Expedited Bill No. 30-12

Concerning: Taxation - Payments – Subdivision Staging Policy                               

Revised:    12-11-12          Draft No. 3  

Introduced:      November 13, 2012        

Enacted:         December 11, 2012        

Executive:       December 19, 2012        

Effective:        January 1, 2013             

Sunset Date:  None                             

Ch.   28    , Laws of Mont. Co.    2012    

County Council

For Montgomery County, Maryland

By: Councilmember Floreen

AN EXPEDITED ACT to:

(1)        revise the procedure for setting and amending the rates for the transportation mitigation and school facilities payments authorized in the Subdivision Staging Policy; and

(2)        generally amend the law governing the transportation mitigation and school facilities payments.

By amending

            Montgomery County Code

            Chapter 52, Taxation

            Sections 52-59 and 52-94

Boldface Heading or defined term.

Underlining Added to existing law by original bill.

[Single boldface brackets] Deleted from existing law by original bill.

Double underlining Added by amendment.

[[Double boldface brackets]] Deleted from existing law or the bill by amendment.

*   *   *                                                  Existing law unaffected by bill.

The County Council for Montgomery County, Maryland approves the following Act:

          Sec. 1.  Section 52-59 is amended as follows:

52-59.                   Transportation Mitigation Payment.

(a)     In addition to the tax due under this Article, an applicant for a building permit for any building on which an impact tax is imposed under this Article must pay to the Department of Finance a Transportation Mitigation Payment if that building was included in a preliminary plan of subdivision that was approved under the Transportation Mitigation Payment provisions in the County Subdivision Staging Policy.

(b)     The amount of the Payment for each building must be calculated by multiplying the Payment rate by the total peak hour trips generated by the development.

(c)      The Payment rate [is $11,300 per peak hour trip, unless modified] must be set by Council resolution, including a resolution that amends the Subdivision Staging Policy.  The [Planning Board] Director of Finance must adjust the then-applicable Payment rate as of July 1 of [[each]] 2015 and each later odd-numbered year by the annual average increase or decrease in a published construction cost index specified by [the Board] regulation for the two most recent calendar [year.  The Board must adjust the rate] years to the nearest multiple of $10.  The Director must publish the amount of this adjustment in the County Register not later than May 1 of each odd numbered year.  The Council by resolution, after a public hearing advertised at least 15 days in advance, may increase or decrease the Payment rate or set different rates for different types of development.

(d)     The Payment must be paid at the same time and in the same manner as the tax under this Article, and is subject to all provisions of this Article for administering and collecting the tax.

(e)      The Department of Finance must retain funds collected under this Section in an account to be appropriated for transportation improvements that result in added transportation capacity in the area where the development for which the funds were paid is located.

          Sec. 2.  Section 52-94 is amended as follows:

52-94.      School Facilities Payment.

(a)    In addition to the tax due under this Article, an applicant for a building permit for any building on which a tax is imposed under this Article must pay to the Department of Finance a School Facilities Payment if that building was included in a preliminary plan of subdivision that was approved under the School Facilities Payment provisions in the County Subdivision Staging Policy.

(b)    The amount of the Payment for each building must be calculated by multiplying the Payment rate by the latest per-unit student yield ratio for any level of school found to be inadequate for the purposes of imposing the School Facilities Payment in the applicable Subdivision Staging Policy and for that type of dwelling unit and geographic area issued by MCPS.

(c)    The Payment [rate is $19,514 per elementary school student, $25,411 per middle school student, and $28,501 per high school student, unless modified] rates must be set by Council resolution.  The Director of  Finance must adjust the then-applicable Payment rates as of July 1 of 2015 and each later odd-numbered year, based on the construction cost of a student seat for each school level as certified by the Superintendent of Montgomery County Public Schools for the two most recent calendar years, to the nearest multiple of $10.  The Director must publish the amount of this adjustment in the County Register not later than May 1 of each odd numbered year. The Council by resolution, after a public hearing advertised at least 15 days in advance, may increase or decrease the Payment rate or set different rates for different types of housing unit.

(d)    The Payment must be paid at the same time and in the same manner as the tax under this Article, and is subject to all provisions of this Article for administering and collecting the tax.

(e)    The Department of Finance must retain funds collected under this Section in an account to be appropriated for MCPS capital improvements that result in added student capacity for, to the extent possible, the affected grade level in the school cluster, or, if no cluster is established, another geographic administrative area, where the development for which the funds were paid is located.

Sec. 3.  Expedited Effective Date.  The Council declares that this legislation is necessary for the immediate protection of the public interest.  This Act takes effect on January 1, 2013.

Sec. 4.  Transition.  Any amendment to County Code Section 52-59 made in Section 1 of this Act does not affect any payment paid, or required to be paid, under Section 52-59 before it was so amended.  Any such payment that was not paid, or was not due to be paid, before January 1, 2013, must be paid as if Section 52-59 had not been so amended.

Approved: