Transportation, Infrastructure, Energy and Environment!
Management and Fiscal Policy Committee
Faden, Senior Legislative Attorney
• " _
Leslie Rubin, Legislative Analyst, Office of Legislative Oversight! ;....
SUBJECT: Worksession 4:
Expedited Bi1115-1O, Taxation - Fuel-Energy Tax - Rate
Resolution to change fuel/energy tax rates
This is the joint Committees' fourth 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.
On April 22, the Executive proposed increasing the fuel/energy tax
rates by 100% for both
residential and non-residential taxpayers, which would double the revenue raised from the tax. This
followed his two previous proposals, each of which would have raised the tax rate by a lower amount.
The Executive's proposal would raise the average annual energy tax bill for each residential customer by
an estimated $98 (from $99 to $197) and for each non-residential customer by $2,459 (from $2,618 to
$5077). See table on ©56. (In our view the average annual or monthly tax bill is a somewhat useful
point of comparison for residential users even though household energy use varies considerable; it is a
much less useful number for non-residential users because the variations can be orders of magnitude
The Executive's proposed rates for each type of energy are shown on ©7. The current rates,
which the tax would revert to on July
2012 under the Executive's proposal, are shown on ©8. The
"short form" rates, using 5 decimal places instead of 10, as Council staff recommends, are shown on
At the Committees' last worksession, Executive Branch staff also endorsed reallocating how the
tax is apportioned between residential and non-residential rate payers while still raising the same amount
of revenue in FYIl. Tax rates for non-residential rate payers currently are 2
times the residential tax
Thank you to OLO Research Associate Sarah Downie, who contributed to the analysis of this issue.
2Hereinafier, the energy tax.