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§ 21-213. Imposition of taxes to pay for interest and principal of bonds, maintenance, and expe...

West's Annotated Code of MarylandLocal GovernmentEffective: October 1, 2013

West's Annotated Code of Maryland
Local Government (Refs & Annos)
Division IV. Local Finance [Titles 16-23] (Refs & Annos)
Title 21. Special Taxing Districts (Refs & Annos)
Subtitle 2. Erosion Prevention Projects (Refs & Annos)
Effective: October 1, 2013
MD Code, Local Government, § 21-213
Formerly cited as MD CODE, Art. 25, § 166
§ 21-213. Imposition of taxes to pay for interest and principal of bonds, maintenance, and expenses
Currentness
District council to set tax rate
(a)(1) Each year, the district council shall impose a tax against all assessable property in each district that has been improved by a project.
(2) Each year before the tax is imposed, the district council shall determine the number of cents per $100 necessary to raise the amount of money required under paragraph (3) of this subsection.
(3) The amount of tax imposed under this subsection, together with the benefit charges collected under § 21-212 of this subtitle, shall be sufficient to:
(i) meet the interest and principal payments due on the bonds, notes, or other evidence of indebtedness issued to finance the construction of projects under this subtitle;
(ii) pay the entire cost of repairing and maintaining the project in a district; and
(iii) pay all the expenses of the district necessary to carry out this subtitle, including reimbursing the district council for expenses incurred by members of the district council, not exceeding $200 annually for each member, for:
1. inspecting bulkheads; and
2. performing other duties required in the administration of this subtitle.
(4) The district council shall impose the tax required under this subsection until all the bonds, notes, or other evidence of indebtedness and their interest, in addition to other debt incurred in carrying out this subtitle, have been paid.
(5) After the requirements of paragraph (4) of this subsection have been satisfied, the district council shall impose a tax sufficient only to maintain the project.
Method of collecting taxes
(b)(1) The tax imposed under subsection (a) of this section shall:
(i) be imposed in the same manner as county taxes; and
(ii) have the same priority rights, bear the same interest and penalties, and in every respect be treated the same as county taxes.
(2) The taxing authority of the county shall:
(i) collect the taxes; and
(ii) remit the amount collected to the district council every 60 days.
Disposition of proceeds
(c)(1) The district council shall deposit money received under subsection (b) of this section in a bank in the county:
(i) to the credit of the district council for the district from which the money was collected; and
(ii) at the rate of interest paid for county funds.
(2) The district council shall pay out the taxes and benefit charges collected from a district in the following order:
(i) from the taxes and benefit charges:
1. the interest on the bonds, notes, or other evidence of indebtedness issued for the projects in the district; and
2. the bonds, notes, or other evidence of indebtedness when and as the bonds, notes, or other evidence of indebtedness mature; and
(ii) from the remaining taxes, all other debt incurred in carrying out this subtitle, including project maintenance.
Deficiencies added to tax rate for following year
(d)(1) If the receipts from the taxes and benefit charges imposed under this subtitle for any district do not meet the required payments in any year by reason of default or otherwise, the amount of the deficiency shall be added to the next year's tax imposition for that district.
(2) Paragraph (1) of this subsection does not release a county from its obligation to impose ad valorem taxes on assessable property in the county at a rate and of an amount sufficient to pay the maturing principal of and interest on bonds.

Credits

Added by Acts 2013, c. 119, § 2, eff. Oct. 1, 2013.
MD Code, Local Government, § 21-213, MD LOCAL GOVT § 21-213
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document