2018 Maryland Code
Real Property
Title 11B - Maryland Homeowners Association Act
§ 11B-113.4. Annual charge
(a) Legislative intent. -- It is the intent of the General Assembly to prevent unfair treatment of property owners by a homeowners association when annual charges based on the assessed value of property imposed by the homeowners association increase at such a rate that it creates an unexpected windfall for the homeowners association.
(b) "Annual charge" defined. -- In this section, the term "annual charge" means a charge based on the current assessed value of property for county and State property taxes that is levied by a homeowners association on property in a development.
(c) Applicability of section. -- This section only applies to a development that:
(1) Contains at least 13,000 acres of land and has a population of at least 80,000; and
(2) Is governed by a homeowners association that levies an annual charge on property within the development.
(d) Calculating the annual charge. --
(1) A homeowners association shall base the annual charge for the revalued properties on the phased in value of property as provided under § 8-103 of the Tax - Property Article.
(2) If the value of an improved property has been reduced by the State or county assessments office after, or by reason of, a protest, appeal, credit, or other adjustment, the homeowners association shall reduce the annual charge on the property based on the reduced value.
(e) Calculating the annual charge -- Rebate or credit. -- Until the annual charge for the revalued property is based on the phased in value of property as required under subsection (d) of this section, if the value of the properties revalued as of the most recent date of finality as provided in § 8-104 of the Tax - Property Article exceeds the prior valuation by more than 10%:
(1) The increase shall be considered an unexpected windfall to the homeowners association that should be offset; and
(2) Beginning with the first year following the revaluation of the property for State property tax purposes, the homeowners association shall provide to the owner of the revalued property a rebate or credit in an amount equal to the portion of the annual charge that is attributable to the growth in the value of the revalued property in excess of 10%.
(f) Applicability of subsections (d) and (e). -- Subsections (d) and (e) of this section do not apply if a governing body certifies on or before April 1 in the first year following the revaluation of property values for State property tax purposes that the revenues from the annual charges are insufficient to meet the debt service requirements during the next taxable year on all bonds that the governing body anticipates will be outstanding during that year.
(g) Rate of assessed value of property. -- Notwithstanding any provision of the law to the contrary, when calculating an annual charge, a homeowners association may not consider the rate of assessed value of property to have increased by more than 10% in a taxable year.
