Subject to paragraph (3) of this subsection, the governing body of a county or municipal corporation may authorize, by law, advance payment of county, municipal corporation, or special taxing district property tax. Subject to paragraph (3) of this subsection and in accordance with § 10–208 of this subtitle, the governing body of a county or municipal corporation may authorize the advance payment to be paid on an installment payment schedule. The governing body of a county may authorize advance payment or an installment payment schedule for: county property tax collected by the county; municipal corporation property tax collected by the county at the request of the governing body of the municipal corporation; or special taxing district property tax collected by the county at the request of the special taxing district. The governing body of a municipal corporation may authorize advance payment or an installment payment schedule for municipal corporation property taxes collected by the municipal corporation. The governing body of a county or municipal corporation may not authorize advance payment or an installment payment schedule for property taxes imposed on real property that is subject to a deed of trust, a mortgage, or any other encumbrance that includes the escrowing of property tax payments. The advance payment is calculated by applying the current county property tax rate to the assessment of the taxpayer’s property for the prior year. If the advance payment is less than the county, municipal corporation, or special taxing district property tax as finally determined, the collector shall send a bill to the taxpayer for the difference. The law authorizing advance payment may allow interest on the advance payment. The interest may not exceed any discounts allowed by law.