HARRY HUGHES, Governor                                       441

growth factor used to calculate tax bills issued during July,
1980.

(iii) "Adjusted assessed valuation of real
property for fiscal year 1983" means:

1.  Property in "Groups I and II" as
identified by the Department of Assessments and Taxation to be
included in the valuation of real property without adjustment;
and

2.  Properties identified as "Group III"
by the Department of Assessments and Taxation shall be converted
to full value using an average of assessment to sale ratio data
as of November 1, 1979, and November 1, 1980, pursuant to Article
81, § 232(14) of the Code; these properties shall then be
adjusted to a percentage of full value equivalent to the growth
factor used to calculate tax bills issued during July, 1980.

(iv) "Assessed valuation of real property for
fiscal year 1984" and fiscal years thereafter means the assessed
valuation of all real property, without adjustment, as of the
date prescribed in paragraph (i) of this subsection.

(v)] (II) In all unadjusted or adjusted

assessable bases, for the purpose of this paragraph,
preferentially assessed agricultural land shall be included at 50
percent of farm use valuation as determined in accordance with
farm use assessment standards established by the Department of
Assessments and Taxation.

(3)  "Basic current expenses" means the expenditures
made by a county from State and county revenue for public
elementary and secondary education exclusive of:

(i) Payments for debt service, capital outlay,
and transportation of students;

(ii) State aid for handicapped children paid
under §§ 8-417.2 and 8-416 of this article;

(iii) State aid for driver education paid under
the Maryland Driver Education Program Act; and

(iv) State aid for food services.

(4)  "Net taxable income" means the amount certified
by the State Comptroller for the second completed calendar year
before the school year for which the calculation of State aid
under this section is made, based on tax returns filed on or
before July 1 after this calendar year.

(5)  "Real property" includes:

(i) Any interest in land or improvements to
land;