A. Tax-Property Article 8-226-227 provides that the owner of residential property that has been rezoned from a residential to a commercial or industrial zoning classification through comprehensive rezoning may apply for an assessment based upon the continued residential use of the property.

B. Comprehensive rezoning occurs on an infrequent basis and is not usually done at the initiative of the property owner. Such zoning changes, therefore, are not to be considered for out of cycle review unless it can be ascertained that the zoning change occurred at the request of the property owner or someone having an interest in the property (e.g. contract purchaser). Comprehensively rezoned property should be revalued only in the context of the regular reassessment process. Prior values are not changed to reflect the comprehensive rezoning. Notices should be sent before January 1 along with the notices for other properties in the same assessment cycle. Additional information that explains the residential use assessment should be sent to the owner of such property at the same time that the notice is sent. An application form will also be included for the owner's use. The application form must be returned to the Supervisor of Assessments by May 1 preceding the taxable year for which the continued residential credit is sought. For good cause, the supervisor may accept an application on or before May 1, but not afterwards.

C. In order to qualify for a residential use assessment the homeowner must reside in the dwelling as a principal residence. The homeowner must have a legal interest in the property and must have occupied the dwelling for at least three years prior to rezoning. The property must have been zoned residential at the time of acquisition, and rezoning must not have been initiated by the homeowner or anyone having an interest in the property.

D. If qualified and approved, the residential use valuation will be entered at a level consistent with the value at the time of rezoning. This residential use value may be changed in accordance with the normal rules and procedures of review as set forth in Tax-Property Article §8-104(b). Such value changes, however, will only be made based on the residential status of the property. The property will be valued at a uniform level with the residential properties in the neighborhood.

E. The date of the original agreement and BPRUC code must be entered in AAVS to enable the Real Property Data Search Website to indicate the account has a Special Tax Recapure and ensure the penalty enforced.  The following flags should be added:

G. If an applicant is determined to be ineligible for the residential use assessment, the Department will notify the applicant in writing of such a determination.

H. A property owner having been determined to be ineligible for the residential use assessment, and having been notified of such determination by the Department, may appeal this decision to the Property Tax Assessment Appeal Board within 30 days of the date of the notice.

A. Termination of the rezoned real property status will occur when the property ceases to be used as the principal residence of the owner or when the property is subdivided or sold. The conditions that will result in termination of this benefit are further discussed in Section I (F) of this policy. In the case of subdivision, only that portion subdivided is terminated.

B. A penalty will be imposed when the rezoned real property status is terminated. The penalty will be calculated in the manner specified and shall be collected by the Department, as specified in T.P. 8-228(b), prior to any transfer of the property. In the case of subdivision or occupancy change, the Department will bill the property owner. The penalty is not imposed upon death of the owner.

C. In order to calculate the penalty amount, the Supervisor of Assessments must value and assess the property as a commercial or industrial property consistent with the actual zoning classification.

D. The penalty will be calculated based on the difference between the assessment of the property from its residential use status and the normal in-cycle commercial/industrial valuation as developed above. The assessment difference is multiplied by the appropriate Municipal, County, and State tax rates for the current tax year. This result is then to be multiplied by the number of years, not exceeding three, that the homeowner received a residential use assessment. Interest at an annual rate of 12% shall be added to the penalty if not paid within 60 days.

E. The property, upon termination of the residential use status, will be revalued as provided for in Tax-Property§8-104 (C)1.v., effective for the next July 1.

F. Notification of Penalty- Per Tax Property 14-506, the Supervisor will notify the property owner of the determination that the Rezoned Residential Status has been terminated and a penalty is due. The notification will explain that a written appeal may be submitted within 30 days of the date of the mailing of the notification. If an appeal is made to the Supervisor, the resulting decision may be appealed to the Maryland Tax Court within 30 days of the date of the mailing (T.P. 14-512(b)).

G. The BPRUC Flag and Rezoned Realty Date in AAVS must be removed after the penalty is paid.