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County hearings on APFO and building excise tax draw major policy debate; board leaves record open for two weeks
Summary
Officials proposed removing the alternate mitigation contribution and raising the county building excise tax to shift how new development pays for school capacity and other infrastructure. The county received written comments from the City of Hagerstown and several builders; commissioners kept the hearing open for two weeks for further input.
Washington County planning staff proposed revisions to the Adequate Public Facilities Ordinance (APFO) and the Building Excise Tax Ordinance (BETO) that would change how new development pays for impacts on school capacity and other infrastructure. Commissioners opened a public hearing, received written and oral comments, and left the record open for two weeks to allow additional input.
Jill Baker, director of the county Department of Planning and Zoning, summarized the proposed changes. Staff proposed removing the current "alternate mitigation contribution" (AMT) option from the APFO and replacing most of the revenue with an increased building excise tax. Under the staff proposal, residential excise tax would increase from $1.00 to $2.00 per square foot of habitable space (additions remaining at 50% of the rate), and the nonresidential rate would increase from $1.00 to $1.50 per square foot. Staff also proposed to limit building permits in districts with school utilization between 100% and 119% to 25 units per calendar year for major subdivisions, and to provide guidance for mitigation plans required when utilization exceeds 120% (for example, facility improvements but not portable classrooms).
As part of the proposal, staff proposed exempting residential construction within the Hancock and Cascade elementary school districts from the excise tax for 10 years from the ordinance's effective date. Baker said the additional excise tax revenue would also account for inflation and replace lost revenue if the alternate mitigation contribution is removed.
The City of Hagerstown submitted written comments asking that excise-tax proceeds intended to address school capacity be "exclusively dedicated" to capital projects that increase seating capacity and not used for unrelated school rebuilding unless that rebuilding increases state-rated capacity. The city also asked that specific projects using excise-tax funds be identified in the county and Board of Education capital budgets and that municipalities be notified when those projects are added.
Ed Schreiber, representing the Washington County Home Builders Association, urged more time for builders to analyze the change and suggested alternatives such as continuing the AMT with adjusted unit-generation rates rather than a straight excise-tax doubling.
After discussion, commissioners voted to leave the public hearing record open for two weeks for additional comments and to return the matter for further deliberation. Staff said the proposed changes will be included in the county's public materials; the Board of County Commissioners requested additional data about city development quantities and the net effect on different classes of builders and municipalities before final action.
