GO Item 3
November 5,2012
Worksession
MEMORANDUM
TO:
FROM:
SUBJECT:
Government Operations and Fiscal Policy Committee
~ichael
Faden, Senior Legislative Attorney
Worksession:
Bill 25-12, Taxation - Impact Tax - Bikesharing
Bill 25-12, Taxation - Impact Tax - Bikesharing, sponsored by Council President
Berliner and Councilmembers Ervin, Riemer, Eirich, Leventhal, Andrews and Navarro, was
introduced on September 11,2012. A public hearing was held on October 23, at which the only
speaker endorsed the Bill and the companion Zoning Text Amendment 12-14, which the
Planning, Housing, and Economic Development Committee is considering (see also the
Washington Area Bicyclist Association letter of support on ©8).
Bill 25-12 would allow transportation impact tax funds to be used for certain bikesharing
stations. No one has opposed this concept. However, Executive branch staff (see Boucher email
on ©9) raised questions about the need to further define the requirements for permanent
dedication of the necessary land or easements for each bike sharing station and the methods of
setting the amount of the applicable credit when the applicant rather than the County provides
the station.
1
Council staff concurs with Executive staff that these issues can and should be resolved in
implementing regulations. But we don't see the need to postpone the Bill's effective date to
draft those regulations since the Bill is not an Expedited Bill and thus will not take effect until 90
days after the Executive signs it into law, which is enough time to draft the needed regulations
and at least adopt them as temporary regulations.
Council staff recommendation:
enact Bill
25-12
as
introduced.
This packet contains:
Bill 25-12
Legislative Request Report
Fiscal Impact Statement
Washington Area Bicyclist Association letter
Executive staff email
F:\LAW\BILLS\1225 Impact Tax - Bikesharing\GO Memo.Doc
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1
3
4
8
9
Executive staff also discussed the potential need to increase impact tax rates and revenues to cover increased costs
of various eligible uses of these funds (see ©9). While this issue is technically within the scope of Bill 25-12, it is
much broader and in our view should be the subject of a more comprehensive impact tax review by this Committee,
which we recommend could be scheduled after the New Year.
I
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Bill No.
25-12
Concerning: Taxation - Impact Tax -
Bikesharing
Revised: 7-19-12
Draft No. 1
Introduced:
September 11, 2012
Expires:
March 11,2014
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: -cN:..!.o::<!n..!!:e:...-_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President Berliner and Council members Ervin, Riemer, EIrich, Leventhal, Andrews
and Navarro
AN
ACT to:
(1)
(2)
allow transportation impact tax funds to be used for certain bikesharing stations; and
generally amend the law governing the transportation impact tax.
By amending
Montgomery County Code
Chapter 52, Taxation
Section 52-58
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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BILL No. 25 -12
Sec. 1. Section 52-58 is amended as follows:
2
52-58.
Use of impact tax funds.
Impact tax funds may be used for any;
(a)
new road or widening of an existing road that adds highway or
intersection capacity or improves transit service or bicycle commuting,
such as bus lanes or bike lanes;
(b)
(c)
(d)
(e)
(f)
(g)
new or expanded transit center or park-and-ride lot,
bus added to the Ride-On bus fleet, but not a replacement bus;
new bus shelter, but not a replacement bus shelter;
hiker-biker trail used primarily for transportation;
bicycle locker that holds at least 8 bicycles;
bikesharing station (including bicycles) approved
Qy
the Department of
Transportation;
[(g)] (hl sidewalk connector to a major activity center or along an arterial or
major highway; or
[(h)]
ill
the operating expenses of any transit or trip reduction program.
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Approved:
18
Roger Berliner, President, County Council
Date
19
Approved:
20
Isiah Leggett, County Executive
Date
21
This is a correct copy ofCouncil action.
22
Linda M. Lauer, Clerk of the Council
Date
f:\law\bills\1225 impact tax - bikesharing\bilLdot
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LEGISLATIVE REQUEST REPORT
Bill 25-12
Taxation
-
Impact Tax
-
Bikesharing
DESCRIPTION:
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENAL TIES:
Allows transportation impact tax funds to be used for bikesharing
~tations
approved by the Department of Transportation.
Need to encourage expansion ofbikesharing.
To allow transportation impact tax funds to be used for bikesharing.
Department of Transportation, Planning Board
To be requested.
To be requested.
To be requested.
To be researched.
Michael Faden, Senior Legislative Attorney,
240-777-7905;
Glenn
Orlin, Deputy Council Staff Director,
240-777-7936.
Transportation impact tax applies County-wide.
Not applicable.
f:\law\bills\1225 impact tax - bikesharing\legislative request report.
dOW
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ROCKV1I.LE, MARYLAND
MEMORANDUM
October
51
2012
TO:
FROM:
SUBJECT:
Roger Berliner, President. County Council
Jennifer
A.
Hughes,
Office ofManagement and Budget
Joseph F. Beach,
D~Department
of Finance
Council Bill 25-12 ­ Taxation -Impact Tax - Bikesharing
Attached please find the fiscal and economic impact statements for the above-referenced
legislation.
JAH:bg
c: Kathleen Boucher, Assu,1ant Chief Administrative Officer
Lisa Austin, Offices of the County Executive
Joy Nurmi, Special Assistant to the County Executive
Patrick Lacefield, Director. Public fuformation Office
Alex Espinosa, Office of Management and Budget
William Selby, Department ofTransportation
Brady Goldsmith, Office of Management and Budget
Naeem Mia, Office of Management and Budget
David Platt, Department ofFinance
Michael Coveyou, Department ofFinance
~r.
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Fiscal Impact Statement
Council
Bill2S-12 -
Taxation
~
Impact
Tax - Bikesharing
1.
Legislative Summary
The
proposed
bill allows transportation impact tax funds to
be
used for bikesharing stations
approved
by
the Department of Transportation.
2. An estimate of changes in County revenues and expenditures regardless ofwhetller
the revenues or expenditures are assumed in the recommended or approved budget.
Includes source of information, assumptions, and methodologies used.
The proposed bill allows for impact taxes to be used towards bikesharing stations, It does
not impact County revenues or expenditures.
3. Revenue and expenditure estimates covering at least the next 6 fiscal years.
See item #2 above.
4. An actuarial analysis through the entire amortization period for each bill that would
affect retiree pension or group insurance costs.
Not applicable.
S.Later actions that may affect future revenue and expenditures if the bill authorizes
future spending.
.
The bill
does
not
authorize
future
spending.
6. An estimate of the staff time needed to implement the bill.
No staff time is needed to implement this bill.
7. An explanation of how the addition of new staff responsibilities would affect other
duties.
Not
applicable.
8. An estimate of costs when an additional appropriation
is
needed.
Not applicable.
9. A description of any variable that could affect revenue and cost estimates.
Not applicable.
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10. Ranges of revenue or expenditures that are uncertain or difficult to project.
Not applicable.
11.
If
a bill is likely to
have
no
fiscal
impact,
why that
is
the
case.
The proposed bill allows impact taxes to be used as a funding source of bikesharing
station projects. There is no impact on departmental administration or programming.
12. Other fiscal impacts or comments.
Not applicable.
13. The following contributed to and concurred with this
analysis:
William Selby, Department ofTransportation
Brady Goldsmith, Office ofManagement and Budget
Naeem Mia, Office of Management and Budget
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Economic Impact Statement
Council
Bm
25·12, Taxation .. Impact Tax - Bikesbaring
Background:
Bill 25-12
allows Transportation Impact Taxes to
be
used to fund bikesharing stations,
including bicycles, that are approved by the Deprutment of Transportation.
1. The sources of infonnation, assumptions, and methodologies used.
Since
Bil125-12
only affects how Transportation Impact
Tax
funds may be used, but
does not affect the rate
or
how the taxes are assessed
it
has no economic impact.
2. A
description of any variable that could affect economic impact statements.
See
#1
above.
3.
The
bill's
positive or negative effect,
if
any on employment, spending. saving,
investment, incomes, and property value in the County.
See
#1
above.
4,
If
a bill is likely to have no economic impact, why is that the case?
Bill 25-12
allows a specific. existing, revenue to be used for a new type of expenditure,
but does not increase, decrease, or change the revenue, underlying rates, or who
is
responsible for paying the tax.
5. The following contributed to and concurred with this analysis: David Platt and Mike
Coveyou, Finance.
~~fvl
QSeFibch, Director
Department of Finance
1-2-:(:-/2­
Date
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L
WA8A
WASHINGTON AREA BICYCLIST ASSOCIATION
October 23, 2012
Montgomery County Council
100 Maryland Ave.
Rockville, MD 20850
VIA ELECTRONIC MAil
RE:
WABA Support of Bill 25-12 and ZTA 12-14 (Bikeshare)
2599 Ontario Rd, NW
Washington, DC
20009
P: 202,518.0524 F: 202.518.0936
WWW.WABA.ORC
070610
To the Members of the Montgomery County Council:
The Washington Area Bicyclist Association strongly supports the integration of bicycling into the fabric of
the Montgomery County's transportation and legal infrastructure. The bills under consideration
facilitate this goal by proactively integrating bikesharing into the county's tax and zoning codes in a way
that supports the involvement of the private sector in the system's growth and success.
As
bikesharing stations are largely standardized, the exemption from the requirement of a site plan
amendment is a simple one that removes an unnecessary barrier to the private sector's willingness to
provide bikesharing facilities.
Further, WABA supports the addition of bikeshare stations to the list of transportation projects eligible
for impact tax funds. While we caution that funding for bicycling projects should primarily go to projects
that benefit the entire bicycling community comprised of both traditional bicyclists and bikeshare users,
we recognize the importance of ensuring available funding sources for the implementation of such a
transportation system and agree that the implementation and growth of bikeshare is a use that falls
squarely within the purpose of the impact tax.
Thus, we support both Zoning Text Amendment 12-14 and Bill 25-12, and we appreciate the ongoing
opportunity to work with the Council to bring better biking to Montgomery County.
l.n .
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Page 1 of 1
Faden, Michael
From: Boucher, Kathleen
Sent:
To:
Wednesday, October 31, 201211:05AM
Berliner, Roger
Brecher, Sandra; Root, Anne; Biggins, Carolyn; Beach, Joseph; Coveyou, Michael; Ossont, Greg; Bell­
Pearson, Ramona; Nurmi, Joy; Faden, Michael; Mihill, Amanda; Drummer, Bob; Bolt, Chad; Gibson,
Cindy; Ervin, Valerie; Healy, Sonya; Riemer, Hans; Pagnucco, Adam; Eirich, Marc; Tibbitts, Dale;
Leventhal, George;Vitale, Patricia; Andrews, Phil; Mandel-Trupp, Lisa; Navarro, Nancy; Fogel, Adam;
Lacefield, Patrick; Firestine, Timothy
Cc:
Subject: Bill 25-12, Taxation - Impact Tax - Bikesharing
Dear Councilmember Berliner,
Last week, I advised Chad Bolt that the County Executive supports Bill
25-12,
Taxation -Impact Tax -Bikesharing
but that he also recommends that the bill be amended to include a delayed effective date that will allow
sufficient time for Executive staff to make necessary changes to related Executive Regulations.
I am writing to clarify that before the bill can be implemented, the County needs to amend the regulations
governing the Development Impact Tax for Transportation Improvements to:
• Specify that any right-of-way or land dedication or easement needed to accommodate a bikesharing
station must be permanent and irrevocable. This is necessary to avoid having property owners obtaining a
credit, and a few years later eliminating the bikeshare station location.
• Include a methodology for a systematic approach to determining the cost of the bike station, bikes, and
operating costs of the station (and therefore the amount of the credit). This will clarify which costs are
eligible in calculating the amount of the credit, providing certainty to the property owner, and to improve
the overall efficiency of certifying a credit. Greater clarity in either the legislation or the implementing
regulations will prevent future challenges to the calculation of the amount of the credit.
We also note that, white the number of projects for which impact tax revenues can be used as a funding source
has grown over the years, there has not been a change in the rates to ensure that there is sufficient revenue to
accommodate all of the eligible uses. Expanding the number of eligible uses without increasing the pool of
available resources may result in eroding impact tax resources for other uses including road capacity projects,
park and ride lots, and other existing eligible uses. At some pOint, the County should revisit the rates for
Development Impact Tax for Transportation to more appropriately account for the full cost of the remaining
transportation infrastructure, which should be the basis of the rates. Executive staff are available to discuss this
issue at any time.
Thank you for your consideration of these comments.
Kathleen
Kathleen Boucher
Assistant
Chief
Administrative Officer
OHice of the County Executive
Montgomery County, Maryland
240-777-2593
@
111112012