Maryland 2022 Regular Session

Maryland House Bill HB1417 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb1417
6	6
7	7	HOUSE BILL 1417
8	8	Q6, N1 2lr3152
9	9
10	10	By: Delegate Hornberger
11	11	Introduced and read first time: February 17, 2022
12	12	Assigned to: Rules and Executive Nominations
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Recordation and Transfer Taxes – First–Time Maryland Home Buyer – Payment 2
19	19	and Exemptions 3
20	20
21	21	FOR the purpose of altering the criteria for qualifying as a first–time Maryland home buyer 4
22	22	for purposes of payment of and exemptions from recordation and transfer taxes; and 5
23	23	generally relating to payment of and exemptions from recordation and transfer 6
24	24	taxes. 7
25	25
26	26	BY repealing and reenacting, with amendments, 8
27	27	Article – Real Property 9
28	28	Section 14–104(a) 10
29	29	Annotated Code of Maryland 11
30	30	(2015 Replacement Volume and 2021 Supplement) 12
31	31
32	32	BY repealing and reenacting, without amendments, 13
33	33	Article – Real Property 14
34	34	Section 14–104(c)(1) and (2) 15
35	35	Annotated Code of Maryland 16
36	36	(2015 Replacement Volume and 2021 Supplement) 17
37	37
38	38	BY repealing and reenacting, with amendments, 18
39	39	Article – Tax – Property 19
40	40	Section 12–103(b)(3), 13–203(b), and 13–409(a) 20
41	41	Annotated Code of Maryland 21
42	42	(2019 Replacement Volume and 2021 Supplement) 22
43	43
44	44	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
45	45	That the Laws of Maryland read as follows: 24
46	46
47	47	Article – Real Property 25
48	48	2 HOUSE BILL 1417
49	49
50	50
51	51	14–104. 1
52	52
53	53	(a) In this section, “first–time Maryland home buyer” means an individual who 2
54	54	has [never owned in the State residential real property that has been the individual’s 3
55	55	principal residence] NOT, EITHER INDIVIDUALLY OR JOINTLY, OWNED OR PURCHASED 4
56	56	IN THE LAST 7 YEARS RESIDENTIAL REAL PRO PERTY IN THE STATE THAT HAS BEEN 5
57	57	THE INDIVIDUAL ’S PRINCIPAL RESIDENC E. 6
58	58
59	59	(c) (1) The entire amount of recordation tax and local transfer tax shall be paid 7
60	60	by the seller of improved, residential real property that is sold to a first–time Maryland 8
61	61	home buyer who will occupy the property as a principal residence, unless there is an express 9
62	62	agreement between the parties to the agreement that the recordation tax and local transfer 10
63	63	tax will not be paid entirely by the seller. 11
64	64
65	65	(2) The entire amount of State transfer tax shall be paid by the seller of 12
66	66	improved, residential real property that is sold to a first–time Maryland home buyer who 13
67	67	will occupy the property as a principal residence. 14
68	68
69	69	Article – Tax – Property 15
70	70
71	71	12–103. 16
72	72
73	73	(b) (3) The governing body of a county or Baltimore City may provide for an 17
74	74	exemption from the recordation tax for an instrument of writing for residentially improved 18
75	75	owner–occupied real property if the instrument of writing is accompanied by a statement 19
76	76	under oath signed by each grantee that: 20
77	77
78	78	(i) 1. the grantee is an individual who has [never owned in the 21
79	79	State residential real property that has been the individual’s principal residence] NOT, 22
80	80	EITHER INDIVIDUALLY OR JOINTLY, OWNED OR PURCHASED IN THE LAST 7 YEARS 23
81	81	RESIDENTIAL REAL PRO PERTY IN THE STATE THAT HAS BEEN THE IN DIVIDUAL’S 24
82	82	PRINCIPAL RESIDENCE ; and 25
83	83
84	84	2. the residence will be occupied by the grantee as the 26
85	85	grantee’s principal residence; or 27
86	86
87	87	(ii) 1. the grantee is a co–maker or guarantor of a purchase 28
88	88	money mortgage or purchase money deed of trust as defined in § 12–108(i) of this title for 29
89	89	the property; and 30
90	90
91	91	2. the grantee will not occupy the residence as the 31
92	92	co–maker’s or guarantor’s principal residence. 32
93	93
94	94	13–203. 33
95	95	HOUSE BILL 1417 3
96	96
97	97
98	98	(b) (1) In this subsection, “first–time Maryland home buyer” means an 1
99	99	individual who has [never owned in the State residential real property that has been the 2
100	100	individual’s principal residence] NOT, EITHER INDIVIDUALLY OR JOINTLY, OWNED OR 3
101	101	PURCHASED IN THE LAST 7 YEARS RESIDENTIAL REAL PRO PERTY IN THE STATE 4
102	102	THAT HAS BEEN THE IN DIVIDUAL’S PRINCIPAL RESIDENC E. 5
103	103
104	104	(2) If there are two or more grantees, this subsection does not apply unless 6
105	105	each grantee is a first–time Maryland home buyer or a co–maker or guarantor of a purchase 7
106	106	money mortgage or purchase money deed of trust as defined in § 12–108(i) of this article 8
107	107	for the property and the co–maker or guarantor will not occupy the residence as the 9
108	108	co–maker’s or guarantor’s principal residence. 10
109	109
110	110	(3) Notwithstanding any other provision of law, for a sale of improved 11
111	111	residential real property to a first–time Maryland home buyer who will occupy the property 12
112	112	as a principal residence, the rate of the transfer tax is 0.25% of the consideration payable 13
113	113	for the instrument of writing and the transfer tax shall be paid entirely by the seller. 14
114	114
115	115	(4) To qualify for the exemption under paragraph (3) of this subsection, 15
116	116	each grantee or an agent of the grantee shall provide a statement that is signed under oath 16
117	117	by the grantee or agent of the grantee stating that: 17
118	118
119	119	(i) 1. the grantee is an individual who has [never owned in the 18
120	120	State residential real property that has been the individual’s principal residence] NOT, 19
121	121	EITHER INDIVIDUALLY OR JOINTLY, OWNED OR PURCHASED IN THE LAST 7 YEARS 20
122	122	RESIDENTIAL REAL PRO PERTY IN THE STATE THAT HAS BEEN THE IN DIVIDUAL’S 21
123	123	PRINCIPAL RESIDENCE ; and 22
124	124
125	125	2. the residence will be occupied by the grantee as the 23
126	126	grantee’s principal residence; or 24
127	127
128	128	(ii) 1. the grantee is a co–maker or guarantor of a purchase 25
129	129	money mortgage or purchase money deed of trust as defined in § 12–108(i) of this article 26
130	130	for the property; and 27
131	131
132	132	2. the grantee will not occupy the residence as the 28
133	133	co–maker’s or guarantor’s principal residence. 29
134	134
135	135	(5) A statement under paragraph (4) of this subsection by an agent of a 30
136	136	grantee shall state that the statement: 31
137	137
138	138	(i) is based on a diligent inquiry made by the agent with respect to 32
139	139	the facts set forth in the statement; and 33
140	140
141	141	(ii) is true to the best of the knowledge, information, and belief of the 34
142	142	agent. 35
143	143	4 HOUSE BILL 1417
144	144
145	145
146	146	13–409. 1
147	147
148	148	(a) Any county having a county transfer tax may provide for an exemption from 2
149	149	the tax for an instrument of writing for residentially improved owner–occupied real 3
150	150	property if the instrument of writing is accompanied by a statement under oath signed by 4
151	151	each grantee or an agent of the grantee that: 5
152	152
153	153	(1) (i) the grantee is an individual who has [never owned in the State 6
154	154	residential real property that has been the individual’s principal residence] NOT, EITHER 7
155	155	INDIVIDUALLY OR JOIN TLY, OWNED OR PURCHASED IN THE LAST 7 YEARS 8
156	156	RESIDENTIAL REAL PRO PERTY IN THE STATE THAT HAS BEEN THE IN DIVIDUAL’S 9
157	157	PRINCIPAL RESIDENCE ; and 10
158	158
159	159	(ii) the residence will be occupied by the grantee as the grantee’s 11
160	160	principal residence; or 12
161	161
162	162	(2) (i) the grantee is a co–maker or guarantor of a purchase money 13
163	163	mortgage or purchase money deed of trust as defined in § 12–108(i) of this article for the 14
164	164	property; and 15
165	165
166	166	(ii) the grantee will not occupy the residence as the co–maker’s or 16
167	167	guarantor’s principal residence. 17
168	168
169	169	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 18
170	170	1, 2022. 19
171	171
172	172