Maryland Headlines
Montgomery County Energy Tax: the Battle is On
It appears likely that Montgomery County Executive Isiah Leggett intends to ignore the fact that his 85% hike in the County’s energy tax for the last two years is supposed to sunset in 2012 and allow the tax rates to return to their pre-2010 levels. Members will recall that, in April 2010 with no warning to businesses which were well into their fiscal year budgets, Leggett proposed a 100% increase in the tax in order to raise $133 million. Ultimately, the Council went along with an 85% hike in this tax, which businesses pay two-thirds of because of rates that favor homeowners. But, the Council also insisted that the staggering hike would be temporary-- it put a two-year sunset on the rate increase, which will come up on June 30, 2012. Leggett, however, is increasingly indicating that he will submit an FY 2013 budget that is based on maintaining the rates that were adopted “temporarily” in 2010, and which will put the burden on the Council to find either spending cuts or other revenue measures if they plan to keep their word that those near-doubled rates would not be permanent.
