Agenda Item 6
tichael Faden, Senior Legislative Attorney
Expedited Bill 29-10, Taxes - Excise Tax - Carbon Dioxide Emissions
Management and Fiscal Policy Committeeffransportation, Infrastructure, Energy
and Environment Committee recommendation: enact with amendments.
Expedited Bill 29-10, Taxes - Excise Tax - Carbon Dioxide Emissions, sponsored
by Councilmembers Berliner, Leventhal, EIrich, Andrews and Trachtenberg, was introduced on
April 27, 2010. An initial Management and Fiscal Policy/ Transportation, Infrastructure, Energy
Environment Committee worksession was held on April 29, at which Committee members
discussed the Bill and related questions but took no action. A public hearing was held on May
18 and a second joint Committee worksession was held after the hearing.
Bill 29-10. The major provisions in Bill 29-10 include:
1) Tax levied.
Bill 29-10 would require a major emitter of carbon dioxide to pay an excise
tax of $5 per ton of carbon dioxide (see ©2, lines 17-19; 23-24). A "major emitter of
carbon dioxide" would
defined as a person who owns or operates a stationary source
of carbon dioxide that emits more than 1 million tons of carbon dioxide in a calendar year
(see ©2, lines 20-22). The Council could increase or decrease the rate by resolution (see
©2, lines 25-27). The tax would be payable monthly, unless the Director establishes an
alternate payment system (see ©4, lines 53-59).
2) Interest and penalties.
If a person does not pay the tax due, the person would be liable
• 1% interest on the unpaid tax per month for each month or part month after the tax is
• 5% of the amount of tax per month or part of a month after the tax is due, not to
exceed 25% of the tax (see ©4, lines 61-67).
3) Unpaid taxes.
If a person does not pay the tax when due, the Director of Finance could
obtain sufficient information to calculate the tax due and assess the tax and penalties
against the person by mailing a notice of the tax due (along with interest and penalties) to