Agenda Item 12
June 28, 2011
Introduction
MEMORANDUM
TO:
FROM:
County Council
~
Michael Faden, Senior Legislative Attorney
Introduction:
Expedited Bill 24-11, Taxes - Excise Tax
Emissions - Repeal
SUBJECT:
Carbon Dioxide
Expedited Bill 24-11, Taxes - Excise Tax - Carbon Dioxide Emissions - Repeal,
sponsored by Councilmember Berliner, is scheduled to be introduced on June 28, 2011. A public
hearing is tentatively scheduled for July 19 at 1:30 p.m.
Bill 24-11 would repeal the excise tax on major emitters of carbon dioxide and require
the Director of Finance to return taxes collected under it.
This packet contains
Expedited Bill 24-11
Legislative Request Report
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Expedited Bill No.
.=:24~-..!..1.!...1
_ _ _ __
Concerning: Taxes - Excise Tax ­
Carbon Dioxide Emissions - Repeal
Revised:
6/28/2011
Draft No. _1_
Introduced:
June 28, 2011
Expires:
December 28,2012
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: --'-':No=n"",e'----::--_ _ _ __
Ch, _ , Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmember Berliner
AN EXPEDITED ACT
to:
(1)
repeal the excise tax on major emitters of carbon dioxide;
(2)
require the Director of Finance to return certain taxes collected; and
(3)
generally amend the County laws governing excise taxation.
By repealing
Montgomery County Code
Chapter 52, Taxation
Article XIII, Excise Tax on Major Emitters of Carbon Dioxide
Sections 52-95 through 52-100
2010 Laws of Montgomery County Chapter 20
By adding
2011 Laws of Montgomery County
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law hy original hill.
Deletedfrom existing law hy original hill.
Added hy amendment.
Deletedfrom existing law or the hill hyamendment.
Existing law unqffected hy hill.
The County Council for Montgomery County, Maryland approves the following Act:
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EXPEDITED BILL
No. 24-11
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Sec. 1. Article XIII of Chapter 52 is repealed as follows:
[Article XIII. Excise Tax on Major Emitters of Carbon Dioxide.]
[52-95.
Findings.]
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[The County Council finds that:
(
a)
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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(b)
Montgomery County has embraced an 80% reduction in greenhouse gas
emissions by 2050 and has begun to engage in programmatic efforts to
reduce these emissions.
These efforts constitute a significant
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investment by the County and its constituents and cover both stationary
sources (County owned and otherwise) and mobile sources.
(c)
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It
is appropriate that the largest emitters of carbon dioxide in the County
contribute to paying for these greenhouse gas reduction programs.]
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[52-96.
[(a)
Tax levied; rates.]
Any major emitter of carbon dioxide, as defined in subsection (b), must
file a tax return and pay an excise tax each year on the privilege of
emitting carbon dioxide into the County airshed.
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(b)
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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(c)
The rate of the tax established under subsection (a) is $5 per ton of
carbon dioxide emitted.
(d)
The County Council by resolution, after a public hearing advertised
under Section 52-17(c), may increase or decrease the rate set in
subsection (c).
(e)
As used in this Article:
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EXPEDITED BILL
No. 24-11
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(1)
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 a molecular weight basis.
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(2)
(3)
Director
means the Director of Finance.
Person
includes
any
individual,
business,
corporation,
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association, firm, partnership, group of individuals acting as a
unit, trustee, receiver, assignee, or personal representative.
(f)
By regulations issued under method (2) 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 be 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.
[(a)
Credit.]
The Director must allow a credit against any tax due in an amount that
reflects the proportionate reduction in carbon dioxide emitted from
any source in the County if that reduction is attributable to any County
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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(b)
The Executive by regulation must further define which reductions in
emissions are considered in calculating this credit and how those
reductions are measured.]
[52-98.
[(a)
Due date.]
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 the Director.
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EXPEDITED BILL
No.
24-11
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(b)
The Director may establish an alternative payment system.
If an
alternative payment system is established, the Director must require a
pro-rated payment for any taxable period that ends before the system
takes effect.]
[52-99.
Collection; interest and penalties; violation; lien.]
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[(a)
If any person does not pay the Director the tax due under Section 52-96,
that person is liable for:
(1)
interest on the unpaid tax at the rate of one percent per month for
each month or part of a month after the tax is due; and
(2)
a penalty of 5 percent of the amount of the tax per month or part
of a 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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(b)
If any person does not file a report or pay 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 by 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
defense to the action. The total amount due must be paid within 10 days
after the date of the notice.
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EXPEDITED BILL
No.
24-11
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(c)
Every person liable for any tax under Section 52-96 must preserve for 3
years suitable records necessary to deteffiline the amount of the
tax.
The Director may inspect and audit the records at any reasonable time.
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(d)
Any failure to pay the tax when due under Section 52-97, and any
violation of Section 52-97 or this Section, is a Class A violation. Each
violation is a separate offense. A conviction under this subsection does
not relieve any person from paying the tax.
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(e)
Section 52-18D applies to this tax.]
Allocation of Revenue.]
[52-100.
[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. Section 3 of Chapter 20 of the 2010 Laws of Montgomery County
is repealed as follows:
[Sec. 3.
Revenue Allocation Suspended.
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Notwithstanding County Code Section 52-100, as enacted by Section 1 of this
Act, the revenue received from the
tax
levied under County Code Section 52-96 in
the ftrst full ftscal year the tax collected must be held in a special reserve account.]
Sec. 3. 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.
Sec. 4. Return of Tax Collected.
The Director of Finance must return all taxes collected under fOffiler Chapter
52, Article XIII, Excise Tax on Major Emitters of Carbon Dioxide, repealed by
Section 1 of this Act, to each taxpayer, along with interest at the rate of return
realized by the County while the County held the funds.
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LEGISLA"rIVE REQUEST REPORT
Expedited Bill 24-11
Taxes
-
Excise Tax
Carbon Dioxide Emissions
-
Repeal
DESCRIPTION:
Bill 24-11 would repeal the excise tax on major emitters of carbon
dioxide and require the Director of Finance to return taxes collected
under Chapter 52, Article XIII, Excise Tax on Major Emitters of
Carbon Dioxide.
The imposition of the County's Carbon Dioxide Emissions Tax is no
longer feasible under
Genon Mid-Atlantic
v.
Montgomery County,
No. 10-1882, US Court of Appeals (4
th
Cir), June 20, 2011.
To repeal the excise tax on major emitters of carbon dioxide.
Finance Department
To be requested.
To be requested.
To be requested.
To be researched.
Michael Faden, Senior Legislative Attorney, 240-777-7905
Tax applies County-wide.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
Not applicable.
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