T &E/MFP ITEM 1-2
Transportation, Infrastructure, Energy and Environment!
Management and Fiscal Policy Committee
Q'Michael Faden, Senior Legislative Attorney
",""Leslie Rubin, Legislative Analyst, Office of Legislative
SUBJECT: Worksession 3: Expedited Bill 15-10, Taxation - Fuel-Energy Tax
Resolution to change fuel/energy tax rates
This is the joint Committees' third worksession on Expedited Bill 15-10, Taxation - Fuel-Energy
Tax Rate and the companion Resolution to change fuel/energy tax rates, both sponsored by the Council
President at the request of the County Executive and introduced on March 23,2010.
As most recently revised, the Executive would increase the fuel/energy tax rates by 100% for both
residential and non-residential taxpayers. This proposal is the Executive's second revised rate increase since
the release of his FYII recommended operating budget on March 15.
The Executive's April 22 proposal would implement the rate increase retroactively to May 1, raising
an additional $21 million in FYlO, and would sunset the tax rate increase at the end of FY12. The
Executive's Apri122 budget adjustments memo noted:
Due to the severity and most recent income tax write down, I am recommending a higher increase
in the County's fuel energy tax. This increase, combined with the increases recommended on
March 25 will raise an additional $21.4 million in FYlO and $79.8 million in FYIl. Recognizing
the significant impact that this increase will have on County residents and businesses, I am
recommending that the FYII total increase in the Fuel Energy Tax sunset at the end ofFY12.
The table below summarizes the Executive's three proposals and the projected FYll revenue from
Summary of County Executive's proposed fuel/energy tax increase
Source: Department of Finance