May 19, 2010

PAY UP: County to tax cell phones, electricity, EMS services, etc

If you live in Montgomery County, there are some new taxes and fees coming to help fix a billion dollar budget shortfall. Ambulance fees, which have become common in the D.C. region, were proposed by County Executive Ike Leggett and approved by the Montgomery County Council Wednesday morning in a close 5-4 vote. If residents are transported in a Montgomery County ambulance, insurance companies will be charged a fee between $300 and $800 depending on the level of care. Insurance companies will also be charged $8.50 for each mile the ambulance takes someone.

The fee is expected to raise nearly $13 million a year to help fund the county's fire and EMS operations. It will take several months to implement the fee, but it could take effect as soon as July 1.

Volunteer firefighters are threatening to take the issue to a referendum, and let county residents vote on it. If that happens, there's a chance they can stop the fee from ever taking effect. The volunteers say the fees will discourage people in need of medical care from calling an ambulance.

The Council also voted Wednesday to temporarily raise the county tax on fuel and energy use for things like electricity, natural gas and home heating oil. The change, which takes effect immediately, is expected to cost the average homeowner an extra $15 per month. After two years, the tax rate will drop again. A county tax on cell phone lines will also rise from $2 per month to $3.50 starting July 1.

Lastly, Montgomery will become the first county in the nation to tax major carbon emitters. It will force companies that produce huge amounts of carbon to pay a tax of $5 per ton of carbon produced. The tax, set to take effect July 1, will only affect the Mirant power plant in Dickerson. Montgomery County is trying to deal with a massive $1 billion budget shortfall. SOURCE: WTOP

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