§ 10-106

# (a)

# (1)

Each county shall set, by ordinance or resolution, a county income tax equal to at least 2.25% but not more than 3.30% of an individual’s Maryland taxable income for a taxable year beginning after December 31, 2001.

# (2)

A 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 2.6% 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 2.6%.

# (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)

If a county changes its county income tax rate, the county shall:

# (1)

increase or decrease the rate in increments of one one–hundredth of a percentage point, effective on January 1 of the year that the county designates; and

# (2)

give the Comptroller notice of the rate or income bracket change and the effective date of the rate or income bracket change on or before July 1 prior to its effective date.

# (c)

# (1)

For any county income tax rate that is effective on or after January 1, 2022, the county may apply the county income tax on a bracket basis.

# (2)

A county that imposes the county income tax on a bracket basis:

(i) shall set, by ordinance or resolution, the income brackets that apply to each income tax rate;

(ii) may set income brackets that differ from the income brackets to which the State income tax applies;

(iii) may not set a minimum income tax rate less than 2.25% of an individual’s Maryland taxable income; and

(iv) may not apply an income tax rate to a higher income bracket that is less than the income tax rate applied to a lower income bracket.

# (3)

A county may request information from the Comptroller to assist the county in determining income brackets and applicable income tax rates that are revenue–neutral for the county.