Article: Owner Groups Can Levy Taxes, Md. Court Rules; Case Involves Upkeep Costs For Beaches at Cape St. Clair

Maryland's highest court this week ruled that homeowners' associations can use special taxing districts to pay for the upkeep of community property.

The case involved Cape St. Clair, an Anne Arundel County community of about 2,200 homes that sits on the eastern shore of the Chesapeake Bay at the Magothy River.

When the community was founded in the 1940s annual dues to the homeowners association were set at $10 a year. The money went to run the association and to maintain community property, including three beaches that only are open to Cape St. Clair residents.

In 1989 a majority of homeowners petitioned the county council to set up a special taxing district so that the association ...

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