Solid Waste Charge for Nonresidential Properties

"Commercial" Rate (applies to properties both inside and outside of municipalities)

How the Systems Benefit Charge is Calculated

Calculating the systems benefit charges for the nonresidential sector consists of several steps. First, the gross floor area of the total enclosed area of all the nonresidential sectors is calculated using the Maryland State Assessment and Taxation property tax database. These gross floor area amounts are divided by 2,000 square feet to determine the gross floor area units (GFAUs) for all nonresidential properties. Then, the gross floor area units (chargeable units) are placed into waste generation categories (low, medium-low, medium, medium-high, and high) based on inferential statistical analysis performed by an outside statistician contractor.

The gross floor area units (chargeable units) contained in each of the waste generation categories are multiplied by the explicit ratios determined by an engineering study, which is 0.2 for the low waste generation category, 0.6 for the medium-low waste generation category, 1.0 for the medium waste generation category, 1.4 for the medium-high waste generation category, and 1.9 high waste generation category. The resultant product is called the effective chargeable units or weighted units. These ratios ensure that the higher waste generators pay higher fees and lower waste generators pay a lower fee.

The effective chargeable units are summed and divided into the total allocated costs to the nonresidential sector to arrive at the base rate. Then, the base rate is multiplied by each of the weighted effective chargeable units for each waste generation category, which allocates the cost to each waste generation category. These allocable costs for each waste generation category are divided by the total GFAUs for each waste generation category to arrive at the total unit cost for each waste generation category. To determine the breakout of the base and incremental unit costs for each waste generation category, divide the total base cost and the total incremental cost for each waste generation category separately by total allocable costs to the nonresidential sector to arrive at the percent of base and incremental costs to total costs. Use these percentages to determine the unit base cost and unit incremental cost for each waste generation category by multiplying the percentage by the total unit cost.

Disposal Fees

• ZERO - not applicable to non-residential property owners.

• The County charges a Tipping Fee to private refuse collectors (not to the property owner) depositing refuse from nonresidential properties at the Shady Grove Processing Facility and Transfer Station. Private refuse collection companies may pass this cost along to their nonresidential customers.

Base Systems Benefit Charge

• Paid by owners of properties with improvements valued over $5,000 via property tax bill.

• Covers that portion of the County's costs of providing basic solid waste services to manage nonresidential waste, which costs are not covered by Tipping Fees.

• Base Services are the programs and facilities necessary to fulfill the County's legal obligation to provide for the management of all non-residential solid waste generated within the County. These include:

  • overall solid waste program administration
  • solid waste enforcement activities
  • the "Dickerson Facilities Master Plan" (an obligation to the citizens in the RRF area)
  • general program development
  • Division management personnel
  • general engineering and technical support
  • waste reduction programs
  • operation of the Resource Recovery Facility, and
  • debt service (Debt service is used to pay to capital projects).

• Businesses vary quite widely in the amount of waste that they generate. Therefore, the Base System Benefit Charge is assessed on the basis of two relating factors:

  • the pounds of waste estimated to be disposed per-square-foot base on the type of land use, and
  • the actual "enclosed" area on the property.

• Waste estimated to be generated for disposal from the different land use types is grouped into the five Generator Categories as follows:

  Generator Category	Definition
  Low	0 to 2 pounds per sq.ft. per year
  Medium Low	> 2 to 4 pounds per sq.ft. per year
  Medium	> 4 to 6 pounds per sq.ft. per year
  Medium High	> 6 to 8 pounds per sq.ft. per year
  High	> 8 pounds per sq.ft. per year

• The County obtains both the land use and the floor area from State records, and charges on the basis of 2,000 square foot units as follows:

  Generator Category	Code on Tax Bill	Base Systems Benefit Charge
  Low	34 or 44	$194.45 per 2,000 sq. ft. unit
  Medium Low	35 or 45	$583.35 per 2,000 sq. ft. unit
  Medium	36 or 46	$972.25 per 2,000 sq. ft. unit
  Medium High	37 or 47	N/A
  High	38 or 48	$1,750.05 per 2,000 sq. ft. unit

Incremental Systems Benefit Charge

• Paid by all properties via tax bill.

• This charge is calculated to cover the County’s costs for assisting the nonresidential properties to develop more effective recycling efforts, including the review of business recycling plans and program designs, educational materials, technical outreach and enforcement. During Calendar Year 2022, the nonresidential sector was estimated to achieve a recycling rate of 52.09% of its waste stream. County programs funded by this fee are designed to boost that rate.

• The amount of the Incremental Systems Benefit Charge is also based on size of improved floor area and the waste generation characteristics of the property:

  Generator Category	Code on Tax Bill	Incremental Systems Benefit Charge
  Low	34 or 44	$23.61 per 2,000 sq. ft. unit
  Medium Low	35 or 45	$70.83 per 2,000 sq. ft. unit
  Medium	36 or 46	$118.05 per 2,000 sq. ft. unit
  Medium High	37 or 47	N/A
  High	38 or 48	$212.49 per 2,000 sq. ft. unit

  This table relates all of the State of Maryland uses to the five Generator Classifications:
  Nonresidential Land Use Codes and Generation Classes (PDF)
  
  Use the Maryland Department of Assessments and Taxation Real Property Data Search to get a detailed property description, including your land use code.

Refuse Collection Charge

• Not applicable to non-residential properties.

Leaf Vacuuming Charge

• Not applicable to non-residential properties.

Appeals

There is an appeals process if the owner of a nonresidential property believes that the square footage figure or the generator classification is incorrect.

Specific documentation must be provided, and any appeal must be received, on the form provided by the Department, by September 30.

Download the appeal form, contact Ermias Kifle at 240-777-6441 or email [email protected] for assistance.

Land Use Types and Solid Waste Generator Categories

In accordance with Montgomery County Executive Regulation 9-99 regarding the systems benefit charge for nonresidential properties, a table showing land use types and solid waste generator categories is hereby posted.

* Montgomery County Land Use Coding Manual (PDF)