(a)(1) Each county shall set, by ordinance or resolution, a county income tax equal to at least 2.25% but not more than 3.20% of an individual's Maryland taxable income for a taxable year beginning after December 31, 2001.
(2) A county income tax rate continues until the county changes the rate by ordinance or resolution.
(3)(i) A county may not increase its county income tax rate above 2.6% until after the county has held a public hearing on the proposed act, ordinance, or resolution to increase the rate.
(ii) The county shall publish at least once each week for 2 successive weeks in a newspaper of general circulation in the county:
1. notice of the public hearing; and
2. a fair summary of the proposed act, ordinance, or resolution to increase the county income tax rate above 2.6%.
(4) Notwithstanding paragraph (1) or (2) of this subsection, in Howard County, the county income tax rate may be changed only by ordinance and not by resolution.
Rate change
(b) If a county changes its county income tax rate, the county shall:
(1) increase or decrease the rate in increments of one one-hundredth of a percentage point, effective on January 1 of the year that the county designates; and
(2) give the Comptroller notice of the rate or income bracket change and the effective date of the rate or income bracket change on or before July 1 prior to its effective date.
Application on bracket basis
(c)(1) For any county income tax rate that is effective on or after January 1, 2022, the county may apply the county income tax on a bracket basis.
(2) A county that imposes the county income tax on a bracket basis:
(i) shall set, by ordinance or resolution, the income brackets that apply to each income tax rate;
(ii) may set income brackets that differ from the income brackets to which the State income tax applies;
(iii) may not set a minimum income tax rate less than 2.25% of an individual's Maryland taxable income; and
(iv) may not apply an income tax rate to a higher income bracket that is less than the income tax rate applied to a lower income bracket.
(3) A county may request information from the Comptroller to assist the county in determining income brackets and applicable income tax rates that are revenue-neutral for the county.
Credits
Added by Acts 1988, c. 2, § 1, eff. Jan. 1, 1989. Amended by Acts 1992, 1st Sp. Sess., c. 2, §§ 2, 3; Acts 1993, c. 180; Acts 1997, c. 4, § 1, eff. July 1, 1997; Acts 1998, c. 399, § 1, eff. May 12, 1998; Acts 1999, c. 34, § 1, eff. April 13, 1999; Acts 1999, c. 493, § 2, eff. Jan. 1, 2001; Acts 2021, 1st Sp. Sess., c. 17, § 1; eff. Jan. 5, 2022; Acts 2021, 1st Sp. Sess., c. 23, § 1, eff. Jan. 5, 2022.
Formerly Art. 81, § 283.
MD Code, Tax - General, § 10-106, MD TAX GENERAL § 10-106
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
