<section article="glg" article_name="Local Government" number="16-101" title_number="16" title_name="In General" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>The fiscal year for each county, municipality, or special taxing district begins on July 1 of a calendar year and ends on June 30 of the next calendar year.</text> </level> <level label="b"> <text>Each county, municipality, and special taxing district shall use the fiscal year for:</text> <level label="1"> <text>appropriating money;</text> </level> <level label="2"> <text>authorizing expenditures; and</text> </level> <level label="3"> <text>balancing books and accounts.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="16-102" title_number="16" title_name="In General" subtitle_number="1" subtitle_name="General Provisions"> <text>In preparing and revising its annual budget, a political subdivision may use the accrual method to report revenues.</text> </section> <section article="glg" article_name="Local Government" number="16-103" title_number="16" title_name="In General" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Financial officer” means the treasurer or other financial officer of a political subdivision.</text> </level> <level label="3"> <text>“Political subdivision” includes:</text> <level label="i"> <text>a county;</text> </level> <level label="ii"> <text>a municipality;</text> </level> <level label="iii"> <text>a special taxing district; and</text> </level> <level label="iv"> <text>a public corporation of the State.</text> </level> </level> </level> <level label="b"> <text>If a political subdivision is authorized to incur debt to be redeemed from a fee, charge, or the proceeds of a tax, its financial officer shall submit a comprehensive report on the financial condition of the political subdivision as of the end of that fiscal year to the State Treasurer and, subject to § 2–1257 of the State Government Article, the Department of Legislative Services in accordance with the timeframes required under § 16–305 of this title for submission of annual financial reports of counties, municipalities, and special taxing districts.</text> </level> <level label="c"> <text>A report under this section shall be on the form that the Department of Legislative Services provides and shall include the affidavit of the financial officer and all of the following information that applies to the political subdivision:</text> <level label="1"> <text>the assessed valuation of taxable and tangible property in the political subdivision;</text> </level> <level label="2"> <text>the total indebtedness of the political subdivision, including the following categories of the total indebtedness:</text> <level label="i"> <text>bond indebtedness that is redeemable from the proceeds of general and ad valorem taxes;</text> </level> <level label="ii"> <text>temporary or floating indebtedness;</text> </level> <level label="iii"> <text>obligations that are incurred in anticipation of tax collection;</text> </level> <level label="iv"> <text>current bills payable;</text> </level> <level label="v"> <text>contingent liability that results from the guaranty of an obligation of another political subdivision; and</text> </level> <level label="vi"> <text>self–liquidating bond indebtedness, including:</text> <level label="1"> <text>the amount of indebtedness for each project; and</text> </level> <level label="2"> <text>the source of the revenue for its liquidation;</text> </level> </level> </level> <level label="3"> <text>for each sinking fund for retirement of obligations:</text> <level label="i"> <text>each obligation for which the fund is established;</text> </level> <level label="ii"> <text>the amount of the fund; and</text> </level> <level label="iii"> <text>the manner in which money in the fund is invested;</text> </level> </level> <level label="4"> <text>for the fiscal year for which the report is made:</text> <level label="i"> <text>the amount of property tax imposed;</text> </level> <level label="ii"> <text>the amount of property tax collected;</text> </level> <level label="iii"> <text>the amount of any special assessment imposed; and</text> </level> <level label="iv"> <text>the amount of any special assessment collected;</text> </level> </level> <level label="5"> <text>for each of the 3 fiscal years immediately preceding the fiscal year for which the report is made:</text> <level label="i"> <text>the amount of property tax imposed; and</text> </level> <level label="ii"> <text>the amount of uncollected property tax;</text> </level> </level> <level label="6"> <text>the population of the political subdivision as reported in the most recent federal census;</text> </level> <level label="7"> <text>any official or unofficial population estimate for the fiscal year for which the report is made;</text> </level> <level label="8"> <text>unless the political subdivision is a county or municipality that is a member of a State retirement or pension system, a copy of the most recent actuarial report on the pension system of the political subdivision;</text> </level> <level label="9"> <text>for all categories of indebtedness:</text> <level label="i"> <text>variable interest rate debt instruments;</text> </level> <level label="ii"> <text>interest rate exchange agreements or swaps; and</text> </level> <level label="iii"> <text>other derivatives, including futures and options; and</text> </level> </level> <level label="10"> <text>any other information about the financial affairs of the political subdivision that the Department of Legislative Services finds necessary to show accurately the financial condition of the political subdivision.</text> </level> </level> <level label="d"> <text>On request of the State Treasurer, a financial officer shall submit an updated report on the indebtedness of the political subdivision as required in this section.</text> </level> <level label="e"> <level label="1"> <text>A financial officer may not fail to:</text> <level label="i"> <text>submit a report under this section; or</text> </level> <level label="ii"> <text>resubmit a report that meets the requirements of this section within 15 days after receiving notice that the Department of Legislative Services finds a report inadequate.</text> </level> </level> <level label="2"> <text>If a financial officer violates this section, the political subdivision employing the financial officer is liable to the State for a penalty of $10 for each day that the report is overdue.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="16-104" title_number="16" title_name="In General" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>On or before April 30 of each year, the Department of Legislative Services shall report on the status of any pension system of each county, municipality, and special taxing district for the previous fiscal year.</text> </level> <level label="b"> <text>The report shall be based on information:</text> <level label="1"> <text>submitted by the county, municipality, or special taxing district under § 16–103 of this subtitle; or</text> </level> <level label="2"> <text>provided by the State Retirement Agency.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="16-105" title_number="16" title_name="In General" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>The governing body of each county shall publish annually, in at least one newspaper of general circulation in the county, a summary statement of the expenses of the county.</text> </level> <level label="b"> <text>The summary statement shall state that an itemized statement of county expenses is available for public inspection in the office of the governing body of the county during business hours.</text> </level> <level label="c"> <text>A clerk who fails to perform the requirements of subsection (a) of this section shall forfeit $100.</text> </level> <level label="d"> <text>If the charter of a charter county or Baltimore City requires the publication of financial information in a manner that differs from the requirements of this section, the provisions of the charter control.</text> </level> </section> <section article="glg" article_name="Local Government" number="16-106" title_number="16" title_name="In General" subtitle_number="1" subtitle_name="General Provisions"> <text>The budget and fiscal policies and purchasing laws of a county govern:</text> <level label="1"> <text>the county board of elections;</text> </level> <level label="2"> <text>the State’s Attorney’s office in the county;</text> </level> <level label="3"> <text>the sheriff’s office in the county;</text> </level> <level label="4"> <text>the county board of alcoholic beverages license commissioners; and</text> </level> <level label="5"> <text>except for the office of a clerk of court, the circuit court of the county.</text> </level> </section> <section article="glg" article_name="Local Government" number="16-107" title_number="16" title_name="In General" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>In this section, “reserve account” means a continuing, nonlapsing account or fund in which money is retained to support appropriations that have become unfunded.</text> </level> <level label="b"> <text>By ordinance or local law, after notice and hearing, a county may establish one or more reserve accounts.</text> </level> <level label="c"> <text>An ordinance or a local law that establishes a reserve account shall provide for:</text> <level label="1"> <text>requirements for the accumulation of a fixed amount of money, a percentage of designated revenues, or both;</text> </level> <level label="2"> <text>the circumstances under which the account may be used; and</text> </level> <level label="3"> <text>the use of any earnings on the account.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="16-108" title_number="16" title_name="In General" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>In this section, “governmental charge” means a tax, a fee, or any other charge that a county or municipality collects.</text> </level> <level label="b"> <level label="1"> <text>A governing body of a county or municipality may allow a governmental charge to be paid by credit or debit card.</text> </level> <level label="2"> <text>The governing body of a county or municipality shall determine:</text> <level label="i"> <text>the governmental charges that may be paid by credit or debit card; and</text> </level> <level label="ii"> <text>the types of credit or debit cards that will be accepted.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>The governing body of a county or municipality may add a service charge to a governmental charge paid by a credit or debit card.</text> </level> <level label="2"> <text>The amount of the service charge:</text> <level label="i"> <text>may not exceed the fee charged to the county or municipality for use of the credit or debit card; and</text> </level> <level label="ii"> <text>shall be determined at the time the governmental charge is paid.</text> </level> </level> </level> <level label="d"> <text>A county or municipality that allows governmental charges to be paid by credit or debit card shall provide notice with each property tax bill or other invoice for which payment by credit or debit card is authorized:</text> <level label="1"> <text>that a credit or debit card may be used to pay the governmental charge;</text> </level> <level label="2"> <text>the types of credit and debit cards that may be used; and</text> </level> <level label="3"> <text>whether a service charge will be added to the governmental charge if a credit or debit card is used.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="16-109" title_number="16" title_name="In General" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>This section applies only to commission counties.</text> </level> <level label="b"> <text>The county commissioners of a county shall:</text> <level label="1"> <text>impose taxes on property within the county subject to taxation; and</text> </level> <level label="2"> <text>provide for the collection of the taxes.</text> </level> </level> <level label="c"> <text>The imposition of taxes required under this section may be made by the county commissioners of a county wholly or partly by estimate.</text> </level> <level label="d"> <text>The county commissioners of a county shall use property tax revenue to:</text> <level label="1"> <text>support the courts;</text> </level> <level label="2"> <text>compensate jurors and county or State witnesses;</text> </level> <level label="3"> <text>pay outpensions established by the county commissioners or by the trustees of the poor;</text> </level> <level label="4"> <text>pay the funeral expenses of the poor; and</text> </level> <level label="5"> <text>pay and discharge all claims on or against the county that have been expressly or impliedly authorized by law.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="16-110" title_number="16" title_name="In General" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>This section applies to all counties except Baltimore City.</text> </level> <level label="b"> <text>The governing body of a county may impose a tax to provide funding to support the work of the soil conservation districts organized in its county under Title 8 of the Agriculture Article.</text> </level> <level label="c"> <text>The governing body of a county may make agreements for the use of money appropriated for a soil conservation district as the governing body considers advisable or necessary.</text> </level> </section> <section article="glg" article_name="Local Government" number="16-111" title_number="16" title_name="In General" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>This section applies to all counties except Baltimore City.</text> </level> <level label="b"> <text>The governing body of a county may receive, hold, and control in trust all money or other property that is given to the county in trust for the purpose of education.</text> </level> <level label="c"> <text>By resolution or otherwise, the governing body of a county may provide for the administration of the trust in the manner prescribed by the trust instrument.</text> </level> <level label="d"> <text>If the governing body of a county is neglectful in administering the trust, the State’s Attorney of the county shall institute proceedings in the circuit court to compel the proper administration of the trust.</text> </level> </section> <section article="glg" article_name="Local Government" number="16-112" title_number="16" title_name="In General" subtitle_number="1" subtitle_name="General Provisions"> <text>Each fiscal year, each county shall pay to each municipality in the county an amount of money equal to the amount received by the municipality for fiscal year 1967 to fiscal year 1968 under former Art. 81, § 30(d) of the Annotated Code, relating to apportionment of shares of taxes on banks and finance corporations. </text> </section> <section article="glg" article_name="Local Government" number="16-113" title_number="16" title_name="In General" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>In Allegany County, an entity that provides water or sewer services to the public on a nonprofit basis shall have a lien against the property to which the service was supplied if the charges for the services are not paid.</text> </level> <level label="b"> <text>A lien under this section is subject to the requirements for a mechanic’s lien on real property, including the requirement to record the lien among the appropriate land records.</text> </level> </section> <section article="glg" article_name="Local Government" number="16-114" title_number="16" title_name="In General" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>In this section, “common ownership community” means:</text> <level label="1"> <text>a condominium organized under Title 11 of the Real Property Article;</text> </level> <level label="2"> <text>a homeowners association organized under Title 11B of the Real Property Article; or</text> </level> <level label="3"> <text>a cooperative housing corporation organized under Title 5, Subtitle 6B of the Corporations and Associations Article.</text> </level> </level> <level label="b"> <text>By ordinance, Prince George’s County may impose a fee to provide administrative hearing services for the resolution of disputes involving a common ownership community located in the county.</text> </level> <level label="c"> <text>Prince George’s County may specify in the ordinance:</text> <level label="1"> <text>which remedies must be exhausted before administrative hearing services may be utilized; and</text> </level> <level label="2"> <text>the process involved in the administrative hearing services.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="16-115" title_number="16" title_name="In General" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>In Washington County, a county license or permit may not be issued or renewed until the County Treasurer and any municipality in which the applicant does business certify that there are no delinquent personal property taxes due from the applicant.</text> </level> <level label="b"> <text>By majority vote, the County Commissioners of Washington County may waive the requirement under this section.</text> </level> </section> <section article="glg" article_name="Local Government" number="16-116" title_number="16" title_name="In General" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Check” has the meaning stated in § 8–101 of the Criminal Law Article.</text> </level> <level label="3"> <text>“Insufficient funds” means insufficient funds as described in § 8–102 of the Criminal Law Article.</text> </level> </level> <level label="b"> <text>The provisions of §§ 9–105 and 9–106 of this article apply to an act, an ordinance, or a resolution adopted under this section.</text> </level> <level label="c"> <level label="1"> <text>The County Commissioners of Washington County may impose a fee for each check that is presented in payment of any obligation to the county and is dishonored due to insufficient funds.</text> </level> <level label="2"> <text>The county commissioners shall determine the amount of the fee imposed under this section.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="16-201" title_number="16" title_name="In General" subtitle_number="2" subtitle_name="County Treasurers"> <text>The county treasurer, comptroller, tax collector, or other similar officer of each county shall have the right to succession in that office. </text> </section> <section article="glg" article_name="Local Government" number="16-202" title_number="16" title_name="In General" subtitle_number="2" subtitle_name="County Treasurers"> <level label="a"> <text>The annual salary of the County Treasurer of Calvert County is $115,000.</text> </level> <level label="b"> <level label="1"> <text>The County Treasurer of Calvert County shall appoint one deputy treasurer.</text> </level> <level label="2"> <text>The County Commissioners of Calvert County shall set the annual salary of the deputy treasurer.</text> </level> </level> <level label="c"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection:</text> <level label="i"> <text>an individual who serves as County Treasurer of Calvert County for at least three terms shall receive an annual pension when the individual leaves office of $150 for each year served; and</text> </level> <level label="ii"> <text>the pension shall be paid at least once per month.</text> </level> </level> <level label="2"> <text>Beginning with the term of office that begins on or after November 4, 2026, an individual who serves as County Treasurer of Calvert County shall receive the same pension benefits as county employees.</text> </level> </level> <level label="d"> <text>The County Commissioners of Calvert County shall:</text> <level label="1"> <text>provide in its annual budget a pension of $150 per month to be paid to the surviving spouse of any county treasurer who served as of October 1974; and</text> </level> <level label="2"> <text>pay the pension for the life of the surviving spouse.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="16-203" title_number="16" title_name="In General" subtitle_number="2" subtitle_name="County Treasurers"> <level label="a"> <text>The annual salary of the County Treasurer of St. Mary’s County is:</text> <level label="1"> <text>$76,000 for calendar year 2023;</text> </level> <level label="2"> <text>$89,000 for calendar year 2024;</text> </level> <level label="3"> <text>$102,000 for calendar year 2025;</text> </level> <level label="4"> <text>$115,000 for calendar year 2026; and</text> </level> <level label="5"> <text>beginning in calendar year 2027 and each calendar year thereafter, equal to the salary of the Register of Wills for St. Mary’s County.</text> </level> </level> <level label="b"> <text>The County Treasurer of St. Mary’s County shall devote full time to the duties of office.</text> </level> </section> <section article="glg" article_name="Local Government" number="16-205" title_number="16" title_name="In General" subtitle_number="2" subtitle_name="County Treasurers"> <level label="a"> <level label="1"> <text>The annual salary of the County Treasurer of Washington County is:</text> <level label="i"> <text>as set by the County Commissioners of Washington County under Title 28, Subtitle 2 of this article; or</text> </level> <level label="ii"> <text>any increased compensation authorized by the County Commissioners of Washington County.</text> </level> </level> <level label="2"> <text>The County Treasurer shall determine the annual salaries of the deputy treasurer and employees in the office, subject to:</text> <level label="i"> <text>the approval of the County Commissioners; and</text> </level> <level label="ii"> <text>any increased compensation authorized by the County Commissioners.</text> </level> </level> </level> <level label="b"> <text>The County Commissioners of Washington County shall pay the office expenses of the County Treasurer of Washington County.</text> </level> </section> <section article="glg" article_name="Local Government" number="16-301" title_number="16" title_name="In General" subtitle_number="3" subtitle_name="Uniform System of Financial Reporting"> <text>Each county, municipality, and special taxing district shall adopt the fiscal year specified in § 16–101 of this title as its period for recording and reporting its fiscal transactions.</text> </section> <section article="glg" article_name="Local Government" number="16-302" title_number="16" title_name="In General" subtitle_number="3" subtitle_name="Uniform System of Financial Reporting"> <text>Each county, municipality, and special taxing district shall maintain its financial records by a method that allows for the recording and reporting of all information contained in them for the fiscal year adopted under § 16–301 of this subtitle.</text> </section> <section article="glg" article_name="Local Government" number="16-303" title_number="16" title_name="In General" subtitle_number="3" subtitle_name="Uniform System of Financial Reporting"> <level label="a"> <text>Each county, municipality, and special taxing district shall maintain the uniform system of financial reporting established by the Department of Legislative Services.</text> </level> <level label="b"> <text>If a county, municipality, or special taxing district does not comply with subsection (a) of this section, the Comptroller, after notice from the Executive Director of the Department of Legislative Services of the noncompliance, may order the discontinuance of all money, grants, or State aid that the county, municipality, or special taxing district is entitled to receive under State law, including money from:</text> <level label="1"> <text>the income tax;</text> </level> <level label="2"> <text>the tax on racing;</text> </level> <level label="3"> <text>the recordation tax;</text> </level> <level label="4"> <text>the admissions and amusement tax; and</text> </level> <level label="5"> <text>the license tax.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="16-304" title_number="16" title_name="In General" subtitle_number="3" subtitle_name="Uniform System of Financial Reporting"> <level label="a"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, on or before October 31 after the close of its fiscal year, each county, municipality, and special taxing district shall file with the Department of Legislative Services a financial report for that fiscal year.</text> </level> <level label="2"> <level label="i"> <text>A county, municipality, or special taxing district with a population of over 400,000 may file its financial report on or before December 31 after the close of its fiscal year.</text> </level> <level label="ii"> <text>Unless subparagraph (i) of this paragraph applies, Howard County may file its financial report on or before November 30 after the close of its fiscal year.</text> </level> <level label="iii"> <text>Allegany County, Calvert County, Caroline County, Cecil County, Charles County, Frederick County, Garrett County, Queen Anne’s County, St. Mary’s County, Somerset County, Talbot County, and Wicomico County may file the county’s financial report on or before December 31 after the close of the county’s fiscal year.</text> </level> </level> </level> <level label="b"> <text>The financial report required under subsection (a) of this section shall be:</text> <level label="1"> <text>prepared on the form established by the Department of Legislative Services; and</text> </level> <level label="2"> <text>verified by the chief executive officer of the county, municipality, or special taxing district.</text> </level> </level> <level label="c"> <text>If a county, municipality, or special taxing district does not comply with subsection (a) of this section, the Comptroller, on notice from the Executive Director of the Department of Legislative Services, may order the discontinuance of all money, grants, or State aid that the county, municipality, or special taxing district is entitled to receive under State law, including money from:</text> <level label="1"> <text>the income tax;</text> </level> <level label="2"> <text>the tax on racing;</text> </level> <level label="3"> <text>the recordation tax;</text> </level> <level label="4"> <text>the admissions and amusement tax; and</text> </level> <level label="5"> <text>the license tax.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="16-305" title_number="16" title_name="In General" subtitle_number="3" subtitle_name="Uniform System of Financial Reporting"> <level label="a"> <text>Except as provided in subsection (b) of this section, each county, municipality, and special taxing district created by the State shall have its financial records audited at least once each fiscal year by the persons and for the purposes specified in this section and §§ 16–307 and 16–308 of this subtitle.</text> </level> <level label="b"> <level label="1"> <text>Unless the Legislative Auditor determines, on a case–by–case basis, that more frequent audits are required, the Legislative Auditor may authorize a municipality or a special taxing district created by the State with annual revenues of less than $250,000 in the prior 4 fiscal years to have an audit conducted once every 4 years.</text> </level> <level label="2"> <text>Notwithstanding paragraph (1) of this subsection and except as provided in subsection (e) of this section, a municipality is exempt from the audit requirements of subsection (a) of this section for any fiscal year in which the municipal annual revenues are less than $100,000.</text> </level> </level> <level label="c"> <level label="1"> <text>The audit required under subsection (a) of this section shall be conducted by a certified public accountant:</text> <level label="i"> <text>acting in the capacity of an independent auditor or an official auditor of a county or municipality; and</text> </level> <level label="ii"> <text>who is in compliance with the Maryland Public Accountancy Act.</text> </level> </level> <level label="2"> <text>An official auditor must be approved by the Legislative Auditor to conduct the audit.</text> </level> <level label="3"> <text>In conducting the audit, the auditor shall examine the methods, accuracy, and legality of the financial records of the county, municipality, or special taxing district.</text> </level> </level> <level label="d"> <level label="1"> <text>On the initiative of the Legislative Auditor, the Legislative Auditor may review or audit the financial records of any county, municipality, or special taxing district created by the State.</text> </level> <level label="2"> <text>A county, municipality, or special taxing district created by the State may request the Legislative Auditor to audit its financial records.</text> </level> </level> <level label="e"> <level label="1"> <text>An audit exemption for a municipality under subsection (b)(2) of this section does not affect the requirement of that municipality to file with the Department of Legislative Services a financial report in accordance with § 16–304 of this subtitle.</text> </level> <level label="2"> <text>If the financial report submitted in accordance with § 16–304 of this subtitle by a municipality that has an audit exemption under subsection (b)(2) of this section indicates a financial or accounting irregularity or concern, the Joint Audit and Evaluation Committee may request or require the municipality to conduct a review or audit of its financial records consistent with the requirements of subsection (c) of this section.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="16-306" title_number="16" title_name="In General" subtitle_number="3" subtitle_name="Uniform System of Financial Reporting"> <level label="a"> <text>The county, municipality, or special taxing district shall report the results of the audit required under § 16–305 of this subtitle to the Legislative Auditor:</text> <level label="1"> <text>on the form and in the manner that the Legislative Auditor requires; and</text> </level> <level label="2"> <text>on or before the date the financial report of the county, municipality, or special taxing district must be filed under § 16–304(a) of this subtitle.</text> </level> </level> <level label="b"> <text>An audit report filed by a county, municipality, or special taxing district with the Legislative Auditor shall include financial statements of the county, municipality, or special taxing district that are:</text> <level label="1"> <text>prepared in accordance with generally accepted accounting principles; and</text> </level> <level label="2"> <text>audited in accordance with generally accepted auditing standards.</text> </level> </level> <level label="c"> <text>An audit report filed with the Legislative Auditor is a public record.</text> </level> <level label="d"> <text>Except as provided in subsection (e) of this section, if a county, municipality, or special taxing district does not comply with subsection (a) or (b) of this section, the Comptroller, on notice from the Executive Director of the Department of Legislative Services, may order the discontinuance of all money, grants, or State aid that the county, municipality, or special taxing district is entitled to receive under State law that are distributed by the Comptroller, the clerks of the court, or any other unit of State government.</text> </level> <level label="e"> <level label="1"> <text>Subject to paragraph (2) of this subsection, if a county, municipality, or special taxing district does not comply with subsection (a) or (b) of this section within 2 calendar years after the deadline described in subsection (a)(2) of this section, the Executive Director of the Department of Legislative Services shall notify the Comptroller and the Comptroller shall order the discontinuance of 20% of all State aid for the current fiscal year for highway user revenues and disparity grants that the county, municipality, or special taxing district is otherwise entitled to receive under State law that is distributed by the Comptroller, the clerks of the court, or any other unit of State government.</text> </level> <level label="2"> <level label="i"> <text>A discontinuance of funds under paragraph (1) of this subsection shall remain in effect for a county, municipality, or special taxing district until the county, municipality, or special taxing district submits the audit report required under this section.</text> </level> <level label="ii"> <level label="1"> <text>Subject to subsubparagraph 2 of this subparagraph, the Executive Director of the Department of Legislative Services shall notify the Comptroller and the Comptroller shall order the reinstatement of the funds discontinued under paragraph (1) of this subsection promptly after the county, municipality, or special taxing district submits the audit report required under this section.</text> </level> <level label="2"> <level label="A"> <text>If a reinstatement of funds is ordered under subsubparagraph 1 of this subparagraph, only the discontinued funds for the current fiscal year shall be released.</text> </level> </level> <level label="B"> <text>If a county, municipality, or special taxing district failed to submit the audit report required under this section in the same fiscal year in which it was due, the discontinued funds for that fiscal year shall revert to the General Fund of the State for discontinued disparity grants and to the Transportation Trust Fund for discontinued highway user revenues.</text> </level> </level> </level> </level> </section> <section article="glg" article_name="Local Government" number="16-307" title_number="16" title_name="In General" subtitle_number="3" subtitle_name="Uniform System of Financial Reporting"> <level label="a"> <level label="1"> <text>Each year the Legislative Auditor shall:</text> <level label="i"> <text>review the audit reports required under § 16–306 of this subtitle; and</text> </level> <level label="ii"> <text>make a full and detailed written report to the Comptroller and, in accordance with § 2–1257 of the State Government Article, the Executive Director of the Department of Legislative Services on the result of the audit of the financial records of each county, municipality, and special taxing district created by the State.</text> </level> </level> <level label="2"> <text>The report may include recommendations that the Legislative Auditor considers advisable relating to:</text> <level label="i"> <text>methods of bookkeeping;</text> </level> <level label="ii"> <text>changes in the uniform system of financial reporting; and</text> </level> <level label="iii"> <text>changes in the reports of the counties, municipalities, and special taxing districts.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>In conducting the review required under subsection (a) of this section, the Legislative Auditor may review the work papers and other documentation of the auditor who filed the audit report.</text> </level> <level label="2"> <text>The Legislative Auditor may refer audit reports, work papers, or other documentation reviewed by the Legislative Auditor to the State Board of Public Accountancy for action required by the Maryland Public Accountancy Act.</text> </level> </level> <level label="c"> <text>The Legislative Auditor shall report any violation of this subtitle by a county, municipality, or special taxing district created by the State to the Comptroller and, in accordance with § 2–1257 of the State Government Article, to the Executive Director of the Department of Legislative Services.</text> </level> </section> <section article="glg" article_name="Local Government" number="16-308" title_number="16" title_name="In General" subtitle_number="3" subtitle_name="Uniform System of Financial Reporting"> <level label="a"> <text>Each county shall adopt uniform rules and regulations for the auditing of the financial records of each special taxing district created by the county that:</text> <level label="1"> <text>receives money collected by the county from a county property tax imposed at the request of the special taxing district;</text> </level> <level label="2"> <text>has annual expenditures exceeding $250,000; and</text> </level> <level label="3"> <text>has money disbursed and expended independently of the county government.</text> </level> </level> <level label="b"> <text>At a minimum, the rules and regulations required under subsection (a) of this section shall require the audit to:</text> <level label="1"> <text>be conducted by:</text> <level label="i"> <text>a certified public accountant:</text> <level label="1"> <text>acting in the capacity of an independent auditor or an official auditor of the county; and</text> </level> <level label="2"> <text>who is in compliance with the Maryland Public Accountancy Act; or</text> </level> </level> <level label="ii"> <text>an auditing committee approved by the official auditor of the county;</text> </level> </level> <level label="2"> <text>determine if tax funds have been received, deposited, and disbursed in accordance with approved appropriations and State and local law;</text> </level> <level label="3"> <text>include the following financial statements:</text> <level label="i"> <text>a balance sheet;</text> </level> <level label="ii"> <text>a statement of revenues;</text> </level> <level label="iii"> <text>a statement of expenditures and encumbrances; and</text> </level> <level label="iv"> <text>a statement of changes in fund balance; and</text> </level> </level> <level label="4"> <text>be completed and filed with the appropriate county officials not later than 90 days after the close of the fiscal year.</text> </level> </level> <level label="c"> <text>For a special taxing district that is created by the county and has annual expenditures of less than $250,000, the county shall require:</text> <level label="1"> <text>an annual financial report; and</text> </level> <level label="2"> <text>an audit every 4 years unless the county determines, on a case–by–case basis, that more frequent audits are required.</text> </level> </level> <level label="d"> <text>If a special taxing district subject to subsection (a) or (c) of this section does not file a financial report or audit report required by the county, the county may withhold the distribution of taxes imposed on behalf of the special taxing district until the report is received.</text> </level> <level label="e"> <level label="1"> <text>When a county files its audit report with the Legislative Auditor as required by § 16–306 of this subtitle, the county also shall submit:</text> <level label="i"> <text>a copy of each financial report and audit report received from each special taxing district subject to subsection (a) or (c) of this section; and</text> </level> <level label="ii"> <text>a report on the results of the county’s review of each special taxing district’s compliance with this section.</text> </level> </level> <level label="2"> <text>The Legislative Auditor shall:</text> <level label="i"> <text>review the financial reports, audit reports, and other information received from each county; and</text> </level> <level label="ii"> <text>submit recommendations as appropriate based on the results of the review.</text> </level> </level> </level> </section> <section article="glg" article_name="Local Government" number="16-309" title_number="16" title_name="In General" subtitle_number="3" subtitle_name="Uniform System of Financial Reporting"> <level label="a"> <text>If the Legislative Auditor audits the financial records of a county, municipality, or special taxing district as provided in this subtitle, the county, municipality, or special taxing district shall pay the costs of the audit.</text> </level> <level label="b"> <level label="1"> <text>As soon as practical after completing an audit, the Legislative Auditor shall certify the total costs of the audit to the appropriate official of the county, municipality, or special taxing district.</text> </level> <level label="2"> <text>On receipt of the certification of costs, the official of the county, municipality, or special taxing district shall pay the Comptroller.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="16-401" title_number="16" title_name="In General" subtitle_number="4" subtitle_name="Tax and Debt Authority for Assistance to Destitute and Unemployed Residents"> <text>This subtitle shall be liberally construed.</text> </section> <section article="glg" article_name="Local Government" number="16-402" title_number="16" title_name="In General" subtitle_number="4" subtitle_name="Tax and Debt Authority for Assistance to Destitute and Unemployed Residents"> <text>A county or municipality may use the taxing and borrowing authority granted under this subtitle only for the general protection and preservation of the public safety, peace, health, and welfare by providing its destitute and unemployed residents with:</text> <level label="1"> <text>assistance, food, shelter, supplies, necessities, and other relief, either alone or in conjunction and cooperation with the State or federal government; or</text> </level> <level label="2"> <text>employment, either alone or as a part of a general State or federal government plan.</text> </level> </section> <section article="glg" article_name="Local Government" number="16-403" title_number="16" title_name="In General" subtitle_number="4" subtitle_name="Tax and Debt Authority for Assistance to Destitute and Unemployed Residents"> <text>To exercise the authority granted under this subtitle, the governing body of a county or municipality shall enact a motion, a resolution, or an ordinance stating that the county or municipality has determined to exercise the authority granted under this subtitle and binds itself to fulfill all obligations incurred under this subtitle.</text> </section> <section article="glg" article_name="Local Government" number="16-404" title_number="16" title_name="In General" subtitle_number="4" subtitle_name="Tax and Debt Authority for Assistance to Destitute and Unemployed Residents"> <level label="a"> <text>A county or municipality that exercises the authority granted under this subtitle may impose a tax on property that is subject to the county’s or municipality’s property tax.</text> </level> <level label="b"> <text>A tax imposed under this section may not exceed:</text> <level label="1"> <level label="3"> <text>2 cents on each $100 of assessment of real property; or</text> </level> </level> <level label="2"> <text>8 cents on each $100 of assessment of personal property and operating real property described in § 8–109(c) of the Tax – Property Article.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="16-405" title_number="16" title_name="In General" subtitle_number="4" subtitle_name="Tax and Debt Authority for Assistance to Destitute and Unemployed Residents"> <level label="a"> <text>This section does not apply to Baltimore City.</text> </level> <level label="b"> <text>A county or municipality may borrow money under this subtitle on its full faith and credit.</text> </level> <level label="c"> <text>A county or municipality may issue individual notes, certificates of debt, or other evidence of indebtedness for any amount borrowed under this subtitle.</text> </level> <level label="d"> <text>Subject to the limits in this subtitle, the governing body of a county or municipality shall determine:</text> <level label="1"> <text>the manner, method, means, and conditions for borrowing money under this subtitle;</text> </level> <level label="2"> <text>the kind and character of the debt issued;</text> </level> <level label="3"> <text>the form and substance of the debt issued;</text> </level> <level label="4"> <text>the interest rate of the debt issued;</text> </level> <level label="5"> <text>the manner, method, or means of sale, both public or private, of the debt issued;</text> </level> <level label="6"> <text>when the money shall be borrowed; and</text> </level> <level label="7"> <text>when the debt shall be issued.</text> </level> </level> <level label="e"> <text>A county or municipality may not incur debt under this subtitle in an aggregate amount that exceeds the total amount estimated to be raised by a property tax imposed by the county or municipality at a rate of 3.2 cents on each $100 of assessment.</text> </level> <level label="f"> <text>A debt incurred under this subtitle shall mature and be paid within 2 years after the date the debt was incurred.</text> </level> <level label="g"> <text>Subject to § 16–404(b) of this subtitle, a county or municipality that borrows money under this subtitle shall impose a property tax in an amount sufficient to repay the money borrowed, with interest, in full within 2 years after the date the debt was incurred.</text> </level> </section> <section article="glg" article_name="Local Government" number="16-406" title_number="16" title_name="In General" subtitle_number="4" subtitle_name="Tax and Debt Authority for Assistance to Destitute and Unemployed Residents"> <text>The governing body of a county or municipality may exercise any incidental powers necessary to carry out the express powers granted in this subtitle.</text> </section> <section article="glg" article_name="Local Government" number="16-407" title_number="16" title_name="In General" subtitle_number="4" subtitle_name="Tax and Debt Authority for Assistance to Destitute and Unemployed Residents"> <text>The administration, expenditure, and accounting of all money raised, borrowed, or obtained by a county or municipality under this subtitle is subject to the control of the governing body of the county or municipality or the public body that the governing body designates. </text> </section> <section article="glg" article_name="Local Government" number="16-501" title_number="16" title_name="In General" subtitle_number="5" subtitle_name="Grants to Counties"> <level label="a"> <text>Subject to subsection (e) of this section, for each fiscal year, the Comptroller shall pay to an eligible county a grant in the amount determined under subsection (c)(3) of this section.</text> </level> <level label="b"> <text>A county may not receive a grant under subsection (a) of this section if any of the county’s income tax rates were less than 2.6%:</text> <level label="1"> <text>for the taxable year that ended in the second prior fiscal year; or</text> </level> <level label="2"> <text>for any subsequent taxable year through the taxable year that ends in the current fiscal year.</text> </level> </level> <level label="c"> <level label="1"> <text>For each fiscal year, the Comptroller shall determine for each county:</text> <level label="i"> <text>the county income tax collected from individuals for the taxable year that ended in the second prior fiscal year, based on tax returns filed through November 1 of the year following the applicable taxable year; and</text> </level> <level label="ii"> <text>the amount of county income tax that the county would have received if the county income tax rate was 2.54%.</text> </level> </level> <level label="2"> <text>For each fiscal year, the Comptroller shall determine as rounded to the nearest cent:</text> <level label="i"> <text>the per capita yield of the county income tax for each county, based on:</text> <level label="1"> <text>the population of the county as last projected by the Maryland Department of Health for July 1 of the applicable taxable year or the latest decennial census for the applicable taxable year; and</text> </level> <level label="2"> <text>the amount specified in paragraph (1)(ii) of this subsection; and</text> </level> </level> <level label="ii"> <text>the per capita statewide yield of the county income tax, based on:</text> <level label="1"> <text>the State population as last projected by the Maryland Department of Health for July 1 of the applicable taxable year or the latest decennial census for the applicable taxable year; and</text> </level> <level label="2"> <text>the amount of county income tax specified in paragraph (1)(ii) of this subsection for all counties.</text> </level> </level> </level> <level label="3"> <text>If the per capita yield of the county income tax for a county determined under paragraph (2)(i) of this subsection is less than 75% of the per capita statewide yield of the county income tax determined under paragraph (2)(ii) of this subsection, the Comptroller shall determine the amount that would increase the county per capita yield to equal 75% of the statewide per capita yield, as rounded to the nearest dollar.</text> </level> </level> <level label="d"> <text>The Comptroller shall pay to an eligible county the amount determined under subsection (c)(3) of this section in quarterly payments during each fiscal year.</text> </level> <level label="e"> <level label="1"> <text>Except as provided in paragraphs (2) and (3) of this subsection, for fiscal year 2011 and each subsequent fiscal year, the distribution provided to any county or Baltimore City under this section may not exceed the amount distributed to the county or Baltimore City for fiscal year 2010.</text> </level> <level label="2"> <level label="i"> <text>This paragraph applies to a county or Baltimore City if the county or Baltimore City has a single county income tax rate.</text> </level> <level label="ii"> <text>If a county or Baltimore City has a county income tax rate of at least 2.8% but less than 3%, the county or Baltimore City may receive a minimum of 20% of the amount determined under subsection (c)(3) of this section.</text> </level> <level label="iii"> <text>If a county or Baltimore City has a county income tax rate of at least 3% but less than 3.2%, the county or Baltimore City may receive a minimum of 40% of the amount determined under subsection (c)(3) of this section.</text> </level> <level label="iv"> <text>If a county or Baltimore City has a county income tax rate of at least 3.2%:</text> <level label="1"> <text>on or before June 30, 2017, the county or Baltimore City may receive a minimum of 60% of the amount determined under subsection (c)(3) of this section;</text> </level> <level label="2"> <text>in fiscal year 2018, the county or Baltimore City may receive a minimum of 63.75% of the amount determined under subsection (c)(3) of this section;</text> </level> <level label="3"> <text>in fiscal years 2019, 2020, and 2021, the county or Baltimore City may receive a minimum of 67.5% of the amount determined under subsection (c)(3) of this section; and</text> </level> <level label="4"> <text>in fiscal year 2022, and each fiscal year thereafter, the county or Baltimore City may receive a minimum of 75% of the amount determined under subsection (c)(3) of this section.</text> </level> </level> </level> <level label="3"> <level label="i"> <text>This paragraph applies to a county or Baltimore City if the county or Baltimore City has more than one county income tax rate.</text> </level> <level label="ii"> <text>If each county income tax rate imposed by a county or Baltimore City is at least 2.8% but less than 3.0%, the county or Baltimore City may receive a minimum of 20% of the amount determined under subsection (c)(3) of this section.</text> </level> <level label="iii"> <text>If the lowest county income tax rate imposed by a county or Baltimore City is at least 2.9% and each county income tax rate imposed on Maryland taxable income greater than $100,000 is at least 3.0%, the county or Baltimore City may receive a minimum of 40% of the amount determined under subsection (c)(3) of this section.</text> </level> <level label="iv"> <text>If the lowest county income tax rate imposed by a county or Baltimore City is at least 3.1% and each county income tax rate imposed on Maryland taxable income greater than $100,000 is at least 3.2%, the county or Baltimore City may receive a minimum of 75% of the amount determined under subsection (c)(3) of this section.</text> </level> </level> </level> </section> <section article="glg" article_name="Local Government" number="16-502" title_number="16" title_name="In General" subtitle_number="5" subtitle_name="Grants to Counties"> <level label="a"> <text>The intent of this section is to:</text> <level label="1"> <text>reimburse Anne Arundel County for the supporting facilities and services that it provides for private development that is not related to aviation on State–owned land at Baltimore–Washington International Thurgood Marshall Airport; and</text> </level> <level label="2"> <text>eliminate any competitive advantage that Baltimore–Washington International Thurgood Marshall Airport might have over private property in attracting new development or construction.</text> </level> </level> <level label="b"> <text>Notwithstanding the provisions of §§ 6–102, 7–211, and 7–401 of the Tax – Property Article, for all private development that is not related to aviation on State–owned land at Baltimore–Washington International Thurgood Marshall Airport, the State shall pay to Anne Arundel County annually an amount that:</text> <level label="1"> <text>is agreed on by the Secretary of Transportation and the County Executive of Anne Arundel County; and</text> </level> <level label="2"> <text>does not exceed an amount equal to the local property taxes that would have been paid to Anne Arundel County if the private development were not constructed on State–owned land.</text> </level> </level> <level label="c"> <text>To fund the payments required under subsection (b) of this section, the State shall charge a special user fee to the private development described in subsection (b) of this section.</text> </level> <level label="d"> <text>The Maryland Aviation Administration shall specify what constitutes private development that is not related to aviation on State–owned land at Baltimore–Washington International Thurgood Marshall Airport.</text> </level> </section> <section article="glg" article_name="Local Government" number="16-503" title_number="16" title_name="In General" subtitle_number="5" subtitle_name="Grants to Counties"> <text>** IN EFFECT UNTIL JULY 1, 2026 PER CHAPTER 604 OF 2025 **</text> <level label="a"> <text>The Governor shall include in the budget bill for fiscal year 2025 a General Fund appropriation for the following teacher retirement supplemental grants to the following counties:</text> <level label="1"> <text>Allegany County – $1,632,106;</text> </level> <level label="2"> <text>Baltimore City – $10,047,596;</text> </level> <level label="3"> <text>Baltimore County – $3,000,000;</text> </level> <level label="4"> <text>Caroline County – $685,108;</text> </level> <level label="5"> <text>Dorchester County – $308,913;</text> </level> <level label="6"> <text>Garrett County – $406,400;</text> </level> <level label="7"> <text>Prince George’s County – $9,628,702;</text> </level> <level label="8"> <text>Somerset County – $381,999; and</text> </level> <level label="9"> <text>Wicomico County – $1,567,837.</text> </level> </level> <level label="b"> <text>For fiscal year 2026, the Governor shall include in the budget bill a General Fund appropriation for the following teacher retirement supplemental grants to the following counties:</text> <level label="1"> <text>Allegany County – $816,053;</text> </level> <level label="2"> <text>Baltimore City – $5,023,798;</text> </level> <level label="3"> <text>Baltimore County – $1,500,000;</text> </level> <level label="4"> <text>Caroline County – $342,554;</text> </level> <level label="5"> <text>Dorchester County – $154,457;</text> </level> <level label="6"> <text>Garrett County – $203,200;</text> </level> <level label="7"> <text>Prince George’s County – $4,814,351;</text> </level> <level label="8"> <text>Somerset County – $191,000; and</text> </level> <level label="9"> <text>Wicomico County – $783,919.</text> </level> </level> </section> <section article="glg" article_name="Local Government" number="16-504" title_number="16" title_name="In General" subtitle_number="5" subtitle_name="Grants to Counties"> <level label="a"> <text>If on or before January 1, 2020, the Federal Nuclear Regulatory Commission license for the Calvert Cliffs Nuclear Power Plant expires and is not extended or renewed, for each of the 5 taxable years following the expiration, the State shall pay as a grant to Calvert County an amount equal to the applicable percentage, specified in subsection (b) of this section, of the difference between:</text> <level label="1"> <text>the product of multiplying $14,554,000 times the percentage specified for the taxable year under § 7–237(b) of the Tax – Property Article; and</text> </level> <level label="2"> <text>the sum of:</text> <level label="i"> <text>$2,000,000; and</text> </level> <level label="ii"> <text>the county’s property tax revenue for the taxable year derived from personal property that is machinery or equipment used to generate electricity for sale.</text> </level> </level> </level> <level label="b"> <text>For purposes of determining the amount of a grant provided under subsection (a) of this section, the applicable percentage is:</text> <level label="1"> <text>100% for the first taxable year;</text> </level> <level label="2"> <text>80% for the second taxable year;</text> </level> <level label="3"> <text>60% for the third taxable year;</text> </level> <level label="4"> <text>40% for the fourth taxable year; and</text> </level> <level label="5"> <text>20% for the fifth taxable year.</text> </level> </level> <level label="c"> <text>For each taxable year for which a grant is provided under subsection (a) of this section, the Department of Assessments and Taxation shall determine and certify to the Comptroller Calvert County’s property tax revenue for the taxable year that is derived from personal property that is machinery or equipment used to generate electricity for sale.</text> </level> <level label="d"> <text>The Comptroller shall pay to Calvert County the amount specified in subsection (a)(1) of this section in equal payments, at the end of each quarter of each taxable year for which a grant is payable.</text> </level> </section> <section article="glg" article_name="Local Government" number="16-505" effective_note="EFFECTIVE UNTIL JUNE 30, 2028 PER CHAPTER 791 OF 2023" title_number="16" title_name="In General" subtitle_number="5" subtitle_name="Grants to Counties"> <level label="a"> <level label="1"> <text>For each of fiscal years 2025 and 2026, the Governor shall include in the annual budget bill an appropriation of $500,000 to the Prince George’s County Office of the County Executive to be used for the Prince George’s County Reentry Employment Incentive Program under § 10–334 of the Prince George’s County Code.</text> </level> <level label="2"> <text>For each of fiscal years 2027 and 2028, the Governor shall include in the budget bill an appropriation of $350,000 to the Prince George’s County Office of the County Executive to be used for the Prince George’s County Reentry Employment Incentive Program under § 10–334 of the Prince George’s County Code.</text> </level> </level> <level label="b"> <text>The funds provided under this section shall be supplemental to, and may not supplant, funds otherwise available for reentry employment incentives in Prince George’s County.</text> </level> </section>