Agenda Items 7
&
9B
July 30, 2013
Public
Hearing/Action
MEMORANDUM
July 26, 2013
TO:
FROM:
SUBJECT:
County Council
I
'~'
j
Robert H. Drummer, Senior Legislative
AttorneyJJ/ .
.
Public
Hearing/Action: Bill 23-13, Taxation - Estimated Personal Property Tax
Government Operations and Fiscal Policy Committee recommendation (3-0): approve the
Bill as introduced, pending any issues that arise at the public hearing.
. Bill 23-13, Taxation - Estimated Personal Property Tax, sponsored by the Council
President at the request of the County Executive, was introduced on July 9. Action is scheduled
at the conclusion of the hearing.
Background
The State Department of Assessments and Taxation (SDAT) is responsible for assessing
personal property subject to County tax. Bill 23-13 would authorize the Department of Finance
to issue an estimated personal property tax bill in those circumstances where SDAT has not
notified the County of a personal property assessment prior to September 1 of any tax year. Md.
Tax-Property Art. §10-210, attached at ©9, authorizes the County to enact legislation providing
for estimated personal property tax bills under these circumstances.
Committee Worksession
The Government Operations and Fiscal Policy Committee reviewed the Bill at a
worksession on July 15. Robert Hagedoom, Department of Finance, represented the Executive
Branch. The Committee recommended (3-0) approval of the Bill as introduced, pending any
issues that arise at the public hearing.
Discussion
On occasion SDAT does not get the annual personal property assessment done in time,
especially with taxpayers that have large amounts of personal property, for the County to send
out an annual tax bill on a timely basis. This results in delay of receipt of personal property tax
revenues. Bill 23-13 would avoid this delay by permitting the Department of Finance to send out
a timely estimated tax bill that the taxpayer would be required to pay. If the final tax bill is
smaller, the County would' have to refund the difference. If the final tax bill is larger, the
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taxpayer would have to pay the difference.
Committee recommendation (3-0):
approve the
Bill
as
introduced, pending any issues that arise at the public hearing.
This packet contains:
Bill 23-13
Legislative Request Report
Executive's Transmittal Letter
Fiscal and Economic Impact Statement
Md. Tax-Property Art. §10-210
F:\LAW\B1LLS\) 323 Taxation - Estimated Persona) Property Tax\PH-Action.Doc
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Bill No.
23-13
Concerning: Taxation-Estimated
Personal Property Tax
Revised: June
28, 2013
Draft No.
_1_
Introduced:
July
9, 2013
Expires:
January
9,2015
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: .-=-:.No::::!n..l.!:e'---_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request of the County Executive
AN
ACT to:
(1)
(2)
(3)
pennit the issuance ofan estimated personal property tax bill;
require payment of an estimated personal property tax bill; and
generally amend County law regarding issuance ofpersonal property
tax
bills.
By adding
Montgomery County Code
Chapter 52, Taxation
Section 52-4A
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface bracketsD
* * *
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. 23-13
1
2
Sec.
1.
Section 52-4A is added as follows:
52-4A. Authorization to issue
!!!
estimated personal property tax hill.
3
4
W
If the State Department of Assessments and Taxation does not notify the
County of any particular personal property tax assessment or operating
personal property assessment
Qy
September
1
of any tax year, the
6
7
Collector may issue an estimated personal property tax bill to the
taxpayer.
8
(hl
The estimated personal property tax must be calculated
Qy
applying the
applicable current property tax rate to the most recent assessment of the
property.
9
10
11
(£)
The taxpayer must
~
the estimated tax bill within 30 days after the bill
is received, reasonably should have been received, or is made available
to the taxpayer. If the estimated bill is not paid when due, the unpaid
balance is subject to interest and penalty as provided
Qy
law.
12
13
14
15
16
17
@
If the tax paid under this Section is less than the tax finally determined
to be due, the Collector must send
9:
bill to the taxpayer for the
difference. If this tax bill is not paid within 30 days after the bill is
received, reasonably should have been received, or is made available to
the taxpayer, the unpaid balance is subject to interest and penalty as
provided
Qy
law.
18
19
20
21
22
W
If the tax paid under this Section is more than the tax finally determined
to be due, the Collector must refund the difference to the taxpayer with
interest as provided
Qy
law.
23
24
25
Approved:
26
Nancy Navarro, President, County Council
Date
~A
W\BILLS\1323 Taxation Estimated Personal Property Tax\BilI2.00c
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LEGISLATIVE REQUEST REPORT
Bill 23-13
Taxation
Estimated Personal Property Tax
DESCRIPTION:
Bill 23-13 would authorize the Department of Finance to issue an
estimated personal property tax bill in those circumstances where the
Department of Assessments and Taxation (SDAT) has not completed
the annual assessment of personal property and notified the County
of a personal property assessment prior to the time tax bills are to be
issued.
On occasion SDAT does not get the annual personal property
assessment done in time, especially with taxpayers that have large
,amounts of personal property, for the County to send out an annual
tax bill on a timely basis. This results
in
delay of receipt of personal
property tax revenues.
To authorize the Department of Finance (the collector of taxes) to
issue a temporary or estimated personal property tax bill in those
circumstances where SDAT has failed to complete the assessment
process.
Department of Finance.
To be requested.
To be requested.
To be requested.
To be researched.
Scott R. Foncannon, Office of the County Attorney
Applicable.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITIDN
MUNICIPALITIES:
PENALTIES:
None.
F:\LAw\BILLS\1323 Taxation - Estimated Personal Property Tax\LRR.Doc
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OFFICE OF THE COUNTY EXECUTIVE
ROCKVILLE, MARYLAND 20850
Isiah Leggett
County Executive
MEMORANDUM
June 21,2013
TO:
FROM:
RE:
Nancy Navarro, Council President
Isiah Leggett, County Executive ---­
Proposed Legislation - Estimated Personal Property Tax Bills
I am transmitting to Council for introduction a bill that authorizes the Department
of Finance to issue an estimated personal property tax bill. I am also including the Legislative
Request Report and the Fiscal and Economic bnpact Statement.
This bill authorizes the Department of Finance to issue an estimated personal
property tax bill in circumstances where the State Department of Assessments and Taxation has
failed to complete the personal property assessment prior to the deadline for issuance of personal
property
tax
bills. This bill is authorized by Section 10-210 of the Tax-Property Article of the
Annotated Code of Maryland.
I would appreciate your consideration of this bH1 at your earliest convenience. If
you have any questions or require additional information, please do not hesitate to contact Joseph
Beach, Director, Department of Finance, at 240-777-8870.
Attachments (4)
c:
Joseph Beach, Director, Department of Finance
Marc Hansen, County Attorney
Jennifer Hughes, Director, Office of Management and Budget
montgomerycountymd.goY1'311
240-77'3-3556 TTY
(j)
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Fiscal Impact Statement
Bill 23-13, Taxation - Estimated Personal Property Tax
1.
Legislative Summary.
The Bill authorizes the issuance of estimated personal property tax bills and generally
amends County law regarding issuance of personal property tax bills.
2.
An
estimate of changes in County revenues and expenditures regardless of whether the
revenues or expenditures are assumed in the recommended or approved budget.
Include source of information, assumptions, and methodologies used.
The Bill does not change County revenues or expenditures. The legislation permits the
County to issue estimated personal property tax bills by September 1
if
the State
has
not
notified the County of any particular personal property tax assessment. The Department of
Finance anticipates the timing of personal property tax payments to be affected.
3. Revenue and expenditure estimates covering at least the next 6 fiscal years.
Not applicable. 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.
This legislation does not affect retiree pension or group insurance costs.
5. Later actions that may affect future revenue and expenditures if the legislation
authorizes future spending.
The regulation does not authorize future spending.
6. An estimate of the staff time needed to implement the legislation.
No additional amount of staff time is needed.
7. An explanation of how the addition of new staff responsibilities would affect other
duties.
The Bill does not add new staffresponsibilities.
8. An estimate of costs when an additional appropriation
is
needed.
Not applicable.
1
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9. A description of any variable that could affect revenue and cost estimates.
Not applicable. The Bill does not affect revenues or expenditures.
10. Range of revenue or expenditures that
is
uncertain or difficult to project.
Not applicable.
11.
If
legislation is likely to have no fiscal impact, why that is the case.
Not applicable. .
12. Other fiscal impacts or comments.
None at this time.
13. The following contributed to and concurred with this analysis:
Erika Lopez-Finn, Office of Management and Budget
Robert Hagedoom, Department of Finance
~llD.ifef:
Hughes, Direc
ffice of Management and Budget
Date
2
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Economic Impact Statement
Bill
,23-13,
Taxation - Estimated Personal Property Tax
Background:
This legislation would permit the issuance of estimated personal property tax bills and
generally amend County law regarding issuance ofpersonal property tax bills
1. ·The sources of information, assumptions, and methodologies used.
• Treasury Division, Department of Finance
• There are no assumptions regarding the implementation of this legislation
• There are no methodologies used in the analysis of this legislation
2. A description of any variable that could affect the economic impact estimates.
• The purpose of this legislation is to permit Treasury Division, Department of
Finance, to issue estimated personal property
tax
bills after September 1 of any
tax
year ifthe State Department of Assessments and Taxation has not notified the
County (Treasury Division) of any particular personal property tax assessment or
any operating property assessment.
• Because the bill authorizes Treasury to provide an estimated property
tax
bill for
revenues otherwise collected, there is no variable that could affect the economic
impact.
• Under the provisions ofthe legislation, ifthe estimated property tax bill is less
than the actual tax liability, Treasury will issue another bill to collect the
.
difference.
If
the estimated property
tax
bill is greater than the actual
tax
liability,
Treasury must refund the difference.
.
• The legislation has no economic impact on employment. spending, saving.
investment, incomes, and property values in the County.
3.
The Bill's positive or negative effect,
if
any on employment, spending, saving,
investment, incomes, and property values in the County.
• The legislation has no economic impact.
4.
If
a Bill is likely to have no economic impact, why is that the case?
Page 1
of2
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Economic Impact Statement
Bill 23-13, Taxation - Estimated Persanal·Property Tax
• The legislation has no economic impact because it provides a procedure to collect
personal property taxes due to late notification of personal property assessments
by the State Department of Assessments and Taxation.
5. The following contributed to and concurred with this analysis:
David Platt and
Mike Coveyou, Finance;
Q;u6J;~
Department of Finance
Date
j
I
Page 2 of2
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Article - Tax - Property
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§1O-210.
(a)
If
on or before September 1 of a taxable year the Department has not notified
a county or municipal corporation of any particular personal property assessment, or
any operating property assessment, the Mayor and City Council of Baltimore City or
the governing bodyofthe county or of the municipal corporation may authorize, by law,
the payment of estimated property tax under subsection
(b)
of this section.
(1) The estimated property tax may not exceed the amount calculated by
applying the applicable current property tax rate to the most recent assessment of the
property.
(b)
(2) Payment is due 30 days after the tax bill is received or reasonably
should have been received or available and
if
unpaid is subject to interest and penalties
as provided by §§ 14-604, 14-608, and 14-702 of this article.
(c)
If
the property tax paid under this section is less than the tax finally
determined, the collector shall send a bill to the taxpayer for the difference.
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