Agenda Item 11
January 17,2017
Public Hearing
MEMORANDUM
January 13,2017
TO:
County Council
FROM:
Robert
H.
Drummer, Senior Legislative
Glenn Orlin, Deputy Council Administrator
6IJ
Attomey~
SUBJECT:
Public Hearing:
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 then-Council President
Berliner, was introduced on December 13, 2016. A Planning, Housing and Economic
Development Committee/Government Operations and Fiscal Policy Committee worksession is
tentatively scheduled for January 26, 2017 at 9:30 a.m.
Bi1l51-16 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 (on today's public hearing agenda as Item 10), 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. The
LATR mitigation payments due in each local area would be established by the Council by
resolution after a public hearing. The Office of the County Attorney found the Bill to be
constitutional. See
©4.
This packet contains:
Expedited
Bill
51-16
Legislative Request Report
County Attorney
Bill
Review Memorandum
F:\LAw\BILLS\1651 Local Area Transportation Review Mitigation Payment\PH Memo.Docx
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Expedited Bill No.
51-16
Concerning: 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=on=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 unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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EXPEDITED 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
W
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
~
to the Department of Finance
~
5
6
7
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.
8
9
10
11
12
13
(hl
The Council, by resolution after
~
public hearing advertised at least
U
days in advance, must establish the rates for the Mitigation Payment
required in this Section.
(£)
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.
14
15
16
17
18
@
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.
19
20
21
Sec. 2.
Expedited Effective Date.
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:
22
23
Roger Berliner, President, County Council
Date
f:\law\bi~1
local area transportation review mitigation payment\biU-e 3.docx
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LEGISLATIVE REQUEST REPORT
Expedited Bi1l51-16
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
(LATR) 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 Orlin, Montgomery County Council staff
To be researched.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
None
F:\LAW\BILLS\I651 Local Area Transportation Review Mitigation Payment\LRR.Docx
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QFFICE
OF
THE COtJ:NTY ATIORNEY
lsiahLeggett
Marc P;
Hansen
CoUiuyExeCtitive
Cotmty
Alt{)rngy
MRMQR.ANDtIM
TO:
Chris
Conklin,
Deputy
Director
Office
Qf'Transpo~n
PoUcy
Department
oftranspotati~_,
.
ScottR. Foncannon
ASsociateCoUrity Attomc, ...
VIA:
Edward
B.
Lattner, Chief
.l;[iL-.
Division of Government
O~tions
DATE:
December 16. 2016
Expedited
Bi1151-16~
Taxation-
Development·ltnpact Tu··:- Local Area
transPQrtation Review
MitilY¢onpayment -
J3Stlblish¢d
I
havereyiewed
R"I*lited Bill 51-16, Taxation - Development
lri1pacl:Tax~·
Local Area
Transportatioil Review
Mitigation
Payment -
Establi,sbed..
Thisbm~e~1ishes:a l~~ett
tnmsportation review
mitigation
p,aymentwhich
was,detete(il;>ylli1l37-16. This
bill
nOt
vague,
it
will
not
increase
or
deCi'easetheCounfy'slhe
liability
exposure
ai1dis
cot1$tltutlon,aLln
Order
to make
itcl¢ar
that
this is a UlX
lrecomm~dthatthel.litl
beamen,ded
to
add,
an: .
l.tllCOdi:fiedptovision
thatstat~this
Section
is authorized
by
the
C(runty~:s.getleral~
authority
in
Section 52-17 ofthe County Co-<le. The bill is within the au1:hority<>ftfieCpunty
CQunciland
is
legally sufficient.
..
is
I
have
np
furtheroonnnents
·9n
this bilL
Bonni~
cce
AICirklan.<L
AssisWht
Chief
Administratiye
Offic:er
MatcP.
H~n,
County
Attomey
un
MoitJ'OeSti~ RQCkVil1~
MarY}end
(240)
771-6795
TTD(24P)
771-254:S
e
208$,0-2SSQ
FAX(240)
171-67tlS
.~SCOtLfQneaimon@mo~CountyJnd.i()v