AGENDA ITEM 25
April 20, 2010
#ichael Faden, Senior Legislative Attorney
Expedited Bil115-1O, Taxation - Fuel-Energy Tax - Rate and
Resolution to change fuel/energy tax rates
Expedited Bill 15-10, Taxation - Fuel-Energy Tax - Rate, and the alternative resolution
to change the fuel/energy tax rates, sponsored by the Council President at the request of the
County Executive, was introduced on March 23, 2010.
A Management and Fiscal
Policy/Transportation, Infrastructure, Energy and Environment (MFP/T&E) Committee
worksession is scheduled for April 21 at 9 a.m.
This Bill and resolution, as proposed on March 15, would increase the current rates ofthe
fuel-energy tax by 39.6% to raise an estimated additional $50 million in FYIl. For current
energy tax revenue data, see the budget table on © 11.
On March 25 the Executive proposed a revised rate schedule (see ©12) that would raise
each category of rates by 63.7%, rather than the original 39.6%, to raise about $80 million, rather
than $50 million, more in FYIl. For data on the impact of the proposed 63.7% increase, see
© 16. Given the recent news of further shortfalls in revenue from the County income tax,
Council staff would not be surprised to see another increase in the proposed rates when the
Executive submits revised budget recommendations this week.
Council staff will recommend that the resolution, rather than the Bill, be the vehicle for
any action on this item. Council President Floreen recently advised her colleagues that Council
action on the energy
would be scheduled for May 19.
This packet contains:
Expedited Bill 15-10
Legislative Request Report
Memo from County Executive
Rate schedule (3 -15-1 0)
Revised rate schedule (3-25-10)
Finance Department answers to OLO questions
Comparative revenue data
Data on impact of increase
F:\LA w\BILLS\1015 Fuel Energy Tax\Public Hearing Memo.Doc