(a) By resolution, the governing body of a municipality: (1) may designate an area as a special taxing district; and (2) shall create a special fund with respect to the special taxing district. (b) A resolution creating a special fund under subsection (a) of this section shall: (1) pledge to the special fund the proceeds of the ad valorem or special tax to be imposed as provided under § 21–414 of this subtitle; and (2) require that the proceeds from the tax be paid into the special fund.
Maryland Legal Code