Ch. 2

LAWS OF MARYLAND

(1)  IF A CLAIM FOR REFUND IS ALLOWED, THE TAX
COLLECTOR SHALL PAY INTEREST ON THE REFUND AT THE RATE SET UNDER
§ 13-604(A) OF THE TAX - GENERAL ARTICLE FROM THE DATE ON WHICH
THE TAX, INTEREST, OR PENALTY WAS PAID TO THE DATE THE REFUND IS
PAID.

(2)  A TAX COLLECTOR MAY NOT PAY INTEREST ON A REFUND
IF THE CLAIM FOR REFUND IS BASED ON AN ERROR OR MISTAKE OF THE
CLAIMANT NOT ATTRIBUTABLE TO THE COUNTY OR MUNICIPAL CORPORATION.

REVISOR'S NOTE: This section is new language derived
without substantive change from former Art. 81, § 219,
the first and second sentences of § 218, and the first
clause of the second sentence of § 216, as they
related to the payment of refunds by counties and
municipal corporations.

In subsection (b)(1) of this section, the reference to
money that a county or municipal corporation
"designates for the refund payment" is added to
reflect the discretion of a county and municipal
corporation to specify funds for refund payments.
Similarly, in subsection (b)(2) of this section, the
reference to "money of the county or municipal
corporation" is added to clarify that, absent a
specific designation, a tax collector pays the refund
from any county or municipal money "in the hands of
the tax collector", i.e., county or municipal
corporation revenue collections.

In subsection (c)(1) of this section, the former
phrase "in whole or in part" is deleted as surplusage.

Also in subsection (c)(1) of this section, the former
reference to refunds "now pending or subsequently
filed pursuant to this section" is deleted as
surplusage.

The Tax - General Article Review Committee notes, for
the consideration of the General Assembly, that the
interest rate paid on refunds under this section is
the same as the rate for State taxes under the' Tax
General Article and the property taxes under the Tax -
Property Article. Ch. 736, Acts of 1987, which
amended former Art. 81, §§ 204 and 218, changed the
interest rate on refunds from 6% to an annually
determined rate based on 2 percentage points more than
the annual investment yield for State money in the
previous State fiscal year. Therefore, counties
imposing, e.g., the hotel rental tax, assess interest
at 1% or 0.5% for unpaid tax and currently pay 8.5%
for erroneous payments.

For similar provisions, see TG §§ 13-603 and 13-905.
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