AGENDA ITEM #4A
b'OGlenn Odin, Deputy Council Administrator.
Amanda Mihill, Legislative
Bill 30-15, Taxes - Development Impact Tax for Transportation
Improvements - Amendments
On June 1 the County Executive transmitted this bill, which would: limit the enterprise zone
impact tax exemption to the time an enterprise zone is in effect; extend the limit of the life of a credit
certified after March 1, 2015 to 12 years (the limit is currently 6 years); to allow a credit for
reconstruction of an existing road where capacity is being added; and to generally amend County law
regarding impact taxes.
is sponsored by the Council President at the request of the County Executive.
The Executive's transmittal memo is on ©1-2, Bill 30-15 is on ©3-5, the Legislative Request Report is
on ©6-7, the Economic Impact Statement is on ©8-9, and the Fiscal Impact Statement is on © 10-11.
The public hearing on Bill 30-15 is tentatively scheduled for June 30, 2015 at 1:30. As the bill
would allow for the law to be generally amended regarding impact taxes, certain Councilmembers have
identified further proposals for which public comment is being solicited at the June 30 hearing:
Councilmember EIrich proposes including transitways as an eligible expenditure under Section
52-58. He also proposes eliminating Metro State Policy Areas (MSPAs) as a separate rate
category, and in so doing applying the General District tax rates there, except in White Flint and
in those MSPAs that are enterprise zones. Furthermore he proposes eliminating Section 52
57(e), which sets the impact tax rates within one-half mile of the Germantown, Metropolitan
Grove, Gaithersburg, Washington Grove, Garrett Park, and Silver Spring MARC stations at 85%
ofthe General District Tax rates.
Councilmember Rice proposes eliminating Clarksburg as a separate tax district and incorporating
it into the General District.
The effect of these two sets of recommendations would be to equalize the tax rates across all geographic
areas in the County (as is the case for the Development Impact Tax for Public School Improvements),
with the exception of White Flint (where there is a special taxing district), and in active enterprise zones.
A Transportation, Infrastructure, Energy and Environment Committee worksession on Bill 30-15
and these and other potential amendments to the impact tax law is tentatively scheduled for July 20.