§ 12-108. Exemptions
West's Annotated Code of MarylandTax-PropertyEffective: April 13, 2021
Effective: April 13, 2021
MD Code, Tax - Property, § 12-108
§ 12-108. Exemptions
(a)(1) Except as provided in paragraph (2) of this subsection, an instrument of writing is not subject to recordation tax, if the instrument of writing transfers property to or grants a security interest to:
(b) A security agreement is not subject to recordation tax, if the security agreement is:
(c)(1) When property is transferred subject to a mortgage or deed of trust, the recordation tax does not apply to the principal amount of debt assumed by the transferee, if the instrument of writing transfers the property from the transferor to a:
(d)(1) An instrument of writing that transfers property between the following individuals is not subject to recordation tax:
(e) A supplemental instrument of writing is not subject to recordation tax except to the extent that:
(f) An instrument of writing previously recorded is not subject to recordation tax when the instrument or a counterpart is recorded in another county or in the same county.
(g)(1) In this subsection, “original mortgagor” includes:
(2) A mortgage or deed of trust is not subject to recordation tax to the extent that it secures the refinancing of an amount not greater than the unpaid principal amount secured by an existing mortgage, indemnity mortgage, or deed of trust at the time of refinancing if the mortgage or deed of trust secures the refinancing of real property that is:
(3) To qualify for an exemption under paragraph (2) of this subsection an original mortgagor or agent of the original mortgagor shall include a statement in the recitals or in the acknowledgment of the mortgage or deed of trust, or submit with the mortgage or deed of trust, an affidavit under oath, signed by the original mortgagor or agent of the original mortgagor, stating:
(h) An instrument of writing of a mechanic's lien or crop lien that relates to farm products or equipment used in farming operations is not subject to recordation tax.
(i)(1) In this subsection, “purchase money mortgage” or “purchase money deed of trust” means a mortgage or deed of trust that:
(k) A security agreement filed or recorded under the Maryland Uniform Commercial Code1 is not subject to recordation tax:
(o) A participation agreement that shows an interest of a person in a note, mortgage, or deed of trust that is based on a previously recorded loan to the mortgagor or grantor under a deed of trust is not subject to recordation tax.
(p)(1)(i) In this subsection the following words have the meanings indicated.
(i) a transfer of title to real property between a parent business entity and its wholly owned subsidiary business entity or between 2 or more subsidiary business entities wholly owned by the same parent business entity, if the parent business entity is an original owner of the subsidiary business entity, or became an owner through gift or bequest from an original owner of the subsidiary business entity, for:
(iii) a transfer of title to real property from a subsidiary business entity to its parent business entity for no consideration, nominal consideration or consideration that comprises only the issuance, cancellation, or surrender of a subsidiary's ownership interest, where the parent business entity:
Transfers of real property from corporation, limited liability company or partnership to specific parties
(q) An instrument of writing that transfers real property from a corporation, limited liability company, or partnership on its liquidation, dissolution, or termination is not subject to recordation tax, if the transferee is:
(r) A land installment contract described in § 10-101(c) of the Real Property Article is not subject to recordation tax.
(s) An option agreement for the purchase of real property is not subject to recordation tax.
(t) A deed conveying title to real property is not subject to recordation tax if recordation tax was paid on a prior contract of sale between the same parties for the real property.
(u) A lease of 7 years or less, which is not required to be recorded under § 3-101 of the Real Property Article, is not subject to recordation tax.
(v) Articles of merger or other document which evidences a merger of foreign corporations are not subject to recordation tax if there is a transfer of real property:
(w) Articles of consolidation or other documents that evidence a consolidation of foreign corporations are not subject to recordation tax if recordation tax and, if then required to have been paid, transfer tax were paid when the corporation consolidating to form a new corporation acquired title to the real property.
(x)(1) Except as provided in this subsection, an instrument of writing that transfers real property from a cooperative housing corporation on its termination to an owner of a cooperative interest in the cooperative housing corporation is not subject to recordation tax if the cooperative housing corporation consists of single residential units and was established on or before January 1, 1970.
Instrument of writing that transfers title to real property from a predecessor entity or a trustee or nominee of a predecessor entity to a limited liability company
(y)(1)(i) In this subsection the following words have the meanings indicated.
(ii) “Foreign general partnership”, “foreign limited partnership”, “foreign limited liability partnership”, “foreign limited liability limited partnership”, and “foreign joint venture” mean, respectively, a partnership, limited partnership, limited liability partnership, limited liability limited partnership, or joint venture organized or formed under the laws of the United States, another state of the United States, or a territory, possession, or district of the United States.
(aa) An instrument of writing pursuant to which the Maryland Stadium Authority transfers title to, or creates a leasehold interest in, real property is not subject to recordation tax if the transferee or lessee is an Authority affiliate as defined in § 10-601 of the Economic Development Article.
(bb)(1) In this subsection, “real estate enterprise” means a business conducted by one or more individuals who own real property, including a sole proprietorship or a tenancy by the entirety, and are principally involved in buying, selling, leasing, or managing real property.
Instrument of writing conveying or assigning a conservation easement or fee simple title to a land trust
(cc)(1)(i) In this subsection the following words have the meanings indicated.
(dd) An instrument of writing that transfers real property or an interest in real property from an estate is not subject to recordation tax as provided in § 9-105(c) of the Estates and Trusts Article.
(ee) An instrument of writing that transfers real property or an interest in real property to a trust or from a trust to one or more beneficiaries under the circumstances specified in § 14.5-1001 of the Estates and Trusts Article is not subject to recordation tax.
Transfers of residential real property from a certified community development financial institution to the immediately preceding mortgagor or grantor
(ff) An instrument of writing that transfers residential real property from a certified community development financial institution to the immediately preceding mortgagor or grantor of the property under the circumstances specified in § 7-105.1 of the Real Property Article and a purchase money mortgage or purchase money deed of trust related to that transfer are not subject to recordation tax.
(gg) An instrument of writing that transfers residential real property is not subject to recordation tax if:
(hh)(1) In this subsection, “Laurel Park racing facility site”, “MJC Entities”, “Pimlico racing facility site”, “Pimlico site”, and “project entities” have the meanings stated in § 10-601 of the Economic Development Article.
(i) located at or within the Laurel Park racing facility site, Pimlico racing facility site, or Pimlico site and the transfer or grant is by any combination of project entities, MJC Entities, Baltimore City, an entity designated by Baltimore City, Anne Arundel County, or an entity designated by Anne Arundel County; or
Credits
Added by Acts 1985, c. 8, § 2, eff. Feb. 1, 1986. Amended by Acts 1986, c. 5, § 4; Acts 1985, c. 686; Acts 1987, c. 11, §§ 1, 2; Acts 1989, c. 586; Acts 1989, c. 591; Acts 1991, c. 635; Acts 1992, c. 536; Acts 1994, c. 3, § 1, eff. Feb. 28, 1994; Acts 1994, c. 573, § 1, eff. July 1, 1994; Acts 1995, c. 71, § 1, eff. Oct. 1, 1995; Acts 1996, c. 690, § 1, eff. July 1, 1996; Acts 1997, c.165, § 1, eff. July 1, 1997; Acts 1997, c. 400, § 1, eff. July 1, 1997; Acts 1997, c. 683, § 1, eff. Oct. 1, 1997; Acts 1998, c. 669, § 1, eff. July 1, 1998; Acts 1999, c. 427, § 1, eff. June 1, 1999; Acts 1999, c. 615, § 1, eff. July 1, 1999; Acts 2000, c. 185, § 1, eff. July 1, 2000; Acts 2000, c. 679, § 1, eff. July 1, 2001; Acts 2000, c. 692, § 1, eff. Oct. 1, 2000; Acts 2001, c. 29, § 1, eff. April 10, 2001; Acts 2001, c. 573, § 1, eff. July 1, 2001; Acts 2002, c. 524, § 1, eff. July 1, 2002; Acts 2003, c. 64, § 1, eff. July 1, 2003; Acts 2003, c. 411, § 1, eff. May 22, 2003; Acts 2004, c. 248, § 1, eff. July 1, 2004; Acts 2004, c. 379, § 1, eff. July 1, 2004; Acts 2005, c. 605, § 1, eff. July 1, 2005; Acts 2008, c. 307, § 1, eff. Oct. 1, 2008; Acts 2008, c. 599, § 1, eff. July 1, 2008; Acts 2010, c. 72, § 5, eff. April 13, 2010; Acts 2011, c. 449, § 1, eff. July 1, 2011; Acts 2011, c. 618, § 1, eff. July 1, 2011; Acts 2012, c. 66, § 1, eff. April 10, 2012; Acts 2013, c. 267, § 1, eff. July 1, 2013; Acts 2013, c. 268, § 1, eff. July 1, 2013; Acts 2013, c. 452, § 1, eff. July 1, 2013; Acts 2013, c. 453, § 1, eff. July 1, 2013; Acts 2014, c. 45, § 5; Acts 2014, c. 129, § 1, eff. July 1, 2014; Acts 2014, c. 233, § 1, eff. April 14, 2014; Acts 2015, c. 301, § 1, eff. May 12, 2015; Acts 2017, c. 63, § 1, eff. July 1, 2017; Acts 2017, c. 64, § 1, eff. July 1, 2017; Acts 2017, c. 538, § 1, eff. July 1, 2017; Acts 2018, c. 594, § 1, eff. July 1, 2018; Acts 2020, c. 590, § 3, eff. June 1, 2020; Acts 2021, c. 109, § 1, eff. April 13, 2021.
Formerly Art. 81, §§ 277, 277B.
Footnotes
Commercial Law, § 1-101 et seq.
MD Code, Tax - Property, § 12-108, MD TAX PROPERTY § 12-108
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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