# Local Government (GLG)

## Title 16. In General

### Subtitle 4. Tax and Debt Authority for Assistance to Destitute and Unemployed Residents

#### Section 16-401

This subtitle shall be liberally construed.

#### Section 16-402

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:

(1) assistance, food, shelter, supplies, necessities, and other relief, either alone or in conjunction and cooperation with the State or federal government; or

(2) employment, either alone or as a part of a general State or federal government plan.

#### Section 16-403

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.

#### Section 16-404

(a) 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.

(b) A tax imposed under this section may not exceed:

  (1)

    (3) 2 cents on each $100 of assessment of real property; or

  (2) 8 cents on each $100 of assessment of personal property and operating real property described in Sec. 8-109(c) of the Tax - Property Article.

#### Section 16-405

(a) This section does not apply to Baltimore City.

(b) A county or municipality may borrow money under this subtitle on its full faith and credit.

(c) A county or municipality may issue individual notes, certificates of debt, or other evidence of indebtedness for any amount borrowed under this subtitle.

(d) Subject to the limits in this subtitle, the governing body of a county or municipality shall determine:

  (1) the manner, method, means, and conditions for borrowing money under this subtitle;

  (2) the kind and character of the debt issued;

  (3) the form and substance of the debt issued;

  (4) the interest rate of the debt issued;

  (5) the manner, method, or means of sale, both public or private, of the debt issued;

  (6) when the money shall be borrowed; and

  (7) when the debt shall be issued.

(e) 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.

(f) A debt incurred under this subtitle shall mature and be paid within 2 years after the date the debt was incurred.

(g) Subject to Sec. 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.

#### Section 16-406

The governing body of a county or municipality may exercise any incidental powers necessary to carry out the express powers granted in this subtitle.

#### Section 16-407

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. 

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Md. Code Ann., Local Gov't (as displayed at mgaleg.maryland.gov, October 16, 2026)