Ch. 501

2004 LAWS OF MARYLAND

(iii) 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

(iv) calculated in an amount:

1.       reasonably equivalent to the anticipated lost interest
income associated with the 3-month delay in payment of the second installment by
multiplying the amount of the second installment by a rate not exceeding 1.5%; and

2.       covering administrative expenses associated with the
semiannual payment not exceeding the lesser of the actual expenses incurred in the
preceding fiscal year per semiannual tax account as approved by the State
Department of Assessments and Taxation or 10% of the charge for the anticipated lost
interest income as calculated in item 1 of this item;

(2)     does not apply if both installments of property tax are paid on or
before September 30 of the taxable year; and

(3)     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.

(g) The local taxing authority shall provide to the Department by May 1 of
each year, information that substantiates that the proposed service charge for the
anticipated lost interest is reasonably equivalent to the amount of interest that will
be lost as a result of the semiannual payment.

(h) (1) The property tax bill under a semiannual payment schedule:

(i) shall state:

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

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

3.       the amount of any service charge to be paid with the
second installment unless the second installment is paid on or before September 30 of
the taxable year;

4.       that the service charge does not apply if both installments
are paid on or before September 30 of the taxable year; and

5.       the date the tax payment is due; and

(ii) shall be subject to approval by the Department of Assessments
and Taxation.

(2) The Department shall approve any local semiannual payment
schedule collection that:

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