Maryland House Bill HB1417

Maryland 2022 Regular Session

• Introduced: 2/17/22
• Refer: 2/17/22

Caption

Recordation and Transfer Taxes - First-Time Maryland Home Buyer - Payment and Exemptions

Impact

The bill mandates that for sales of improved residential real property, all recordation and local transfer taxes will be the responsibility of the seller when the buyer is classified as a first-time Maryland home buyer who intends to occupy the property as their main residence. The bill specifies a transfer tax rate of 0.25% of the total sale consideration, providing significant relief for eligible buyers and potentially making home ownership more accessible for those entering the market.

Summary

House Bill 1417 pertains to the criteria for identifying first-time home buyers in Maryland and proposes changes to the corresponding exemptions associated with recordation and transfer taxes. This bill aims to stimulate home ownership by adjusting the definition of a first-time buyer to include individuals who have not owned any residential real estate in the past seven years. By broadening this definition, the bill endeavors to assist those who may have previously owned property but are looking to reenter the housing market after a substantial period away from home ownership.

Contention

There are potential points of contention regarding the implications of this bill. Advocates of the bill argue that it will promote increased home ownership and stimulate the housing market, which could have positive ripple effects on the economy. However, critics may argue that shifting the tax burden to the seller could complicate transactions and impact sellers' willingness to negotiate prices. The adjustment to tax responsibilities might also raise concerns among real estate professionals regarding the long-term effects on market dynamics.