April 29, 2010
April 27, 2010
Management and Fiscal Policy and Transportation, Infrastructure, Energy
Michael Faden, Senior Legislative Attorne'y
Amanda Mihill, Legislative
Expedited Bill 29-10, Taxes - Excise Tax
Expedited Bill 29-10, Taxes - Excise Tax Carbon Dioxide Emissions, sponsored by
Councilmembers Berliner, Leventhal and EIrich, was introduced on April 27, 2010. A public
hearing is tentatively scheduled for May 18 at 1:30 p.m.
Schedule. This worksession provides Committee members an opportunity for a
preliminary review of the provisions in Bill 29-10, raise questions, and request additional
information. A second worksessionjs tentatively scheduled for May 18 after the public hearing.
If the joint committee has completed its review, this schedule will give the Council the
opportunity to act on Bill 29-10 along with the other revenue measures on May 19.
29-10. The following is a list of major provisions in Bill
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 (©2, lines 17-19; 23-24). A "major emitter
of carbon dioxide" would be 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 (©2, lines 20-22). Bill 29-10 would allow the Council to increase or
decrease the rate by resolution (©2, lines 25-27). The tax would be payable monthly,
unless the Director establishes an alternate payment system (©3, lines 40-45).
Councilmember Berliner estimates that this tax could generate between $10 and $15
million per year in new revenue (©6).
2. Interest and penalties.
If a person does not pay the tax due under Bill 29-10, the
person would be liable for the following: