Expedited Bill No.            35-13            

Concerning: Taxation – Fuel-Energy Tax – Timing of Payments                                      

Revised:    2-4-14              Draft No. 5  

Introduced:      December 10, 2013        

Expires:          June 10, 2015                

Enacted:         February 4, 2014            

Executive:       February 7, 2014            

Effective:        February 7, 2014            

Sunset Date:  None                             

Ch.   1      , Laws of Mont. Co.    2014    

County Council

For Montgomery County, Maryland

By: Council President at the Request of the County Executive

AN EXPEDITED ACT to:

(1)        amend the timing for payment of the fuel energy tax;

(2) update archaic language and make stylistic and corrective changes; and

[(2)] (3) generally amend County law regarding the fuel energy tax

By amending

            Montgomery County Code

Chapter 52, Taxation

Section 52-14

Boldface Heading or defined term.

Underlining Added to existing law by original bill.

[Single boldface brackets] Deleted from existing law by original bill.

Double underlining Added by amendment.

[[Double boldface brackets]] Deleted from existing law or the bill by amendment.

*   *   *                                                  Existing law unaffected by bill.

The County Council for Montgomery County, Maryland approves the following Act:

                   Sec 1.  Section 52-14 is amended as follows:

52-14.                   Fuel-Energy Tax.

*        *        *

(b)     Person as used [[herein shall mean]] in this Section means any individual or legal entity, and includes any corporation, company, association, firm, [[co-partnership]] partnership, [[or any]] group of individuals acting as a unit, [[and includes any]] trustee, receiver, assignee, or personal representative [[thereof]].  Director in this Section means the Director of Finance or the Director’s designee.

(c)      Every person who transmits, distributes, manufactures, produces, or supplies fuel or energy in the County must pay the tax and report any information required by the Director [[of Finance]] for each calendar month on or before the [fifteenth] last day of the following month.  With the written permission of the Director [of Finance], a person who regularly owes taxes under this Section may pay the tax and make reports on a quarterly basis, on or before the [fifteenth] 15^th day of April, July, October, and January in each year for the preceding 3 months.

[[*     *        *]]

(d)     If any person [[shall fail or refuse to]] does not [[remit]] pay the tax due [[required to be paid hereunder]] under this Section or [[to make]] file a proper return to the Director [[of finance within]] by the time and in the amount [[specified]] required [[herein]], [[he shall be]] that person is liable for interest on the amount of tax due at the rate of [[one-half]] ½ of one [[(1)]] percent per month on the amount of the tax for each month or [[portion thereof from the date upon which]] part of a month after the tax is due [[as provided herein]], and [[shall also be liable for]] a penalty of [[ten (10)]] 10 percent of the amount of the tax. [[, and such]] Any interest and penalty [[shall]] due may be collected as a part of the tax.

(e)      If any person [[shall fail or refuse to make]] does not timely file any report and [[remittance]] pay the tax required [[herein, within the time provided herein]] under this Section, the Director [[of finance shall proceed in such manner as he]] may [[deem necessary to obtain]] use any [[facts and]] available information [[on which]] to [[base his]] estimate [[of]] the tax due.  As soon as the Director [[of finance shall procure such facts and]] obtains available information [[as he is able to obtain upon]] on which to base the [[assessment]] calculation of any tax payable by any person who has [[failed or refused to make such]] not timely filed any report and [[remittance]] paid the tax, [[he shall proceed to determine and]] the Director may assess against [[such]] that person [[the]] any tax, interest, and penalties [[provided for herein]] due and [[shall]] must notify [[such]] that person of the total amount due by regular mail sent to [[his]] the person’s last known [[place of]] address. [[of the total amount of such tax, interest, and penalties, and the]]  The total amount [[thereof shall be payable]] assessed is due and payable within [[ten (10)]] 10 days [[from]] after the [[date of such]] notice is sent.

(f)      [[It shall be the duty of every]] Every person liable for [[the payment to the county of]] any tax [[imposed herein to keep and]] under this Section must preserve, for [[a period of two (2)]] 2 years, [[such suitable]] any records [[as may be]] necessary to [[determine]] calculate the amount of [[such]] tax [[as he may have been liable for the county, which records the director of finance shall have the right to]] due, which the Director may inspect at [[all]] any reasonable [[times]] time.

(g)     [[Whenever]] If any person required to pay [[to the county]] a tax [[hereunder shall cease]] under this Section stops doing business or otherwise [[dispose of his]] transfers ownership or control of the business, any tax payable [[hereunder to the county shall become]] under this Section is immediately due [[and payable]], and [[such]] the person [[shall]] must immediately [[make]] file a report and pay any tax due.

(h)     The Director [[of Finance]] may [[issue regulations]] adopt a regulation, by Method 2, to assess, collect, audit, and otherwise administer the tax imposed by this Section.  If the Council by resolution establishes different rates for different categories of fuel-energy use, the regulations may specify how the Director will determine whether a taxpayer qualifies under the resolution for any rate that is less than the maximum rate.

(i)      Any [[person violating or failing to comply with any of the provisions]] violation of this Section [[shall be subject to punishment for]] is a class A violation [[as set forth in section 1-19 of chapter 1 of the County Code]].  Each violation [[shall constitute]] is a separate offense.  [[Such]] Any conviction [[shall]] does not relieve any [[such]] person from [[the payment, or remittance of such]] paying any tax due.

          Sec. 2.         Expedited Effective Date.

          The Council declares that this legislation is necessary for the immediate protection of the public interest.  This Act takes effect on the date on which it becomes law.

Approved: