Since the General Assembly session came to a close last week, I’ve received my share of end-of-session wrap-ups from a number of members. But one has stood out because it focused as much on what wasn’t done as it did on the accomplishments. Sometimes keeping bad ideas from becoming law is as much a victory as any bill which is signed.
So when I read Mary Beth Carozza’s assessment of the recent session, I noted that a significant part of her remarks focused on what did not pass.
While serving you here in Annapolis, sometimes the bad legislation we are able to stop is just as important as the bills we are able to pass. This year a number of new tax increases were proposed but did not pass due to our efforts to stop them. Among the worst of this year’s proposed tax increases was the so-called “Chicken Tax,” which would place a 5-cent per chicken tax on every chicken raised in the State of Maryland.
Another agriculture-related tax increase we were able to kill this year was a proposal to repeal the sales and use tax exemption for agricultural products and equipment, such as feed and tractor fuel, that go into producing a final good for sale. The repeal of this exemption would have increased taxes on our state’s farmers by approximately $212 million starting next year and increasing to $251.2 million by 2020.
Other taxes which did not pass this year include the “death tax,” which would have eliminated the “death tax” repeal passed by last year’s General Assembly, a “bottle tax” that places a 5-cent tax on every bottle, a “bag tax” that would ban plastic bags and place a 10-cent fee on paper bags, a $90 million increase in the tobacco tax, and a tax on utility bills for solar and wind that would eventually ramp up to a $566 million annual tax.
Having studied the General Assembly for several years, I can tell you that many of these tax proposals reappear session after session. The “chicken tax” was around last year, a number of Democrats were upset that the death tax repeal passed last year (as they were the ones who voted against it), and the others are proposals which are perennial. The repeal of the agricultural products exemption is a fairly new one to me, though.
To hear Democrats tell it, we need all those new revenue streams for various pet causes. As examples, one version of the “chicken tax” was going to pay for cover crops and to help replace failing septic systems, one previous incarnation of the “bag tax” was intended for stream cleanup through the Chesapeake Bay Trust, and a small portion of the increased tobacco tax was (ironically enough) slated for a smoking cessation fund. (Most was intended for that vast fiscal hole we call the General Fund.)
But taxes weren’t the only thing needing to be stopped:
Members of the Eastern Shore Delegation also were able to kill another bill that would have increased the regulatory burden on farmers known as the “Farmers’ Rights Act.” This bill would have required the Attorney General’s Office to review all livestock production contracts before they are approved. In order to meet the bill’s requirements, the Attorney General’s Office would have had to hire three new, full-time Assistant Attorneys General at an expense of over $200,000 per year. This proposal is another example of an attempt to grow government bureaucracy at the expense of our citizens, especially our farmers.
I also worked closely with the Hogan Administration and local small business owners to pull regulations that would have hurt small arcade businesses in Ocean City and across the State of Maryland. For the last several months, the State Lottery Commission had been attempting to advance a proposal which would regulate these small businesses in the same way the state regulates casinos. I am happy to report that Governor Hogan directed the Lottery Commission to pull these proposed regulations.
These were all well and good, but I remain disappointed by the PMT regulations which will disproportionately affect local farmers, who are the victims of the “good faith negotiations between all stakeholders on this issue.” Remember, the eventual success of these regulations hinges on being able to use the excess chicken manure that local farmers can no longer use. If these schemes of creating energy or other by-products don’t succeed in creating a viable market, the state either has to continue to subsidize these failing enterprises or will simply leave local farmers hanging. Given the usual preference of Annapolis to side with environmental interests over those of farmers, I suspect the latter will eventually be the case, although we may be forced in the meantime to use millions more in taxpayer subsidies as the state tries to goose that manure market along.
I can tell you that I have picked out all the bills I will use for the monoblogue Accountability Project. Over the next few weeks I will be compiling the votes and seeing how all the new Delegates and Senators (as well as the holdovers) did. Will the change to a Republican governor be reflected in a more conservative overall voting pattern? Stay tuned.