PARRIS N. GLENDENING, Governor                            H.B. 100

(b)     [If a governing body of a county or municipal corporation authorizes a
semiannual payment schedule under subsection (a) of this section, for[ FOR
owner occupied residential property purchased on or after July 1, [1993] 1995, at the
time of transfer of the property the purchaser may elect to pay the real property taxes due
under this section on a semiannual payment schedule.

(B) A SEMIANNUAL PAYMENT SCHEDULE UNDER THIS SECTION:

(1) MAY BE ELECTED AT THE TIME OF THE TRANSFER OF PROPERTY
PURCHASED ON OR AFTER JULY 1, 1996 1995; AND

(2) MAY BE ELECTED ON AN ANNUAL BASIS BY. ANY CURRENT OR
FUTURE OWNER OF OWNER-OCCUPIED RESIDENTIAL PROPERTY, REGARDLESS OF
WHETHER THE PROPERTY WAS PURCHASED BEFORE JULY 1, 1996 1995.

(c)     A semiannual payment schedule elected ELECTION under SUBSECTION (B)(1)
OF this section shall apply to the property tax due for the tax year following transfer of
the property and each subsequent tax year.

(d)     A property owner electing to pay real property taxes under a semiannual
payment schedule shall pay a service charge with the second installment.

(e)     The service charge;

(1) shall be:

(1) (I) adopted by the taxing authority as part of adoption of the property
tax rate under §§ 6-301 through 6-303 of this article;

(2) (II) expressed as a percent of the amount of tax due at the second
installment and shown on the tax bill as a percent and actual dollar amount charged; and

(3)     (III) calculated in an amount:

(i) 1. reasonably equivalent to the anticipated lost interest income
associated with the delay in payment of the second installment; and

(ii) 2. covering administrative expenses associated with the
semiannual payment not exceeding 25% of the charge for lost interest; AND

(2) MAY NOT BE CONSIDERED TO BE A PROPERTY TAX FOR THE
PURPOSES OF ANY PROVISION OF A LOCAL LAW OR CHARTER THAT LIMITS THE
PROPERTY TAX RATE OR PROPERTY TAX REVENUES.

(f)     The property tax bill under a semiannual schedule;
(1) shall state:

(1)    (I) the amount of the tax due if paid in full, including any applicable
discounts for early payment;

(2) (II) the amount of the tax due if paid in semiannual installments,
including any applicable discounts for early payment of the first installment;

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