MARVIN MANDEL, Governor                        2771

Senate Bill 599 is one of four bills that were
introduced and enacted concerning the rate of interest to
be charged upon the redemption of property sold at a tax
sale in Baltimore County.

There are two sections of Article 81 of the Code
that relate to the amount of interest to be charged in
that circumstance. Section 93 provides (except in
Baltimore City) that the rate is 6% per annum accruing
from the date of sale to the date the redemption price is
paid. Section 83 requires the tax collector, in selling
property at a tax sale, to issue a certificate of sale to
the purchaser stating the redemption price and the
interest rate of 6%.

Senate Bill 599 amends Section 93 to provide that,
in Baltimore County, the interest rate would be 8% or
such other rate as is fixed by the County Council. A
companion bill (Senate Bill 529) was introduced to
conform Section 83 to the amendment made by Senate Bill
599 — i.e., to require the certificate of sale to state
that the rate would be 8% or such other rate set by the
County Council.

During the legislative process, however. Senate Bill
529 was amended to substitute 6% for 8% with respect to
the certificate of sale. Thus, if Senate Bill 599 were
signed, whether or not Senate Bill 529 were signed,
sections 83 and 93 would be inconsistent with respect to
Baltimore County.

Further complicating the situation is the fact that
House Bills 1414 and 1226 were also enacted. House Bill
1414 amends Section 93 to provide that the rate in
Baltimore County is 6% or such other rate set by the
County Council, and House Bill 1226 makes a conforming
amendment to section 83, stating the rate as being 6% or
such other rate set by the County Council.

Thus, the Legislature has passed four separate bills
on this matter, providing for a 6% rate in three of them
and an 8% rate in one.

I have vetoed Senate Bill 599 because, to do
otherwise, would make sections 83 and 93 inconsistent,
and because, based upon three of the four bills passed,
the Legislative intent seems to have been to make the
rate 6% instead of 8%. I might add, however, that, as a
practical matter, since, under House Bills 1414 and 1226,
which I have signed, the County Council is permitted to
establish a different rate, the objective of Senate Bill
599 can be achieved in any event by action of the County
Council.