Harford County Cuts 'Rain Tax' Money Flow

Harford County reluctantly passed and enacted a very scaled down version of the 'rain tax', the recently enacted Maryland state law which require the counties of the most highly populated areas of the state to collect a tax based on the amount of impervious  surface of land, to be be used for stormwater remediation.

Craig signs scaled down Harford 'rain tax' bill into law

"Recently I received Harford County Bill 13-12 on my desk, approved by the County Council after having been introduced at the request of my administration," the statement reads in part. "This is the county legislation for a stormwater fee, also rightly referred to as the Rain Tax, which is required based on a law that the Maryland General Assembly passed back in April of 2012. The state law requires Harford and nine other jurisdictions in the state to levy fees on developed land by this coming July 1, and to use the funds raised on stormwater management projects."

"The legislation that was passed here in Harford County pursuant to this state law places a fee of $12.50 per residential tax account for next year, and a fee of 70 cents for every 500 square feet of impervious area for commercial properties," the statement continues. "Farms and nonprofits will only pay the residential rate, and properties within a municipality are not subject to the fees. It will be possible to get up to a 100 percent credit for doing remediation on one's property."

So wait a second, as pusillanimous as that fee is, properties in municipalities, where storm water problems are more severe than in the suburbs and rural areas, are exempt from it?  I don't see the point, except that they have the votes.

Craig's statement also notes: "These amounts for next year represent 10 percent of the fees that were calculated as being necessary for complying with federal and state stormwater requirements."

A Republican who is expected to announce his candidacy for governor in the coming weeks, Craig originally proposed a $125 annual tax on residential and agricultural properties and $7 for every 500 square feet of impervious surface on residential and commercial properties, continually making the point the state's requirements left him with no choice. Craig also submitted a proposed fiscal 2014 budget to the council last month calling for the creation of a $10 million stormwater remediation fund, fueled in part by the revenue from the new fee.

As the county council took up the legislation, however, indignation was sharply on the rise around the county and the region over the rain tax, to the point where Maryland also got plenty of unwanted national publicity over it. The council, most of whose members are considering some kind of election bid of their own last year, among a conservative constituency that is not kind to new taxes or government spending, ended up cutting Craig's proposed fees by 90 percent, effectively delaying any major impact from the legislation until at least next year and likely longer.

Given the massive level of resistance and bad publicity the  'rain tax' (really, 'rain tax' mandate) is getting, I think there is an excellent chance it will be revisited next year.  In the meantime, continue to bear in mind that stormwater remediation is by far the most expensive means proposed to help clean the Bay: