervisors of Assessments with copies of any official documents, plans, and maps necessary to carry out the provisions of the law.
The land does not have to have the same ownership throughout the entire tract, but the owners of all the land must join in the application. Under this classification, the land shall be eligible for a planned development land use assessment which is equivalent to the $500 agricultural rate per acre. This rate is applied regardless of whether or not land is farmed or devoted to an agricultural use. Property receiving the planned development use assessment is not subject to an agricultural transfer tax. It should NOT contain the property use code of "A" (agricultural use).
Whenever lands in this classification have a market value greater than the planned development land use value, both values shall be recorded and the owner shall be sent a notice of value for both "use" and "market values”. The Market Value Notice is subject to the same notice and appeal procedures as provided to all other assessment notices. A copy of the Market Value Notice shall be maintained with the property's assessment records.
Land receiving the special planned development use assessment must be tracked in AAVS. Under the Site & Flag Tab a Planned Development Date (PDD) flag should be added to the account. In the "Value Field" of the PDD Flag enter the date to be the following July 1, after the effective date of the application. (The tax year the account was approved to begin to receive the special use assessment).
This Flag is used to track the account. In the market land lines of AAVS, land should be updated with The Land Code "PDL" (Planned Development Land). This land code is the special use assessment rate of $500 and is not considered an agricultural rate. The PDD Flag and Land Code must be removed after the account has been removed from the special use valuation.
Whenever a portion of the land is subdivided by recording a subdivision plat or is improved by construction of permanent buildings, the use assessment shall terminate immediately for that portion of the prope1ty and it shall be assessed on the basis of its new market value and notice. The remaining portion of the tract shall continue to be entitled to the use assessment, even though its area is less than the original 500 acres, as long as it continues to meet the zoning requirements.
If the property transfers, the new owner must make application in order to receive the planned development use assessment. In cases that multiple owners were in a combined application in order to reach the 500 acre threshold, the new owner would need to make application. Failure of the new owner to complete a new application would result in the entire tract of land (including the parcels under other ownerships) going to the market value supplied at the reassessment. No penalty, or deferred tax, is due when a transfer occurs. Notify ownership(s) by letter of what is needed for continued planned development valuation and that the property will no longer qualify and go to its notified market value in the event an application is not supplied.
If land which has been entitled to this use assessment is rezoned at the request of the owner so that it no longer meets the zoning criteria
which entitled it to the use assessment, it is subject to a deferred tax for the portion of land that is rezoned (TAX-PROPERTY Title 8
-224). This is the only instance that the deferred tax imposition would apply. The deferred tax shall be calculated on the difference between the market value assessment and planned development assessment going back each year in which the planned development use assessment had been applied to that portion of land. In no event shall the total deferred taxes due exceed 4% of the total market value assessment in effect at the time of said rezoning. The tax rate applied to the difference in market value assessments would include all State, County and Municipal taxes in place for those in given tax years. (See examples A and B below of deferred tax calculations)
Example A
• Planned Development Inception Date was 7/1/2009 on 500 acres
• 300 acres have been platted into lots and the remaining 200 acres have continued to receive the Planned Development Use Assessment
• 200 acres had a Market Notice at the 1/1/2015 Reassessment with a total market value of $5,100,000, and another Reassessment Notice with the Planned Development assessment applied that had a total value of $100,000.
• 200 acres are rezoned in February 2016 and no longer qualifies for the Planned Development Rate
• The Maximum Deferred Tax = $204,000 [$5,100,000(market value at time of rezoning) x 4% = $204,000]
• The Planned Development Assessment value on 200 acres was $100,000 for all years in which the parcel received the special
assessment.
• The 200 acres had a market value of $4,100,000 for the tax years 2009, 2010 & 2011 and $5,100,000 for the tax years 2012,
2013, 2014 & 2015
• Total Tax Rate in place from 2009 thru 2015 has been $1.06/$100 of assessed value
• The Tax Rate is applied to the difference in the total market value and total planned development value in effect for the
previous tax years.
• Deferred Tax Due for back years is as follows:
2009 tax year = 4,000,000 x Effective Tax Rate of .0106 = $42,400
2010 tax year = 4,000,000 x Effective Tax Rate of .0106 = $42,400
2011 tax year = 4,000,000 x Effective Tax Rate of .0106 = $42,400
2012 tax year = 5,000,000 x Effective Tax Rate of .0106 = $53,000
2013 tax year = 5,000,000 x Effective Tax Rate of .0106 = $53,000
2014 tax year = 5,000,000 x Effective Tax Rate of .0106 = $53,000
2015 tax year = 5,000,000 x Effective Tax Rate of .0106 = $53,000
Total deferred tax due = $339,200
• The total deferred taxes due are greater than the maximum allowed. Therefore, the total deferred taxes due are capped at $204,000
Example B
• Using same example as above assume the Planned Development land had inception date of 7/1/2013, the 200 acres had a market value of
$2,100,000 in place for all 3 years, and had a total tax rate in place those years of $1.06/$100 of assessed value.
• Maximum Deferred Tax = $84,000
• The difference in the total market value and planned development land equals $2,000,000
• Deferred Tax Due for back years is as follows:
2013 tax year = 2,000,000 x Effective Tax Rate of .0106 = $21,200
2014 tax year = 2,000,000 x Effective Tax Rate of .0106 = $21,200
2015 tax year = 2,000,000 x Effective Tax Rate of .0106 = $21,200
Total Deferred Tax Due = $63,600
• The total deferred taxes due are less than the maximum allowed. Therefore, the total deferred taxes due are $63,600.
NOTE:Beginning July 1, 2009, in Howard County only, a planned development land use assessment is limited to 20 years. The 20 years begins with the tax year following the calendar year in which the property initially qualifies for a planned development land use assessment. The property receives the use assessment for 20 consecutive years. At the end of 20 years, the property will receive a market value assessment only.
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