How property tax rates are set and minimum taxes

(a) Unless a different meaning is clearly indicated by the context, as used in this section: (1) “Net taxable lands” means all other real property exclusive of buildings. (2) “Net taxable real property” or “net taxable buildings” or “net taxable lands” means, as indicated by the context, the percentage of the market value of property determined under section 19-46 which the director of finance certifies as the tax base as provided by this chapter, less exemptions as provided by this chapter and, in all cases where appeals from the director’s assessment are then unsettled, less fifty percent of the value in dispute. SUPP. 14 (7-2023) 19-70 REAL PROPERTY TAXES § 19-90 (b) The council may increase or decrease the tax rate for buildings and for all other real property, exclusive of buildings for net taxable land and net taxable buildings of each class of property established in accordance with section 19-53(e) of this chapter. A resolution setting the tax rates shall be adopted on or before June 20 preceding the tax year for which property tax revenues are to be raised according to the following procedures: (1) The council shall advertise its intention to increase or decrease tax rates and the date, time, and place of a public hearing in two newspapers of general circulation. The public hearing notice shall set forth the tax rates or range of tax rates to be considered by the council. (2) The resolution to set the real property tax rates shall disclose the approximate amount of revenue to be raised for net taxable lands and net taxable buildings within each class of property, the approximate percentage of revenue from net taxable lands and net taxable buildings within each class of property, and shall set the real property tax rate to be assessed, expressed in terms of tax per $1,000 of net taxable lands and net taxable buildings within each class of property computed to the nearest cent. (3) After the adoption of the resolution setting the real property tax rates, the council shall publish the adopted tax rates in two newspapers of general circulation. (4) If no action is taken by the council to increase or decrease the tax rates, then the tax rates as previously set shall be applicable to the subsequent tax year. (c) If the tax rates for the tax year are increased or decreased the council shall notify the director of finance of the increased or decreased rates, and the director shall employ such rates in the levying of property taxes as provided by this chapter. (d) The director of finance shall on or before May 1 preceding the tax year furnish the council with a calculation certified by the director as being as nearly accurate as may be, of the net taxable real property within the County, separately stated for each class established in accordance with section 19-53(e) of this chapter for net taxable lands and for net taxable buildings plus such additional data relating to the property tax base as may be necessary. (e) Notwithstanding any provision to the contrary, there shall be levied upon each individual parcel of real property taxable under this chapter, a minimum real property tax of $200 per year, except under the following conditions: (1) If the property owner receives a home exemption or totally disabled veteran exemption resulting in the minimum tax, and the assessed value of improvements is less than or equal to $75,000, then, the minimum tax for this property shall be as follows: (i) Property with improvements assessed at $50,001 to $75,000 the minimum tax shall be $150. (ii) Property with improvements assessed at $25,001 to $50,000 the minimum tax shall be $100. (iii) Property with improvements assessed up to $25,000 the minimum tax shall be $50. 19-71 SUPP. 14 (7-2023) (2) If the property is assessed at a market value of less than or equal to $500, no tax shall be applied. (f) Residential tax rate tiers. (1) Notwithstanding any provision to the contrary, the council shall establish a separate tax rate each for the residential tier one property, residential tier two property, and residential tier three property, as defined below. The tax rates shall be applied as follows: (A) The tax rate established for the residential tier one property shall be applied to the net taxable real property value under $2,000,000. (B) The tax rate established for the residential tier two property shall be applied to the net taxable real property value of $2,000,000 to $4,000,000. (C) The tax rate established for the residential tier three property shall be applied to the net taxable real property value of more than $4,000,000. (2) For the purposes of this section: (A) “Residential tier one property” shall mean all property, or portions thereof, other than a residential tier two or tier three property, within the residential class. (B) “Residential tier two property” shall mean a property, or portion thereof, which: (i) Is improved with one or more dwelling units, has a net taxable real property value of $2,000,000 to $4,000,000, does not have a home exemption, and is classified as residential in consideration of the highest and best use of the land; (ii) Is vacant land that has a net taxable real property value of $2,000,000 to $4,000,000 and is classified as residential in consideration of the highest and best use of the land; or (iii) Is a condominium property regime that has a net taxable real property value of $2,000,000 to $4,000,000, does not have a home exemption, and is classified as residential in consideration of the highest and best use of the land. (C) “Residential tier three property” shall mean a property, or portion thereof, which: (i) Is improved with one or more dwelling units, has a net taxable real property value of more than $4,000,000, does not have a home exemption, and is classified as residential in consideration of the highest and best use of the land; (ii) Is vacant land that has a net taxable real property value of more than $4,000,000 and is classified as residential in consideration of the highest and best use of the land; or (iii) Is a condominium property regime that has a net taxable real property value of more than $4,000,000, does not have a home exemption, and is classified as residential in consideration of the highest and best use of the land. SUPP. 20 (7-2026) 19-71.1 REAL PROPERTY TAXES § 19-90 (3) The respective tax rate to be applied to any property within the residential class shall be applied only to the portion used exclusively as residential, provided the highest and best use of the land is residential. (4) No less than $9,000,000 of the revenue collected annually pursuant to this subsection or, whenever less than $9,000,000 is collected, all such revenue, calculated as the difference in revenue from the residential tier one property tax rate to the residential tier two and tier three property tax rates, shall be appropriated each fiscal year to County-sponsored programs designed to address housing and homelessness. This requirement shall not extend beyond June 30, 2027, unless otherwise amended by ordinance. Any remaining balance collected pursuant to this subsection at the end of the fiscal year shall be designated for this purpose. (g) Long-term rental tax rate. Notwithstanding any provision to the contrary, the tax rate for a property that is classified as long-term rental shall not be lower than the affordable rental housing tax rate rounded to the nearest five cents. Article 12. Appeals.