Maryland Governments Risk Millions in Fines Over Rain Tax

Government leaders in Maryland’s 10 largest jurisdictions have been warned by state officials that they face fines of up to $10,000 a day if new stormwater fees are not implemented, reports ABC2News.

In 2012, the General Assembly required the jurisdictions to establish a plan to begin a watershed protection and restoration project that includes a stormwater remediation fee.

Stormwater runoff – rainwater that is not absorbed into the ground, but rolls along impervious surfaces, picking up debris, fertilizer and other pollutants – is a major source of pollutants in the Chesapeake Bay. 

The 10 jurisdictions affected by the “rain tax” include Montgomery, Prince George’s, Howard, Anne Arundel, Carroll, Harford, Charles, Frederick, Baltimore, and Baltimore city.

Carroll County has been warned by the Maryland Attorney General’s Office that it could face up to a $10,000 a day fine for refusing to comply with the federal mandate.

Carroll County officials say they believe they complied with the state law by allocating $20 million in existing money to tackle stormwater remediation projects.

Assistant Attorney General Paul N. De Santis wrote to the county Oct. 25 that the action taken was insufficient.

When county leaders voted this summer to allocate the money, it was seen as a way to avoid taxing residents further, according to an earlier Patch story.

"Citizens of our county are tired of this regulatory assault on them," Commissioner Richard Rothschild said at the time in a Patch story. 

This week, the Anne Arundel County Council voted to lower the stormwater fees for all non-profits to $1 with some pushing to reduce the fees to that rate for all property owners, the TV station said. Currently, homeowners pay between $34 and $170, while businesses pay $85 per 2,940 square feet of impervious space.

The so-called rain tax will be an issue on the campaign trail in the coming year. Some state lawmakers have pledged to try and repeal the law, while many on the local level are working to reduce or eliminate the fees.

Harford County

Harford County Executive David Craig, a Republican gubernatorial candidate, is pushing for his county to repeal its fee, ABC 2 says. The County Council set its fee to $125 a year for homeowners and $7 per 500 square feet of impervious area for commercial businesses.

Craig said he felt obligated to pass the fees in the summer to comply with the state law, but has maintained concerns over the legislation, including what projects would be funded and whether they would benefit the environment.

Craig told the TV station that he had concerns over the impact the fees would have on local businesses and did not like that government buildings and schools were exempted from paying the fees. He also was upset that only certain jurisdictions were targeted for the fees.

Baltimore County

In Baltimore County, the County Council approved its fee structure last spring. Under its plan, townhouse owners pay $21 while single-family homeowners pay $39 annually. In addition, businesses and non-profits will pay $69 and $20, respectively per 2,000 square feet of impervious space.

Local Republicans have targeted elected officials that supported the legislation at the state and local levels, the TV station says.

John Fiastro, Baltimore County Republican Central Committee chairman, said the fees are a huge burden on small businesses in the area, which will be forced to pass on higher costs onto their customers.

“Squires will be have to sell 176 extra cannolis and the Boulevard Diner will have to sell 553 extra bowls of chicken noodle soup to pay for their fees,” said Fiastro, referring to two longtime Dundalk businesses.

Among those Baltimore County Republicans targeted in their attack against the rain tax was Del. John Olszewski Jr. and his father, Councilman John Olszewski Sr. Fiastro said his organization recently unveiled a billboard, which read, “Who Voted for the Rain Tax?” It listed both Olszewskis as the answer.

Olszewski Jr., a Democrat, said he voted for the implementation of the stormwater fees to ensure Maryland would not violate the federal mandate. He said he shares concerns about the implementation of the bill and what he called the undue burden placed on businesses.

“It’s unfortunate that my opponents have taken this opportunity to try and record cheap political points rather than trying to address the problem.,” Olszewski Jr. told the TV station. ” … We didn’t have a choice but to pass the stormwater legislation or risk out on securing permits needed to build schools, homes and businesses in the area. When we have businesses like Amazon telling us they want to set up shop in our district and put our people to work, I’m not going to put that at risk.”

Related Stories:

• Commissioners Say 'Rain Tax' Not Needed in Carroll County
• Carroll County Won't Implement 'Rain Tax,' Will Absorb Mandated Fees