Md. Code, Local Government § 20–801

(a) “Public local law” has the meaning stated in Article XI–F, § 1 of the

Maryland Constitution.

(b) (1) Subject to paragraph (2) of this subsection, by public local law,

the county commissioners of a code county may impose a development excise tax

when a subdivision lot is initially sold or transferred to finance any of the capital

costs of additional or expanded public school facilities or improvements.

(2) A county that imposes a development impact fee may not impose

a development excise tax under this section.

(c) (1) Before passing a public local law imposing a development excise

tax or altering the amount of the tax, the county commissioners shall hold a public

hearing.

(2) Notice of the hearing shall be published in at least one newspaper

of general circulation in the county not less than 3 or more than 14 days before the

hearing.

(3) The notice shall state:

(i) the subject of the hearing;

(ii) the time and place that the hearing will occur;

(iii) the amount of the tax; and

(iv) when during the subdivision process the tax shall be paid.

(d) (1) A development excise tax imposed under this section by a county

other than a code county in the Eastern Shore class may not exceed $2,000 per lot.

(2) A development excise tax imposed under this section by a code

county in the Eastern Shore class may not exceed $5,000 per lot.

(e) (1) The county commissioners shall deposit development excise taxes

in an account known as the “educational facilities improvement fund”.

(2) Money in the educational facilities improvement fund may be

used only to pay for capital projects, or for debt incurred for capital projects, for

additional or expanded public school facilities or improvements.