Agenda Item 4E
December 10, 2013
Introduction
MEMORANDUM
TO:
FROM:
SUBJECT:
County Council
~ichael
Faden, Senior Legislative Attorney
Introduction:
Expedited Bil135-13, Taxation - Fuel-Energy Tax - Timing of
Payments
Expedited Bill 35-13, Taxation - Fuel-Energy Tax - Timing of Payments, sponsored by
the Council President at the request of the County Executive, is scheduled to be introduced on
December 10, 2013. A public hearing is tentatively scheduled for January 21,2014 at 1:30 p.m.
Bill 35-13 would amend the timing for payment to the County of the fuel energy tax, as
recently recommended by the State Public Service Commission, to allow payment by the last day of
the next month rather than the 15
th
day.
This packet contains:
Expedited Bill 35-13
Legislative Request Report
Memo from County Executive
Fiscal and economic impact statement
Circle
#
1
3
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5
F:\LAW\8ILLS\1335 Taxation - Fuel-Energy Tax - Timing Of Payments\lntro Memo.Doc
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Expedited Bill No.
35-13
Concerning: Taxation - Fuel-Energy Tax
- Timing of Payments
Revised: [date]
Draft No.
.JtR
Introduced:
December 10,2013
Expires:
June 10, 2015
Enacted:
[date]
Executive:
"date signed]
Effective:
[date takes effect]
Sunset Date:
~N;::.:on,:",e=--
_ _ _:------::-_
Ch.
..ML.
Laws of Mont. Co.
[year]
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request ofthe County Executive
AN EXPEDITED ACT
to:
(1)
amend the timing for payment of the fuel energy tax; and
(2)
generally amend County law regarding the fuel energy tax
By amending
Montgomery County Code
Chapter 52, Taxation
Section 52-14
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
No. 35-13
1
2
Sec
1.
Section 52-14 C is amended as follows:
52-14.
Fuel-Energy Tax.
3
4
(
c)
*
*
*
Every person who transmits, distributes, manufactures, produces, or
supplies fuel or energy in the County must pay the tax and report any
information required by the Director of Finance for each calendar month
on or before the [fifteenth] last day of the following month. With the
written permission of the Director [of Finance], a person who regularly
owes taxes under this Section may pay the tax and make reports on a
quarterly basis, on or before the [fifteenth] 15
th
day of April, July,
October, and January in each year for the preceding 3 months.
5
6
7
8
9
10
11
12
13
Sec. 2.
Expedited Effective Date.
The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on the date on which
it
becomes law.
Approved:
14
15
16
17
Craig
L.
Rice, President, County Council
18
Date
Approved:
19
Isiah Leggett, County Executive
20
This is a correct copy qfCouncil action.
Date
21
Linda M. Lauer, Clerk ofthe Council
Date
@f:\laWlbills\1335 taxation· fuel-energy tax timing of payments\ 1335 bill1.doc
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LEGISLATIVE REQUEST REPORT
Expedited Bill 35-13
Taxation
-
Fuel-Energy Tax
-
Payment Timing
DESCRIPTION:
This Bill would amend County law to allow Fuel Energy Tax payers to remit
tax payments until the last day of the following month, instead of the 15
th
day
of the following month.
The current payment schedule does not give enough time for Utilities and
other individuals and entities that pay the County's Fuel Energy Tax to collect
the funds without having to increase their working capital requirements,
which in tum adversely impacts rates that customers pay.
To adjust payment timing requirements so that any financial hardship is
mitigated.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
Department of Finance
FISCAL IMPACT:
None
ECONOMIC
IMPACT:
EVALUATION:
None
Subject to the general oversight of the County Executive and the County
Council.
Unknown.
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
Michael
J.
Coveyou, Chief, Division of Treasury, Department of Finance
None.
APPLICATION
WITHIN
MUNICIPALITIES:
PENAL TIES:
None.
F:\LAW\B ILLS\ 1335 Taxation - Fuel-Energy Tax - Timing Of Payments\Legislative Request Report.Doc
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OFFICE OF THE COUNTY EXECUTIVE
ROCKVILLE, MARYLAND 20850
Isiah Leggett
County Executive
MEMORANDUM
December 4, 2013
TO:
FROM:
SUBJECT:
Craig Rice, Council President
Isiah Leggett, County Executive
Expedited Bill xx-13: Taxation - Fuel-Energy Tax - Timing of Payments
I
am transmitting to Council for introduction an expedited bill that moves the date
for payment of the fuel energy tax from the fifteenth day of each month to the last day of each
month with the LRR and Fiscal and Economic Impact statements. The current payment schedule
does not give enough time for Utilities and other individuals and entities that pay the County's
Fuel Energy Tax to collect
the
funds without having to increase their working capital
requirements, which in
turn
adversely impacts rates that customers pay. This recommended
amendment resol ves that issue.
I
would appreciate your consideration of this bill 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
c:
Joseph F. Beach, Director, Department of Finance
montgomerycountymd.gov/311
240-773-3556
TTY
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Fiscal Impact Statement
Bill XX-XX, Taxation - FuelMEnergy Tax - Timing of Payments
1.
Legislative Summary.
This Bill will allow all taxpayers who pay fuel-energy tax to submit payments and any
required iriformation to the Director ofFinance by the last day ofthe following calendar
month. Current law allows taxpayers to remit payments and information by the fifteenth
day ofthe following month.
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. Includes
source of information, assumptions, and methodologies used.
The Bill does not change the rate ofthe fuel-energy tax, only the timing ofpayments.
There will be no effect on revenues or expenditures. Per the Department ofFinance, no
additional stajJtime or County resources are requiredfor implementation ofthis Bill.
3. Revenue and expenditure estimates covering at least the next 6 fiscal years.
N/A
4. An actuarial analysis through the entire amortization period for each bill that would affect
retiree pension or group insurance costs.
N/A
5. Later actions that may affect future revenue and expenditures ifthe bill authorizes future
spending.
N/A
6. An estimate of the staff time needed to implement the bill.
Per the Department ofFinance. no additional stajJtime or County resources are required
for implementation ofthis Bill.
7. An explanation of how the addition of new staff responsibilities would affect other duties.
Per the Department ofFinance, no additional stajJtime or County resources are required
for implementation ofthis Bill.
8. An estimate of costs when an additional appropriation is needed.
N/A
9. A description of any variable that could affect revenue and cost estimates.
The bill does not change the rate ofthe fuel-energy tax, only the timing ofpayments.
There will be no ejJect on revenues or expenditures.
10. Ranges of revenue or expenditures that are uncertain or difficult to project.
N/A
11. If a bill is likely to have no fiscal impact, why that is the case.
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The Bill does not change the rate ofthe fuel-energy tax, only the timing ofpayments.
There will be no effect on revenues or expenditures. Per the Department ofFinance, no
additional stafftime or County resources are required for implementation ofthis Bill.
12. Other fiscal impacts or comments.
N/A
13. The following contributed to and concurred
with
this analysis:
Jedediah Millard - Office of Management and Budget
Naeem Mia - Office of Management and Budget
Michael Coveyou - Department of Finance
Date
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Economic Impact Statement
Bi1l #-#, Taxation - Fuel-Energy Tax - Timing of Payments
Background:
This legislation would amend the timing for payment of the
tax
and generally amend
County law regarding the fuel energy tax. The Bill amends current law by changing the
date on which persons or companies; who transmit, distribute, manufacture, produce, or
supply fuel ofenergy to the County; may now remit tax payments on the last day ofthe
following month in which such collections are received by the persons or companies
from fuel and energy customers.
1. The sources of information, assumptions,and methodologies used.
Not applicable
2. A description of any variable that could affect the economic impact estimates.
Not applicable
3. The BiJI's positive or negative effect, if any on employment, spending, saving,
investment, incomes, and property values in the County.
This bill amends the timing of when fuel-energy
tax
payments are remitted to the
County. Therefore, the Bill has no economic impact.
4.
If
a Bill is likely to have no economic impact, why is that the case?
This bill only amends the timing of payments ofthe fuel and energy tax collected by
persons or companies and sent to the County.
5. The following contributed to and concurred with this analysis:
David
Platt and
Michael
Coveyou, Finance.
Date!
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