Agenda Item 8

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9

December 11, 2012

Action

MEMORANDUM

TO:

FROM:

SUBJECT:

County Council

~ichael

Faden, Senior Legislative Attorney

Public Hearing!Action:

Expedited Bill 30-12, Taxation

Subdivision Staging Policy

Payments ­

Government Operations

and

Fiscal Policy Committee recommendation: enact with

technical amendments.

Expedited Bill 30-12, Taxation - Payments Subdivision Staging Policy, sponsored by

Councilmember Floreen, was introduced on November 13,2012. A Government Operations and

Fiscal Policy Committee worksession was held on December 3. Council action is scheduled

after this public hearing.

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.

It

would conform relevant parts of the County Code to parallel provisions in the

recently-adopted Subdivision Staging Policy, contained in Council Resolution 17-601.

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 TPAR in the

Subdivision Staging Policy.

Technical Amendments

The Committee recommended several further technical

amendments suggested by Council staff that are needed to conform the law to the Subdivision

Staging Policy and to harmonize analogous provisions governing the transportation mitigation

payment and school facilities payment: These are shoV\-n in the attached redraft by double

brackets and double underlines.

This packet contains:

Expedited Bill 30-12 with Committee amendments

Legislative Request Report

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Expedited Bill No. =30"----'-'12=---_ _ _ __

Concerning: Taxation - Payments ­

Subdivision Staging Policy

Revised: 12-3-12

Draft No. _2_

Introduced:

November 13.2012

Expires:

May 13. 2014

Enacted: _ _ _ _ _ _ _ _ __

Executive: _ _ _ _ _ _ _ _ __

Effective: _ _ _ _ _ _ _ _ __

Sunset Date:

~N.::::!on~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

(2)

generally amend the law governing the transportation mitigation and school facilities

payments.

By amending

Montgomery County Code

Chapter 52, Taxation

Sections 52-59 and 52-94

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 hill.

The County Council for Montgomery County, Maryland approves the following Act:



EXPEDITED BILL

No. 30-12

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Sec.

1.

Section 52-59 is amended as follows:

52-59.

(a)

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Transportation Mitigation Payment.

In addition to the tax due under this Article, an applicant for a building

pennit 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-..--.c..........;.......

must adjust the then-applicable Payment rate as of July 1 of [[each]]

2015 and each later 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 Director

must publish the amount of this adjustment not later than May 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 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.

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(j).

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EXPEDITED BILL

No. 30-12

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(

e)

The Department of Finance must retain funds collected under this

Section in

an account to be appropriated for

transportation

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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.

School Facilities Payment.

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(a) 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.

(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.

(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.

Financ~

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Director of

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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

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amount of this adjustment not later than May

1

of each

odd numbered

year. The Council by resolution, after a public hearing advertised at least

&-

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EXPEDITED BILL

No. 30-12

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15 days in advance, may increase or decrease the Payment rate or set

different rates for different types of housing unit.

(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, to the extent possible, 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

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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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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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