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*hb0506*
HOUSE BILL 506
C8 6lr2891
CF 6lr1422
By: Delegates Qi, Boyce, Fair, Lewis, Queen, Schindler, Solomon, Spiegel, Wolek,
and Wu
Introduced and read first time: January 27, 2026
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Economic Development – Transformational Project Financing Program – 2
Establishment 3
FOR the purpose of establishing the Transformational Project Financing Program in the 4
Maryland Economic Development Corporation to designate certain development 5
districts as State –supported development districts; stating the purpose of the 6
Program; authori zing a governing body of a political subdivision to apply to the 7
Corporation for approval as a State –supported development district; providing for 8
the eligibility for and calculation of State revenue to be deposited into a certain fund 9
for certain purposes; providing for the authorized uses of certain bond proceeds in a 10
State–supported development district; requiring a governing body of a political 11
subdivision to pledge certain funds to be paid to a certain account for a 12
State–supported development distric t; and generally relating to the 13
Transformational Project Financing Program. 14
BY repealing and reenacting, with amendments, 15
Article – Economic Development 16
Section 12–203(a) 17
Annotated Code of Maryland 18
(2024 Replacement Volume and 2025 Supplement) 19
BY adding to 20
Article – Economic Development 21
Section 12–203(d); and 12 –2A–01 through 12 –2A–08 to be under the new subtitle 22
“Subtitle 2A. Transformational Project Financing Program” 23
Annotated Code of Maryland 24
(2024 Replacement Volume and 2025 Supplement) 25
BY repealing and reenacting, with amendments, 26
The Charter of Baltimore City 27
2 HOUSE BILL 506
Article II – General Powers 1
Section (62)(d) 2
(2007 Replacement Volume, as amended) 3
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
That the Laws of Maryland read as follows: 5
Article – Economic Development 6
12–203. 7
(a) Before issuing bonds, the governing body of the political subdivision shall: 8
(1) by resolution: 9
(i) designate a contiguous area within its jurisdiction as a 10
development district; 11
(ii) identify an area that has been designated a sustainable 12
community; or 13
(iii) identify an area that has been designated a RISE zone; 14
(2) receive from the Supervisor of Assessments a certification of the 15
amount of the original base, or if applicable, the adjusted assessable base; and 16
(3) pledge that until the bonds are fully paid, or a longer period, the real 17
property taxes in the development district, a RISE zone, or a sustainable community shall 18
be divided as follows: 19
(i) the portion of the taxes that would be produced at the current tax 20
rate on the original taxable value base shall be paid to the respective taxing authorities in 21
the same manner as taxes on other property are paid; and 22
(ii) EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION, 23
the portion of the taxes on the tax increment that normally would be paid into the general 24
fund of the political subdivision shall be paid into the special fund established under § 25
12–208 of this subtitle and applied in accordance with § 12–209 of this subtitle. 26
(D) BEFORE ISSUING BONDS FOR A STATE–SUPPORTED DEVELOPMEN T 27
DISTRICT APPROVED UN DER SUBTITLE 2A OF THIS TITLE , THE GOVERNING BODY 28
OF THE POLITICAL SUBDIVISION SHALL, BY RESOLUTION, PLEDGE THAT UNTIL THE 29
BONDS ARE FULLY PAID, OR A LONGER PERIOD, THE REAL PROPERTY TAXES IN THE 30
STATE–SUPPORTED DEVELOPMENT DISTRICT SHALL BE DIVIDED AS FOLLOWS: 31
HOUSE BILL 506 3
(1) THE PORTION OF THE TAXES THAT WOULD BE PRODUCED AT THE 1
CURRENT TAX RATE ON THE ORIGINAL TAXABLE VALUE BASE SHALL BE PAID TO THE 2
RESPECTIVE TAXING AU THORITIES IN THE SAME M ANNER AS TAXES ON OT HER 3
PROPERTY ARE PAID; AND 4
(2) THE PORTION OF THE T AXES ON THE TAX INCR EMENT THAT 5
NORMALLY WOULD BE PA ID INTO THE GENERAL FUND OF THE POLITICA L 6
SUBDIVISION SHALL BE PAID TO THE TRUSTEE OF THE PROJECT TRUST ACCOUNT 7
ESTABLISHED UNDER SUBTITLE 2A OF THIS TITLE. 8
SUBTITLE 2A. TRANSFORMATIONAL PROJECT FINANCING PROGRAM. 9
12–2A–01. 10
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 11
INDICATED. 12
(B) “CORPORATION” MEANS THE MARYLAND ECONOMIC DEVELOPMENT 13
CORPORATION. 14
(C) “DEVELOPMENT DISTRICT” HAS THE MEANING STATED IN § 12–201 OF 15
THIS TITLE OR ARTICLE II, § 62 OF THE CHARTER OF BALTIMORE CITY. 16
(D) “DISPLACEMENT ADJUSTME NT” MEANS THE ADJUSTMENT TO STATE 17
REVENUES UNDER § 12–2A–05 OF THIS SUBTITLE. 18
(E) “FUND” MEANS THE TRANSFORMATIONAL PROJECT FINANCING FUND. 19
(F) “PRIORITY AREA” INCLUDES: 20
(1) A SUSTAINABLE COMMUNITY DESIGNATED UNDER TITLE 6 OF THE 21
HOUSING AND COMMUNITY DEVELOPMENT ARTICLE; 22
(2) A TRANSIT –ORIENTED DEVELOPMENT , AS DEFINED UNDER § 23
7–101 OF THE TRANSPORTATION ARTICLE; 24
(3) AN ENTERPRISE ZONE DESIGNATED UNDER TITLE 5, SUBTITLE 7 25
OF THIS ARTICLE; 26
(4) AN ARTS AND ENTERTAI NMENT DISTRICT DESIG NATED UNDER 27
TITLE 4, SUBTITLE 7 OF THIS ARTICLE; 28
4 HOUSE BILL 506
(5) A MAIN STREET MARYLAND COMMUNITY DESIGNATED BY THE 1
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT; AND 2
(6) A PRIORITY FUNDING A REA DESIGNATED UNDER TITLE 5, 3
SUBTITLE 7B OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 4
(G) “PROGRAM” MEANS THE TRANSFORMATIONAL PROJECT FINANCING 5
PROGRAM. 6
(H) (1) “STATE REVENUE” MEANS THE REVENUE FROM: 7
(I) THE INCOME TAX IMPOSED BY THE STATE UNDER TITLE 10 8
OF THE TAX – GENERAL ARTICLE THAT IS ATTRIBUTABLE TO A STATE–SUPPORTED 9
DEVELOPMENT DISTRICT; 10
(II) THE SALES AND USE TA X IMPOSED BY THE STATE UNDER 11
TITLE 11 OF THE TAX – GENERAL ARTICLE THAT IS ATTRI BUTABLE TO THE 12
STATE–SUPPORTED DEVELOPMEN T DISTRICT INCLUDING THE SALES AND USE 13
ATTRIBUTABLE DURING THE CONSTRUCTION PER IOD OF A STATE–SUPPORTED 14
DEVELOPMENT DISTRICT; AND 15
(III) OTHER STATE TAXES DESIGNATED BY THE COMPTROLLER 16
AS ATTRIBUTABLE TO A STATE–SUPPORTED DEVELOPMENT DISTRICT. 17
(2) “STATE REVENUE ” DOES NOT INCLUDE STATE PROPERTY TAX 18
REVENUES. 19
(I) “STATE–SUPPORTED DEVELOPMEN T DISTRICT ” MEANS A 20
DEVELOPMENT DISTRICT THAT HAS A TRANSFORM ATIONAL PLAN AND HAS BEEN 21
APPROVED UNDER THIS SUBTITLE. 22
(J) “TRANSFORMATIONAL PLAN” MEANS AN IMPROVEMENT PLAN FOR A 23
DEVELOPMENT DISTRICT THAT: 24
(1) IS OF A SCALE OR MIX OF USES THAT MAKES I T REASONABLY 25
LIKELY TO INCREASE THE POPULATION, EMPLOYMENT, OR COMMERCIAL ACTIVITY 26
IN THE AREA OF AND SURROUNDING THE DEVELOPMENT DISTRICT; 27
(2) REPRESENTS ANTICIPATED NEW ECONOMIC ACTIVITY WITH A NET 28
POSITIVE FISCAL IMPACT TO THE STATE AFTER A DISPLACEMENT ADJUSTMENT; 29
(3) IS NOT ECONOMICALLY VIABLE WITHOUT STATE PARTICIPATION; 30
AND 31
HOUSE BILL 506 5
(4) INCLUDES IMPROVEMENT S OR SITE WORK THAT WILL BENEFIT 1
THE COMMUNITY. 2
12–2A–02. 3
(A) THERE IS A TRANSFORMATIONAL PROJECT FINANCING PROGRAM IN 4
THE STATE. 5
(B) THE CORPORATION SHALL ADMINISTER THE PROGRAM AND EXERCISE 6
ALL POWERS GRANTED UNDER THIS SUBTITLE. 7
(C) THE PURPOSE OF THE PROGRAM IS TO SUPPORT DEVELOPMENT 8
DISTRICTS ESTABLISHED UNDER SUBTITLE 2 OF THIS TITLE OR ARTICLE II, § 62 OF 9
THE CHARTER OF BALTIMORE CITY, FOR WHICH A GOVERNIN G BODY OF A 10
POLITICAL SUBDIVISION HAS APPROVED A TAX INCREMENT FINANCING PLAN AND 11
PLEDGED PROPERTY TAX REVENUES, BY PLEDGING NET –NEW STATE REVENUES 12
ATTRIBUTABLE TO THE DEVELOPMENT DISTRICT TO SUPPORT THE 13
IMPLEMENTATION OF A TRANSFORMATIONAL PLAN. 14
12–2A–03. 15
(A) A GOVERNING BODY OF A POLITICAL SUBDIVISION MAY APPLY TO THE 16
CORPORATION FOR A DEV ELOPMENT DISTRICT TO BE APPROVED AS A 17
STATE–SUPPORTED DEVELOPMENT DISTRICT IF: 18
(1) A DEVELOPMENT DISTRI CT HAS BEEN FORMED A ND A TAX 19
INCREMENT FINANCING PLAN HAS BEE N APPROVED UNDER SUBTITLE 2 OF THIS 20
TITLE OR ARTICLE II, § 62 OF THE CHARTER OF BALTIMORE CITY BEFORE JULY 1, 21
2031; 22
(2) THE GOVERNING BODY H AS PLEDGED LOCAL PRO PERTY TAX 23
REVENUES TO SUPPORT THE DEVELOPMENT DISTRICT; AND 24
(3) THE GOVERNING BODY H AS MAD E A PRELIMINARY 25
DETERMINATION THAT T HE DEVELOPMENT DISTR ICT HAS A TRANSFORMA TIONAL 26
PLAN. 27
(B) (1) THE CORPORATION SHALL ESTABLISH: 28
(I) GUIDELINES FOR THE G OVERNING BODY OF A P OLITICAL 29
SUBDIVISION TO ASSES S WHETHER AN IMPROVE MENT PLAN MAY BE A 30
TRANSFORMATIONAL PLAN; AND 31
6 HOUSE BILL 506
(II) AN APPLICATION SUBMI SSION, EVALUATION, AND 1
APPROVAL PROCESS. 2
(2) THE CORPORATION MAY CHARG E A REASONABLE APPLI CATION 3
FEE. 4
(C) (1) THE CORPORATION SHALL DET ERMINE WHETHER AN 5
IMPROVEMENT PLAN FOR A DEVELOPMENT DISTRI CT IS A TRANSFORMATIONAL 6
PLAN USING OBJECTIVE CRITERIA AND NOTIFY THE APPLICANT OF AN APPROVAL 7
DECISION WITHIN 90 DAYS AFTER THE COMPLETED APPLICATION. 8
(2) IN MAKING APPROVAL DE CISIONS, THE CORPORATION SHALL 9
RETAIN DOCUMENTATION SUPPORTING THE DECISION. 10
(3) IF AN APPLICATION IS DENIED, THE APPLICANT MAY APPEAL THE 11
DECISION WITHIN 60 DAYS. 12
(D) IN ADMINISTERING APPR OVALS, THE CORPORATION SHALL ENS URE 13
THAT STATE–SUPPORTED DEVELOPMENT DISTRICTS ARE APPROVED IN A MANNER 14
THAT PROVIDES MEANIN GFUL PARTICIPATION B Y POLITICAL SUBDIVISIO NS OF 15
VARIED POPULATION SIZE AND GEOGRAPHIC LOCATION ACROSS THE STATE WHILE 16
ACCOUNTING FOR THE NUMBER AND QUALITY OF THE APPLICATIONS RECEIVED. 17
(E) THE CORPORATION SHALL PUBLISH, AT LEAST ANNUALLY, A SUMMARY 18
OF APPROVED STATE–SUPPORTED DEVELOPMEN T DISTRICTS BY POLIT ICAL 19
SUBDIVISION, LOCATION WITHIN A POLITICAL SUBDIVISION, AND POPULATION SIZE. 20
(F) (1) FOR AN APPLICATION FO R A STATE–SUPPORTED DEVELOPMENT 21
DISTRICT THAT IS ABO VE AN AMOUNT ESTABLI SHED BY THE CORPORATION, A 22
REPORT SHALL BE PREP ARED BY AN INDEPENDE NT THIRD –PARTY CONSULTANT 23
THAT IS ACCEPTABLE TO THE CORPORATION. 24
(2) THE REPORT SHALL: 25
(I) QUANTIFY PROJECTED STATE REVENUES ATTRIB UTABLE 26
TO THE TRANSFORMATIONAL PLAN; 27
(II) APPLY THE DISPLACEME NT ADJUSTMEN TS REQUIRED 28
UNDER § 12–2A–05 OF THIS SUBTITLE; AND 29
(III) DEMONSTRATE A POSITI VE NET FISCAL BENEFI T TO THE 30
STATE OVER THE PROPOSED CAPTURE PERIOD. 31
HOUSE BILL 506 7
(3) THE CORPORATION MAY NOT A PPROVE A STATE–SUPPORTED 1
DEVELOPMENT DISTRICT UNLESS THE REPORT DE MONSTRATES A POSITIVE NET 2
FISCAL BENEFIT TO THE STATE. 3
(G) A TRANSFER OF THE TRAN SFORMATIONAL PLAN , ASSIGNMENT OF 4
RIGHTS, OR CHANGE OF CONTROL OF A DEVELOPER OR OT HER OBLIGATED PARTY 5
REQUIRES THE PRIOR W RITTEN CONSENT OF TH E CORPORATION, EVIDENCE OF 6
EQUAL OR GRE ATER FINANCIAL CAPAC ITY OF THE TRANSFERE E, AND AN 7
ASSUMPTION AGREEMENT ACCEPTABLE TO THE CORPORATION. 8
(H) THE CORPORATION MAY APPRO VE LENDER STEP –IN RIGHTS AND 9
RELATED REMEDIES CON SISTENT WITH GUIDELI NES ADOPTED BY THE 10
CORPORATION. 11
12–2A–04. 12
(A) (1) A STATE–SUPPORTED DEVELOPMENT DISTRICT IS ELIGIBLE FOR 13
AN ANNUAL DISBURSEMENT OF NET–NEW STATE REVENUE ATTRIBUTABLE TO THE 14
STATE–SUPPORTED DEVELOPMENT DISTRICT TO BE DEPOSITED IN THE FUND FOR 15
THE LIFE OF THE BONDS, NOT TO EXCEED 30 YEARS AFTER THE STATE–SUPPORTED 16
DEVELOPMENT DISTRICT IS COMPLETED. 17
(2) (I) FOR EACH FISCAL YEAR , THE COMPTROLLER SHALL 18
CERTIFY THE AMOUNT O F NET –NEW STATE REVENUE ATTRIBU TABLE TO EACH 19
STATE–SUPPORTED DEVELOPMEN T DISTRICT IN ACCORD ANCE WITH THIS 20
SUBTITLE. 21
(II) WITHIN 14 DAYS AFTER CERTIFICATION , THE 22
COMPTROLLER SHALL TRA NSFER THE CERTIFIED AMOUNT TO THE FUND FOR 23
DISBURSEMENT TO THE TRUSTEE OF THE PROJE CT TRUST ACCOUNT FOR A 24
STATE–FUNDED DEVELOPMENT DISTRICT. 25
(III) THE CORPORATION SHALL NOTIFY THE COMPTROLLER OF 26
EACH APPROVED STATE–SUPPORTED DEVELOPMENT DISTRICT AND PROVI DE ANY 27
INFORMATION REASONABLY REQUIRED BY THE COMPTROLLER TO CERTIF Y AND 28
TRANSFER REVENUE UNDER THIS PARAGRAPH. 29
(IV) THE CORPORATION SHALL TRA NSFER FUNDS FROM THE 30
FUND TO THE TRUSTEE–HELD PROJECT TRUST ACCOUNT FOR A STATE–SUPPORTED 31
DEVELOPMENT DISTRICT. 32
8 HOUSE BILL 506
(B) STATE REVENUES DISBURSED UNDER THIS SECTION SHALL BE LIMITED 1
TO NET –NEW STATE REVENUES ATTRIB UTABLE TO THE STATE–SUPPORTED 2
DEVELOPMENT DISTRICT AND MAY NOT CONSTITUTE A PLEDGE OF FULL FAITH AND 3
CREDIT OF THE STATE. 4
(C) THE FUNDS IN A TRUSTE E–HELD PROJECT TRUST A CCOUNT FOR A 5
STATE–SUPPORTED DEVELOPMEN T DISTRICT SHALL BE APPLIED IN THE 6
FOLLOWING ORDER OF PRIORITY: 7
(1) PAYMENT OF DEBT SERVICE ON BONDS OR NOTES ISSUED FOR THE 8
STATE–SUPPORTED DEVELOPMENT DISTRICT; 9
(2) RESERVE REPLENISHMENT; AND 10
(3) REIMBURSEMENT OF APP ROVED COSTS AS PROVI DED IN THE 11
TRANSFORMATIONAL PLAN FOR THE STATE–SUPPORTED DEVELOPMENT DISTRICT. 12
12–2A–05. 13
(A) THE PURPOSE OF THE DI SPLACEMENT ADJUSTMEN TS UNDER THIS 14
SECTION IS TO ACCOUNT FO R THE LIKELIHOOD THA T A PORTION OF STATE 15
REVENUES ATTRIBUTABL E TO ENTITIES LOCATE D IN A STATE–SUPPORTED 16
DEVELOPMENT DISTRICT WOULD HAVE BEEN GENE RATED ELSEWHERE IN T HE 17
STATE IN THE ABSENCE OF A TRANSFORMATIONAL PLAN. 18
(B) (1) TO DETER MINE NET –NEW STATE REVENUE FOR A 19
TRANSFORMATIONAL PLA N, MINIMUM DISPLACEMENT ADJUSTMENTS SHALL BE 20
APPLIED TO GROSS REV ENUE ATTRIBUTABLE TO A STATE–SUPPORTED 21
DEVELOPMENT DISTRICT IN ACCORDANCE WITH THIS SUBSECTION. 22
(2) EXCEPT AS PROVIDED UNDER SUBSECTIONS (C) AND (D) OF THIS 23
SECTION, PROJECTED INCREASES IN STATE REVENUES ATTRIB UTABLE TO A 24
STATE–SUPPORTED DEVELOPMEN T DISTRICT SHALL BE REDUCED BY THE 25
FOLLOWING MINIMUM DISPLACEMENT ADJUSTMENT: 26
(I) FOR RETAIL AND RESTAURANTS, 60%; 27
(II) FOR OFFICE SPACE, 25%; 28
(III) FOR INDUSTRIAL , LOGISTICS, MANUFACTURING, AND 29
OTHER PRODUCTION SPACES, 10%; AND 30
(IV) FOR TOURISM AND VISITOR–SERVING USES, 15%. 31
HOUSE BILL 506 9
(C) (1) AT LEAST EVERY 2 YEARS, THE COMPTROLLER SHALL EVALUATE 1
THE DISPLACEMENT ADJUSTMENT PERCENTAGES USED IN SUBSECTION (B) OF THIS 2
SECTION. 3
(2) BASED ON MARKET CONDI TIONS, EMPIRICAL DATA , AND 4
SECTOR–SPECIFIC ANALYSIS , THE COMPTROLLER MAY USE D IFFERENT 5
PERCENTAGES THAN THOSE U NDER SUBSECTION (B) OF THIS SECTION TO 6
ACCURATELY REFLECT T HE PORTION OF STATE REVENUES THAT R EPRESENTS 7
NET–NEW ECONOMIC ACTIVITY. 8
(D) A DISPLACEMENT ADJUSTM ENT MAY NOT BE APPLI ED TO STATE 9
REVENUES ATTRIBUTABLE TO: 10
(1) AFFORDABLE HOUSING COMPONENTS OF A TRANSFORMATIONAL 11
PLAN; OR 12
(2) PORTIONS OF A STATE–SUPPORTED DEVELOPMEN T DISTRICT 13
THAT ARE LOCATED IN A PRIORITY AREA. 14
(E) STATE REVENUE DISTRIB UTED FOR A STATE–SUPPORTED 15
DEVELOPMENT DISTRICT MAY NOT EXCEED THE N ET–NEW STATE REV ENUE 16
ATTRIBUTABLE TO THE DISTRICT AFTER APPLI CATION OF THE DISPLA CEMENT 17
ADJUSTMENTS UNDER THIS SECTION. 18
12–2A–06. 19
(A) IN ADDITION TO THE USES ALLOWED UNDER SUBTITLE 2 OF THIS TITLE 20
OR ARTICLE II, § 62 OF THE CHARTER OF BALTIMORE CITY, TO THE EXTENT THAT 21
THE CORPORATION DETERMINES THE COSTS ARE NECESSARY FOR THE ECONOMIC 22
VIABILITY OF THE TRA NSFORMATIONAL PLAN , BOND PROCEEDS FOR A 23
STATE–SUPPORTED DEVELOPMENT DISTRICT MAY BE US ED FOR CONSTRUCTION , 24
REHABILITATION, OR EXPANSION OF PRIVATELY OWNED BUILDINGS AND RELATED 25
BUILDING IMPROVEMENTS. 26
(B) REVENUES AND RESERVES FOR A STATE–SUPPORTED DEVELOPMENT 27
DISTRICT MAY NOT BE USED FOR: 28
(1) ANY OTHER STATE–SUPPORTED DEVELOPMEN T DISTRICT OR 29
TRANSFORMATIONAL PLAN; OR 30
(2) CROSS–COLLATERALIZATION AM ONG TRANSFORM ATIONAL 31
PLANS. 32
10 HOUSE BILL 506
12–2A–07. 1
(A) THERE IS A TRANSFORMATIONAL PROJECT FINANCING FUND. 2
(B) THE PURPOSE OF THE FUND IS TO RECEIVE CERTIFIED NET–NEW STATE 3
REVENUES ATTRIBUTABLE TO A STATE–SUPPORTED DEVELOPMENT DISTRICT. 4
(C) THE CORPORATION SHALL ADMINISTER THE FUND. 5
(D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 6
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 7
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 8
AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND. 9
(E) THE FUND CONSISTS OF: 10
(1) REVENUE DISTRIBUTED TO THE FUND UNDER THIS SUBTITLE; 11
(2) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; AND 12
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 13
THE BENEFIT OF THE FUND. 14
(F) THE FUND MAY BE USED ONLY FOR DISBURSEMENTS TO A 15
TRUSTEE–HELD PROJECT TRUST A CCOUNT FOR A STATE–SUPPORTED 16
DEVELOPMENT DISTRICT TO BE USED IN ACCORDANCE WITH § 12–2A–04(C) OF THIS 17
SUBTITLE. 18
(G) (1) THE STATE TREASURER SHALL INVEST THE MONEY OF THE FUND 19
IN THE SAME MANNER AS OTHER STATE MONEY MAY BE INVESTED. 20
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITED TO 21
THE GENERAL FUND OF THE STATE. 22
12–2A–08. 23
THE CORPORATION SHALL ADOPT REGULATIONS NECESSARY TO CARRY OUT 24
THIS SUBTITLE. 25
The Charter of Baltimore City 26
Article II – General Powers 27
HOUSE BILL 506 11
The Mayor and City Council of Baltimore shall have full power and authority to 1
exercise all of the powers heretofore or hereafter granted to it by the Constitution of 2
Maryland or by any Public General or Public Local Laws of the State of Maryland; and in 3
particular, without limitation upon the foregoing, shall have power by ordinance, or such 4
other method as may be provided for in its Charter, subject to the provisions of said 5
Constitution and Public General Laws: 6
(62) 7
(d) (1) Before is suing any bonds under this section, the Mayor and City 8
Council of Baltimore shall: 9
[(1)] (I) designate by ordinance an area or areas within the City of 10
Baltimore as a “development district”; 11
[(2)] (II) receive from the Supervisor of Assessments a cer tification as to 12
the amount of the original assessable base, or if applicable, the adjusted assessable base; 13
and 14
[(3)] (III) provide that until bonds have been fully paid or thereafter, the 15
property taxes on real property within the development district shall be divided as follows: 16
[(i)] 1. the portion of the taxes which would be produced by the 17
rate at which taxes levied each year by the Mayor and City Council of Baltimore upon the 18
original taxable value shall be allocated to and when collected paid into the funds of the 19
Mayor and City Council of Baltimore in the same manner as taxes by the Mayor and City 20
Council of Baltimore on all other property are paid; and 21
[(ii)] 2. EXCEPT AS PROVIDED U NDER PARAGRAPH (2) OF 22
THIS SUBSECTION, that portion of t he taxes representing the levy on the tax increment 23
that would normally be paid to the Mayor and City Council of Baltimore shall be paid into 24
a special fund to be applied in accordance with the provisions of subsection (e) of this 25
section. This yield shall not be considered as municipal taxes for the purposes of any 26
constant yield tax limitation or State or local restriction. No State real property taxes may 27
be paid into the special fund. 28
(2) BEFORE ISSUING BONDS FOR A STATE–SUPPORTED 29
DEVELOPMENT DISTRIC T APPROVED UNDER TITLE 12, SUBTITLE 2A OF THE 30
ECONOMIC DEVELOPMENT ARTICLE OF THE ANNOTATED CODE OF MARYLAND, 31
THE MAYOR AND CITY COUNCIL OF BALTIMORE SHALL, BY RESOLUTION, PLEDGE 32
THAT UNTIL THE BONDS ARE FULLY PAID , OR A LONGER PERIOD , THE REAL 33
PROPERTY TAXES IN THE STATE–SUPPORTED DEVELOPMENT DISTRICT SHALL BE 34
DIVIDED AS FOLLOWS: 35
12 HOUSE BILL 506
(I) THE PORTION OF THE TAXES THAT WOULD BE PRODUCED BY 1
THE RATE AT WHICH TAXES LEVIED EACH YEAR BY THE MAYOR AND CITY COUNCIL 2
OF BALTIMORE UPON THE ORIGINAL TAXABLE VALUE SHALL BE ALLOCATED TO AND 3
WHEN COLLECTED PAID INTO THE FUNDS OF TH E MAYOR AND CITY COUNCIL OF 4
BALTIMORE IN THE SAME MANNER AS TAXES BY THE MAYOR AND CITY COUNCIL OF 5
BALTIMORE ON ALL OTHER PROPERTY ARE PAID; AND 6
(II) THAT PORTION OF TAXES REPRESENTING THE LEVY ON THE 7
TAX INCREMENT THAT W OULD NORMALLY BE PAI D TO THE MAYOR AND CITY 8
COUNCIL OF BALTIMORE SHALL BE PAID TO THE TRUSTEE OF THE PROJECT TRUST 9
ACCOUNT ESTABLISHED UNDER TITLE 12, SUBTITLE 2A OF THE ECONOMIC 10
DEVELOPMENT ARTICLE OF THE ANNOTATED CODE OF MARYLAND. 11
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 12
October 1, 2026. 13