BUILDING EXCISE TAX

A Building Excise Tax has been established under Title 20, Subtitle II of the Howard County Code. The tax applies to all new construction and addition construction in Howard County for the purpose of financing capital projects for additional or expanded public road facilities.

HOW THE TAX IS DETERMINED

The Department of Inspections, Licenses and Permits, Plan Review Division, calculates the tax based on the rate schedule and excise tax occupancy type “Residential” or “Non-Residential” and the occupiable gross area of proposed construction.

RESIDENTIAL refers to:
A building which contains one or more dwelling units, including boarding houses, but not including transient accommodations such as hotels, country inns or bed and breakfast inn. RESIDENTIAL includes uses accessory to dwelling units such as attached garages or home occupations, but does not include non-residential uses in mixed use structures.

NON-RESIDENTIAL refers to:

OFFICE RETAIL – Business or professional offices, the sale or rental of merchandise, materials or services, including stores, personal service establishments, service agencies, commercial recreation facilities, hotels and conference centers, restaurants, theaters, banks and other financial institutions, trade schools and similar commercially operated schools, motor vehicle or appliance repair facilities and similar uses, and research laboratories.

DISTRIBUTION, MANUFACTURING, INSTITUTIONAL AND OTHER –Use of a building for religious activities; non-profit clubs, lodges or community halls; day care enters, nursery schools and private academic schools; hospitals, nursing homes and group care facilities; recreational facilities or retreat center operated by non-profit organizations; funeral homes and mausoleums; public utility substations and similar uses; warehousing, distribution, packaging, processing, manufacturing, storage of construction equipment or supplies and similar uses; and other non-commercial uses similar to those listed in this definition or which do not meet the definitions for Residential, Office and Retail, or Distribution and Manufacturing uses.

RATE SCHEDULES-EFFECTIVE JULY 1, 2010

An applicant pays the excise tax to the Director of Finance at the same time the applicant pays for the building permit. The building excise tax rate is:

RESIDENTIAL

Each additional gross square foot of new construction....$0.99

Each gross square foot of addition construction....$0.99

NON-RESIDENTIAL

Office and retail-per gross square foot of addition construction or new construction....$0.99

Distribution and manufacturing-per gross square foot of addition construction or new construction....$0.50

Institutional and other-per gross square foot of addition construction or new construction....$0.50

APPEAL OF AMOUNT

If you disagree with the calculated tax, you may appeal the decision to the Board of Appeals within 30 days, provided that either:

• Processing of the building permit is delayed pending the decision of the Board of Appeals; or
• The applicant pays the building excise tax prior to filing the appeal.

WHO TO CALL FOR ASSISTANCE:

• General Information
  410-313-2436 (Plan Review)
• Fax 410-313-3298
• TTY 410-313-2323