§ 25-14. Rates.

(a) In general.

For each fiscal year, the rates of the tax will be established as provided in this section.

(b) Certification of revenues and units.

On or before the preceding February 1, each person that sells, distributes, or delivers energy shall certify to the Director, on the forms and in the manner required by the Director:

(1) the aggregate units of energy (e.g., kWhs, therms, gallons, pounds, tons) supplied and delivered during the prior calendar year directly to all persons, governmental entities, instrumentalities, and units, and others, whether subject to or exempt from the tax imposed by this Part 2;

(2) the aggregate revenues derived from the sale, distribution, or delivery of that energy; and

(3) a breakdown of these aggregate units and revenues by class of user, as defined and prescribed by the Director.

(1) For each class of energy and each class of user, the Director shall compute a base year tax rate for Fiscal Year 2005 by:

(i) multiplying the sum of the revenues from each class of user for each class of energy by 0.08; and

(ii) then dividing that product by the sum of the units of each class of energy delivered to the class of users.

(2) For Fiscal Year 2011 and each subsequent fiscal year, the base year tax rate shall be the amount computed under paragraph (1) of this subsection, as adjusted under subsection (d) of this section, multiplied by 1.15%.

(d) Annual adjustments.

For Fiscal Year 2006 and each subsequent fiscal year, these tax rates shall be adjusted by the percentage change in the Baltimore-Columbia-Towson Consumer Price Index, as reported by the United States Department of Labor, comparing December of the preceding calendar year to the December of the next preceding calendar year.

(e) Percentage to be paid.

For each of the following classes of users, the user is required to pay the following percentage of that year's tax rate:

(1) residential energy users subject to residential schedules on file with the Public Service Commission of Maryland –

– Fiscal Year 2005 and subsequent, 25%.

(2) direct users of energy in manufacturing, assembling, processing, or refining operations that are exempt from the Maryland State Retail Sales and Use Tax, but not including uses of energy for the following (for which the full tax shall be paid, as stated in paragraph(4) of this subsection):

(A) maintaining, servicing, or repairing;

(B) testing finished products;

(D) operating administrative or commercial facilities, such as offices, sales or display rooms, retail outlets, and storage facilities (including refrigerated storage facilities); or

(E) any other operations that the State Comptroller incorporates from time to time in the regulations governing the administration of the Maryland State Retail Sales and Use Tax, as those inclusions relate to manufacturing, assembling, processing, or refining –

– Fiscal Years 2005 and 2006, 25%; Fiscal Year 2007 and subsequent, 0%.

(3) any nonprofit hospital, religious, charitable, or educational institution or organization, or any in-patient medical care or nursing facility licensed by the State or City Health Departments, with respect to energy used in carrying on the work of the nonprofit institution or organization or the in-patient medical care or nursing facility –

– Fiscal Year 2005, 0%; Fiscal Years 2006 through 2010, 75%; Fiscal Year 2011 and subsequent, 87% of the commercial rate imposed on the users listed in subitems (A) through (E) of item (2) of this subsection.

(4) all other users –

– Fiscal Year 2005 and subsequent, 100%.

(f) Computation in absence of certification.

(1) If a person that sells, distributes, or delivers energy fails to provide the certification required by subsection (b) of this section, the Director may use any reasonable data to establish a proposed rate of taxation.

(2) A determination made by the Director is presumed valid.

(g) Director to certify rates.

(1) The rates computed by the Director shall be included in the proposed operating budget submitted by the Director to the Board of Estimates.

(2) After the adoption of the operating budget, the Director shall certify to each vendor the rates of tax for the fiscal year as included in the adopted budget.

(Ord. 19-266; Ord. 10-300; Ord. 04-728; Ord. 99-441.)

Prior Codifications

City Code, 1976/83, art. 28, §56A(c)

Editor's Notes

Subsections (c) and (e) of this section were amended by Ord. 10-300. Sections 3 and 4 of that Ordinance provide as follows

Section 3. And be it further ordained, That, notwithstanding the tax rates set by this Ordinance, the rate applicable to members of the Maryland Hospital Association and members of the Maryland Independent College and University Association may not exceed that agreed to in the Memorandum of Understanding between the City and these Associations, as long as the Memorandum of Understanding is in effect and the Associations are in compliance with its terms and conditions.

Section 4. And be it further ordained, That the tax rate set by this Ordinance for residential users may not be increased as long as the Memorandum of Understanding referred to in Section 3 of this Ordinance is in effect and the Associations are in compliance with its terms and conditions.