AGENDA ITEM 17
November 23,2010
Public Hearing/Action
MEMORANDUM
TO:
FROM:
County Council
~iChael
Faden, Senior Legislative Attorney
Public Hearing/Action:
Expedited Bill 55-10, Taxation - Transportation Impact
Tax - Credits - Amendments
SUBJECT:
Expedited Bill 55-10, Taxation - Transportation Impact Tax - Credits - Amendments,
sponsored by Councilmembers Knapp and EIrich, was introduced on October 26, 2010. Action
is tentatively scheduled following the public hearing.
Bill 55-10 would clarify the extent to which certain entities may apply unused
transportation impact tax credits to satisfy an obligation under Policy Area Mobility Review or a
successor policy area transportation test. This bill would modify an amendment to Bill 19-10,
Taxes - Transportation Impact Tax - Amendments, which the County Executive returned
unsigned on October 25.
This Bill would modify the previously-adopted amendment by:
• limiting any credits allowed to $1.7 million; and
• allowing credits to be used only if the Executive designates the receiving
development as a strategic economic development project.
This packet contains:
Expedited Bill 55-10
Legislative Request Report
F:\LAW\BILLS\1055 Impact Tax - Credits - Amendments\Public Hearing-Action Memo.Doc
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Expedited Bill No.
55-10
Concerning: Taxes - Transportation
Impact Tax - Credits - Amendments
Revised: 10-21-10
Draft No. _1_
Introduced:
October 26,2010
Expires:
April 26, 2012
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective:
-:---:--:------:~--:--:;:-:::-;-=-_­
Sunset Date: November 1, 2015
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmembers Knapp and EIrich
AN EXPEDITED ACT
to:
(1)
modify the credits that apply to the transportation impact tax; and
(2)
generally amend County law regarding impact taxes.
By amending
Montgomery County Code
Chapter 52, Taxation
Section 52-55
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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EXPEDITED BILL NO.55-10
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Sec.
1.
Section 52-55 is amended as follows:
52-55.
(a)
Credits.
*
(2)
*
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[Any credit that was certified before July 1, 2002, for an entity
that received more than $20 million in credits under this
subsection may be applied to satisfy up to $2 million worth of
obligations under Policy Area Mobility Review or any successor
policy area transportation test, in addition to impact taxes. This
paragraph is not effective after October 31, 2015.]
(A) An entity that received more than $20 million
in
credits
under this subsection that were certified before July
L
2002, may
mmlY
any unused credit to satisfy an obligation
under Policy Area Mobility Review, or any applicable
successor policy area transportation test, if:
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ill
the County Executive has identified the project for
which
£!
credit would be applied under this
paragraph as
£!
strategic economic development
project; and
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(ii) the credit is used before November
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2015.
ill)
The total of any credits used under this paragraph to satisfy
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an obligation under Policy Area Mobility Review, or any
applicable successor policy area transportation test, must
not exceed $1.7 million.
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Sec. 2. Expedited Effective Date.
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The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on the date when it becomes
law.
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LEGISLATIVE REQUEST REPORT
Taxation
DESCRIPTION:
Expedited Bill 55-10
Transportation Impact Tax
-
Credits
Amendments
Expedited Bill 55-10 would modify the provision which allows
credits for the transportation impact tax to apply to satisfy obligations
under Policy Area Mobility Review or a successor policy area
transportation test.
Need to further clarify the extent to which certain entities may apply
unused transportation impact tax credits to satisfy an obligation under
Policy Area Mobility Review or a successor policy area
transportation test.
To clarify the extent to which certain entities may apply unused
transportation impact tax credits to satisfy an obligation under Policy
Area Mobility Review or a successor policy area transportation test.
Departments of Transportation and Finance
To be requested.
To be requested.
To be requested.
To be researched.
Michael Faden, Senior Legislative Attorney, 240-777-7905
Glenn Orlin, Deputy Staff Director, 240-777-7936
Applies only to County transportation impact tax.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IlVIPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
N/A.
Q)
f:\law\bills\1055 impact tax - credits - amendments\legislative request report.doc