Sec. 30A-1. Established.

   There is hereby established a program to reimburse municipalities within the County for those public services provided by the municipalities which would otherwise be provided by the County government. (1974 L.M.C., ch. 7, § 1; 2022 L.M.C., ch. 7, §1.)

   Editor’s note—See County Attorney Opinion dated 8/30/02 comparing State property tax duplication law and County municipal revenue sharing laws.

Sec. 30A-2. Qualification of municipal public services for County reimbursement.

   Municipal public services shall qualify for County reimbursement if the following conditions are met:

   (1)   the municipality provides the service to its residents and taxpayers;

   (2)   the service would be provided by the County if it were not provided by the municipality;

   (3)   except for police services, the service is not actually provided by the County within the municipality;

   (4)   the comparable County service is funded from tax revenues derived partially from taxpayers in the participating municipality; and

   (5)   the municipality actually funds the service. (1974 L.M.C., ch. 7, § 1; 2022 L.M.C., ch. 7, §1; 2023 L.M.C., ch. 21, § 1.)

   Editor’s note—See County Attorney Opinion dated 7/1/08 discussing the criteria for a municipality to qualify for tax duplication payments and a tax setoff when it performs similar services and programs to the County.

Sec. 30A-3. Determination of amount of reimbursement.

   (a)   In general. Subject to the provisions of section 30A-4 and subsections (b) through (e) of this section, each participating municipality shall be reimbursed by an amount determined by the County Executive to approximate the amount the County would incur to provide transportation, police, crossing guards, and park maintenance services in the municipality.

   (b)   Transportation. For transportation-related expenses, reimbursements must be equal to the County’s average per mile or per item expenditures for the three most recent fiscal years multiplied by the number of miles or items in each municipality.

   (c)   Park maintenance. For park maintenance related expenses:

      (1)   reimbursements for fiscal year 2023 must be:

         (A)   for Section 3 of the Village of Chevy Chase: $4,800;

         (B)   for the Town of Chevy Chase: $11,453;

         (C)   for the Village of Friendship Heights: $89,813;

         (D)   for the Town of Kensington: $46,242; and

         (E)   for the City of Takoma Park: $93,942; and

      (2)   reimbursements for subsequent fiscal years must be increased above the amounts specified under paragraph (1) by the annual percentage change to the Consumer Price Index for the Washington, D.C. Metropolitan Area, as determined by the United States Department of Labor, Bureau of Labor Statistics.

   (d)   Police. Subject to Section 35-5, reimbursements for police expenses must be the greater of an amount equal to:

      (1)   the costs the County would incur to provide police services in the municipality if the municipality did not provide police services, as determined by a quadrennial utilization assessment performed by the County; or

      (2)   the cost to the County of one full-time officer.

   (e)   Crossing guards. For crossing guards, reimbursements must be based on the costs the County would incur to provide crossing guard services in the municipality as determined by a quadrennial utilization assessment performed by the County. (1974 L.M.C., ch. 7, § 1; 2022 L.M.C., ch. 7 , §1; 2023 L.M.C., ch. 21 , § 1.)

Sec. 30A-4. Limitations on expenditures.

   All expenditures by the County under the authority of this chapter shall be subject to the limits of the funds appropriated by the County Council. (1974 L.M.C., ch. 7, § 1; 2022 L.M.C., ch. 7, §1.)

Sec. 30A-5. Timeline of annual certifications, notifications, and payments.

   (a)   No later than September 15 of the preceding fiscal year, in accordance with Section 6-305(f) of the Tax-Property Article of the Maryland Code, the County will advise all municipalities within the County of any reasonable supporting documentation required to provide sufficient detail for the County to calculate the reimbursement.

   (b)   Any municipality within the County which desires to participate in the County municipal revenue program will submit not later than November 15 of the preceding fiscal year to the County a certification of eligible services and the documentation required under subsection (a).

   (c)   The County will notify each municipality of the reimbursement amounts it will receive in each fiscal year no later than February 15 of the preceding fiscal year.

   (d)   Reimbursement payments to municipalities will be made once per year, no later than October 1 of that fiscal year.

   (e)   The County will provide each municipality participating in the municipal revenue program with the calculations supporting the reimbursement payment. (1974 L.M.C., ch. 7, § 1; 2022 L.M.C., ch. 7, §1.)

Sec. 30A-6. County tax rate in certain municipalities.

   (a)   Reduced tax rate. Pursuant to Section 6-305 of the Tax-Property Article of the Maryland Code, before June 30 the County Council may set for the coming taxable year a general County property tax rate on assessments of properties in any municipality at a rate that is less than the general County tax rate on assessments of properties in parts of the County outside of the municipality if the municipality:

      (1)   lies partly in Montgomery County and partly in another county;

      (2)   performs fire and rescue services in whole or in part in lieu of the County performing those services; and

      (3)   the conditions in subsection (d) are met.

   (b)   Performance of services. The municipality may perform fire and rescue services by actually providing the services or by paying for all or part of the costs and expenses of fire and rescue services.

   (c)   Amount of tax rate. The general County property tax rate on assessments of properties in the municipality must be less than the general County property tax rate on assessments outside of the municipality by the amount of the tax rate established for the Fire Tax District for the same taxable year.

   (d)   Conditions for reduced rate. The municipality, on or before June 15, must present satisfactory written evidence to the County Council demonstrating that the municipality for the coming taxable year:

      (1)   has levied a general municipal property tax on all assessments of properties in the municipality equal to the tax rate proposed to be set for the Fire Tax District for the coming taxable year; and

      (2)   will collect and remit to Montgomery County the full amount of taxes imposed on assessments of properties in the municipality under paragraph (d)(1) in partial payment of the costs and expenses of providing fire and rescue services in the municipality.

   (e)   Allocation of funds. Taxes received from the municipality must be allocated by the County as follows:

      (1)   taxes on assessments of properties in the Montgomery County section of the municipality will be placed in the General Fund; and

      (2)   taxes on assessments of properties in the other county’s section of the municipality will be placed in the Fire Tax District Fund. (1986 L.M.C., ch. 59, § 1; 1992 L.M.C., ch. 8, § 1; 2022 L.M.C., ch. 7, §1; 2023 L.M.C., ch. 21, § 1.)

   Editor's note-1992 L.M.C., ch. 8, amending § 30A-6, became effective July 1, 1993.