Subtitle 10. Finance and Taxation

A system of budget control for the County shall be as outlined in this Division and as prescribed in Article VIII of the Charter.

The fiscal or budget year and the tax year of the County shall begin on July 1 and shall end on June 30 of the succeeding year. It shall be designated by the year in which it ends, such as "Fiscal Year 1970."

The Director of the Budget shall determine the capital and operating budget instructions, and guidelines which shall be followed by all County departments and agencies. Department requests shall include all projects in the nature of permanent public improvements, by construction or acquisition, and plans and surveys relative thereto. The department or agency shall itemize the projects deemed necessary for authorization and commencement during the next fiscal year, separating the amounts to be expended in the next and subsequent fiscal years. The request shall also show, separately and as accurately as possible, estimated requirements in the five (5) years succeeding the forthcoming fiscal year.

The Council shall periodically engage one (1) or more independent certified public accountants to make a complete audit and express an opinion therein of all accounts and funds of the County or those under its control or supervision. As soon after the close of the fiscal year as the audit reports are completed, and not exceeding one hundred and twenty (120) days thereafter, a summary statement, following forms approved by the State Commission on Uniform Accounts, shall be published one (1) time in each of two (2) newspapers published in the County.

Except in cases of emergency, as specified in Section 10-151, no purchase order shall be issued and no contract shall be executed, under this Division or otherwise, involving the expenditure of County funds, until the Finance Director has certified, in writing, that there is to the credit of the using department or agency concerned a sufficient amount of unencumbered, appropriated funds, in excess of all unpaid obligations, to defray the amount of such order or contract.

All federal, state, and private grants which were not included in the annual budget of the County or any agency subject to control of the County shall upon receipt be included as a part of the County or agencies budget for the year received, to be expended for the purpose set forth in the grant. Prior to the expenditure of any monies therefrom the agency shall receive approval from the County Executive and County Council. Any unexpended funds shall be included in the next annual budget.

The Director of Finance shall disburse County funds, upon the written directive or order of the Council for County purposes, under such procedure as may be prescribed by the Council, according to law. For such purposes, the Director shall sign checks prepared by the Office of Finance drawn on depositories of the Director for payment of all authorized expenditures, when submitted with appropriate approved voucher or directive for payment thereof to be retained by the Director.

The Director of Finance shall invest in short-term United States Government securities, deposit in income producing bank accounts or a building or savings and loan association, or remit to the State Treasurer for investment in the State of Maryland Local Government Investment Pool, as established in Section 22F of Article 95, Annotated Code of Maryland, such County funds as are not required to be used within thirty (30) days for disbursement or expenditure for County purposes, subject to approval of the Council as to the amount so available for such investment or deposit and the acceptable securities or depositories, without relieving the Director of liability for the security of such investment or deposit according to law. Such deposits shall only be made when the bank or building or savings and loan association has set aside a like amount of bonds in escrow, as prescribed by law, covering the deposits, or such deposits are secured by government insurance. Interest earned on investment in any one (1) fiscal year shall be used the following fiscal year for general County expenses.

The Director of Finance shall at the end of his term of office, deliver up the office to his successor, and all papers and books relative thereto.

The Director of Finance shall be the collector of all State and County taxes levied by the Council. He shall have full power to enforce payment thereof by sale of the property liable therefor, and to convey a good title to any such property, real or personal, so sold by him. Taxes assessed upon real estate shall be a first lien thereon from the date of such assessment.

Notwithstanding any other provision of law, any County property tax lien against property in the County shall be charged to the owner of such property and added to the property tax liability of the owner on the next annual property tax bill issued by the County.

Any surplus of purchase money over and above taxes, interest, penalties and costs of sale, received by the Director, shall be deposited in some bank or banks approved by him in the name of the County. The Director shall maintain accurate records separately accounting for the receipt and disbursement of such monies.

The Deputy Director of Finance, employees and clerks in the Office of Finance shall furnish bond in such sums as the Director of Finance shall direct conditioned upon the faithful performance of their duty. The County shall pay the premium on the bond.

Notwithstanding any requirements of this Subtitle to the contrary, any person who has paid taxes to Prince George's County after an assessment has become final on nonexistent property shall be entitled to a refund from the Finance Director of Prince George's County for the current year and previous years, not exceeding four years in all, upon certification by the Supervisor of Assessments that the property does not exist. The Supervisor of Assessments shall have the right to require any proof he deems necessary to make this determination, including, but not limited to, a certified survey.

No piece of real estate offered at a tax sale shall be sold for less than the total of the taxes, interest, penalties and costs of sale for which it is liable. If such a bid for the property is not made, it shall be sold to the Council for such total amount thereof. In such case it shall remain on the assessment books of the County and be taxed as other properties thereon, but not be resold at the succeeding annual tax sales.

A report of a forfeiture sale and final ratification thereof shall be made as provided in this Division, in the matter of tax sales generally. If such real estate so sold is not redeemed within the two (2) years allowed therefor by the payment of the purchase money, with interest on the same at the rate of twelve percent (12%) per annum, and all subsequent taxes, interest and penalties accrued thereon, it shall be forfeited to, and a good fee simple title to the property vested in the Council, without the execution of any deed therefor.

Each piece of property forfeited as provided in Section 10-129 entered in a book to be provided for the purpose, to be called "Prince George's County's Tax-Sale Properties." Such book shall be kept in the office of the Council as a public record thereof. Thereafter the properties, while the properties of the County, shall not be listed, assessed, advertised or sold in the annual tax sales for defaulted taxes to be held and begun on the first Monday of March, in each year. Upon sale of any parcel of such forfeited properties by the Council to a purchaser, and conveyance made, such property shall be stricken from the book and assessed anew to the purchaser and placed upon the assessment books of the County.

The Council shall sell at public or private sale for such sum as it may deem advisable any and all parcels of real estate forfeited and offered for sale under the provisions of this Division and either not sold, or sold for which the purchaser thereof, if any, has failed to pay the purchase money. Upon payment to the Council of the whole purchase money for any such parcel resold, the Council shall execute to the purchaser under such resale a good deed in fee-simple thereof.

All actions at any time brought for any lands sold for any taxes or special assessments, whether the same are levied by the Council or by any other municipal or governmental agency having authority to levy taxes or assessments for any territory within the limits of the County wherein any person now has any title or cause to have or pursue such action, shall be taken within three (3) years after June 1, 1937, provided such right of action is not now, or will not then be barred by the now existing statute of limitations. Three (3) years after June 1, 1937, no person or any of his heirs, devisees, or assignees shall have or maintain any action for any land so sold. All actions of any land hereafter so sold shall be taken within seven (7) years after the date of sale to the purchaser and at no time after seven (7) years. No person now having any title or right of entry into any lands heretofore so sold shall enter therein after the expiration of three (3) years after June 1, 1937. No person shall at any time hereafter make any entry into any lands hereafter so sold except within seven (7) years after the date of sale, provided, however, that if any person entitled to any of the rights of action mentioned herein shall be at the time such cause of action accrues within the age of twenty-one (21) years of non compos mentis, he shall be at liberty to bring the action within the respective time so limited after the disability is removed.

The Director of Finance shall keep in his office for public inspection a book in which shall be securely attached or pasted a full copy of the last issue before the day of sale of the newspaper containing an advertisement of tax sales.

Every tax deed shall contain the name of the former owner if known, of the property it conveys. The Clerk of the Circuit Court in whose office the deed may be recorded, shall index it not only in the name of the grantor and grantee, but also in the name of and as from the former owner to the grantee.

Personal property liable to taxation in the County and unassessed, and also that which may be unassessed for any previous year or years, or has been so assessed that the assessment was void, shall be assessed and listed in the same manner as it provided for the assessment of real estate in Section 10-128. No personal property which has been bona fide sold or transferred shall be assessed for any back taxes.

All bonds, notes, certificates of indebtedness, or negotiable instruments issued on behalf of the County shall be signed by the County Executive. All checks may be signed or caused to be signed by the County Executive.

The Director of Finance shall record the new owner's name in the transfer of all real property from one (1) owner to another within seven (7) working days upon receipt of official notice from the Transfer Office. All subsequent tax billings, tax sales, etc., shall be in the name of the new owner.

The Prince George's County, Maryland, Employees Federal Credit Union having been established as a Federal Credit Union and chartered by Charter No. 18271, August 10, 1967, is hereby recognized as a cooperative association of County employees and eligible persons to stimulate systematic savings and to act as a source of credit for the provident and productive purposes of its members. The said Credit Union includes among its functions self-help and wise management resources, thereby raising the standards of living, strengthening the family unit and increasing the self-reliance of its members who are employees of Prince George's County. The Credit Union is recognized as an important morale and welfare resource which extends mutual benefits to all eligible County personnel by inculcating habits of thrift through the accumulation of savings, combating usurious practices by providing money for personal loans to members at low-cost interest rates and performing functions compatible with the purposes of an employees credit union.

The County Executive shall recognize and assist the Credit Union in providing credit union services to the employees of Prince George's County. The Department heads of each of the County Departments shall recognize the right of personnel to affiliate with the Credit Union and encourage application and expansion of the principles of credit union benefits. The credit union will be permitted to conduct business during normal business hours, provided there is no undue interference with employees performing their respective duties in the employment of the County.

The County Council for Prince George's County, Maryland, hereby finds that there is a need for access to capital by small and local businesses at a time when credit is not easily obtainable due to the economic challenges our country is enduring at this time; that community banks are more likely to make loans to small and local businesses; and that the County needs to promote small business lending and provide an overall economic stimulus to the County's economy; and that in order to effectively respond, the County Council for Prince George's County, Maryland hereby declares that it is the public policy of Prince George's County to establish a program to enhance local and small business lending by placing deposits in community banks located in the County to promote small business development and generate jobs for the benefit of County residents, while providing the County with a competitive return on those deposits, which will be covered by Federal Deposit Insurance Corporation (FDIC), and placed with community banks which are deemed safe and sound through the Community Bank Small Business Lending Program.

Whenever land is sold for the payment of County or State taxes, or both, assessed thereon and in default, and the owner of such land at the time of such tax sale, his heirs, devisees or assigns, severally, jointly or in continuous successive ownership have held the land so sold in adverse possession for seven (7) years after the final ratification of such tax sale and before action or suit brought and duly prosecuted by the purchaser at such tax sale, his heirs, devisees or assigns, to obtain possession of such land, such possession shall be a bar to all right, title, claim, interest, estate, demand, right of entry and right of action in such purchaser, his devisees or assigns derived from such tax sale as to the land so held in possession. This Section shall apply to all tax sales heretofore made and ratified as aforesaid.

In accordance with the provisions of Sections 6-202.1 and 6-302 of the Tax-Property Article of the Annotated Code of Maryland, Prince George's County is establishing a special real property tax rate for a vacant houses/buildings or improved property cited as vacant and unfit for habitation or other authorized use on a housing or building violation notice and the assessment and the rate will be determined by further enactment.

There is hereby established the Prince George's County, Maryland, Housing Rehabilitation Fund for the purpose of providing financial assistance to low and moderate income persons, based upon need, for the rehabilitation of residential properties and the elimination of unsafe housing conditions. All funds made available for the purposes of this Division shall constitute a special fund of Prince George's County and all such funds shall be paid into or out of or otherwise expended from such special fund; except that the County Executive may expend such monies as are provided for in the County's approved expense budget for the payment of administering and servicing of all assistance provided out of the County's Housing Rehabilitation Fund. The County Executive is authorized to provide for such administering and servicing through contracts with third parties or by the employment of county personnel.

The County Executive for Prince George's County, Maryland, is hereby empowered and authorized to provide housing rehabilitation assistance under the provisions of this Division and to develop operating procedures governing the administration and maintenance of the Housing Rehabilitation Fund. Said operating procedures, and any revisions thereto, shall be transmitted to the County Council for review, amendment as deemed appropriate, and approval. Council approval shall be by resolution. The County Executive is further empowered and authorized to take any legal actions necessary for the collection of any loans made pursuant hereto.

The County Council of Prince George's County, Maryland, hereby finds that the owner-occupants of many residential structures, located predominantly in rural areas of the County, are living under conditions dangerous to health as a result of existing water supplies which are, or are likely to become, contaminated; that the capability of the County's public water authority to construct water facility supply systems to serve the needs of homeowners so situated is inexpedient and impractical in that the construction of public water lines constitutes an exorbitant expenditure of public funds which is unnecessarily burdensome to County taxpayers in general, and the intended beneficiaries in particular; that the creation of a self-sustaining County financed loan fund permitting homeowners so situated to finance the drilling of deep wells on terms and conditions comparable to those applied under special assessments for the public construction of water supply systems is not a capital project, as defined in County Charter, but is rather a method of providing capital for the purpose of necessary deep well drilling where any benefits to private property are only incidental to maintenance of health; and that in order to avert the existing and potential health hazards caused by such supplies and to protect and promote the health, safety and welfare of the entire community, the County Council hereby declares that it is necessary and appropriate for Prince George's County, Maryland, to provide an acceptable alternative to the construction of public water supply systems by establishing a mechanism of financial assistance for homeowners whose residences are situated under the aforesaid conditions and who are unable to secure the necessary well construction financing from private sources.

There is hereby established the Prince George's County, Maryland, Deep Well Loan Fund for the purpose of making loans, on preferred terms and conditions, to eligible owner-occupants of single-family, residential structures for drilling individual deep wells to provide a water supply to serve such structures. All funds made available for the purposes of this Division shall constitute a self-sustaining fund of Prince George's County and all such funds shall be paid into, or loaned out of, or otherwise expended from, such self-sustaining fund. In accordance with the provisions of Section 10-173.09 of this Division, the County shall make such initial and subsequent contributions into such self-sustaining fund as appropriate and necessary until such fund becomes self-sustaining as a result of the repayment of loans made therefrom.

The Risk Management Fund is further authorized to cooperate with and enter into written agreements with any municipal corporation, governmental agency, board or commission established by the County or the General Assembly of Maryland, for the purpose of providing to such agency, board or commission, the officials, agents as defined by the fund member, employees or property thereof, coverage authorized by this Division upon such terms and conditions consistent with this Division as are deemed to be in the best interest of the citizens of the County. Such agreements shall be consistent with this Division 5 and applicable State law and shall set forth the specific terms and conditions of membership in the Fund.

The Risk Management Fund is authorized, by and through the Risk Management Committee acting with the concurrence of the affected member, to defend, compromise and pay claims asserted against members, provide protection against physical loss or damage to the property of members, employ actuaries, adjusters and other experts, provide for the direct and indirect expenses of legal representation and defense, adopt Bylaws and to possess such other necessary powers as required to provide for the effective and efficient administration and operation of a self-insurance and risk management program.

A simple majority of the members of the Risk Management Committee shall be required to decide all issues submitted to the Committee except the adoption and amendment of Bylaws, provided that no claim shall be compromised without the affirmative vote of the Member or Members against which the claim is asserted.

Subject to appropriations contained in the approved annual budget, each member of the Risk Management Fund shall be required to pay into the Risk Management Fund a sum of money determined by the Risk Management Committee to be sufficient to provide for its contribution to the Risk Management Fund which will be computed by considering the premium cost, claim expense, operating expense, interest income, and the maintenance of reserve fund. The contribution shall reflect the principles of incurred claims accounting as indicated by periodic actuarial evaluations of the Risk Management Fund. Accrued interest shall be apportioned among and credited to the unencumbered reserve and encumbered reserve accounts of each member. The Director of Finance shall be responsible for investing the money of the Risk Management Fund in accounts and securities as allowed by law.

No provision of this Division shall constitute or be interpreted as a waiver of the right of any member of the Risk Management Fund or of such members, officers, employees or agents to raise the defense of sovereign or governmental immunity, or charitable immunity, or public official immunity or other immunity or defense to which such member or its officers, employees or agents is entitled.

The Director of Finance shall render quarterly reports to the County Council and to the County Executive describing the status of all interfund borrowings for which there is an outstanding balance as of the date of such report. Quarterly reports shall be rendered by the Director of Finance on the first day of January, April, July, and October of each year.

Each resolution adopted under Section 10-182.04 shall identify the Bond or Loan Funds from which monies are to be borrowed, the bond enabling acts and bond authorization acts for the capital projects to which the borrowed monies are to be temporarily applied, and the capital projects affected by said borrowing.

The first general obligation bond sale by Prince George's County subsequent to the adoption of any resolution pursuant to Section 10-182.04 shall include an amount sufficient to repay borrowing that has occurred under that resolution(s) which remains outstanding.

The Director may make, adopt, and amend such rules and regulations as the Director may deem necessary to implement the provisions of this Division.

The party offering for record an instrument in writing transferring title to real property, or an interest therein, in the County shall pay the tax imposed to the Director of Finance. Upon such payment, the Director shall enter a notation of the payment upon the instrument of writing conveying title.

[(1) The school facilities surcharge under this section shall be reduced by 50% for multifamily housing constructed:

(A) within an approved transit district overlay zone as designated prior to January 1, 2018;

(B) where there is no approved transit district overlay zone as designated prior to January 1, 2018, within one-quarter mile of a metro station; or

(C) within the Bowie State MARC Local Center designated boundary.

(2) The school facilities surcharge under this section does not apply to a dwelling unit that is a studio apartment or efficiency apartment if the dwelling unit is located:

(A) within an approved transit district overlay zone as designated prior to January 1, 2018; or

(B) where there is no approved transit district overlay zone as designated prior to January 1, 2018, within one-quarter mile of a metro station.]

1. Review and make recommendations on whether the level of funding the county receives from the school facilities surcharge and the public safety surcharge is sufficient to meet the needs of the county; and

2. On or before December 31, 2021, report its findings to the members of the Prince George's County Delegation to the General Assembly, in accordance with section 2-1257 of the State Government Article.

a) In addition to the interest and penalty prescribed in Section 10-192.06(h), any vendor willfully failing to remit to the Director the taxes actually collected under this Subdivision, shall be guilty of a misdemeanor punishable in accordance with Section 1-123 of the Code.

Pursuant to Tax-General Article, Section 10-106, Annotated Code of Maryland, as amended, each County shall establish a County income tax equal to at least twenty percent (20%) and not more than sixty percent (60%) of the State income tax for an individual. The County income tax is established in an amount equal to sixty percent (60%) of the Maryland State income tax for an individual for each of the residents of Prince George's County effective January 1, 1995.

In accordance with the provisions of Section 1-101, Tax-Property Article, Annotated Code of Maryland, April 1 and October 1, are hereby established as quarterly dates of finality.

The property tax deferral remains available to a surviving spouse, or to a spouse or former spouse in possession of the residence under a written separation agreement or divorce decree, for amounts previously deferred. A spouse or former spouse may continue to defer taxes if otherwise eligible.

In addition thereto, there is imposed a penalty for failure to make payment on or before October 1 of each year. Such penalty shall be one percent (1%) of the amount of taxes overdue and in arrears for each month or fraction thereof until paid. This Section shall apply to all such taxes based upon assessments made by either the State Department of Assessments and Taxation or any other authority, and applies to taxes upon tangible personal property by whomsoever assessed and subject to taxation in the County.

In accordance with the authority granted in Section 14-604, Tax-Property Article, Annotated Code of Maryland, delinquent three-quarter, one-half, and one-quarter year taxes shall bear interest at two-thirds of one percent (2/3%) per month or fraction thereof and penalty of one percent (1%) per month or fraction thereof until paid.

CB-19-2009 as modified by CB-58-2009 established the Energy Tax at the following rates for Fiscal Year 2010, beginning January 8, 2010:

In addition to the interest and penalty prescribed in Subsection 10-205.01(g), any vendor willfully failing to remit to the Director the taxes actually collected under this Subdivision, or any user required to pay the tax pursuant to Section 10-205.01(c)(2) who willfully fails to remit the tax to the Director shall be guilty of a misdemeanor punishable in accordance with Section 1-123 of the Code.

Pursuant to Section 4-102(a)(2) of the Tax-General Article of the Annotated Code of Maryland, as amended or recodified from time to time, there is hereby levied an additional tax on reduced charges or free admissions as set forth in Section 4-105(f) of the Tax-General Article of the Annotated Code of Maryland, as amended or recodified from time to time. Notwithstanding the provisions of this Subsection, this additional tax shall not apply to reduced charges or free admission charged or provided by the Maryland-National Capital Park and Planning Commission.

If any person fails or refuses to remit to the Director of Finance the tax required to be collected and paid under this Subdivision, within the time and in the amount specified herein, there shall be added to such tax by the Director of Finance interest at the rate of two-thirds (2/3) of one percent (1%) per month and penalty at the rate of one percent (1%) per month, for a total of one and two-thirds percent (1 2/3%) per month (equivalent to twenty percent (20%) per year), on the amount of the tax for each month from the date the tax is due, on the first of each month that the tax remains unpaid.

The person collecting any prescribed tax under this Subdivision shall submit a report upon such forms and set forth information as the Director of Finance may prescribe and require, showing the amount of room rental charges collected, the tax required to be collected and a separate category for the amount of room rental charges collected and the tax required to be collected from room remarketers. He shall sign and deliver the forms to the Director of Finance with a remittance of the tax. Forms will be available at the Upper Marlboro offices of the Treasury Division, Office of Finance.

Whenever any person required to collect and pay to the County a tax under this Subdivision shall cease doing business or otherwise dispose of his business, any tax payable under this Subdivision to the County shall become immediately due and payable. Such person shall immediately make a report and pay the tax due.

Every person liable for the collection and payment of the tax imposed by this Subdivision, shall keep and preserve, for a period of two (2) years, such suitable records as may be necessary to determine the amount of such tax which he may have been liable for the collection of and payment to the County. The Director of Finance shall have the right to inspect such records at all reasonable times.

No tax shall be payable under this Subdivision on a room rental paid to any hospital, medical clinic, convalescent home, or home for aged persons. No tax is to be collected upon room rental, paid for occupancy by any such transient who is a foreign government officer or employee exempted from taxation by reason of an international treaty or any Act of Congress. A separate certificate for each exemption will be submitted with the collection report.

There is hereby levied and imposed a tax on each separate sale, or use, storage, or consumption of controlled dangerous substances within Prince George's County. The tax rate is thirty percent (30%) of the value in money of the controlled substance or money value of the consideration for its sale, or use, storage, or consumption as determined by the Director.

This Subdivision does not apply to sales, use, storage, or consumption by any person who complies with Article 27, Section 281 of the Annotated Code of Maryland. The burden of proof of an exemption is upon the person claiming it.

Evasion of payment or the willful refusal on the part of any person to pay taxes, as required by this Subdivision, shall be a misdemeanor and upon conviction the person is subject to imprisonment not exceeding six (6) months or to a fine not exceeding One Thousand Dollars ($1,000), or both, and additionally, to a civil penalty of one hundred percent (100%) of the amount of the assessment, in addition to the actual assessment provided by this Subdivision. Willful refusal is evidenced by failure to pay the full amount due within fifteen (15) days of the date of the assessment.

The tax, as assessed by the Director, with any interest and penalties included therein, shall be presumed to be valid and correctly determined and assessed, and the burden shall be upon the taxpayer to show its incorrectness or invalidity. Any statement filed by the Director with the clerk of the court, or any other certificate by the Director of the amount of tax and interest and penalties as determined or assessed by him, shall be admissible as evidence in proceedings prosecuted pursuant to this Subdivision and shall establish for the purpose of such proceedings only prima facie the facts that are set forth therein.

Any taxpayer may apply to the Director for refund of tax alleged to have been erroneously, illegally, or unconstitutionally paid. Application for refund must be made in writing within one (1) year of the payment of the tax. The application must state the reasons why the taxpayer believes a refund is due. The Director shall act upon such application promptly and shall provide notice to the taxpayer of the action.

Any taxpayer may apply in writing, stating the basis therefor, to the Director for a revision of the tax assessed against him. Any request for a revision must be made within fifteen (15) days of the date on which the Director notifies the taxpayer of tax due pursuant to this Subdivision. If no application for revision is made within the fifteen (15) day period, the assessment is final. No application for revision shall be considered by the Director unless made within that period. The Director shall act upon such application promptly and shall provide notice to the taxpayer of the action.