Agenda Item 11
&
13C
Apri15,2016
Public Hearing/Action
MEMORANDUM
April 1,2016
TO:
County Council
FROM:
Robert
H.
Drummer, Senior Legislative
Attorney~
SUBJECT:
Public Hearing/Action:
Expedited Bill 9-16, Working Families Income
Supplement - Amount - Amendments
Expedited Bill 9-16, Working Families Income Supplement - Amount - Amendments,
sponsored by Lead Sponsor Government Operations and Fiscal Policy Committee,
was
introduced
on March 15, 2016. Action is scheduled following this hearing.
Bill 9-16 would clarify the amount of the Working Families Income Supplement (WFIS)·
paid to each recipient, subject to Council approval of a lower amount in the annual operating
budget.
Background
Bill 8-13, Working Families Income Supplement - Amount, enacted by the Council on
October 29, 2013 and signed into law by the Executive on November 12,2013, required the WFIS
to equal the amount of any refund the recipient receives from the State earned income credit
program unless the Council approved a lower amount in the operating budget. Bill 8-13 also
contained the following provision that would decouple the WFIS from the State if:
... the State refundable earned income credit is greater than the amount by which
25% of the Federal Earned Income Credit exceeds the gross State income
tax.
For calendar year 2015, the State earned income credit will be greater than the amount by
which 25% of the Federal Earned Income Credit exceeds the gross State income tax for the first
time. The relevant portion of Md. Tax-General Code §10-704(b)(ii) is:
(ii)
The applicable percentage ofthe earned income credit allowable under
§
32 of the
Internal Revenue Code to be used for purposes of determining the refund provided
under this paragraph is:
l.
25% for a taxable year beginning after December 31, 2013, but before
January 1,2015;
2.
25.5% for a taxable year beginning after December 31, 2014, but before
January 1,2016;
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3.
4.
5.
26% for a taxable year beginning after December 31, 2015, but before
January 1,2017;
27% for a taxable year beginning after December 31, 2016, but before
January 1,2018; and
28% for a taxable year beginning after December 31, 2017.
Bill 9-16 would keep the default WFIS equal to the State refund as the State earned income
credit refund increases each year. The Council would retain the authority to "approve a lower
amou:q~
in the annual operating budget by an affirmative vote of at least five Councilmembers."
Technical Correction
Council staff recommends changing "subsections" to "subsection" on line 3 as follows:
(a)
Subject to [[subsections]] subsection (b) [and (c)], the amount of the
This packet contains:
Bill 9-16
Legislative Request Report
F:\LAW\BILLS\1609 WFIS - Amount - Amendment\PH-Action Memo.Docx
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Expedited Bill No.
9-16
Concerning: Working Families Income
Supplement - Amount - Amendments
Revised: February 26, 2016 Draft No.
.1
Introduced:
March 15,2016
Expires:
September 15, 2017
Enacted:
[date]
Executive:
[date signed]
Effective:
[date takes effect]
Sunset Date: -'N=o=n=e_ _ _
--=-__
Ch.
~I
Laws of Mont. Co.
[Year]
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Government Operations and Fiscal Policy Committee
AN EXPEDITED ACT
to:
(1)
clarify the amount ofthe Working Families Income Supplement paid to each recipient,
(2)
subject to Council approval ofa lower amount in the annual operating budget; and
amend the law concerning the amount ofthe Working Families Income Supplement.
By amending
Montgomery County Code
Chapter 20, Finance
Article XIV, Working Families Income Supplement
Section 20-79
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface bracketsD
* * *
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:
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EXPEDITED BILL
No.
9-16
1
2
Sec.
1.
Section 20-79 is amended as follows:
20-79. Amount of Supplement.
(a)
Subject to subsections (b) [and (c)], the amount ofthe Working Families
Income Supplement paid to each recipient must equal the amount of any
refund the recipient receives from the State earned income credit
program.
3
4
5
6
7
8
(b)
The Council may approve a lower amount in the annual operating budget
by an affirmative vote of at least five Councilmembers.
9
10
11
12
[(c)
The amount required in subsection (a) does not apply in any year that the
State refundable earned income credit is greater than the amount by
which 25% ofthe Federal Earned Income Credit exceeds the gross State
income tax.]
13
14
15
16
Sec. 2.
Expedited Effective Date.
The Council declares that this legislation is necessary for the immediate
protection ofthe public interest. This Act takes effect on the date on which it
becomes law.
Approved:
17
18
Nancy Floreen, President, County Council
Date
19
Approved:
20
Isiah Leggett, County Executive
Date
21
This is a correct copy ofCouncil action.
22
Linda M. Lauer, Clerk ofthe Council
Date
f:lJaw\bills\1609
wfis •
amount· amendmentlbill-e 1.docx
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LEGISLATIVE REQUEST REPORT
Expedited Bill 9-16
Working Families Income Supplement
-
Amount
-
Amendments
DESCRIPTION:
To clarify the amount ofthe Working Families Income Supplement paid
to each recipient is equal to the State refund, subject to Council approval
of a lower amount in the annual operating budget.
As the State refund increases this year to a new level, the current default
for the WFIS is no longer equal to the State refund.
Clarify that the default amount for the WFIS is equal to the State
refund unless the Council approves a lower amount in the budget.
Finance
To be requested.
To
be
requested.
To be requested.
To be researched.
Robert H. Drummer, Senior Legislative Attorney
Not applicable.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIEN CE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
Not applicable.
F:\LAw\BILLS\l609 WFIS - Amount - Amendment\LRR.Docx