Agenda Item 5C
December 13, 2016
Introduction
MEMORANDUM
December 9, 2016
TO:
FROM:
County Council
.
((\
(jO
SUBJECT:
Robert H. Drummer, Senior Legislative
Attorney~'
Glenn Orlin, Deputy Council Administrator
'
Introduction:
Expedited Bill 51-16, Taxation - Development Impact Tax - Local
Area Transportation Review Mitigation Payment - Established
Expedited Bill 51-16, Taxation - Development Impact Tax - Local Area Transportation
Review Mitigation Payment - Established, sponsored by Lead Sponsor Council President Berliner,
is scheduled to be introduced on December 13,2016. A public hearing is tentatively scheduled
for January 17,2017 at 1:30 p.m.
Bill 51-16 would:
• establish a local area transportation review mitigation payment;
• authorize the Council to set the rates by resolution after a public hearing; and
• amend the law concerning the development impact
tax
for transportation
improvements.
Background.
When the Council replaced Policy Area Transportation Review (TP AR)
payments in the 2016-2020 Subdivision Staging Policy (SSP) with a higher transportation impact
tax, it concurrently deleted the Transportation Mitigation Payment section of the transportation
impact
tax
law in Bill 37-16, believing it was no longer needed. However, Council staff now
acknowledges that this assumption was incorrect: a Transportation Mitigation Payment section is
still needed in the Code to continue to give authority for Local Area Transportation Review
(LATR) payments, including the White Oak LATR Improvements Program and rate proposed by
the Department of Transportation (introduced as Item #3C
in
today's agenda), and for the rates to
be set in the future for the Urban Mobility Programs (UMPs) in other areas.
Enacting this bill would provide the legal authority to impose these LATR payments. It is
an expedited bill so that it could take effect on March 1,2017, when Bill 37-16 takes effect.
This packet contains:
Expedited Bill 51-16
Legislative Request Report
F:\LAW\BILLS\1651 Local Area Transportation Review Mitigation Payment\Intro Memo.Docx
Circle #
1
3
 PDF to HTML - Convert PDF files to HTML files
Expedited Bill No.
51-16
Conceming: Taxation - Development
Impact
Tax
Local
Area
Transportation Review Mitigation
Payment - Established
Revised: December 8, 2016 Draft No.
~
Introduced:
December 13, 2016
Expires:
June 13,2018
Enacted: _ _ _ _ _ _ _ _ __
Executive: ___- -__
-=---­
Effective:
March 1,2017
Sunset Date: --'N:...:;o=.:.n.:..=e'-----:::--_ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President Berliner
AN EXPEDITED ACT
to:
(1)
establish a local area transportation review mitigation payment;
(2)
authorize the Council to set the rates by resolution after a public hearing; and
(3)
amend the law concerning the development impact tax for transportation
improvements.
By amending
Montgomery County Code
Chapter 52, Taxation
Section 52-51
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 unqffected by bill.
The County Council for Montgomery County, Maryland approves the following Act.'
 PDF to HTML - Convert PDF files to HTML files
EXPEDllED
BILL No. 51-16
1
2
Sec. 1. Section 52-51 is amended as follows:
52-51. [Reserved] Local Area Transportation Review Mitigation Payment.
3
4
.cru
In addition to the tax due under this Article, an applicant for
~
building
pennit for any building on which an impact tax is imposed under this
Article must
IlliY
to the Department of Finance
~
5
6
7
8
9
10
11
Mitigation Payment if
this payment is required for
~
building included in
~
preliminary plan of
subdivision that was approved under the Local Area Transportation
Review provisions in the County Subdivision Staging Policy.
{hl
The Council,
Qy
resolution after
~
public hearing advertised at least
.12
days in advance, must establish the rates for the Mitigation Payment
required in this Section.
(£1
The Payment must be paid at the same time and in the same manner as
the
tax
under this Article, and is subject to all provisions of this Article
for administering and collecting the tax.
@
The Department ofFinance must retain funds collected under this Section
in an account to be appropriated for transportation improvements that
result in added transportation capacity or improved mobility in the area
where the development for which the funds were paid is located.
Sec. 2.
Expedited Effective Date.
12
13
14
15
16
17
18
19
20
The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on March
1, 2017.
Approved:
21
22
23
Roger Berliner, President, County Council
Date
Q
f:\laW\bi~1
local area transportation review mitigation payment\bill-e 3.docx
 PDF to HTML - Convert PDF files to HTML files
LEGISLATIVE REQUEST REPORT
Expedited Bill 51-16
Taxation
-
Development Impact Tax
-
Local Area Transportation Review Mitigation Payment ­
Established
DESCRIPTION:
The Bill would establish a local area transportation review mitigation
payment and authorize the Council to set the rates by resolution after
a public hearing.
Bill 37-16 deleted the Transportation Mitigation Payment section of
the transportation impact tax law, but a version of that section is
needed to provide the authority for Local Area Transportation Review
(LA TR) mitigation payments, including for the White Oak Local Area
Transportation Improvements Program and future Urban Mobility
Programs.
To establish a local area transportation review mitigation payment, and
to authorize the Council to set the rates by resolution after a public
hearing.
Departments of Permitting Services, Finance, County Attorney,
Transportation
To be requested.
To be requested.
To be requested.
To be researched.
Glenn arlin, Montgomery County Council staff
To be researched.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IlVIPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENAL TIES:
None
F:\LAW\BILLS\1651 Local Area Transportation Review Mitigation Payment\LRR.Docx