Maryland 2023 Regular Session

Maryland Senate Bill SB945 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	sb0945
6	6
7	7	SENATE BILL 945
8	8	Q6, N1 3lr0771
9	9	CF HB 474
10	10	By: Senator Smith
11	11	Introduced and read first time: February 21, 2023
12	12	Assigned to: Rules
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Sale of Residential Real Property – Offers to Purchase and Transfer Tax 2
19	19
20	20	FOR the purpose of requiring a person who offers certain residential real property for sale 3
21	21	to a third party, during a certain period of time, to accept an offer to purchase the 4
22	22	property made only by certain persons; altering the rate of the State transfer tax 5
23	23	payable for an instrument of writing for a sale of certain residential real property 6
24	24	under certain circumstances; and generally relating to sales of residential real 7
25	25	property and the State transfer tax. 8
26	26
27	27	BY adding to 9
28	28	Article – Real Property 10
29	29	Section 10–803 11
30	30	Annotated Code of Maryland 12
31	31	(2015 Replacement Volume and 2022 Supplement) 13
32	32
33	33	BY repealing and reenacting, with amendments, 14
34	34	Article – Tax – Property 15
35	35	Section 13–203(a) 16
36	36	Annotated Code of Maryland 17
37	37	(2019 Replacement Volume and 2022 Supplement) 18
38	38
39	39	BY adding to 19
40	40	Article – Tax – Property 20
41	41	Section 13–203(c) 21
42	42	Annotated Code of Maryland 22
43	43	(2019 Replacement Volume and 2022 Supplement) 23
44	44
45	45	SECTION 1. BE IT ENACTED BY THE GENE RAL ASSEMBLY OF MARYLAND, 24
46	46	That the Laws of Maryland read as follows: 25
47	47
48	48	Article – Real Property 26 2 SENATE BILL 945
49	49
50	50
51	51
52	52	10–803. 1
53	53
54	54	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 2
55	55	INDICATED. 3
56	56
57	57	(2) “COMMUNITY DEVELOPMENT ORGANIZATION ” HAS THE MEANING 4
58	58	STATED IN § 6–201 OF THE HOUSING AND COMMUNITY DEVELOPMENT ARTICLE. 5
59	59
60	60	(3) “REAL ESTATE ENTERPRIS E” MEANS A BUSINESS THA T: 6
61	61
62	62	(I) IS CONDUCTED BY ONE O R MORE INDIVIDUALS ; 7
63	63
64	64	(II) OWNS REAL PROPERTY , INCLUDING IN A TENAN CY BY THE 8
65	65	ENTIRETY; AND 9
66	66
67	67	(III) IS INVOLVED IN BUYI NG, SELLING, LEASING, OR MANAGING 10
68	68	REAL PROPERTY . 11
69	69
70	70	(B) (1) THIS SECTION APPLIES ONLY TO THE SALE OF IMPROVED, 12
71	71	SINGLE–FAMILY RESIDENTIAL R EAL PROPERTY . 13
72	72
73	73	(2) THIS SECTION DOES NOT APPLY TO A SALE IN A N ACTION TO 14
74	74	FORECLOSE A MORTGAGE , A DEED OF TRUST , OR ANY OTHER LIEN. 15
75	75
76	76	(C) DURING THE FIRST 30 DAYS AFTER A PERSON OFFERS A PROPERTY 16
77	77	SUBJECT TO THIS SECT ION FOR SALE TO A TH IRD PARTY, THE PERSON MAY ACCEP T 17
78	78	AN OFFER TO PURCHASE THE PROPERTY MADE ON LY BY AN INDIVIDUAL , A 18
79	79	COMMUNITY DEVELOPMEN T ORGANIZATION , A NONPROFIT ORGANIZATION , OR A 19
80	80	REAL ESTATE ENTERPRI SE THAT OWNS AN INTE REST IN LESS THAN 3% OF ALL 20
81	81	RESIDENTIAL REAL PRO PERTY LOCATED WITHIN THE COUNTY IN WHICH THE 21
82	82	PROPERTY IS LOCATED . 22
83	83
84	84	Article – Tax – Property 23
85	85
86	86	13–203. 24
87	87
88	88	(a) (1) Except as provided in subsections [(a–1) and (b)] (A–1), (B), AND (C) of 25
89	89	this section, the rate of the transfer tax is 0.5% of the consideration payable for the 26
90	90	instrument of writing. 27
91	91
92	92	(2) The consideration: 28
93	93
94	94	(i) includes the amount of any mortgage or deed of trust assumed 29 SENATE BILL 945 3
95	95
96	96
97	97	by the grantee; and 1
98	98
99	99	(ii) subject to item (i) of this paragraph, includes only the amount 2
100	100	paid or delivered in return for the sale of the property and does not include the amount of 3
101	101	any debt forgiven or no longer secured by a mortgage or deed of trust on the property. 4
102	102
103	103	(C) (1) IN THIS SUBSECTION , “REAL ESTATE ENTERPRI SE” MEANS A 5
104	104	BUSINESS THAT : 6
105	105
106	106	(I) IS CONDUCTED BY ONE OR MORE INDIVIDUALS ; 7
107	107
108	108	(II) OWNS REAL PROPERTY , INCLUDING IN A TENAN CY BY THE 8
109	109	ENTIRETY; AND 9
110	110
111	111	(III) IS INVOLVED IN BUYIN G, SELLING, LEASING, OR MANAGING 10
112	112	REAL PROPERTY . 11
113	113
114	114	(2) FOR A SALE OF IMPROVE D, SINGLE–FAMILY RESIDENTIAL R EAL 12
115	115	PROPERTY TO A REAL E STATE ENTERPRISE OR THE SUBSIDIARY OF A REAL ESTATE 13
116	116	ENTERPRISE THAT HAS AN OWNERSHIP INTERES T IN RESIDENTIAL REA L PROPERTY 14
117	117	IN THE STATE WITH A TOTAL ASSESSED VALUE EXCEEDING $12,000,000 OR AN 15
118	118	OWNERSHIP INTEREST I N MORE THAN 120 SINGLE–FAMILY RESIDENTIAL R EAL 16
119	119	PROPERTIES, THE RATE OF THE TRAN SFER TAX IS 15% OF THE CONSIDERATION 17
120	120	PAYABLE FOR THE INST RUMENT OF WRITING . 18
121	121
122	122	(3) THE CONSIDERATION : 19
123	123
124	124	(I) INCLUDES THE AMOUNT OF ANY MORTGAGE OR D EED OF 20
125	125	TRUST ASSUMED BY THE GRANTEE; AND 21
126	126
127	127	(II) SUBJECT TO ITEM (I) OF THIS PARAGRAPH , INCLUDES ONLY 22
128	128	THE AMOUNT PAID OR D ELIVERED IN RETURN F OR THE SALE OF THE P ROPERTY AND 23
129	129	DOES NOT INCLUDE THE AMOUNT OF ANY DEB T FORGIVEN OR NO LON GER SECURED 24
130	130	BY A MORTGAGE OR DEE D OF TRUST ON THE PR OPERTY. 25
131	131
132	132	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 26
133	133	1, 2023. 27
134	134