Some Properties May Owe More Than $100,000 Annually
& Howard County 2/19/13, 7:30 PM
Not only will every household be impacted, but nearly every non-residential property, be it business, commercial, non-profit, church, private school, etc. will be assessed an impervious surfaces fee in concert with your July 1 tax bill.
At the 2012 session of the General Assembly HB 987 was enacted that mandated larger counties enact an impervious surface based fee structure to fund watershed protection and restoration programs which are required by the EPA. The bill established the framework, but left the amount of the fee and other details up to the county. It must be imposed by July 1, 2013.
Found below is an overview for the legislation being proposed in Anne Arundel County. The fee proposed in Howard County had a similar set of dynamics, but the fee for non-residential is less, at $7.80 per 500 square feet, which equates to about $681 per impervious acre versus $1323 per acre in Anne Arundel County. Other counties are working on establishing a fee, which again, will need to be instituted by 1 July, 2013.
Lest you think this "impervious surface area" doesn't add up, consider that every square foot of building footprint, sidewalk, parking lot, even a swimming pool, will be included. A rough calculation of a manufacturing firm yielded a total possible fee of $9,000. A hotel/conference center's annual fee could exceed $20,000. Other properties with large impervious surface areas could exceed $100,000 each year.
Every non-residential property owner needs to be aware of this proposal, understand what the impact will be on his/her bottom line, and let his/her voice be heard. Should you have questions or need additional information, please contact me and I will assist you in any way I can. We are aggressively working this issue on behalf of our members. Be a good business friend, and share this information with other businesses and non-residential property owners.
IMPERVIOUS SURFACES FEE: A SUMMARY FOR ANNE ARUNDEL COUNTY
What?
The Maryland General Assembly passed HB987 during the 2012 legislative session, mandating that all Phase 1 MS4 jurisdictions in the state (which includes Anne Arundel County) create a dedicated, Local Watershed Protection and Restoration Fund, as well as a storm water remediation fee, in order to generate the revenue necessary to comply with each jurisdiction's permit requirements. HB 987 requires that the program be adopted and implemented by July 1, 2013.
What Happened?
A Committee appointed by Anne Arundel County Executive Leopold met monthly between July and November of 2012. The Committee made recommendations concerning the structure, credit mechanism, and amount of the fee. In these recommendations, the Committee stated it had had two distinct goals: "1) to propose a mechanism that would actually accomplish the task of funding the county's regulatory obligations with regard to stormwater pollution (estimated to be nearly $1 billion by 2025); and, 2) do so in a way that was fair and equitable to county taxpayers - both residential and non-residential."
And Now?
The recommendations were considered by the Anne Arundel County Council and a proposed Bill No. 2-13, entitled "Stormwater Management-Watershed Protection and Restoration Special Revenue Fund and Program" was introduced on January 22, with a work session scheduled for 13 February and a public hearing set for February 19, 2013.
What Would the Bill Do?
A fee structure is proposed for both residential and non-residential properties, with the fee computed and added to the real estate tax bill issued on or about 1 July 2013. Undeveloped properties would not be assessed a fee.
The fee proposed is a base rate of $85 per "equivalent run-off unit" or "ERU," per 2800 sf. of impervious area. An imperious area includes the building area or "footprint", sheds, out-buildings, driveways, sidewalks, etc. Residential areas are classified into three different "tiers" according to zoning district, with Tier One being the base rate times two or $170 (low-density rural and agricultural properties); Tier Two is the base rate of $85 (single family homes); and, Tier Three is 40% of the base rate, or $34 (for townhomes and condominiums).
And, what about the "non-residential" properties?
This includes commercially zoned properties, along with churches, synagogues, temples, private schools, non-profits, etc. The amount of impervious surface would be calculated and a fee of $85 per 2800 square feet would be charged, less any credits (see below) which cannot exceed 50% of the fee.
There are 43,560 s.f. feet in an acre, which divided by 2800 s.f. (the amount of an "ERU") equals 15.56. Thus, for every acre of impervious surface, the total possible fee would be $1323, but the least it would be is $662.00 per acre.
Are There Credits for Existing Stormwater Management Systems?
Yes, a property owner may receive up to a 50% credit of the remediation fee "to account for on-site systems, facilities, services or activities that reduce the quantity or improve the quality of stormwater discharged from a property."
Are There Other Exemptions?
Yes, state and local government properties are exempt, and one may make application for an exemption due to "substantial financial hardship" with criteria set forth for eligibility. The exemption must be re-applied for every tax year.
How Do They Compute the Impervious Surfaces for Each Property?
The Anne Arundel County Department of Public Works will use Geographic Information Systems (GIS) to calculate the amount of impervious surface for each subject property. Fee calculations will then be made and provided to the Maryland State Department of Assessments & Taxation (SDAT) for inclusion in the real estate tax bill.
Have Any "Sample" Properties Been Calculated for Public Review?
None that have been made available.
What If A Property is Leased to Someone or Some Entity?
The fee is computed and sent to the property owner; it would be up to the property owner to pay the fee or pass it on to a lessee.
We hope you find this information useful. If you have additional questions, please contact our office at (301) 725-4000 or (410) 792-9714.
You can always trust the Baltimore Washington Corridor Chamber to give you all the facts to help you make wise business decisions. The BWCC is one of the best advocates the the businessman has in the corridor, so what's keeping your company from becoming a member?
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