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Terms Used In Maryland Code, LAND USE 18-309

  • Contract: A legal written agreement that becomes binding when signed.
  • County: means a county of the State or Baltimore City. See
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Personal property: All property that is not real property.
  • Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
(a) (1) Subject to subsection (b) of this section, the Commission may enter into an agreement with the owner of a facility for the generation of electricity that locates in Prince George’s County for a negotiated payment by the owner in lieu of taxes imposed on real or personal property of the facility under this subtitle.

(2) An agreement for a negotiated payment in lieu of taxes under this section shall provide that, for the term specified in the agreement:

(i) the owner shall pay a specified amount each year in lieu of the payment of taxes imposed on real or personal property under this subtitle; and

(ii) all or a specified part of the real or personal property at the facility shall be exempt from taxes imposed on real or personal property under this subtitle for the term of the agreement.

(3) An agreement for a negotiated payment in lieu of taxes under this section shall:

(i) be recorded in the land records of Prince George’s County; and

(ii) require that the obligation of the owner of a facility for the generation of electricity to make, in a timely manner, a payment in lieu of taxes:

1. be guaranteed by appropriate entities affiliated with the owner of the facility;

2. be a covenant running with the land;

3. create a lien attached to the property and fixtures of the facility that is enforceable in accordance with the Maryland Contract Lien Act; and

4. be secured by a security interest in all or a specified part of the personal property of the owner of the facility that is perfected and enforceable in accordance with Title 9 of the Maryland Uniform Commercial Code.

(b) Before entering into or amending an agreement for a negotiated payment in lieu of taxes under this section, the Commission shall obtain:

(1) certificates endorsed by the Secretary-Treasurer of the Commission and the Director of Finance of Prince George’s County affirming that the terms of the agreement are reasonably expected to generate more revenue for the Commission than would be generated if the facility for the generation of electricity did not locate in Prince George’s County; and

(2) the affirmative approval of the terms of the agreement by the County Executive, County Council, and Planning Board of Prince George’s County, as evidenced by:

(i) an executive order of the County Executive;

(ii) a resolution of the County Council; and

(iii) a resolution of the Planning Board.

(c) Except as otherwise provided in an agreement under this section, a payment in lieu of taxes that the Commission receives shall be distributed to the funds of the Commission in the same proportion that the taxes imposed on real or personal property under this subtitle are distributed during the fiscal year when the payment is received.

(d) As specified in an agreement for a negotiated payment in lieu of taxes under this section, for the term specified in the agreement, the real or personal property at a facility for the generation of electricity that locates in Prince George’s County is exempt from the taxes imposed on real or personal property under this subtitle.