This case concerns whether Maryland’s General Assembly may properly authorize Baltimore City to set the redemption interest rate on a tax sale of real estate at a rate greater than the 6% rate provided in Article III, § 57 of the Maryland Constitution.
I
Sections 14-808 through 14-854 of the Tax-Property Article of the Maryland Code (1985,1994 Repl.Vol.) outline the procedure for tax sales of real estate. When taxes are in arrears on a property, the tax collector, after complying with various notice provisions, sells the property at public auction to satisfy the taxes. §§ 14-808, 14-817. The purchaser, no later than the day after the sale, must pay all taxes due on the property, plus any interest, penalties, and sale expenses. § 14-818. The remainder of the purchase price “remains on credit.” Id. The purchaser then receives a certificate of sale, which is freely assignable. §§ 14-820, 14-821. If the purchaser assigns the certificate, the assignee has “all the right, title, and interest of the original purchaser.” § 14-821.
After the tax sale, the property ownеr has a right of redemption, which lasts until it is foreclosed in a court proceeding. § 14-827. In order to redeem the property, the owner must pay the collector, among other things, the amount already paid by the purchaser at the tax sale, plus interest at the applicable rate provided in § 14-820(b) from the date of
Section 14-820(b) provides that the redemption interest rate is the rate set by the local subdivision or, if none is set by the subdivision, the rate specified in § 14-820(b) for each subdivision. Local subdivisions often set the rate higher than rates given on ordinary investments. For example, Baltimore City has set the redemption interest rate at 24% per year. Baltimore City Code (1977, 1983 Repl.Vol, 1993 Supp.) Art. 28, § 16.
After waiting six months from the date of the tax sale, the holder can file a complaint to foreclose the owner’s right of redemption. § 14-833. If the certificate holder does not file such a complaint within two years of the tax sale, the certificate becomes void, effectively placing a statute of limitations оn actions to foreclose the right of redemption.
A special joinder provision for these actions states:
“Any single holder of certificates of sale relating to several properties in the same county may include and join in 1 proceeding any number of the certificates. However, if more than 1 property owner is involved, a maximum of 10*6 certificates may be joined in 1 proceeding. The complaint filed in any proceeding is not subject to objection on the ground of multifariousness.”
§ 14-841.
After thе holder files a complaint, the court issues summonses to all defendants and an order to publicize the foreclosure proceeding. §§ 14-839,14-840. Both the summonses and the publication state a date, no sooner than 60 days from the date of the publication order, by which anyone having an interest in the property must redeem it. § 14-840. The right of redemption continues throughout the proceeding until the court issues a final decree foreclosing the right of redеmption. § 14-827. While the complaint alleges an amount necessary for redemption, the court fixes the amount if it is disputed. §§ 14-829, 14-835(a)(7).
Generally, if the owner does not redeem the property by the dates stated in the summons and the publication, the court issues a final decree foreclosing the right of redemption. § 14-844(a). Thereafter, if the holder pays the balance of the purchase price and any other amounts due, the tax collector executes and delivers a deed to the holder. § 14-818.
II
Petitioner Fish Market Nominee Corporation (Fish Market) owned two properties, 35 Market Place and 43 Market Place, located in Baltimore City, Maryland. Together, the properties are commonly known as the Fish Market. The building structure is designated 35 Market Place, while the air rights to the enclosed atrium above the structure are designated 43 Market Place.
Fish Market did not pay real estate taxes owed to the City of Baltimore on the two properties, resulting in tax arrearages of more than $640,000. On May 13, 1991, both properties were sold at tax sales to Hamilton II, a general partnership— 35 Market Place for $700,000 and 43 Market Place for $70,000. Hamilton II paid the taxes and municipal liens due on the property—approximately $633,000 for 35 Market Place and
On January 13, 1993, more than six months after the tax sale, GAA filed a complaint in the Circuit Court for Baltimore City to foreclose the rights of redemption in both properties. On July 23, 1993, with the foreclosure proceedings pending, GAA assigned its interest in the certificate covering 43 Market Place to H.N.R.G., Inc. (HNRG). On August 10, 1993, GAA moved to substitute HNRG for itself as to the tax sale certificate covering 43 Market Place. The court granted the substitution. Fish Market, on August 19, 1993, filed a motion for reconsideration and for an order striking the substitution.
On December 6, 1993, the court held a hearing to determine the amount required for redemption, at which it also heard arguments on the substitution issue. Fish Market argued that the substitution of HNRG was improper because it resulted in a single proceeding with two plaintiffs, which is not permitted under § 14-841 of the Tax-Property Article, authorizing proceedings involving multiple properties. It also challenged the 24% interest rate, arguing that the General Assembly could not delegate to Baltimore City the power to fix the rate.
The court rejected both the substitution argument and the interest rate challenge. On December 7, 1993, the court issued an order setting the redemption prices for both properties, including interest at 24%. On March 31, 1994, the court entered final decrees that foreclosed the right of redemption in both propеrties and directed the collector to execute deeds to GAA and HNRG upon their payment of the remaining sums due on the properties. Fish Market appealed to the Court of Special Appeals, but, before that court heard the case, we granted certiorari to consider the important issues there raised.
Fish Market argues that the General Assembly cannot delegate to Baltimore City the authority to set the redemption intеrest rate. It asserts that the redemption interest rate should be 6%, pursuant to Article III, § 57 of the Maryland Constitution, which fixes the legal rate of interest at 6% “unless otherwise provided by the General Assembly.” Fish Market argues that the General Assembly cannot “otherwise provide” unless the members “themselves stand up and make that change.” In other words, Fish Market asserts that the General Assembly must specifically designate the percentage. Accordingly, it contends that the General Assembly cannot validly provide that the redemption interest rate in Baltimore City is the rate “fixed by a law of the City Council.” See § 14-820 of the Tax-Property Article.
We must first determine the meaning of the words “unless otherwise provided by the General Assembly.” Generally, we apply the same principles in construing constitutional provisions as we apply in construing statutory language. Brown v. Brown,
“ Wt is permissible to inquire into the prior state of the law, the previous and contemporary history of the people, the circumstances attending the adoption of the organic*9 law, as well as broad considerations of expediency. The object is to ascertain the reason which induced the framers to enact the provision in dispute and the purpose sought to be accomрlished thereby, in order to construe the whole instrument in such way as to effect that purpose. The Court may avail itself of any light that may be derived from such sources, but it is not bound to adopt it as the sole ground of its decision.’ ”
Id. (quoting Perkins v. Eskridge,
The words “unless otherwise provided by the General Assembly,” contained in Article III, § 57, are capable of two different interpretations. The first, advanced by GAA, is that the General Assembly may provide for a different interest rate by any means, including delegating the ability to set rates to local subdivisions. The second, advanced by Fish Market, is that the General Assembly may provide for a different interest rate only by itself enacting a law that sets a different rate.
This ambiguity requires that we examine other sources for guidance. We did so in Carozza v. Federal Finance Co.,
Accordingly, in Heaton v. City of Baltimore,
Fish Market recognizes that this Court has approved the State’s delegation of its police powers to local political subdivisions. See, e.g., Bender v. Arundel Arena,
We said in Maryland State Police v. Warwick,
Applying this standard to the case before us, we conclude that setting the redemption interеst rate for properties within Baltimore City is a matter of local concern. Fish Market argues to the contrary, asserting that the amount of the interest rate is a matter of more than local concern because it affects persons who are not residents of Baltimore City. Non
In contrast, when we have reviewed local legislation concerning matters not of significanсe to the entire state, we' have consistently held that such legislation is not made general by some limited, indirect effect outside the local subdivision. In Steuart Petroleum Co. v. Board,
In the case before us, аny possible effects outside Baltimore City are insufficient to cause the City’s redemption interest rate to become a matter of significant interest to the entire state. The fact that Baltimore City’s redemption interest rate ordinance affects a non-resident owner or purchaser of real estate does not make the ordinance general in scope. It applies to tax sales of property only within Baltimore City and is, therefore, local. Accordingly, we hold that Baltimore City’s redemption interest rate ordinance was properly enacted pursuant to the enabling authority contained in Article III, § 57
IV
Fish Market contends that the substitution of HNRG for GAA as to 43 Market Place was improper because it created a misjoinder of plaintiffs by allowing both HNRG and GAA to be plaintiffs in the case with resрect to different properties. Fish Market further contends that, as a remedy for this asserted error, the court should have dropped HNRG from the proceeding and dismissed the portion of the complaint dealing with 43 Market Place. HNRG, Fish Market reasons, would then be barred from refiling because the two year statute of limitations has passed.
Assuming without deciding that the substitution of HNRG created a misjoinder, the rules do not require dismissal of the claim advanced by the misjoined plaintiff. Rather, the rules permit the court to sever the claims into two proceedings. See Maryland Rule 2-213 (“Any claim against a party may be severed and proceeded with separately.”). Indeed, the court should not have dismissed the 43 Market Place claim because the possibility of dismissal under these circumstances would severely limit the ability of a certificate holder to assign the certificate after the statute of limitations has pаssed. We believe such a limitation would be inconsistent with § 14-821, which freely permits assignments of tax sale certificates. Accordingly, we conclude that, although courts normally have discretion in correcting misjoinder, the circuit court judge in this case could not have dismissed the 43 Market Place claim; his only option was to sever the claims.
The only remaining issue is whether we must remand the case to the circuit court for nеw, severed proceedings. In resolving this issue, we think it unnecessary to decide whether the substitution of HNRG created a misjoinder because, even assuming misjoinder, Fish Market waived its right to severance. Fish Market has never requested and still does not request severance. Its only purpose in raising the misjoinder argument was to obtain dismissal of the HNRG’s claim. In Tracy v. State,
“[T]he proper remedy for an improper joinder is a severance, not a dismissal. Tracy knew that the additional charges were ‘joined’ for trial with the prior charges, but he never asked for a severance. The only relief he requested was dismissal of the indictment charging counts 5 through 10. He was not entitled to have the indictment dismissed even if we assume it was impropеrly joined for trial with another charging document. By failing to specifically request a severance of counts 5 through 10, Tracy waived any right to a severance. ‘A defendant can lose his rights under joinder and severance law by failing to assert them in a timely fashion. This is true even in the instances of misjoinder____’ 2 W. LaFave & J. Israel, Criminal Procedure § 17.3(d), at 378 (1984).”
Furthermore, even if the court had erred in failing to sever the claims, it would have been harmless error. We have consistently held that we will not reverse a civil judgment unless the complaining party shows both error and prejudice. E.g., Harris v. Harris,
JUDGMENT OF THE CIRCUIT COURT FOR BALTIMORE CITY AFFIRMED. COSTS TO BE PAID BY PETITIONERS.
Notes
. This section states: "The Legal Rate of Interest shall be Six per cent, per annum; unless otherwise provided by the General Assembly.”
. The purchaser or assignee becomes the holder of the tax sale certificate and will hereinafter be referred to as the "holder.”
. The owner must also pay taxes, interest, and penalties either paid by the holder or accrued after the date of the tax sale, together with expenses for which "the holder of a certificate of sale is entitled to reimbursement under § 14-843.” § 14-828(a).
. This seсtion states in relevant part: "[T]he interest rate applicable to redemptions of property from tax sales in Baltimore City shall be 24% per annum.”
. In a March 19, 1983, memorandum to the Baltimore City Council, Edward J. Gallagher, then Chief of the Baltimore City Bureau of Budget and Management Research, explained: "The uncertainties and complexities of Tax Sale procedures warrant a higher rate of return to the investor than can be obtained through Certificates of Deposit or other forms of investments.”
. The one limitation imposed by this Court is that the rate can not be changed by special law, applicable only to an arbitrary class of persons. Id.; Citizens Security and L. Co. v. Uhler,
. As we explained earlier, the holder of a tax sale certificate has two years from the date of the tax sale in which to file a complaint to foreclose the right of redemption. In this case, the tax sale occurred on May 13, 1991. GAA did not even assign the certificate to HNRG until July 23, 1993, over two years and two months from the date of the tax sale.