Title 2. Administration by Comptroller — Subtitle 6. Income Tax Revenue Distribution

In this subtitle the following words have the meanings indicated.

“Corporation” has the meaning stated in § 10-101 of this article.

“County income tax” has the meaning stated in § 10-101 of this article.

“Individual” has the meaning stated in § 10-101 of this article.

“State income tax” has the meaning stated in § 10-101 of this article.

After making the distribution required under § 2-604 of this subtitle, from the remaining income tax revenue from individuals, the Comptroller shall distribute the cost of administering the income tax laws to an administrative cost account.

The Comptroller shall include within the distribution required under this section the amount necessary for the counties’ share of the cost of administering the income tax laws.

The share of administrative costs for each county is the amount equal to the product of multiplying the cost of administering the income tax laws by a fraction:

After making the distributions required under §§ 2–604 and 2–605 of this subtitle, on or before June 30, 2019, the Comptroller shall distribute $200,000,000 of the income tax revenue from individuals to the Blueprint for Maryland’s Future Fund established under § 5–206 of the Education Article.

After making the distributions required under §§ 2–604 and 2–605 of this subtitle, on or before June 30, 2023, the Comptroller shall distribute $800,000,000 of the income tax revenue from individuals to the Blueprint for Maryland’s Future Fund established under § 5–206 of the Education Article.

After making the distributions required under §§ 2–604 through 2–605.3 of this subtitle, from the remaining income tax revenue from individuals, the Comptroller shall distribute to an unallocated individual revenue account the income tax revenue:

On or before June 30, 2009, the Comptroller shall distribute $366,778,631 from the Local Reserve Account established to comply with this section to the General Fund of the State.

On or before June 30, 2010, the Comptroller shall distribute $350,000,000 from the Local Reserve Account established to comply with this section to the Education Trust Fund established under § 9–1A–30 of the State Government Article.

On or before June 30, 2011, the Comptroller shall distribute $200,000,000 from the Local Reserve Account established to comply with this section to the General Fund of the State for use in funding the Maryland Medicaid Program for fiscal year 2011.

In each of fiscal years 2026 through 2060, in addition to the amounts distributed under subsection (b) of this section, the Comptroller shall distribute $10,000,000 of the remaining income tax revenue from individuals to the Local Reserve Account established to comply with this section to repay the $350,000,000 transfer to the Education Trust Fund required under subsection (e) of this section.

For fiscal years 2024 through 2043, in addition to the amounts distributed under subsections (b) and (j) of this section, the Comptroller shall distribute $10,000,000 of the remaining income tax revenue from individuals to the Local Reserve Account established to comply with this section.

For fiscal years 2029 through 2038, in addition to the amounts distributed under subsections (b), (j), and (k) of this section, the Comptroller shall distribute $27,056,743 of the remaining income tax revenue from individuals to the Local Reserve Account established to comply with this section to repay the $270,567,430 transfer to the General Fund of the State required under subsection (h) of this section.

After making the distributions required under §§ 2-604 through 2-606 of this subtitle, from the remaining income tax revenue from individuals, the Comptroller shall distribute to each special taxing district that received an income tax revenue distribution in fiscal year 1977 and to each municipal corporation an amount that, based on the certification of the Comptroller as to State income tax liability and county income tax liability of the residents of the district or municipal corporation, equals the greater of:

If the county income tax rate for a county is less than 2.6%, the amount determined under subsection (a)(1) of this section shall be multiplied by a fraction:

The Comptroller shall adjust the amount distributed under subsection (a) of this section to a municipal corporation or special taxing district to allow for a proportionate part of refund and interest payments for a prior calendar year made after a distribution is made to the municipal corporation or district for that year.

The Comptroller shall adjust the amount distributed under subsection (a) of this section to a county to allow for a proportionate part of refund and interest payments made for a prior calendar year after a distribution is made to the county for that year.

The Comptroller shall make the distributions of income tax revenue from individuals attributable to county income tax periodically to a county, municipal corporation, or special taxing district.

The periodic distributions of the estimated amount to which each county, municipal corporation, and special taxing district is entitled from withholdings and estimated income taxes paid shall be made:

Abrogated.

In this section, “account” means the Local Reserve Account established to comply with § 2–606 of this subtitle.

This section applies to a county or municipal corporation that receives an overpayment or underpayment of local income tax revenue from the Comptroller.

After reviewing income tax revenue distributions to a county or municipal corporation, if the Comptroller determines that the county or municipal corporation received an underpayment of income tax, the Comptroller shall initially pay the amount due to the county or municipal corporation from the account.

After reviewing income tax revenue distributions to a county or municipal corporation, if the Comptroller determines that the county or municipal corporation received an overpayment of income tax, the Comptroller may not require the county or municipal corporation to reimburse the account for its share of the overpayment.

A determination by the Comptroller under this section that a county or municipal corporation received an underpayment or overpayment of income tax shall be based on a full accounting of income tax returns for the taxable year for which the county or municipal corporation received the underpayment or overpayment.

6% to the Higher Education Investment Fund established under § 15–106.6 of the Education Article; and

In this section, “qualified data center” has the meaning stated in § 11–239 of this article.

After making the distributions required under §§ 2–613, 2–613.1, and 2–614 of this subtitle, the Comptroller shall distribute 15% of the remaining income tax revenue from corporations that is attributable to qualified data centers that are operational on or after January 1, 2026, to the Strategic Energy Investment Fund established under § 9–20B–05 of the State Government Article.