# Local Government (GLG)

## Title 4. In General

### Subtitle 2. Incorporation of Municipalities

#### Section 4-215

If a referendum held under this subtitle results in the creation of a new municipality, the local income tax payments authorized under Sec. 2-607 of the Tax - General Article shall be distributed to the municipality as follows, unless the county commissioners or county council agrees to an accelerated payment schedule:

(1) in the first full fiscal year after the municipal incorporation takes effect, one-third of the distribution otherwise required under Sec. 2-607 of the Tax - General Article;

(2) in the second fiscal year after the municipal incorporation takes effect, two-thirds of the distribution otherwise required under Sec. 2-607 of the Tax - General Article; and

(3) in the third fiscal year after the municipal incorporation takes effect and each subsequent fiscal year, all of the distribution required under Sec. 2-607 of the Tax - General Article.

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