AGENDA ITEM 15
January 18,2011
Public Hearing
MEMORANDUM
TO:
FROM:
County Council
~
Michael Faden, Senior Legislative Attorney
Public Hearing:
Expedited Bill 59-10, Transportation Impact Tax ­
Amendments - White Flint Impact Tax District
SUBJECT:
Expedited Bill 59-10, Transportation Impact Tax - Amendments White Flint Impact
Tax District, sponsored by the Council President at the request of the County Executive, was
introduced on December 14, 2010. A Government Operations and Fiscal Policy Committee
worksession is tentatively scheduled for January 31, 2011 at 9:30 a.m.
Bill 59-10 would:
• create a White Flint impact tax district;
• define the boundaries ofthe district, coterminous with the White Flint special taxing
district created by Bill 50-10;
• set the rate of impact taxes for the district at $0, as the Council tentatively decided when
it reviewed the White Flint financing plan; and
• apply the $Otax rate for any development for which an application for a building permit
is filed on or after December 1,20 IO.
This packet contains:
Expedited Bill 59-10
Legislative Request Report
Memo from County Executive
Fiscal Impact Statement
Circle
#
1
4
5
6
F:ILA\\lIBILLSII 059 Trans Impact Tax-White Flint Impact DistlPublic Hearing Memo.Doc
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Expedited Bill No.
59-10
Concerning: Transportation Impact Tax
- Amendments - White Flint Impact
Tax District
Revised: 12-9-10
Draft No. 1
Introduced:
December 14,2010
Expires:
June 14, 2012
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective:
December 1, 2010
Sunset Date: . .:.N.:.:;o: .:.:n:.: : .e_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request of the County Executive
AN
EXPEDITED ACT
to:
(1)
create a White Flint impact tax district;
(2)
define the boundaries ofthe White Flint impact tax district;
(3)
set the rates of the transportation impact tax for the district; and
(4)
generally amending the law governing the transportation impact tax.
By amending
Montgomery County Code
Chapter 52, Taxation
Sections 52-49 and 52-57
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 hill.
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. 59-10
1
2
Sec.
1.
Sections 52-49 and 52-57 are amended as follows:
52-49.
Imposition and applicability of development impact taxes.
3
*
(C)
*
*
4
The following impact tax districts are established[, consisting of the
listed Policy Areas as defined in the Growth Policy]:
5
6
7
8
(l)
Metro Station:
Friendship Heights, Bethesda CBD, Grosvenor,
White Flint, Twinbrook, Rockville Town Center, Shady Grove
Metro, Silver Spring CBD, Wheaton CBD, and Glenmont
Metro station policy
areas~
9
as defined in the most recent
10
Subdivision Staging Policy, except as modified
12y
paragraph
11
12
1±l
for the White Flint policy area;
(2)
Clarksburg:
Clarksburg policy
area~
as defined in the most
13
14
recent Subdivision Staging Policy;
(3)
White
Flint:
The area included in the White Flint Special
15
16
17
Taxing District in Section 68C-2; and
1±l
General:
Any part of the County, including any municipality,
not located in [a listed policy area] an area listed in paragraphs
(1)-(3).
18
19
*
52-57. Tax rates.
(a)
*
*
district~
20
21
22
The tax rates for each impact tax
subsection (Q1 are:
except as provided in
23
24
*
(hl
*
*
For any development located in the White Flint Impact Tax District, the
25
Tax per Dwelling Unit or per Square Foot ofGross Floor Area (GFA)
Building Type
~----------------------------
I
White Flint
F:\LAw\BILLS\1 059 Trans Impact Tax-White Flint Impact Dist\BiII.Ooc
-0
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EXPEDITED BILL
No. 59-10
• High-rise residential (per dwelling unit)
I
$0
$0
I
Multifamily-senior residential (per dwelling unit)
• Office (per sq. ft. GFA)
I
Industrial (per sq.ft. GFA)
$0
$0
$0
$0
$0
$0
$0
$0
I
Bioscience facility (per sq.ft. GF A)
I
Retail (per sq.ft. GFA)
• Place of worship (per sq.ft. GFA)
Private elementary and secondary school (per sq.ft. GF A)
Hospital (per sq.ft. GF A)
Other nonresidential (per sq.ft. GFA)
26
[(b)]
(9
[(c)]@
[(d)]W
27
28
29
30
31
32
33
34
35
[(e)]
(1)
[(£)]00
Sec. 2.
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
Expedited Effective Date.
The Council declares that this Act is necessary for the immediate protection
of the public interest. This Act takes effect on the date when it becomes law, and
applies to any development for which an application for building permit is filed on or
after December 1,2010.
Approved:
36
37
38
Valerie Ervin, President, County Council
Date
39
Approved:
40
41
Isiah Leggett, County Executive
Date
o
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LEGISLATIVE REQUEST REPORT
Expedited Bill 59-1
Transportation Impact Tax Amendments
-
White Flint Impact Tax District
°
DESCRIPTION:
The requested legislation establishes a new White Flint Impact Tax
District, defines the boundaries of the District, and sets the tax rate in
the District.
Implementation of the White Flint Sector Plan.
Implementation of the White Flint Sector Plan through (1) this
legislation, (2) Bill 50-10, White Flint Special Taxing District, (3)
Resolution 16-1570, White Flint Sector Plan Implementation
Strategy and Infrastructure Improvement List, and (4) $385,000
Special Appropriation to the FYll Capital Budget and Amendment to
the FY11-16 Capital Improvements Program (CIP) for White Flint
District West: Transportation Project.
Department of Finance; Office of Management and Budget
To be requested.
To be requested.
N/A
N/A
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL INIPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
Jennifer Barrett, Director, Department of Finance
Joseph Beach, Director, Office of Management and Budget
Kathleen Boucher, Assistant Chief Administrative Officer
Diane S. Jones, Assistant Chief Administrative Officer
N/A
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
N/A
f:\law\bills\1059 trans impact tax-white flint impact dist\lrr.doc
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OFFICE OF THE COUNTY EXECUTIVE
ROCKVILLE, MARYL.t..ND 20850
Isiah Leggett
County Executive
MEMORANDUM
December 9,2010
TO:
FROM:
SUBJECT:
Valerie Ervin, President, County council'1Q
Isiah Leggett, County
.
Executive~~.,,::;j-,r---
Vvllite Flint Impact Tax District
I am transmitting for Council introduction a bill to create a %ite Flint
Impact Tax District. This is a follow-up to the Council's action, on November 30, 2010,
on Bill 50-10, %ite Flint Special Tax District and Resolution 16-1570, %ite Flint Sector
Plan Implementation Strategy and Infrastructure Improvement List.
Bill 50-10 created a special tax district for the %ite Flint area that is
intended to replace certain development transportation charges, including transportation
impact taxes. Resolution 16-1570 outlined an implementation strategy for the %ite Flint
Special Tax District which includes creation of a %ite Flint Impact Tax District, with tax
rates of $0, to replace the existing transportation impact tax in %ite Flint.
The attached legislation creates the %ite Flint Impact Tax District
envisioned in Resolution 16-1570. The boundaries of this distract are the same
as
the
boundaries for the %ite Flint Special Tax District. Within this area, the transportation
impact tax rate
is
to be
set at $0.
Executive staff are available to assist the Council in any way as it considers
the attached legislation. Thank you for your consideration and assistance in moving the
%ite Flint Sector Plan forvvard towards realization.
cc:
Jennifer Barrett, Director, Department of Finance
Art
Holmes, Director, Department of Transportation
Carla Reid, Director, Department of Permitting Services
Diane Schwartz Jones, Assistant Chief Administrative Officer
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OFFICE OF MANAGEMENT AND BUDGET
Isiah Leggett
County Executive
Joseph F. Beach
Director
MEMORANDUM
January 11, 2011
TO:
FROM:
Valerie Ervin, President, County Council
Joseph F. Beach, Director
6.~I{t--
Amendments - White Flint Impact
SUBJECT: Council Expedited BiH 59-10, Transportation Impact Tax
Tax. District
The purpose of this memorandum is to transmit a fiscal and economic impact statement to the
Council on the subject legislation.
LEGISLATION SUMMARY
Bill 59·10 would:
• create a White Flint impact tax district;
• defme the boundaries of the district, coterminous with the White Flint special taxing
district created by Bill No. 50-10;
• set the rate of impact taxes for the district
at
$0; and
• apply the $0 tax rate for
any
development for which an application for a building permit
is filed
00
or after December 1,2010.
F~CALANDECONOMITCSUMMARY
Bill 59·10 was designed to provide relief from a perceived and/or
actual
duplicate
tax
burden
on developers who will also be paying the White Flint special taxing district
tax.
The economic
impac~
of
the bill is anticipated to be the removal of any such duplicate taxation as a potential hindrance to
redevelopment proceeding; thus allowing significant economic development and
tax
base creation consistent
with the White Flint Sector Plan. The estimated fiscal impact/return from the entire White Flint Sector Plan,
assuming full build-out over the 40 year life ofthe Sector Plan, is over $6.8 billion. The estimated amount of
impact tax district taxes that would be foregone under Bill 59·10 is about $72 million, also over the life of
the Sector Plan, and estimated at current impact tax rates.
The following contributed to and concurred with this analysis: Jennifer Barrett and
Mike Coveyou, Department ofFinance; and Bryan Hunt and John Cuff, Office of Management and Budget.
JFB:bh
c: Kathleen Boucher, Assistant ChiefAdministrative Officer
Dee Gonzalez, Offices ofthe County Executive
Jennifer Barrett, Director, Department of Finance
Mike Coveyou, Department ofFinance
John Cuff, Office of Management and Budget
Bryan Hunt, Office ofManagement and Budget
Office of the Director
101 Monroe Street,
• Rockville, Maryland 20850 • 240-777·2800
www.montgomerycouutymd.gov