GO Item #2
Government Operations and Fiscal Policy Committee
Glenn Orlur'Deputy Council Administrator _ ,
Amanda Mihill, Legislative
Worksession: Expedited Bill 47-1S, Taxation - Transportation Impact Tax
Taxation - Transportation Impact Tax Revisions, sponsored by
Lead Sponsor Council President at the request of the County Executive, was introduced on
November 17, 20
A public hearing is tentatively scheduled for December 8 at 11 :00 am. This
bill would revise the life of a credit certified after a certain date; allow a credit for reconstruction
of an existing road; and generally amend County law regarding impact taxes.
Expedited Bil147-1S is nearly the same as Bill 30-15 introduced on June 16, 201S at the
request of the Executive, except that Bill 30-1S would have eliminated the transportation and
school impact tax exemptions in former enterprise zones, of which there is now one: the Silver
Spring Central Business District. A week later the Council withdrew Bill 30-1S, again at the
Executive's request. Expedited Bill
includes two elements of Bill
Transportation and School Impact Tax - Amendments, for which a public hearing was held on
July 21, 201S. Bi1l34-1S has not yet been scheduled for a Committee worksession.
Life of credits.
A developer can eam a credit if he or she builds additional capacity
usually as a condition of subdivision approval-such as building a new or widened major road,
hiker-biker trail, bikeshare station, park-and-ride lot, purchasing additional Ride On buses, or
adding permanent classrooms in the form ofa new school or addition. The credit can then be used
to offset the development's impact
payment. From 1986 (when the initial impact fee law was
adopted) until 2004 such credit did not expire. However, when the Council amended the law in
2003, it was concerned that the credits sapped the revenue available for needed transportation
improvements, so it placed a 6-year expiration on all credits granted on or after March I, 2004.
The rationale for selecting 6 years was that it is the duration of a CIP period.