Expedited Bill No.
29-10
Concerning:
Taxes - Excise Tax ­
Carbon Dioxide Emissions
Revised: 5-18-10
Draft No.l
Introduced:
April 27. 2010
Enacted:
May 19.2010
Executive:
May 29.2010
Effective:
May 29, 2010
Sunset Date:
~N~on~e<-
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Ch.
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Laws of Mont. Co.
2010
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmembers Berliner, Leventhal, EIrich, Andrews and Trachtenberg
AN EXPEDITED ACT
to:
(1)
establish a reliable funding source for greenhouse gas reduction programs in the
form of an excise tax on major emitters of carbon dioxide;
(2)
set the rate of the tax and authorize the County Council to increase or decrease the
rate each year by resolution;
(3)
defme certain terms, and authorize the County Executive to issue certain regulations;
(4)
provide for collection of the tax and payment of interest and penalties, set the
effective date of the tax, and apply certain provisions oflaw to this tax;
(5)
require part of the revenue from this tax to be used for certain greenhouse gas
reduction programs; and
(6)
generally amend the County laws governing excise taxation.
By adding
Montgomery County Code
Chapter 52, Taxation
Article XIII, Excise Tax on Major Emitters of Carbon Dioxide
Sections 52-95 through [[52-99]]
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Boldface
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Double underlining
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* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
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. 29-10
1
Sec.
I.
Chapter 52 is amended by adding Article XIII, Excise Tax on
Major Emitters of Carbon Dioxide:
Article XIII. Excise Tax
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Major Emitters of Carbon Dioxide.
52-95.
Findings.
The County Council finds that:
ill)
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In December, 2009 the US Environmental Protection Agency found that
greenhouse gases in the atmosphere endanger both the public health and
the environment for current and future generations.
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{hl
Montgomery County has embraced an 80% reduction in greenhouse gas
emissions
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2050 and has begun to engage in programmatic efforts to
reduce these emissions.
These efforts constitute
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significant
investment
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the County and
its
constituents and cover both stationary
sources (County owned and otherwise) and mobile sources.
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(£)
It
is appropriate that the largest emitters of carbon dioxide in the County
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contribute to paying for these greenhouse gas reduction programs.
52-96.
ill)
Tax levied; rates.
Any major emitter of carbon dioxide, as defmed
in
subsection
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must
file
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tax return and
p§:Y
an excise tax each year on the privilege of
emitting carbon dioxide into the County airshed.
{hl
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A major emitter of carbon dioxide is any person who owns or operates
any stationary source of carbon dioxide located in the County that emits
more than
1
million tons of carbon dioxide in any calendar year.
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(£)
The rate of the tax established under subsection
ill)
is $5 per ton of
carbon dioxide emitted.
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The County Council
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resolution, after
§:
public hearing advertised
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under Section 52-17(c), may increase or decrease the rate set in
subsection
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EXPEDITED BILL
No. 29-10
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As used in this Article:
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ill
Ton,
when applies to carbon dioxide in gaseous form, means the
amount of gas in cubic feet which is the equivalent of 2000
pounds on
f!
molecular weight basis.
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ill
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Director
means the Director of Finance.
Person
includes
any
individual,
business,
corporation,
association, firm, partnership, group of individuals acting as
f!
unit, trustee, receiver, assignee, or personal representative.
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By regulations issued under method
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that are consistent with this
Article, the County Executive may further specify the administration of
this tax. These regulations must identify the source of verifiable and
measurable emissions data, which must
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a federal or state air pollution
control agency. on which the Director must base the amount of tax due
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52-97.
Credit.
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W
The Director must allow a credit against any tax due in an amount that
reflects the proportionate reductiOI;t in carbon dioxide emitted from
any source in the County if that reduction is attributable to any Cou.nty
greenhouse gas reduction program funded by revenue from this tax
that is allocated under Section 52-100. compared to the amount of
carbon dioxide emitted in the previous calendar year by each major
emitter of carbon dioxide.
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au
The Executive by regulation must further define which reductions in
emissions are considered in calculating this credit and how those
reductions are measured.
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[[52-97]] 52-98.
Due
- ­
- -
date.
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ExPEDITED BILL
No. 29-10
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The tax levied under Section 52-96 is due and payable for each month
on the last day of the next month. Each person subject to this tax must
file a report each month on a form supplied by
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Director.
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The Director may establish an alternative payment system.
If an
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alternative payment system is established, the Director must require
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pro-rated payment for any taxable period that ends before the system
takes effect.
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[[52-98]] 52-99.
Collection; interest and penalties; violation; lien.
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If any person does not
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the Director the tax due under Section 52-96,
that person is liable for:
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ill
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interest on the unpaid tax at the rate of one percent per month for
each month or part of
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month after the tax is due; and
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penalty of
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percent of the amount of the tax per month or part
of
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month after the tax is due, not to exceed 25 percent of the
tax.
The Director must collect any interest and penalty as part of the tax.
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If any person does not file a report or
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the tax when due, the Director
must obtain information on which to calculate the tax due and may
estimate the tax due based on the previous month's tax or any other
reasonable basis. As soon as the Director obtains sufficient information
on which to calculate any tax due, the Director must assess the tax and
penalties against the person. The Director must notify the person of the
total amount of the tax, interest, and penalties
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mail sent to the
person's last known address. This notice is prima facie evidence of the
tax due; entitles the County to judgment for the amount of the tax,
penalty, and interest listed in the notice; and gives the taxpayer the
burden of proving that the tax has been paid or any other sufficient
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EXPEDITED BILL
No. 29-10
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defense to the action. The total amount due must be paid within 10 days
after the date of the notice.
(£)
Every person liable for any tax under Section 52-96 must preserve for
:2
years suitable records necessary to detennine the amount of the tax.
The Director may inspect and audit the records at any reasonable time.
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Any failure to
PID:
the tax when due under Section 52-97, and any
violation of Section 52-97 or this Section, is
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Class A violation. Each
violation is
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separate offense. A conviction under this subsection does
not relieve any person from paying the tax.
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Section 52-18D applies to this tax.
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[[52-99]] 52-100. Allocation of Revenue.
Of the revenue from the tax levied under Section 52-96, 50% must be reserved
for and allocated in the annual operating budget to funding for County greenhouse
gas reduction programs, including mass transit.
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.
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Sec. 3.
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Revenue Allocation Suspended.
Notwithstanding County Code Section 52-100, as enacted by Section 1 of this
Act.
revenue received from the tax levied under County Code Section 52-96 in
the first full fiscal year the tax collected must be held in a special reserve account.
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EXPEDITED
BILL
NO.
29-10
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Approved:
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Approved:
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This
is
a correct copy ofCouncil action.
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Linda M. Lauer, Clerk ofthe Council
Date
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