1. Hypothetical project. A vacant parcel with no existing units, developed into 100 new rental apartments. The land value represents the tax-reference-year assessment; the building slider represents additional assessed value, not construction cost. The original land tax is existing revenue, not new revenue. The project is assumed to qualify for and receive the New Rental Housing Tax Credit; see note 2 for eligibility requirements.

2. Eligibility. Assumes the project qualifies for and receives the New Rental Housing Tax Credit. Under Takoma Park Code § 6.16.190, qualifying projects must create at least 10 net new rental units and meet planning, permit, occupancy, good-standing and application requirements. No general affordability requirement applies to this particular credit. The credit applies only to city property taxes.

3. Property-tax calculation. The itemized statement automatically applies the assumed qualifying credit for the selected year and shows existing land tax, new building tax, and a negative credit, followed by total city property tax. The net new revenue excludes the land tax already collected. Existing annual tax = land reference assessment × 0.005422. Added annual tax before credit = added assessed building value × 0.005422. Annual credit = eligible added tax × selected-year credit rate. Net new city property-tax revenue = added tax − credit. Years 1–10: 100% credit; years 11–15: 80%, 60%, 40%, 20%, 10%; years 16–20: 0%. Actual credits use the tax-reference-year bill and each year's tax bill, so reassessments and tax-rate changes may alter results. Source: § 6.16.190(D). FY2027 city rate: $0.5422 per $100 assessed value, Takoma Park FY2027 budget information.

4. Apartment mix. The sliders always total 100 apartments. The monthly rents are hypothetical. Annual qualifying household income is calculated as monthly rent × 3 × 12. The fixed 3× monthly rent assumption is an illustrative screening threshold, not a measure of tenants’ actual income. Residents may earn more or qualify by other criteria.

5. New residents. The default assumes 100% of households move from outside Takoma Park. In reality, some may move from other homes within the city. Income taxes already paid by existing city residents are not new municipal revenue. The slider divides modeled income-tax revenue between new residents and existing residents relocating within Takoma Park. The latter is not additional city revenue. The calculation assumes comparable average incomes in both groups.

6. Income-tax estimate, formula and limitations. The model estimates combined annual gross household income using monthly rent × the fixed assumed 3× qualifying-income multiple × 12, regardless of the number of earners. This estimate uses an assumed income requirement rather than actual tenant incomes.It cannot account for filing status, marriage, children or other dependents, deductions, exemptions, credits, or other circumstances that affect Maryland taxable income. Gross income is not adjusted gross income or taxable income. The estimate therefore represents an illustrative high-water-mark scenario rather than a forecast; actual city receipts will generally be lower, though individual circumstances vary. Formula: modeled new municipal income tax = Σ (apartments of each type × monthly rent × 3 × 12) × percentage of households new to Takoma Park × 3.2% × assumed 17% municipal allocation. he model assumes new and existing households have comparable average incomes.

Scope. These figures exclude city service costs, state aid, county taxes, assessment changes, and other fiscal effects. This is an illustrative revenue model, not a fiscal-impact study.