458 [7 9 O p . A tt ’y
T RA NS P OR T AT I ON W AS HI NGT ON M E T ROPOL I T AN A RE A T RANSI T A UTHO RI T Y

) T AXAT IO N

) R EGI ONAL T RANSI T T AX N OT P ERMI TTE D U ND E R C URRENT L AW

O ct ober20, 1994 The H onor abl e El l en R. Sauer br ey H ous e of D el egat es Y o u have r eques t ed ouropi ni on conce r ni ng t he l egal i t yof a r egi onal t r ans i t t ax r ece nt l y pr opos ed bym ay or al candi dat e M ar i on B arryto help p ay fo r M etro bu s an d rail serv ice. B ec au se M r. B arry has nots pel l ed outt he det ai l s of how he w oul d s eek t o i m pos e s uch a t ax, w e ar e unabl e t o gi ve a de fi ni t i ve opi ni on. H ow ever , i t i s our opi ni on t hata r egi onal t r ans i t t ax coul d notbe i m pos ed i n M ar y l and u n d e r c u rr e n t la w . I Backg r ound
T he M et r o s y s t em i s oper at ed by t he W as hi ngt on M et r opol i t an A r ea Tr ans i tA ut hor i t y( “W M A T A ” or “t he A ut hor i t y ”) , w hi ch w as cr eat ed as a r egi onal i ns t r um ent ali ty , and as a comm on agenc yof eac h s i gnat or y par t y , by a compact ent er ed i nt o betw een M ar y l and, V i r gi ni a, and the D i s t r i ctof C ol um bi a, and cons ent ed t o by C ongr es s . T hi s compact , w h ich i s found at§10- 204 of t he T r ans por t at i on ( “TR ”) A r t i cl e, M ar y l and C ode, pr ovi des for W M A T A t o pr epar e and adopt a pl an forfi nanci ng t he cons t r uct i on, acqui s i t i on, and oper at i on of fa ci l i t i es . T hi s pl an cons t i t ut es “a pr opos a l t o th e i n t e r e s t e d g o v e r nm ent s forfi nanci al par t i ci pat i on and s hal l noti m pos e anyobl i gat i on on anyg o ver nm entand s uch obl i gat i ons s hal l be cr ea ted o n l yas pr ovi ded i n §18 .

. . . ” C om pact §17( b)

. Sect i on 18( b) pr ovi des t hat “[c ] om m i t m ent s on behal f of t he por t i on of t he zone l ocat ed i n M ar y l and s hal l be bycon tr ac t or a g re e m e n t b y ” th e A u th o rity w ith th e W a sh in g to n S u b u rb a n T ra n sit D istri ct (“W S T D ”).
T he W ST D w as cr eat ed bys t atut e i n t he s ame y earas W M A T A

. See Cha p t e r 8 7 0 , La ws o f M a r y l a n d 1 9 6 5

. Th e W STDG en. 458] 459

To avo id repe tit ion , we sh a ll c ite on ly theMo ntg ome ry

County 1 Code provisions. The same languag e appea rs in the Prince G eo rge’ s County Code. A W as hingto n Pos t article listed the proposed fiscal year 1994 2 subsidies as follows: District of Columbia

) $125,000,000; Montgomer y

) $44, 80 0,00 0; P ri nc e Ge org e ’s

) $41,300,000; Alexandria

) $13,600,000; Arlington

) $ 1 , 0 0 0 , 0 0 0 ; an d F a i r f ax C o unty
) $48,800,000. Proposed Me tro Budget Seek s Higher Subsidies , J anuar y 8, 1993. l aw i s codi fi ed i n C hapt er 87 of t he M ont gom er yC ount yC ode and P a rt II I o f

th e P ri n c e G e o rg e ’s C o u n ty C o d e . T he W ST D i s au tho r i zed t o ent eri nt o cont r act s w i t h t he A ut hor i t yt o cove r c ons t r uct i on, debts er vi ce, and oper at i ng expens es . §87- 12 of t he M ont gom er yC o u n ty C ode. T he l aw 1 p rovi des that M on t go m ery and P ri nce G eorge’s C ou nti es a re to g u a ra n te e th e o b lig a tio n s im p o s e d o n th e W S T D . § 8 7 -1 3

.

II S u b sidizin g M etr o ’s D eficit s T he obli gati on s of t he W S T D can b e fun ded bycou ntyt axes. M ont gom er yand Pr i nce G eor ge’ s C ount i es m ay “l evy any t ax w hi ch t hey are aut ho ri zed to l evy and use any avail able revenu es or fun ds” t o m eett hei r guar ant ees . §87- 14( b)

. A ny obl i gat i ons not cover ed by a v a ilab le f

u n d s o r o th e r ta x e s a r e to b e c o v e re d b ya tax o n a ll asse ssab le pro p ertyw ith in the W S T D

. § 8 7 -14 (a). In f ac t, h o w ev er, th e S ta te c u rr e n tly f

u n d s 1 0 0 % o f th e W S T D ’s o b lig a tio n . See TR §10- 205. I n par t i cul ar , t he St at e pay s 100 per centof t he por t i on of t he A utho ri t y ’ s oper at i ng defi ci t “forw hi ch t he [W as hi ngt on Subur ban Tra ns i t ] D i s t r i cti s r es pons i bl e. ” T R §10- 205( b)

. B utt he S t a t e d o e s n o td e f

r a y )and, w i t hout a cha nge i n t he l aw , coul d not d e f r a y )c os t s fo r w hi c h t he W STD i s not res po nsi ble. T hese i ncl ude oper at i ng defi ci t s forw hi ch t he D i s t r i ct of C ol um bi a, nott he W ST D , i s r es pons i bl e. T he cos t s of t he s y s t em pr es ent l yar e appor t i oned among t he par t i ci pat i ng j u ri sd ic t i ons bas ed on popul at i on, r i der s hi p, and t he num berof s t at i ons . A r egi onal t r ans i t t ax w o u ld r epl ace or offs et 2 t hi s fundi ng s y s t em w i t h a t ax t hatw oul d appl yevenl yacr os s t he r egi on. Pr evi ous di s cus s i ons of a r egi onal t r ans i t t ax have cent er ed460 [7 9 O p . A tt ’y

o n a g a so lin e tax , the p ro c e e d s o f w h ich w o u ld b e d e d ica ted to M et r o fundi ng. A r t i cl e 14 of t he M ar y l and D ecl ar at i on of R i ght s r equi r es “t he cons entof t h e L eg isl atur e” t o anyt ax. T he W ST D i t s el f has no aut h o r i t y u n d e r c u r r e n t l a w t o i mpo s e a t a x , o r t o a g r e e t o t he A u th o rity ’s im p o sin g a tax . N o r d o th e c o u n ti e s h a v e a u th o rityto l evy a new for m of t ax for t hi s purpos e. H ence , a r egi onal t r ans i t t ax

)forexam p le , a gas ol i ne t ax appl i cabl e i n Pr i nce G eor ge’ s and M ont gom er yC ount i es onl y , w i t h t he pr ocee ds dedi cat ed t o fund t he W S T D ’ s o b l i g a t i o n t o t h e A u t h o r i t y )w o u ld re q u ire a c h a n g e in s t atut e, ei t hert o i m pos e t he t ax ort o aut hor i ze t he count i es t o do s o. It c o u ld n o t b e d o n e u n d e r c u rr e n t la w .
J. Jo sep h C u rran , Jr. A t t or ney G ener al Ka t h r y n M

. Ro we Ass i s t a n t Att o rney G eneral Ja c k S c h w a rtz C hi ef C ouns el O pi ni ons & Advi ce