Senator Steve Hershey (R-36-Upper Shore) today told the Senate Budget and Taxation Committee that approval of his bill (SB 903) will “protect home and business owners from losing their property as a consequence of the $103 million in annual fees levied on property owners though the implementation of the rain tax.”
“I am fighting for approval of this bill to offer protection to businesses and property owners that have not been able to budget for these unexpected fees,” said Hershey.
There have been several bills this session aimed at repeal of the Stormwater Management Fee or “rain tax” as it is commonly known. Sen. Hershey has sponsored SB 464 to mandate a full repeal the Stormwater Management Watershed Protection and Restoration Program which passed the General Assembly in 2012.
“Although I support an absolute repeal of this tax, I recognize the chance of repeal is slim,” Hershey said prior to the bill hearing.
Senate Bill 903 does two things: In the event a property owner is unable to pay the stormwater remediation fee or any portion of that fee, a county is prohibited from collecting interest or penalties on the unpaid amount of the fee if the amount is paid in full before July 1, 2023. In addition, if the unpaid taxes on the property are attributed solely to the stormwater remediation fee, the county may not initiate a tax sale of the property before July 1, 2023.
“The measure does not exempt a property owner from paying the rain tax,” Hershey said. “But what it does allow is ample time for a property owner to pay these unanticipated fees without fear of penalties, interest or the threat of losing the property to a tax sale.”
In preparation for this bill, Hershey obtained a letter for the Attorney General’s office that established the fees paid as a result of the 2012 legislation are indeed a tax. Hershey stressed, “As it now stands, the Attorney General has confirmed that inability to pay the stormwater management fee can lead to a tax lien or tax sale of the property and eventual loss of the property.”
“While I am certain that the loss of property was not the intent of the rain tax, unless the law is corrected, it could easily become an unintended consequence. My bill makes sure that home and business owners will not lose their properties as a result of the rain tax,” said Hershey.
Sen. Stephen Hershey represents Maryland’s 36th District, the counties of Kent, Caroline, Cecil and Queen Anne’s.
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