Agenda Item 6
November 13,2012
Introduction
MEMORANDUM
TO:
FROM:
County Council
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Michael Faden, Senior Legislative Attorney
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Glenn Orlin, Deputy Council Staff Director
SUBJECT:
Introduction:
Expedited Bil130-12, Taxation
Policy
Payments
Subdivision Staging
Expedited Bill 30-12, Taxation Payments Subdivision Staging Policy, sponsored by
Councilmember Floreen, is scheduled to be introduced on November 13,2012. A public hearing
followed by action is tentatively scheduled for December 11 at 11 :30 a.m.
Bill 30-12 would revise the procedure for setting and amending the rates for the
transportation mitigation and school facilities payments authorized in the Subdivision Staging
Policy. Specifically, the Bill:
• makes clear that the transportation mitigation payment rate must be set by Council
resolution, including the resolution adopting the Subdivision Staging Policy;
• requires the rates of each payment to be indexed to construction cost inflation every 2
years; and
• includes transition language recognizing the shift from PAMR to TP AR in the
Subdivision Staging Policy.
This packet contains:
Expedited Bil130-12
Legislative Request Report
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Expedited Bill No.
",,30~-..!.!.12=--
_ _ _ __
Concerning: Taxation - Payments ­
Subdivision Staging Policy
Revised: 11-9-12
Draft No. _1_
Introduced:
November 13,2012
Expires:
May 13, 2014
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date:
-,N:...!.o::::!n~e~
_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmember Floreen
AN EXPEDITED ACT
to:
(1)
revise the procedure for setting and amending the rates for the transportation
mitigation and school facilities payments authorized in the Subdivision Staging
Policy; and
generally amend the law governing the transportation mitigation and school facilities
payments.
(2)
By amending
Montgomery County Code
Chapter 52, Taxation
Sections 52-59 and 52-94
Boldface
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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.
30-12
1
Sec.
1.
Section 52-59 is amended as follows:
52-59.
(a)
Transportation Mitigation Payment.
In addition to the tax due under this Article, an applicant for a building
permit for any building on which an impact tax is imposed under this
Article must pay to the Department of Finance a Transportation
Mitigation Payment if that building was included in a preliminary plan
of subdivision that was approved under the Transportation Mitigation
Payment provisions in the County Subdivision Staging Policy.
(b)
The amount of the Payment for each building must be calculated by
multiplying the Payment rate by the total peak hour trips generated by
the development.
(c)
The Payment rate [is $11,300 per peak hour trip, unless modified] must
be set by Council resolution.1 including
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resolution that amends the
Subdivision Staging Policy. The [Planning Board] Director of Finance
must adjust the then-applicable Payment rate as of July 1 of each odd­
numbered year by the annual average increase or decrease in a
published construction cost index specified by [the Board] regulation
for the two most recent calendar [year. The Board must adjust the rate]
years to the nearest multiple of $10. The Council by resolution, after a
public hearing advertised at least 15 days in advance, may increase or
decrease the Payment rate or set different rates for different types of
development.
(d)
The Payment must be paid at the same time and in the same manner as
the tax under this Article, and is subject to all provisions of this Article
for administering and collecting the tax.
(e)
The Department of Finance must retain funds collected under this
Section in an account to be
appropriated
for
transportation
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EXPEDITED BILL
No. 30-12
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improvements that result in added transportation capacity in the area
where the development for which the funds were paid is located.
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Sec. 2. Section 52-94 is amended as follows:
52-94.
(a)
School Facilities Payment.
In
addition to the tax due under this Article, an applicant for a building
permit for any building on which a tax is imposed under this Article must
pay to the Department of Finance a School Facilities Payment if that
building was included in a preliminary plan of subdivision that was
approved under the School Facilities Payment provisions in the County
Subdivision Staging Policy.
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(b)
The amount of the Payment for each building must be calculated by
multiplying the Payment rate by the latest per-unit student yield ratio for
any level of school found to be inadequate for the purposes of imposing
the School Facilities Payment in the applicable Subdivision Staging Policy
and for that type of dwelling unit and geographic area issued by MCPS.
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(c)
The Payment [rate is $19,514 per elementary school student, $25,411 per
middle school student, and $28,501 per high school student, unless
modified] rates must be set by Council resolution.
The Director of
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Finance must adjust the then-applicable Payment rates as of July
1
of
2015 and each later odd-numbered year, based on the construction cost of
a student seat for each school level as certified
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the Superintendent of
Montgomery County Public Schools for the two most recent calendar
years, to the nearest multiple of $10. The Director must publish the
amount of this adjustment not later than May
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1
of each
odd numbered
year. The Council by resolution, after a public hearing advertised at least
15 days in advance, may increase or decrease the Payment rate or set
different rates for different types of housing unit.
@
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EXPEDITED BILL
No. 30-12
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(d)
The Payment must be paid at the same time and in the same manner as the
tax under this Article, and is subject to all provisions of this Article for
administering and collecting the tax.
(e)
The Department of Finance must retain funds collected under this Section
in an account to be appropriated for MCPS capital improvements that
result in added student capacity for the affected grade level in the school
cluster, or, if no cluster is established, another geographic administrative
area, where the development for which the funds were paid is located.
Sec. 3. Expedited Effective Date. The Council declares that this legislation is
necessary for the immediate protection of the public interest. This Act takes effect on
January 1,2013.
Sec. 4. Transition. Any amendment to County Code Section 52-59 made in
Section 1 of this Act does not affect any payment paid, or required to be paid, under
Section 52-59 before it was so amended. Any such payment that was not paid, or
was not due to be paid, before January 1, 2013, must be paid as if Section 52-59 had
not been so amended.
Approved:
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Roger Berliner, President, County Council
Date
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Approved:
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Isiah Leggett, County Executive
Date
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This is a correct copy ofCouncil action.
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Linda M. Lauer, Clerk of the Council
Date
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LEGISLATIVE REQUEST REPORT
Expedited Bill 30-12
Taxation
-
Payments
-
Subdivision Staging Policy
DESCRIPTION:
Revises the procedure for setting and amending the rates for the
transportation mitigation and school facilities payments authorized in
the Subdivision Staging Policy. Makes clear that the transportation
mitigation payment rate must be set by Council resolution, including
the resolution adopting the Subdivision Staging Policy. Requires the
rates of each payment to be indexed to construction cost inflation
every 2 years. Includes transition language recognizing the shift
from P AMR to TP AR in the Subdivision Staging Policy
Need to update County Code provisions regarding transportation
mitigation and school facilities payments to reflect changes in the
County Subdivision Staging Policy.
Conform County Code provisions to related Subdivision Staging
Policy provisions.
Department of Transportation, Planning Board, Montgomery County
Public Schools
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
Applies County-wide, except in municipalities which have
independent planning and zoning authority.
Not applicable
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
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