# Local Government (GLG)

## Title 21. Special Taxing Districts

### Subtitle 4. Municipal Special Taxing Districts

#### Section 21-409

(a) For any purpose stated in Sec. 21-410(a)(1) of this subtitle, a municipality may:

  (1) establish a special taxing district;

  (2) impose ad valorem or special taxes; and

  (3) issue bonds.

(b)

  (1) For any purpose stated in Sec. 21-410(a)(2) of this subtitle, a municipality may:

    (i) establish special taxing districts;

    (ii) impose ad valorem or special taxes; and

    (iii) pledge funds under an agreement to:

      (1) secure payment on MEDCO obligations;

      (2) pay the costs of infrastructure improvements located in or supporting a transit-oriented development or a State hospital redevelopment; and

      (3) pay the costs of operating and maintaining infrastructure improvements located in or supporting a transit-oriented development or a State hospital redevelopment.

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

    (i) be authorized by an ordinance or resolution of the municipality;

    (ii) be in writing;

    (iii) be executed on behalf of the municipality making the pledge, the Maryland Economic Development Corporation, and any other person or entity that the governing body of the municipality determines; and

    (iv) benefit, and be enforceable on behalf of, the holders of any MEDCO obligation secured by the agreement.

(c)

  (1) 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:

    (i) the owners of at least two-thirds of the assessed valuation of the real property located in the special taxing district; and

    (ii) at least two-thirds of the owners of the real property located in the special taxing district.

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

    (i) multiple owners of a single parcel are treated as a single owner; and

    (ii) a single owner of multiple parcels is treated as one owner.

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