Casey Development Corp. v. Montgomery County, 212 Md. 138

Summary

The Maryland Court of Appeals reviewed a summary judgment enforcing taxes assessed on improvements substantially completed during the taxable year. The court held that the taxpayer was not precluded from challenging the validity or absence of a levy because the statutory appeal process addressed assessments, not levies. It further held that the Montgomery County statute was self-executing and validly authorized the county tax, except that its provision imposing a State-purpose tax violated the uniformity requirement of Article 15 of the Maryland Declaration of Rights; the invalid provision was severable.

Holdings

1. The taxpayer was not barred from asserting the invalidity or absence of a levy, or the unconstitutionality of the taxing statute, as a defense in the tax-collection action merely because it failed to appeal the assessment to the State Tax Commission.
2. The provision requiring improvements in Montgomery County to be taxed at three-fourths of the rate levied for State purposes violated Article 15 because it imposed a State tax in one county without applying the same tax throughout the State.
3. The unconstitutional requirement concerning taxes for State purposes was severable, leaving valid the provision taxing qualifying improvements at three-fourths of the regular county rate.
4. Section 22-2 did not conflict with section 22-4, and no additional county levy was required because section 22-2 itself constituted a legislative levy for the qualifying improvements.
5. Summary judgment for Montgomery County was proper, and the judgment was affirmed.

Questions Presented

1. Whether a taxpayer sued for collection of taxes may challenge the validity or absence of the levy as a defense despite failing to appeal the assessment to the State Tax Commission.
2. Whether section 22-2 of the Montgomery County Code was invalid because it lacked a provision for a separate levy or conflicted with section 22-4.
3. Whether section 22-2 violated Article 15 of the Maryland Declaration of Rights by imposing a nonuniform State tax on improvements in Montgomery County.
4. Whether the unconstitutional State-tax portion of section 22-2 was severable from the valid county-tax portion.
5. Whether summary judgment for Montgomery County was proper.

Disposition

affirmed