EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1417*
HOUSE BILL 1417
Q6, N1 2lr3152
By: Delegate Hornberger
Introduced and read first time: February 17, 2022
Assigned to: Rules and Executive Nominations
A BILL ENTITLED
AN ACT concerning 1
Recordation and Transfer Taxes – First–Time Maryland Home Buyer – Payment 2
and Exemptions 3
FOR the purpose of altering the criteria for qualifying as a first–time Maryland home buyer 4
for purposes of payment of and exemptions from recordation and transfer taxes; and 5
generally relating to payment of and exemptions from recordation and transfer 6
taxes. 7
BY repealing and reenacting, with amendments, 8
Article – Real Property 9
Section 14–104(a) 10
Annotated Code of Maryland 11
(2015 Replacement Volume and 2021 Supplement) 12
BY repealing and reenacting, without amendments, 13
Article – Real Property 14
Section 14–104(c)(1) and (2) 15
Annotated Code of Maryland 16
(2015 Replacement Volume and 2021 Supplement) 17
BY repealing and reenacting, with amendments, 18
Article – Tax – Property 19
Section 12–103(b)(3), 13–203(b), and 13–409(a) 20
Annotated Code of Maryland 21
(2019 Replacement Volume and 2021 Supplement) 22
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
That the Laws of Maryland read as follows: 24
Article – Real Property 25
2 HOUSE BILL 1417
14–104. 1
(a) In this section, “first–time Maryland home buyer” means an individual who 2
has [never owned in the State residential real property that has been the individual’s 3
principal residence] NOT, EITHER INDIVIDUALLY OR JOINTLY, OWNED OR PURCHASED 4
IN THE LAST 7 YEARS RESIDENTIAL REAL PRO PERTY IN THE STATE THAT HAS BEEN 5
THE INDIVIDUAL ’S PRINCIPAL RESIDENC E. 6
(c) (1) The entire amount of recordation tax and local transfer tax shall be paid 7
by the seller of improved, residential real property that is sold to a first–time Maryland 8
home buyer who will occupy the property as a principal residence, unless there is an express 9
agreement between the parties to the agreement that the recordation tax and local transfer 10
tax will not be paid entirely by the seller. 11
(2) The entire amount of State transfer tax shall be paid by the seller of 12
improved, residential real property that is sold to a first–time Maryland home buyer who 13
will occupy the property as a principal residence. 14
Article – Tax – Property 15
12–103. 16
(b) (3) The governing body of a county or Baltimore City may provide for an 17
exemption from the recordation tax for an instrument of writing for residentially improved 18
owner–occupied real property if the instrument of writing is accompanied by a statement 19
under oath signed by each grantee that: 20
(i) 1. the grantee is an individual who has [never owned in the 21
State residential real property that has been the individual’s principal residence] NOT, 22
EITHER INDIVIDUALLY OR JOINTLY, OWNED OR PURCHASED IN THE LAST 7 YEARS 23
RESIDENTIAL REAL PRO PERTY IN THE STATE THAT HAS BEEN THE IN DIVIDUAL’S 24
PRINCIPAL RESIDENCE ; and 25
2. the residence will be occupied by the grantee as the 26
grantee’s principal residence; or 27
(ii) 1. the grantee is a co–maker or guarantor of a purchase 28
money mortgage or purchase money deed of trust as defined in § 12–108(i) of this title for 29
the property; and 30
2. the grantee will not occupy the residence as the 31
co–maker’s or guarantor’s principal residence. 32
13–203. 33
HOUSE BILL 1417 3
(b) (1) In this subsection, “first–time Maryland home buyer” means an 1
individual who has [never owned in the State residential real property that has been the 2
individual’s principal residence] NOT, EITHER INDIVIDUALLY OR JOINTLY, OWNED OR 3
PURCHASED IN THE LAST 7 YEARS RESIDENTIAL REAL PRO PERTY IN THE STATE 4
THAT HAS BEEN THE IN DIVIDUAL’S PRINCIPAL RESIDENC E. 5
(2) If there are two or more grantees, this subsection does not apply unless 6
each grantee is a first–time Maryland home buyer or a co–maker or guarantor of a purchase 7
money mortgage or purchase money deed of trust as defined in § 12–108(i) of this article 8
for the property and the co–maker or guarantor will not occupy the residence as the 9
co–maker’s or guarantor’s principal residence. 10
(3) Notwithstanding any other provision of law, for a sale of improved 11
residential real property to a first–time Maryland home buyer who will occupy the property 12
as a principal residence, the rate of the transfer tax is 0.25% of the consideration payable 13
for the instrument of writing and the transfer tax shall be paid entirely by the seller. 14
(4) To qualify for the exemption under paragraph (3) of this subsection, 15
each grantee or an agent of the grantee shall provide a statement that is signed under oath 16
by the grantee or agent of the grantee stating that: 17
(i) 1. the grantee is an individual who has [never owned in the 18
State residential real property that has been the individual’s principal residence] NOT, 19
EITHER INDIVIDUALLY OR JOINTLY, OWNED OR PURCHASED IN THE LAST 7 YEARS 20
RESIDENTIAL REAL PRO PERTY IN THE STATE THAT HAS BEEN THE IN DIVIDUAL’S 21
PRINCIPAL RESIDENCE ; and 22
2. the residence will be occupied by the grantee as the 23
grantee’s principal residence; or 24
(ii) 1. the grantee is a co–maker or guarantor of a purchase 25
money mortgage or purchase money deed of trust as defined in § 12–108(i) of this article 26
for the property; and 27
2. the grantee will not occupy the residence as the 28
co–maker’s or guarantor’s principal residence. 29
(5) A statement under paragraph (4) of this subsection by an agent of a 30
grantee shall state that the statement: 31
(i) is based on a diligent inquiry made by the agent with respect to 32
the facts set forth in the statement; and 33
(ii) is true to the best of the knowledge, information, and belief of the 34
agent. 35
4 HOUSE BILL 1417
13–409. 1
(a) Any county having a county transfer tax may provide for an exemption from 2
the tax for an instrument of writing for residentially improved owner–occupied real 3
property if the instrument of writing is accompanied by a statement under oath signed by 4
each grantee or an agent of the grantee that: 5
(1) (i) the grantee is an individual who has [never owned in the State 6
residential real property that has been the individual’s principal residence] NOT, EITHER 7
INDIVIDUALLY OR JOIN TLY, OWNED OR PURCHASED IN THE LAST 7 YEARS 8
RESIDENTIAL REAL PRO PERTY IN THE STATE THAT HAS BEEN THE IN DIVIDUAL’S 9
PRINCIPAL RESIDENCE ; and 10
(ii) the residence will be occupied by the grantee as the grantee’s 11
principal residence; or 12
(2) (i) the grantee is a co–maker or guarantor of a purchase money 13
mortgage or purchase money deed of trust as defined in § 12–108(i) of this article for the 14
property; and 15
(ii) the grantee will not occupy the residence as the co–maker’s or 16
guarantor’s principal residence. 17
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 18
1, 2022. 19