Section 2-603 - Depreciation of equipment if agreement terminated. - Maryland Statutes

§ 2-603. Depreciation of equipment if agreement terminated.
 

(a)  In general.- If an agreement entered into under § 2-602 of this subtitle is terminated, the value of motor vehicles, radios, and light bars paid for by a county or municipal corporation under the agreement shall be depreciated in accordance with subsection (b) of this section. 

(b)  Depreciation schedule.- The value of motor vehicles, radios, and light bars shall be depreciated over a 5-year period beginning on the date the equipment was put in service as follows: 

(1) after 1 year, the equipment shall be valued at 80% of its initial cost; 

(2) after 2 years, the equipment shall be valued at 60% of its initial cost; 

(3) after 3 years, the equipment shall be valued at 40% of its initial cost; 

(4) after 4 years, the equipment shall be valued at 20% of its initial cost; and 

(5) after 5 years, the equipment shall be considered to have no remaining value for purposes of this section. 

(c)  Reimbursement by Department.- The Department shall reimburse the county or municipal corporation for the depreciated value of the motor vehicles, radios, and light bars. 
 

[An. Code 1957, art. 88B, § 63(i); 2003, ch. 5, § 2.]