Special Taxing Districts

[exnodak]

Any Special Tax District Experts out there?

I'm attaching a download from the Maryland code about them.

I want to know if it is normal practice for a county to create a special tax district and then keep it going year after year without ever creating the bonds necessary to make a project.

In Chesapeake Ranch, we have had a tax district for years, but the county has NEVER financed it, and there has NEVER been a vote to approve a bond issue. Puzzling indeed.

This should be especially interesting to some of our Calvert County brethren.

What do you think? What is your experience?

[Jbeckman]

Hey, I would love to have this info on this myself. Anyone...
I think there are some serious issues with how this has been and continued to be conducted/collected.

[Jbeckman]

Are there any other communities who have an STD (no...not that kind) in Southern Maryland...anyone?
if you do, what is the situation...the details.

[residentofcre (Premo)]

Contact John Gray at Drum Point....

[willie]

How do the bonds fit into this? The County is merely a middleman collecting the Special Tax. The reason for the Special Tax is to get around the covenants and ensure the deadbeats pay their share.

I believe your link is referring to things like sewers and stuff that will take a large initial investment.

[exnodak]

Originally Posted by willie

How do the bonds fit into this? The County is merely a middleman collecting the Special Tax. The reason for the Special Tax is to get around the covenants and ensure the deadbeats pay their share.

I believe your link is referring to things like sewers and stuff that will take a large initial investment.

If you look at the attachment which is from the Maryland Code there are two very important points highlighted.

1) Special Tax Districts MUST be bond financed. That means BEFORE any taxes are collected the County must sell bonds to finance the project. Then it can collect taxes to pay off the bonds for up to 30 years. That stretches the payments out so you can get more done with less cash flow. Right now we are running the STD on a cash basis. Every year we cash fund a hodge podge of projects that aren't even properly cost engineered. They are just plucked off of a priority list.

2) If there is no bond debt, the STD must be dissolved. Because we have never had a bond debt against our STD, it can't legally exist and the County can't legally tax us for it.

In spite of the above, homes are being taxed and foreclosed on over taxes which are substantially made up of STD money.

At least, that is the way I see it. I want to know if anyone can provide me with a reason that I'm wrong.

[willie]

It looks to me like that is written for PG County. There is no need for bonds in this case. After the taxes are collected it is distributed to CRE and Drum Point for the projects that were agreed to when applying for the STD.

[Jbeckman]

What is the law...or where can I find it on the specifics to STDs if this is not the correct one? There must be a law to even have the damned thing.

[exnodak]

Originally Posted by willie

It looks to me like that is written for PG County. There is no need for bonds in this case. After the taxes are collected it is distributed to CRE and Drum Point for the projects that were agreed to when applying for the STD.

The law can be viewed by going through the Maryland General Assembly website. Go to the Maryland Code Online link. It will take you to the Michie Lexis Nexis portal. Then find § 9-1301. Special districts under the Maryland Code file folder.


The first several times I read it that way too. Because the outlining system is so screwy it is difficult.

I had to follow the outline system and carefully do the proper indents to figure it out. The paragraph I referred to DOES APPLY to all special taxing districts.

The easy way to look at it is to recognize that the chief headers are all the letters like (a) through (o). Then numbers, and then small cap roman numerals.

The special law for PG County is directly above, but is not combined with the declaration requiring bonds.

[residentofcre (Premo)]

Special Districts and Special Taxing Districts and Special Roads Districts are completely different types of Districts....

I have explained this before so my guess is you don't want to hear it all from me again [although I was on the task force and had to study these].... I totally understand where you are coming from....

So I would suggest that you contact John Gray at Drum Point... John is very informed.... He knows much more about the Special Taxing District than I do...