Mayors from across the State were the first to hear the good news directly from House Speaker Michael Busch during their briefing on Friday afternoon. Speaker Busch indicated to mayors attending the Leader to Leader Forum that he has identified MML's revenue initiative as a "leadership bill" and intends to make sure it passes the House of Delegates during this legislative session. The legislation, HB 1424
sponsored by Delegate Kumar Barve, provides enabling authority to municipalities and 6 counties without such authority with the ability to impose a maximum 0.5% transfer tax with half the monies raised earmarked for growth related projects and activities.
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Here's the text of House Bill 1424 -- the city part is exactly the same as this language except that the word "county" is changed to "municipal corporation".
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(A) (1) IF A COUNTY IS NOT OTHERWISE AUTHORIZED BY LAW TO IMPOSE A TRANSFER TAX, THE COUNTY MAY IMPOSE A TRANSFER TAX UNDER THIS SECTION ON AN INSTRUMENT OF WRITING RECORDED WITH THE CLERK OF THE CIRCUIT COURT FOR THE COUNTY.
(2) THE GOVERNING BODY OF A COUNTY SHALL HOLD A PUBLIC HEARING BEFORE IMPOSING A TRANSFER TAX UNDER THIS SECTION.
(B) A TRANSFER TAX IMPOSED UNDER THIS SECTION MAY NOT EXCEED 0.5%.
(C) A COUNTY THAT IMPOSES A TRANSFER TAX UNDER THIS SECTION MAY PROVIDE FOR EXEMPTIONS FROM THE TRANSFER TAX.
(D) AN INSTRUMENT OF WRITING SUBJECT TO A TRANSFER TAX IMPOSED UNDER THIS SECTION MAY NOT BE RECORDED UNTIL THE TAX IS PAID TO THE COLLECTOR OR THE CLERK OF THE CIRCUIT COURT.
(E) (1) AT LEAST 50% OF THE REVENUES RECEIVED BY A COUNTY FROM A TRANSFER TAX IMPOSED UNDER THIS SECTION SHALL BE DISTRIBUTED TO A SPECIAL FUND.
(2) THE SPECIAL FUND MAY BE USED ONLY FOR CAPITAL COSTS FOR PUBLIC INFRASTRUCTURE TO SUPPORT COMMUNITY GROWTH AND DEVELOPMENT, INCLUDING:
(I) STREETS, ROADS, BRIDGES, AND RELATED INFRASTRUCTURE;
(II) PARKS AND RECREATIONAL FACILITIES;
(III) STORM DRAIN FACILITIES;
(IV) WATER AND WASTEWATER TREATMENT FACILITIES;
(V) WATER AND WASTEWATER MAINTENANCE AND RELATED INFRASTRUCTURE;
(VI) EMERGENCY AND PUBLIC SAFETY SERVICES;
(VII) PUBLIC SCHOOL CONSTRUCTION AND RENOVATION PROJECTS, INCLUDING THOSE FUNDED THROUGH OPERATING FUNDS; AND
(VIII) DEBT REDUCTION RELATED TO EXPENDITURES FOR CAPITAL IMPROVEMENTS.
(3) ANY TRANSFER TAX REVENUES REMAINING AFTER THE DISTRIBUTION UNDER PARAGRAPH (1) OF THIS SUBSECTION SHALL BE DISTRIBUTED TO THE GENERAL FUND OF THE COUNTY.
Kinda like closing the barn door after the horse done got out.
ReplyDeleteTake a look around Wicomico and Sussex County ain't a whole lot of land left to build on.
That 0.5% will of course be passed on to the home buyer. Kinda like what DPL is doing with there new light bulbs, charging you and I for using them.
God! You got to love our government.
It looks like a scheme to put another special tax on anyone who sells or buys real estate (unless they get an exemption) to fund both capital improvements and also the operations ("general fund") of places like Salisbury and Wicomico County. It's time to move to Virginia or Delaware.
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