SPIRO T. AGNEW, Governor                       765

intended for and to be used exclusively to provide adequate police
protection in the subdivisions of this State, by State and subdivi-
sion sharing of costs on an equitable basis within certain limits
related to population factors. Provided, however, that nothing
herein shall be construed as requiring a subdivision or qualifying
municipality to appropriate or to expend more for police protection
than the sum of the amount received in State aid under this pro-
gram and local funds equal to that percentage of the local wealth
used in calculating the State share in basic expenditures under the
provisions of Section 37(b) (1) of this Article.

37.

(a) Definitions—As used in this subtitle:

(1)    "Subdivision" means any county of Maryland or Baltimore
City; or where the context requires, the governing body thereof.

(2)    "Municipality" means any incorporated city or town, except
Baltimore City, within Maryland; or where the context requires,
the governing body thereof.

(3)    "Expenditures for police protection" shall be those for the
fiscal year immediately preceding the fiscal year for which the
calculation of State aid is to be made. Thus, State aid for the
first year of this grant (1968-1969) shall be based on "expenditures
for police protection" in the fiscal year ending June 30, 1968; State
aid for the second year of this grant (1969-1970) shall be based
on expenditures in the fiscal year ending June 30, 1969, and so
forth. "Expenditures for police protection" means salaries and
wages, other operating expenses, capital outlays from current oper-
ating funds, and property PROPERLY identifiable debt service, paid
for police protection. Expenditures for sheriffs and constables are
included only to the extent that such officers perform police protection
functions. Expenditures for traffic control, park police, and a share of
the cost of a central alarm system proportionate to its police use,
are included. No part of expenditures for collecting from or servic-
ing parking meters, nor of constructing or operating jails, is in-
cluded.

(4) "Adjusted assessed valuation of real property" shall be as
reported by the State Department of Assessments and Taxation as
of July 1 of the second fiscal year preceding the fiscal year for
which the calculation of State aid is to be made, plus 50% of new
property assessed between July 1 and December 31 of such second
preceding fiscal year. Thus, State aid for the first year of this grant
shall be based on assessed valuation as of July 1, 1966 plus 50%
of new property assessed between July 1, 1966 and December 31,
1966; and State aid for succeeding years on corresponding succeed-
ing assessments. "Real property" shall have the meaning, and as-
sessed valuation shall be subject to the adjustments for under- or
over-assessment, as presently provided by Section 220 of Article 77,
Annotated Code of Maryland.

(5) "Net taxable income" shall be the net taxable income of in-
dividuals under Article 81, Annotated Code of Maryland, subtitle "In-
come Tax," as certified by the Comptroller of the Treasury for the
third completed calendar year preceding the fiscal year for which
the calculation of State aid is to be made. Thus, State aid for
the first year of this grant shall be based on taxable income in