§ 10-205

# (a)

# (1)

Subject to paragraph (3) of this subsection, the governing body of a county or municipal corporation may authorize, by law, advance payment of county, municipal corporation, or special taxing district property tax.

# (2)

Subject to paragraph (3) of this subsection and in accordance with § 10–208 of this subtitle, the governing body of a county or municipal corporation may authorize the advance payment to be paid on an installment payment schedule.

# (3)

(i) The governing body of a county may authorize advance payment or an installment payment schedule for:
1. county property tax collected by the county;
2. municipal corporation property tax collected by the county at the request of the governing body of the municipal corporation; or
3. special taxing district property tax collected by the county at the request of the special taxing district.

(ii) The governing body of a municipal corporation may authorize advance payment or an installment payment schedule for municipal corporation property taxes collected by the municipal corporation.

(iii) The governing body of a county or municipal corporation may not authorize advance payment or an installment payment schedule for property taxes imposed on real property that is subject to a deed of trust, a mortgage, or any other encumbrance that includes the escrowing of property tax payments.

# (b)

The advance payment is calculated by applying the current county property tax rate to the assessment of the taxpayer’s property for the prior year.

# (c)

If the advance payment is less than the county, municipal corporation, or special taxing district property tax as finally determined, the collector shall send a bill to the taxpayer for the difference.

# (d)

(1) The law authorizing advance payment may allow interest on the advance payment.

(2) The interest may not exceed any discounts allowed by law.