Baltimore City Council
File #: 10-0470    Version: 0 Name: Energy Tax - Rates
Type: Ordinance Status: Enacted
File created: 4/12/2010 In control: City Council
On agenda: Final action: 6/21/2010
Enactment #: 10-300
Title: Energy Tax - Rates FOR the purpose of modifying the basic rate of the energy tax; curtailing the tax reduction for certain users; providing for a special effective date; and generally relating to the imposition and collection of an energy tax.
Sponsors: City Council President (Administration)
Indexes: Energy, Rate, Tax
Attachments: 1. 10-0470 - 1st Reader.pdf, 2. BDC - 10-0470.pdf, 3. Health - 10-0470.pdf, 4. Law - 10-0470.pdf, 5. Finance - 10-0470.pdf, 6. BDC - 0470 (Follow-up Report).pdf, 7. 10-0470 - 3rd Reader.pdf, 8. 10-0470 - Enrolled 3rd Reader.pdf
EXPLANATION: CAPITALS indicate matter added to existing law.
[Brackets] indicate matter deleted from existing law.
 
      * WARNING: THIS IS AN UNOFFICIAL, INTRODUCTORY COPY OF THE BILL.
      THE OFFICIAL COPY CONSIDERED BY THE CITY COUNCIL IS THE FIRST READER COPY.
      INTRODUCTORY*      
 
      CITY OF BALTIMORE
      COUNCIL BILL           
                                                                                                                                                            
Introduced by:  The Council President
At the request of:  The Administration (Finance Department)                                                          
 
      A BILL ENTITLED
 
AN ORDINANCE concerning
title
Energy Tax - Rates
 
FOR the purpose of modifying the basic rate of the energy tax; curtailing the tax reduction for certain users; providing for a special effective date; and generally relating to the imposition and collection of an energy tax.
body
BY repealing and reordaining, with amendments
  Article 28 - Taxes
  Section(s) 25-14(c), (d), and (e)
  Baltimore City Code
   (Edition 2000)
 
  SECTION 1.  BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF BALTIMORE, That the Laws of Baltimore City read as follows:
 
      Baltimore City Code
 
      Article 28.  Taxes
 
      Subtitle 25.  Public Utilities Taxes
 
      Part 2.  Energy Tax
 
ยง 2514.  Rates.
 
  (c)  Computation of base year rates.
 
(1)      For each class of energy and each class of user, the Director shall compute a base year tax rate for Fiscal Year 2005 by:
 
(I)      [(1)] multiplying the sum of the revenues from each class of user for each class of energy by 0.08; and
 
 
(II)      [(2)] then dividing that product by the sum of the units of each class of energy delivered to the class of users.
 
(2)      FOR FISCAL YEAR 2011 AND EACH SUBSEQUENT FISCAL YEAR, THE BASE YEAR TAX RATE SHALL BE THE AMOUNT COMPUTED UNDER PARAGRAPH (1) OF THIS SUBSECTION, AS ADJUSTED UNDER SUBSECTION (D) OF THIS SECTION, MULTIPLIED BY 1.15%.
 
  (d)  Annual adjustments.
 
For Fiscal Year 2006 and each subsequent fiscal year, these tax rates shall be adjusted by the percentage change in the Washington-Baltimore Consumer Price Index, as reported by the United States Department of Labor, comparing December of the preceding calendar year to the December of the next preceding calendar year.
 
  (e)  Percentage to be paid.
 
For each of the following classes of users, the user is required to pay the following percentage of that year's tax rate:
 
(1)      residential energy users subject to residential schedules on file with the Public Service Commission of Maryland -
 
- Fiscal Year 2005 and subsequent,  25%.
                 
(2)      direct users of energy in manufacturing, assembling, processing, or refining operations that are exempt from the  Maryland State Retail Sales and Use Tax, but not including uses of energy for the following (for which the full tax shall be paid, as stated in paragraph (4) of this subsection):
 
              (A) maintaining, servicing, or repairing;
 
              (B) testing finished products;
 
              (C) providing for the comfort or health of employees;
 
(D) operating administrative or commercial facilities, such as offices, sales or display rooms, retail outlets, and storage facilities (including refrigerated storage facilities); or
 
(E) any other operations that the State Comptroller incorporates from time to time in the regulations governing the administration of the Maryland State Retail Sales and Use Tax, as those inclusions relate to manufacturing, assembling, processing, or refining -
 
- Fiscal Years 2005 and 2006, 25%; Fiscal Year 2007 and subsequent, 0%.
 
(3) any nonprofit hospital, religious, charitable, or educational institution or organization, or any inpatient medical care or nursing facility licensed by the State or City Health Departments, with respect to energy used in carrying on the work of the nonprofit institution or organization or the inpatient medical care or nursing facility -
 
 
- Fiscal Year 2005, 0%; Fiscal [Year] YEARS 2006 [and subsequent] THROUGH 2010, 75%; FISCAL YEAR 2011 AND SUBSEQUENT, 100%.
 
(4)      all other users -
 
- Fiscal Year 2005 and subsequent, 100%.
 
  SECTION 2.  AND BE IT FURTHER ORDAINED, That the catchlines contained in this Ordinance are not law and may not be considered to have been enacted as a part of this or any prior Ordinance.
 
  SECTION 3.  AND BE IT FURTHER ORDAINED, That this Ordinance takes effect on the date it is enacted for all units of energy delivered on or after July 1, 2010, and billed on or after August 1, 2010.
 
dlr10-1014(4)~intro/07Apr10
art28/EnergyTx/aa:me
 
 
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