(a)      (1)      The county commissioners of a code county, by public local law, may impose a development excise tax when a subdivision lot is initially sold or transferred, for financing, in whole or in part, the capital costs of additional or expanded public school facilities or improvements.

            (2)      (i)      Before passing a public local law imposing a development excise tax or altering the amount of the tax, the county commissioners shall hold a public hearing.

                  (ii)      Notice of the hearing shall be published in at least one newspaper of general circulation in the county not less than 3 or more than 14 days before the hearing.

                  (iii)      The notice shall state the subject of the hearing and the time and place that the hearing will occur.

            (3)      The county commissioners shall specify and the notice shall state the amount of the tax and the time during the subdivision process that the tax shall be paid.

            (4)      Except as provided in paragraph (6) of this subsection, a development excise tax imposed under this section may not exceed $2,000 per lot.

            (5)      A development excise tax may not be imposed under this section, in a county that imposes a development impact fee.

            (6)      A development excise tax imposed under this section by a code county in the Eastern Shore class may not exceed $5,000 per lot.

      (b)      (1)      The county commissioners shall deposit development excise taxes in an account known as the "educational facilities improvement fund".

            (2)      Money in the educational facilities improvement fund may only be used to pay for capital projects, or for debt incurred for capital projects, for additional or expanded public school facilities or improvements.