From Harford County government:
By Jim Richardson
While it’s not a “rain tax,” it’s a fee nonetheless. It’s an unbudgeted, unexpected chunk of change that may throw many local business owners for a financial loop. It will also have a strong impact on the region’s economic development.
“It” is the Storm Water Management Fee that will be assessed on certain residents and businesses throughout Harford County as a way to finance natural resource conservation and water quality improvement programs. Harford County is included in the 10-county jurisdiction affected by the State Watershed Protection and Restoration Program, which seeks to lower the amounts of nitrogen, phosphorus and sediment discharges in our waters. The State of Maryland has given general guidelines for reduction under this program, including a Storm Water Remediation Fee to be paid by landowners within the Municipal Separate Storm Sewer System (MS4) area. Each county can implement its own structure and operational details to generate funds, and each county has approached it differently. Two counties have refused to participate, with one of them making its point by enacting a one-cent tax to all eligible properties.
Our local program allows options for the private sector, albeit difficult ones. Harford County government adopted the current program which provides for 10 percent of the proposed storm water fee to be collected this year. After the first year’s 10 percent discounted fee, approved by the County Council, residential and agricultural properties may be charged $125 yearly and businesses may be assessed $7 per 500 square feet of impervious surface yearly. Non-profit organizations fall under other assessment criteria. The legislation does provide for a 100 percent credit for properties that meet the storm water quality guidelines; however, the rules and procedures to implement this program have not been fully developed. The County Council will establish work groups along with County government agencies to further develop this program, and to address any off site mitigation that would possibly be an advantage to businesses with a large impervious footprint. It leaves much to be debated over the next several months.
Major distribution centers, which make up a significant portion of our economy, may be heavily impacted due to their size. A 500,000 square-foot facility and a parking area of 300,000 square feet may be taxed $11,200 per year, totaling nearly $35,000. Retail properties, also a mainstay of the County, have the ability to spread the tax amongst tenants, but it increases lease payments for often-financially strapped retailers. They, in turn, will pass costs on to the consumer. In addition, the geographic inconsistency of the tax requirement is a bitter pill for businesses outside the applicable area. Initially, fees do not apply to properties – residential or commercial — within the city or town limits of Aberdeen, Bel Air or Havre de Grace, because they are not subject to the County’s MS4 permit. It is anticipated that these jurisdictions, along with other counties in the state will be subject to this fee in the future, but the time frame is unclear.
With the obvious benefit of locating a business within the town limits, efforts to attract businesses to places like the Chesapeake Science and Security Corridor and new retail complexes in Abingdon will now need to become more aggressive. Creative support will need to be offered to offset the financial implications of this program in areas that are crucial to the County’s success.
To insure the County continues to maintain momentum in attracting businesses to our area, the Office of Economic Development is being proactive in searching for partnerships with various companies that will lessen the financial burden for businesses. As a County, we cannot continue to thrive if we do not provide alternatives. It’s no secret that companies evaluate the cost of doing business before deciding where to locate. We want to give them the positive reasons to locate in Harford County. Among them are the efforts on everyone’s part – businesses, lawmakers and residents – to do the right thing for the environment.
Investment in facilities and landscaping to meet the water quality goals is a good first step. Partnering with the agricultural community and the building community to implement innovative, cost-effective programs with a high return on water quality improvement is another avenue worth exploration. Searching for ways to make the program itself consistent and meaningful – both for businesses and the environment — should be a top priority. Engaging in productive discussions that will result in new ways to unburden local businesses is imperative. We need to support our business community so that they can meet the criteria of this program cost-effectively while they continue to do business profitably in our county.
Is there a goal for the “Rain Tax”? Are there specific targets that once met the funding and therefore the tax will end? Where are we at now as far as the storm water run off; what are the targets; what step do we need to take to get there; how much do these actions cost?
This may be worth while but the explanation given to the public is rather poor. Unfortunately, this seems par for the course when it come to our state government.
The “rain tax” is like the “flush tax”. The “flush tax” was suppose to ONLY LAST a 5yr duration (as told/sold to the citizen) to bring the water treatment plants up to speed (for the “Bay”). Just another “slush fund” additive for the politicians. Once a “tax” is added, it will NEVER go away. Politicians are TO EAGER to spend OTHERS “$”.
If you notice the government exempted themselves from this fee
OH! And the “gas tax” sold to MD’ers as/for “MUCH NEEDED hwy. infrastructure” will be spent on rail and buses in and around the D.C. area. Guess to get OWE”Malley to/from D.C. when elected? OWE’Malley and OWE’Bama operate under the same principle; “you have money ~ “I” want it.”
Fact is if you pave paradise you ought to pay for it. If you build a megastore and surround it with asphalt and non-native lollipop trees it has an impact on watersheds, streams and wildlife, not to mention undermining small local businesses . Kinda so what if Walmart has to pay $11,000 per year. That’s chump change for them. To the idea that they’ll pass on costs to customers…true and it’s always been that way but it isn’t to say that therefore big box stores should be exempt from taxes. Besides isn’t it Harford County Economic Development that offers bribes to bring companies here? Aren’t they the ones who subsidize companies that don’t need it and then justify it with “everybody else does it”?
It’s interesting that Havre de Grace, Aberdeen, Bel Air residents, Federal, County and local government property is exempt.
This state should change their tagline to “Maryland…..The ‘JEEP’ state” (Just Empty Every Pocket).
Apologies in advance to any fellow Jeep owners, but that acronym makes more sense for MD than it does for any Jeep.
The Susquehanna drains half of Pennsylvania and portions of New York. What is being done to gather Storm Water Management Fees from those States? These brainless, dickless morons in Annapolis will continue to trash the Maryland economy to gather funds they SAY they’ll use on a project that amounts to putting a band-aid on a sucking chest wound. After all their spreadsheets and powerpoint presentations, after they screw Marylanders out of millions to try to improve the Bay (and make our girly governor look like he did something worthwhile), I dare any one of them to get a big glass full of the Susquehanna and drink it down.
Unfortunately, this is what most Marylanders want. Marylanders continue to elect M.O.M. and Mike and Mike run the assembly and senate in Annapolis. Marylanders keep electing those who tow the party line.
Martin proposes and the statehouse rubber stamps.