Payments in lieu of taxes are authorized under several sections of the law,
wherein local governments are permitted to approve such payments. These
agreements may affect state, county, and/or municipal taxes.
When an agreement is made, the local assessment office must be notified and
provided with the following:
1. the name of owner;
2. the name of the project;
3. a copy of the executed agreement; and
4. the calculation method or amount of payment in lieu of taxes.
No change in the status of the account is to be made unless this information
is provided. Upon receipt of this data, the Supervisor will calculate the
necessary abatements and make the following status changes:
1. change the land use code to E (exempt) or EC (exempt commercial);
2. assign an exempt status code of 1 (county exempt/state taxable), 2 (state
exempt/county taxable), or 3 (county and state exempt); and
3. assign an exempt class code of 805 (payment in lieu of taxes).
This coding provides a method of identification, makes the property exempt
from applicable taxes, and yet will continue to produce an assessment notice as
required by Tax-Property Annotated Code §8-401.
Payments to the Comptroller for the state portion of a payment in lieu shall
be separately estimated on the Office of the Comptroller reports without an
assessable base amount for the payment in lieu.
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