{"data":{"id":"us-md/md.-code-local-government-16-501","jurisdiction":"us-md","citation":"Md. Code, Local Government § 16–501","heading":"","body":"(a) Subject to subsection (e) of this section, for each fiscal year, the\nComptroller shall pay to an eligible county a grant in the amount determined under\nsubsection (c)(3) of this section.\n(b) A county may not receive a grant under subsection (a) of this section if\nany of the county’s income tax rates were less than 2.6%:\n(1) for the taxable year that ended in the second prior fiscal year; or\n(2) for any subsequent taxable year through the taxable year that\nends in the current fiscal year.\n(c) (1) For each fiscal year, the Comptroller shall determine for each\ncounty:\n(i) the county income tax collected from individuals for the\ntaxable year that ended in the second prior fiscal year, based on tax returns filed\nthrough November 1 of the year following the applicable taxable year; and\n(ii) the amount of county income tax that the county would\nhave received if the county income tax rate was 2.54%.\n(2) For each fiscal year, the Comptroller shall determine as rounded\nto the nearest cent:\n(i) the per capita yield of the county income tax for each\ncounty, based on:\n1. the population of the county as last projected by the\nMaryland Department of Health for July 1 of the applicable taxable year or the latest\ndecennial census for the applicable taxable year; and\n2. the amount specified in paragraph (1)(ii) of this\nsubsection; and\n(ii) the per capita statewide yield of the county income tax,\nbased on:\n1. the State population as last projected by the\nMaryland Department of Health for July 1 of the applicable taxable year or the latest\ndecennial census for the applicable taxable year; and\n2. the amount of county income tax specified in\nparagraph (1)(ii) of this subsection for all counties.\n(3) If the per capita yield of the county income tax for a county\ndetermined under paragraph (2)(i) of this subsection is less than 75% of the per capita\nstatewide yield of the county income tax determined under paragraph (2)(ii) of this\nsubsection, the Comptroller shall determine the amount that would increase the\ncounty per capita yield to equal 75% of the statewide per capita yield, as rounded to\nthe nearest dollar.\n(d) The Comptroller shall pay to an eligible county the amount determined\nunder subsection (c)(3) of this section in quarterly payments during each fiscal year.\n(e) (1) Except as provided in paragraphs (2) and (3) of this subsection,\nfor fiscal year 2011 and each subsequent fiscal year, the distribution provided to any\ncounty or Baltimore City under this section may not exceed the amount distributed\nto the county or Baltimore City for fiscal year 2010.\n(2) (i) This paragraph applies to a county or Baltimore City if the\ncounty or Baltimore City has a single county income tax rate.\n(ii) If a county or Baltimore City has a county income tax rate\nof at least 2.8% but less than 3%, the county or Baltimore City may receive a\nminimum of 20% of the amount determined under subsection (c)(3) of this section.\n(iii) If a county or Baltimore City has a county income tax rate\nof at least 3% but less than 3.2%, the county or Baltimore City may receive a\nminimum of 40% of the amount determined under subsection (c)(3) of this section.\n(iv) If a county or Baltimore City has a county income tax rate\nof at least 3.2%:\n1. on or before June 30, 2017, the county or Baltimore\nCity may receive a minimum of 60% of the amount determined under subsection (c)(3)\nof this section;\n2. in fiscal year 2018, the county or Baltimore City may\nreceive a minimum of 63.75% of the amount determined under subsection (c)(3) of\nthis section;\n3. in fiscal years 2019, 2020, and 2021, the county or\nBaltimore City may receive a minimum of 67.5% of the amount determined under\nsubsection (c)(3) of this section; and\n4. in fiscal year 2022, and each fiscal year thereafter,\nthe county or Baltimore City may receive a minimum of 75% of the amount\ndetermined under subsection (c)(3) of this section.\n(3) (i) This paragraph applies to a county or Baltimore City if the\ncounty or Baltimore City has more than one county income tax rate.\n(ii) If each county income tax rate imposed by a county or\nBaltimore City is at least 2.8% but less than 3.0%, the county or Baltimore City may\nreceive a minimum of 20% of the amount determined under subsection (c)(3) of this\nsection.\n(iii) If the lowest county income tax rate imposed by a county\nor Baltimore City is at least 2.9% and each county income tax rate imposed on\nMaryland taxable income greater than $100,000 is at least 3.0%, the county or\nBaltimore City may receive a minimum of 40% of the amount determined under\nsubsection (c)(3) of this section.\n(iv) If the lowest county income tax rate imposed by a county\nor Baltimore City is at least 3.1% and each county income tax rate imposed on\nMaryland taxable income greater than $100,000 is at least 3.2%, the county or\nBaltimore City may receive a minimum of 75% of the amount determined under\nsubsection (c)(3) of this section.","path":["Article - Local Government"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=glg\u0026section=16-501","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:59:58Z","sha256":"4c86aeb7f3fc82b66ea97974c9cc386318a9d109f590fadd551371d9826d125b","source_id":"us-md","stale":false,"prev":"us-md/md.-code-local-government-16-407","next":"us-md/md.-code-local-government-16-502"},"notice":"GroundRules: Original legal text. Not legal advice."}