Title 21. Special Taxing Districts — Subtitle 4. Municipal Special Taxing Districts

the principal of and interest on any bonds or other obligations of the municipality issued for the purpose for which the special taxing district was established, as the principal and interest become due; and

the costs of operating and maintaining facilities and activities for which the special taxing district was established.

adequate storm drainage systems;

public parking facilities;

pedestrian malls;

street and area lighting; and

ride sharing and bus systems;

construction, reconstruction, and renovation;

acquisition of structures, real or personal property, rights, rights–of–way, franchises, easements, and interests acquired or to be acquired by the Maryland Economic Development Corporation, the State, a unit or political subdivision of the State, or another governmental unit having jurisdiction over the infrastructure improvement;

machinery and equipment, including machinery and equipment needed to expand or enhance municipal services to a special taxing district;

financing charges and interest before and during construction and, if the municipality considers it advisable, for a limited period after completion of the construction;

interest and reserves for principal and interest, including the cost of municipal bond insurance and any other type of financial guaranty and costs of issuance;

extensions, enlargements, additions, and improvements;

architectural, engineering, financial, and legal services;

plans, specifications, studies, surveys, and estimates of costs and revenues;

administrative expenses necessary or incident in determining to proceed with infrastructure improvements; and

other expenses necessary or incident to acquiring, constructing, and financing infrastructure improvements.

is part of a comprehensive coordinated development plan or strategy involving property that:

in accordance with design development principles, maximizes use of the property by those constituencies it is intended to serve; and

is designated as a State hospital redevelopment by:

are supplemental to any power granted by another law; and

do not limit any other power.

establish a special taxing district;

impose ad valorem or special taxes; and

issue bonds.

For any purpose stated in § 21–410(a)(2) of this subtitle, a municipality may:

An agreement pledging funds as described in paragraph (1)(iii) of this subsection shall:

Notwithstanding any other provision of law, a municipality may establish a special taxing district, issue bonds, or impose an ad valorem or special tax under this part only if a request to the municipality is made by both:

For purposes of paragraph (1)(ii) of this subsection:

finance, refinance, or reimburse the cost of establishing, acquiring, designing, constructing, altering, or extending adequate infrastructure improvements as necessary for the development and use of land in any defined geographic region in the municipality, including storm drainage systems, sewers, water systems, roads, bridges, culverts, tunnels, sidewalks, lighting, parking, parks and recreation facilities, libraries, and schools; and

provide a source of funding for payment of costs of:

in the special taxing district;

in the municipality, outside the special taxing district if the infrastructure improvement is reasonably related to other infrastructure improvements in the special taxing district; or

outside the municipality if:

may designate an area as a special taxing district; and

shall create a special fund with respect to the special taxing district.

pledge to the special fund the proceeds of the ad valorem or special tax to be imposed as provided under § 21–414 of this subtitle; and

require that the proceeds from the tax be paid into the special fund.

to pay the principal of, interest on, and any redemption premium on any bonds;

to replenish any debt service reserve fund;

for any other purpose related to the ongoing expenses of or security for bonds;

to pay costs of infrastructure improvements located in or supporting a transit–oriented development or a State hospital redevelopment;

pay costs of operating and maintaining infrastructure improvements located in or supporting a transit–oriented development or a State hospital redevelopment; or

to secure payment by the municipality of its obligations under an agreement described in § 21–409(b) of this subtitle.

As an alternative to imposing ad valorem taxes under this part, the governing body of a municipality may impose special taxes in accordance with this subsection on property in a special taxing district.

In determining the basis for and amount of a special tax, the cost of an improvement may be calculated and imposed:

The governing body of a municipality may enact an ordinance or resolution for:

By ordinance or resolution, the governing body of a municipality may establish procedures allowing for the prepayment of special taxes under this part.

A special tax imposed under this part shall:

no bonds authorized by this part are outstanding with respect to the special taxing district;

no MEDCO obligations to which a municipality has pledged revenues under this part are outstanding with respect to the special taxing district; and

the governing body of the municipality determines not to use money in the special fund for payment of costs of:

describes the proposed undertaking;

states:

establishes a covenant to impose ad valorem or special taxes on all real and personal property in the special taxing district at a rate or in an amount sufficient to provide for the payment of the principal of and interest on the bonds in each year that the bonds are outstanding.

For bonds to be issued to finance the proposed undertaking, the ordinance or resolution may specify:

The ordinance or resolution may specify the items listed in paragraph (1) of this subsection or may authorize:

an ordinance or a resolution authorizing the bonds;

an ordinance, a resolution, or an executive order passed or adopted in furtherance of the ordinance or resolution authorizing the bonds;

the bonds;

the designation of a special taxing district; or

the imposition of ad valorem or special taxes.

may be in bearer form or coupon form;

may be registrable as to principal alone or as to both principal and interest; and

is a security under § 8–102 of the Commercial Law Article, whether the bond is one of a class or series or is divisible into a class or series of instruments.

A bond shall be signed manually or in facsimile by the chief executive officer of the municipality.

The clerk or other similar administrative officer of the municipality shall attest to and affix the seal of the municipality to each bond.

An officer’s signature or countersignature on a bond remains valid if the officer ceases to be an officer before delivery of the bond.

A municipality may sell bonds:

A contract to acquire property may provide that payment shall be made in bonds.

Bonds are exempt from §§ 19–205 and 19–206 of this article.

an officer or a unit of the State or a political subdivision of the State;

a bank, a trust company, a savings and loan association, or an investment company;

an insurance company; and

a personal representative, trustee, or other fiduciary.

establish a sinking fund;

establish a debt service reserve fund;

pledge other assets and revenues toward the payment of the principal of and interest on the bonds; or

provide for municipal bond insurance or any other financial guaranty of the bonds.