(1) the difference between the general county property tax rate and the property tax rate that is set for assessments of property in a municipal corporation; or
(2) a payment to a municipal corporation to aid the municipal corporation in funding services or programs that are similar to county services or programs.
Applicability
(b) This section applies only in:
(1) Allegany County;
(2) Anne Arundel County;
(3) Baltimore County;
(4) Garrett County;
(5) Harford County;
(6) Howard County;
(7) Montgomery County; and
(8) Prince George's County.
Meeting between governing body of the county and municipal corporation; determination of tax setoff
(c) The governing body of the county shall meet and discuss with the governing body of any municipal corporation in the county the county property tax rate to be set for assessments of property in the municipal corporation as provided in this section. After the meeting if it can be demonstrated that a municipal corporation performs services or programs instead of similar county services or programs, the governing body of the county shall grant a tax setoff to the municipal corporation.
Considerations in determining county property tax rate for assessments of property in a municipal corporation
(d) In determining the county property tax rate to be set for assessments of property in a municipal corporation, the governing body of the county shall consider:
(1) the services and programs that are performed by the municipal corporation instead of similar county services and programs; and
(2) the extent that the similar services and programs are funded by property tax revenues.
Tax rate unique to each county; prior year’s rate
(e) The county property tax rate for assessments of property located in a municipal corporation is not required to be:
(1) the same as the rate for property located in other municipal corporations in the county; or
(2) the same as the rate set in a prior year.
Submission of proposal for desired level of property tax setoff
(f)(1) At least 180 days before the date that the annual county budget is required to be approved, any municipal corporation in the county that desires that a tax setoff be provided shall submit to the county a proposal that states the desired level of property tax setoff for the next fiscal year.
(2)(i) A request submitted under paragraph (1) of this subsection shall be accompanied by:
1. a description of the scope and nature of the services or programs provided by the municipal corporation instead of similar services or programs provided by the county; and
2. financial records and other documentation regarding municipal revenues and expenditures.
(ii) The materials submitted under subparagraph (i) of this paragraph shall provide sufficient detail for an assessment of the similar services or programs.
(3) After receiving a proposal from a municipal corporation requesting a tax setoff under this subsection, the governing body of the county shall promptly submit to the municipal corporation financial records and other documentation regarding county revenues and expenditures.
Meeting between policy and fiscal officers or representatives for the county and municipal corporation
(g)(1) At least 90 days before the date that the annual county budget is required to be approved, the county and any municipal corporation submitting a tax setoff request under subsection (f) of this section shall designate appropriate policy and fiscal officers or representatives to meet and discuss the nature of the tax setoff request, relevant financial information of the county and municipal corporation, and the scope and nature of services provided by both entities.
(2) A meeting held under paragraph (1) of this subsection may be held by the county representatives jointly with representatives from more than one municipal corporation.
(3)(i) The county officers or representatives may request from the municipal corporation officers or representatives additional information that may reasonably be needed to assess the tax setoff.
(ii) The municipal corporation officers or representatives shall provide the additional information expeditiously.
Statement of intent
(h)(1) At or before the time the proposed county budget is released to the public, the county commissioners, the county executive of a charter county, or the county council of a charter county without a county executive shall submit a statement of intent to each municipal corporation that has requested a tax setoff.
(2) The statement of intent shall contain:
(i) an explanation of the level of the proposed tax setoff;
(ii) a description of the information or process used to determine the level of the proposed tax setoff; and
(iii) an indication that, before the budget is enacted, appropriate officials or representatives of the municipal corporation are entitled to appear before the county governing body to discuss or contest the level of the proposed tax setoff.
Testimony during hearing
(i) Representatives of each municipal corporation in the county requesting a tax setoff shall be afforded an opportunity to testify before the county governing body during normally scheduled hearings on the county's proposed budget.
Agreement setting different terms for a tax setoff
(j) Notwithstanding the provisions of subsections (d), (f), and (g) of this section:
(1) a county and one or more municipal corporations may enter into an agreement setting different terms or timing for negotiations, calculations, or approval of a tax setoff; and
(2) a county may grant a tax setoff to a municipal corporation that does not make a request in the fashion described in this section.
Prince George’s County
(k)(1) On or before October 31 each year, the governing body of Prince George's County shall complete a report that includes:
(i) the amount of the tax setoff granted to each municipal corporation in the current fiscal year;
(ii) in the form provided by each municipal corporation, a detailed description of the scope and nature of the individual services or programs provided by each municipal corporation instead of similar services or programs provided by the county; and
(iii) a detailed description of the methodology used by the county to determine the amount of the tax setoffs, including any formulas.
(2) Notwithstanding any other provision of law, the report required under this subsection shall be:
(i) available to municipal corporations in Prince George's County on request; and
(ii) submitted to the Prince George's County House Delegation and the Prince George's County Senators.
Credits
Added by Acts 1985, c. 8, § 2, eff. Feb. 1, 1986. Amended by Acts 1986, c. 171; Acts 1998, c. 680, § 1, eff. July 1, 1998; Acts 1999, c. 504, § 1, eff. July 1, 1999; Acts 2010, c. 415, § 1, eff. May 4, 2010; Acts 2011, c. 542, § 1, eff. July 1, 2011; Acts 2015, c. 55, § 1, eff. Oct. 1, 2015; Acts 2015, c. 267, § 1, eff. July 1, 2015; Acts 2022, c. 610, § 1, eff. July 1, 2022.
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.
