Rain Tax Compromise Reached

Why it seems like just yesterday I was writing about how the Maryland legislature was bogged down in dispute over the "Rain Tax".  Oh, that's right, it was. It seems that the legislature was working on it, and has come to an agreement:

A dispute brewing in Annapolis over a late bid to alter Maryland's storm-water fee law - one that reportedly threatened approval of the state's budget - was resolved Thursday, with lawmakers agreeing to limit a proposed exemption from the controversial "rain tax" to Carroll and Frederick counties.

Senators meeting with their House counterparts this week to work out differences over the state budget sparked the furor by proposing language that would allow any county or municipality to avoid levying a storm-water management fee on its property owners.
The provision was ostensibly put forward to shield Carroll County, where local officials feared they could be sued for failing to enact a storm-water fee as required by a 2012 law.

The law requires fees in Baltimore city and the state's nine largest counties - including Carroll - to pay for reducing polluted runoff from streets, parking lots and rooftops, a growing threat to the Chesapeake Bay. Carroll refused, however, contending it had set aside enough money in its budget to fund its cleanup projects. Frederick argued likewise, but technically complied with the law by adopting a 1-cent fee.

Carroll struck a deal with the Maryland Department of the Environment, which had threatened to sock the county with thousands in fines. In lieu of the fee, Carroll officials pledged to set aside some of its property tax revenue to pay for stormwater cleanup. Though the deal was declared legal by the attorney general's office, county officials nevertheless feared being sued, and sought some legislation to reinforce its position.

So, it's not that they're not paying, they are. They're simply not paying by the mechanism preferred by the "Rain Tax" authors.

Environmentalists protested that the budget language said to be meant for Carroll was too broad, and that any locality could use it to seek to repeal its fee. While communities would still have to pledge property tax revenue to stormwater projects, critics pointed out that would effectively exempt churches and other nonprofit property owners from having to pay their share toward the cleanup.

I'm sure that Chesapeake Bay Foundation and the River Keepers Alliance would be more than happy to give their "fair share" as a gift, regardless.

The furor threatened to become a standoff. House members present at the budget conference contended they never agreed to the storm-water provision, but senators insisted they had - and refused to take it out. The dispute reportedly drew in leaders of both chambers, before a compromise was finally reached.

The budget conferees agreed Thursday to a new provision specifying that only Carroll and Frederick counties may come up with alternative ways of paying to clean up polluted runoff. Those other arrangements must be adopted in local law and approved by the state environment department.

Environmentalists grudgingly accepted the compromise, though still unhappy over how it had occurred so quickly, without public hearings and the normal legislative process.

No opportunities for obstruction, fund raising, and media attention.