Agenda Item 9B
February 3, 2015
Robert H. Drummer, Senior Legislative Attorney
Bil162-14, Taxation - Development Impact Taxes
Government Operations and Fiscal Policy Committee recommendation: enact with
amendments (2-1, Committee Chair Navarro dissenting on amendments).
Bill 62-14, Taxation - Development Impact Taxes - Exemption - Ancillary Facilities,
sponsored by then-Council President Rice, was introduced on November 25,2014. After the Bill
was introduced, Council President Leventhal and Councilmembers Floreen, Katz, Riemer, and
Navarro added themselves as co-sponsors.
Bill 62-14 would exempt from development impact taxes certain ancillary facilities in
residential developments that do not increase the number of dwelling units in the development and
are not open to the public, such as clubhouses, fitness centers, or administration buildings.
A public hearing was held on January 13, 2015, at which the only speaker was Philip
Marks, representing the Leisure World Board of Directors, who supported the Bill. Mr. Marks
noted that Leisure World had paid about $75,000 in impact taxes in 2005 for an accessory building
after having their appeal ofthe tax denied. They now plan to build a new fitness center, restricted
to current residents, for which the impact tax would amount to $60-90,000.
A fiscal impact statement, received from the Office of Management and Budget after the
hearing, concluded that "the amount of square footage and revenue potentially affected by this
legislation cannot be determined" because of a lack of historical data.
At a worksession held on January 29, the Government Operations and Fiscal Policy
Committee considered this Bill and the amendments proposed by the County Executive (discussed
below) and recommended enacting the Bill with the Executive amendments. Committee Chair