Ch. 736

LAWS OF MARYLAND

2 PERCENTAGE POINTS ABOVE THE LESSER OF AT THE PERCENT THAT
EQUALS:

(1)  FOR MONEYS OWED TO THE STATE, 2 PERCENTAGE POINTS
ABOVE THE AVERAGE PRIME RATE OF INTEREST QUOTED BY COMMERCIAL
BANKS TO LARGE BUSINESSES DURING THE STATE'S PREVIOUS FISCAL
YEAR, BASED ON DETERMINATION BY THE BOARD OF GOVERNORS OF THE
FEDERAL RESERVE BANK, BUT NOT LESS THAN 12 PERCENT; AND

(2)  FOR REFUNDS, 2 PERCENTAGE POINTS ABOVE THE
AVERAGE INVESTMENT YIELD ON STATE FUNDS FOR THE STATE'S PREVIOUS
FISCAL YEAR, AS PUBLISHED IN THE TREASURER'S ANNUAL REPORT.

218.

All claims for the refund of special taxes, fees, charges,
penalties or interest which may be allowed under the provisions
of this subtitle shall, if no appeal is pending, be paid by the
State, county or municipal agency authorized to collect the same
out of any funds in the hands of such agency. Interest at the
rate [of six percent per annum] DETERMINED UNDER § 204 OF THIS
ARTICLE shall be paid on such amounts refunded accounting from
the date the taxes, fees, charges, penalties or interest so
refunded were paid, but interest shall not be paid on tax refunds
now pending or subsequently filed where the tax originally paid
was paid in whole or in part by reason of a mistake or error on
the part of the taxpayer and not attributable to the State,
county or municipal taxing authority. If any portion of the
special taxes, fees, charges, penalties or interest for which a
refund is allowed were paid to any county or municipality by the
State, the collecting State agency shall charge a proportionate
part of the refund and interest against such county or
municipality and deduct the same from subsequent payments of the
shares of such special taxes, fees, charges, penalties or
interest to such county or municipality. If no funds are
available for the payment of such part of such allowed claim for
refund and interest as is payable by the State, the collecting
agency shall certify the same to the Comptroller, who shall
certify the same to the Governor for inclusion in the next
budget. Provided, that nothing in this section shall apply to
refunds of sales and use taxes, cigarette taxes, income taxes,
motor vehicle fuel taxes, fees and taxes payable to the Motor
Vehicle Administration, fees and taxes pertaining to alcoholic
beverages and other State fees and taxes as to which refund
provisions are elsewhere specifically provided.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1987.

Approved June 2, 1987.

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