PROCEDURE TO BE UTILIZED WHERE COUNTRY CLUB OR GOLF COURSE REQUESTS SUPERVISORS TO ENTER INTO USE ASSESSMENT AGREEMENT:

            When a country club or golf course requests a Supervisor to enter into a use assessment agreement, the Supervisor should request that the club or course substantiate that it meets the basic qualifications of a country club or golf course set forth in Title 8-212 by completing an application for country club use or golf course use.  Under that section, a country club must meet the following qualifications:

1. Own at least 50 acres of land;

2. Maintain on the land a regular* or championship golf course of at least nine holes and a clubhouse;

3. Have a dues paying membership of at least 100 persons who pay dues of at least $50 annually per person;

4. Be restricted in use primarily (51%) to members (however, club facilities may be used by groups other than members who are their guests).

Under that section, a golf course must meet the following qualifications:

1. Be maintained on at least 50 acres of land;

2. Maintain on the land a regular1 or championship golf course of at least nine holes.

3. Not be restricted in use primarily to members, family, and guests.

            Moreover, a knowledgeable representative from the Supervisor's office should  be sent to the golf course to inspect the club's course and clubhouse facilities or the course and its facilities.   With the utilization of  both the inspection and the information provided by the club or the course, the Supervisor should be able to determine whether or not the club or course qualifies as a country club or golf course.  Any questions regarding legal interpretations of these qualifications should be addressed to the Attorney General's Office through the Office of the State Supervisor.

           If after the inspection and the submission of information, a Supervisor determines that a club is not a "country club" within the meaning of Title 8-212, then a letter setting forth this determination and its reason should be sent to the club.  This determination by the Supervisor is subject to review on appeal before the Maryland Tax Court.

          If the Supervisor is satisfied that the club qualifies as a country club under Title 8-212  then the Director should enter into a use assessment agreement of 10 years.

           Even though a use assessment has been executed between the Department and a country club, the Supervisor is not precluded from reviewing in cycle the dual assessments and making appropriate changes.

PROCEDURE TO BE UTILIZED WHEN THE SUPERVISOR DESIRES TO TERMINATE USE ASSESSMENT AGREEMENT WITH COUNTRY CLUB OR GOLF COURSE FOR NONCOMPLIANCE WITH TITLE 8-216:

            Title 8-216 states that if prior to the expiration of a use assessment agreement, a club or course either (1) fails to qualify as a country club or golf course, or (2) the real property owned by the club or course ceases to be used as a country club or golf course, or (3) is conveyed to a new owner, property tax is due based on the difference between the use and market values.  In each of these cases, the Supervisor should schedule an informal hearing with the club or course.  Notice of the hearing should be sent to the club or course and the reasons for the  hearing sent out in the notice.   At the hearing, the club or course should be given an opportunity to demonstrate to the Supervisor that it, in fact, does qualify as a country club or golf course, or that its real property is,  in  fact,  being used as a country club or golf course.  The Office of the Attorney General should be consulted in order  to  resolve  any  legal  questions  regarding  the  hearing  process.   Again, a physical inspection, where necessary, should be utilized.  If after the informal hearing, the Supervisor is convinced that  the  club or course  no  longer  qualifies  under  Title 8-213,  a letter  should be sent to the club or course setting forth this determination and the reasons therefore, and local government should be advised  to collect the taxes due. Additionally, the property should be reassessed at market value only effective the subsequent tax year, and a notice sent out to the club or course to that effect.

             Whenever a club or course which enjoys a use assessment agreement no longer qualifies as a country club or golf course or its real property ceases to be used as a country club or golf course, the deferred tax (which constitutes the difference between the dual assessments), calculated at the tax rate which was applicable for the tax year in which the dual assessment was issued, becomes immediately due and payable.  Deferred taxes are due for each and every year that the club or course received a dual assessment under the use assessment agreement.  However, no deferred tax shall be collected for a period in excess of ten years.  Notification (letter or memorandum) should be given to local government so that proceedings may be instituted for the collection of the deferred taxes.

              Additionally, a country club may lose its use assessment treatment after the issuance of a cease and desist order by the Office of the Attorney General under Title 8-215. If that order is violated, then the use agreement will be terminated prior to its termination. However deferred taxes are not due. Consequently, no notification need be given to the local government. After the order is initially issued, the Office of the Attorney General must be consulted with regard to the issuance of the dual assessment to the country club or golf course for the subsequent tax year and thereafter until the order has either been violated, rescinded or fully complied with.

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*A regular golf course is defined as having a minimum of 50 acres devoted to the use of the golf course with tees, greens, defined fairways and hazards such as sand traps, water hazards, etc., and having a mixture of par 3 and par 4 holes with some par 4s being in excess of 300 yards.

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