Ch. 4

1997 LAWS OF MARYLAND

10-106.

(a) (1) Each county shall set, by ordinance or resolution, a TOP MARGINAL
county income tax RATE equal to at least [20%] 1% but not more than [60%, to be
applied to the State income tax for an individual] 3% OF MARYLAND TAXABLE
INCOME.

(2)     A TOP MARGINAL county income tax rate continues until the county
changes the rate by ordinance or resolution.

(3) (i) A county may not increase its county income tax rate above [50%]
2.5% until after the county has held a public hearing on the proposed act, ordinance, or
resolution to increase the rate.

(ii) The county shall publish at least once each week for 2 successive
weeks in a newspaper of general circulation in the county:

1. notice of the public hearing; and

2. a fair summary of the proposed act, ordinance, or resolution
to increase the county income tax rate above [50%] 2.5%.

(4)     Notwithstanding paragraph (1) or (2) of this subsection, in Howard
County, the county income tax rate may be changed only by ordinance and not by
resolution.

(B) THE COUNTY INCOME TAX RATE IS:

(1) 40% OF THE TOP MARGINAL COUNTY INCOME TAX RATE FOR
MARYLAND TAXABLE INCOME OF 1 THROUGH $1,000;

(2) 60% OF THE TOP MARGINAL COUNTY INCOME TAX RATE FOR
MARYLAND TAXABLE INCOME OF $1,001 THROUGH $2,000;

(3)  80% OF THE TOP MARGINAL COUNTY INCOME TAX RATE FOR
MARYLAND TAXABLE INCOME OF $2,001 THROUGH $3,000; AND

(4) THE TOP MARGINAL COUNTY INCOME TAX RATE FOR MARYLAND
TAXABLE INCOME IN EXCESS OF $3,000.

[(b)](C) Except as provided in subsection [(c)] (D) of this section, if a county
changes its TOP MARGINAL county income tax rate, the county shall:

(1)     increase or decrease the rate in increments of [5 percentage points]
ONE-QUARTER OF A PERCENTAGE POINT, effective on January 1 of the year that the
county designates; and

(2) give the Comptroller notice of the rate change and the effective date of
the rate change on or before July 1 prior to its effective date.

[(c)](D) A county income tax rate in excess of [50%] 2.5% at the option of the
county may be a multiple of [2 percentage points] ONE-TENTH OF A PERCENTAGE
POINT above [50%] 2.5% instead of a multiple of [5 percentage points above 50%]
ONE-QUARTER OF A PERCENTAGE POINT ABOVE 2.5%.

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