Agenda Item
10
April 26, 2011
Public Hearing
MEMORANDUM
TO:
County Council
FROM:
~
Michael Faden, Senior Legislative Attorney
SUBJECT:
Public Hearing: Expedited Bill 10-11, Recordation Tax
Allocation of Revenue
Expedited Bill 10-11, Recordation Tax - Allocation of Revenue, sponsored by the
Council President at the request of the County Executive, was introduced on April 5, 2011. A
Government Operations and Fiscal Policy Committee worksession is tentatively scheduled for
May 3 at 2:00 p.m.
Recordation tax background As Councilmembers will recall, the County recordation
tax, levied under state law and shown in County Code §52-16B, since 2008 has 3 levels or tiers
which determine how the revenue from this tax is allocated:
Tier
1
2
3
Rate
$4.401$1000
$2.501$1000
$3.101$1000 (>$500,000)
Use of funds
General Fund (unrestricted)
MCPS capital, College educational technology
50% County government capital improvements
50% new funding for rental assistance programs
Summary Bill 10-11 would suspend for fiscal year 2012 the current requirement that
certain revenue from the recordation tax (Tier 3) be allocated to the cost of County Government
capital projects and rental assistance programs for low and moderate income households.
When the Council enacted a similar Bill (Bill 14-10) for fiscal year 2011, that Bill also
suspended, for fiscal year 2011, the requirement that Tier 2 ofthe recordation tax be allocated to
capital improvements to County schools and educational technology for Montgomery College.
This Bill, as submitted by the Executive. does not propose any change in allocation of Tier 2
revenue.
This packet contains
Expedited Bill 10-11
Legislative Request Report
Memo from County Executive
Circle
1
3
4
F:\LAW\BILLS\I I 10 Recordation Tax-Allocation Of Revenue\Public Hearing Merno.Doc
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Expedited Bill No.
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_ _ __
Concerning:
Recordation
Tax
Allocation of Revenue
Revised: March 31,2011 Draft No._1_
Introduced:
April 5, 2011
Expires:
October 5, 2012
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
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)
revise the allocation of certain revenue received from the recordation tax; and
2)
generally amend County law related to the recordation tax.
By amending
Laws of Montgomery County 2010
Chapter 19
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 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 10-11
1
2
3
Sec.
1.
Chapter 19 of the Laws of Montgomery County 2010 is amended
as follows:
* *
*
4
Sec. 3. Allocation of Revenue.
During any fiscal year that begins on or after
5
6
7
July 1, [2011] 2012, the net revenue attributable to the increase in the rate of the
recordation tax enacted in this Act must be reserved for and allocated equally to:
(
a)
the cost of County government capital improvements; and
rental assistance programs for low- and moderate-income
households, which must not be used to supplant any otherwise
available funds.
8
9
10
(b)
11
Sec. 2. Expedited Effective Date.
12
13
14
The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on the date when it becomes
law.
Approved:
15
16
17
18
19
Valerie Ervin, President, County Council
Approved:
Date
20
21
22
23
24
25
Isiah Leggett, County Executive
This is a correct copy of Council action.
Date
26
M. Lauer, Clerk of the Council
Date
®
F:\LAW\BILLS\IIIO Recordation Tax-Allocation
Of
Revenue\Bill.Doc
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LEGISLATIVE REQUEST REPORT
Expedited
Bill
10-11
Recordation Tax Allocation ofRevenue
DESCRIPTION:
This
Bill
would suspend the current requirement that portions of the
recordation tax be allocated to: (a) the cost of County Government capital
projects; and
(b)
rental assistance programs for low and moderate income
households.
In order to meet the current fiscal challenges facing the County, the County
must increase the amount of revenue available to maintain core Government
programs and services.
To enhance the amount of revenue available to support core Government
programs and services.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
Office of Management and Budget and Department of Finance.
FISCAL IMPACT:
To be requested.
ECONOMIC
IMPACT:
EVALUATION:
To be requested.
Subject to the general oversight of the County Executive and the County
Council.
Not applicable.
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
Joseph Beach, Director, Office of Management and Budget;
Kathleen Boucher, Assistant Chief Administrative Officer; and
Marc P. Hansen, County Attorney.
APPLICATION
Revenue laws apply County wide.
WITHIN
MUNICIP ALITIES:
PENALTIES:
Not applicable.
F:\LAW\BILLS\1110 Recordation Tax-Allocation Of Revenue\Recordation Tax LRR.DOC
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OFFICE OF THE COUNTY EXECUTIVE
ROCKVILLE, MARYLAKD 20850
-j
Isiah Leggett
County Executive
MEMORANDUM
March 15,2011
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TO:
Valerie Ervin, President
Montgomery County Council
Isiah Leggett, County
Executive=~-
Proposed Legislation - Recordation Tax - Allocation of Revenue
FROM:
SUBJECT:
I am attaching for the Council's consideration a bill that would suspend the
current requirement that portions ofthe recordation tax be allocated to: (a) the cost of County
Government capital projects; and
(b)
rental assistance programs for low and moderate income
households. In order to meet current fiscal challenges facing the, County, the County must
increase the amount of revenue available to maintain core Government programs and services.
I am also attaching a Legislative Request Report and Fiscal and Economic Impact
Statement for the bill. Thank you for your prompt consideration of this legislation. I look
forward to working with the Council as it considers this proposal.
Attachments (2)
c: Jennifer Barrett, Director, Department of Finance
Joseph F. Beach, Director, Office of Management and Budget
Kathleen Boucher, Assistant Chief Administrative Officer
Marc Hansen, County Attorney
montgomerycountymd.gov/311
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