The Green Fund bill is being heard in the House Environmental Matters Committee today. The bill would impose an impervious surface fee assessed on residential, commercial, industrial, and institutional properties.

The fee for commercial, industrial, and institutional properties would be calculated either:

• By multiplying a specified percentage (commercial - 72%; industrial - 53%; or institutional - 34%) of a land parcel’s square footage by $0.01; or
• By directly measuring the impervious surface area of the land parcel and multiplying the square footage of the impervious surface area by $0.01.

The fee assessed on commercial, industrial, and institutional properties may be reduced by up to 50% through the use of offsets, such as green roofs or the removal of existing impervious surface not subject to the fee, that produce tangible water quality benefits.

According to the bill’s fiscal note, the legislation would generate $68.1 million, not including institutional properties for which estimates could not be generated. More than 60 percent, $41.1 million, would come from commercial and industrial property owners.

While a laudable goal, the funding source created by the legislation places a disproportionate share of the responsibility on Maryland businesses.

This bill represents yet another business tax increase during a special session where more than $700 million in new business taxes have already been considered.

“While the goals of this legislation are laudable, they are not well-timed,” said Maryland Chamber Vice President for Government Affairs Heather Hamilton. “This is not the time to lay another tax burden on the business community when they are already being asked to bear an incredible aggregate of new taxes.”

To read the Chamber’s complete position statement, click here.