EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0945*
SENATE BILL 945
Q6, N1 3lr0771
CF HB 474
By: Senator Smith
Introduced and read first time: February 21, 2023
Assigned to: Rules
A BILL ENTITLED
AN ACT concerning 1
Sale of Residential Real Property – Offers to Purchase and Transfer Tax 2
FOR the purpose of requiring a person who offers certain residential real property for sale 3
to a third party, during a certain period of time, to accept an offer to purchase the 4
property made only by certain persons; altering the rate of the State transfer tax 5
payable for an instrument of writing for a sale of certain residential real property 6
under certain circumstances; and generally relating to sales of residential real 7
property and the State transfer tax. 8
BY adding to 9
Article – Real Property 10
Section 10–803 11
Annotated Code of Maryland 12
(2015 Replacement Volume and 2022 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Tax – Property 15
Section 13–203(a) 16
Annotated Code of Maryland 17
(2019 Replacement Volume and 2022 Supplement) 18
BY adding to 19
Article – Tax – Property 20
Section 13–203(c) 21
Annotated Code of Maryland 22
(2019 Replacement Volume and 2022 Supplement) 23
SECTION 1. BE IT ENACTED BY THE GENE RAL ASSEMBLY OF MARYLAND, 24
That the Laws of Maryland read as follows: 25
Article – Real Property 26 2 SENATE BILL 945
10–803. 1
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 2
INDICATED. 3
(2) “COMMUNITY DEVELOPMENT ORGANIZATION ” HAS THE MEANING 4
STATED IN § 6–201 OF THE HOUSING AND COMMUNITY DEVELOPMENT ARTICLE. 5
(3) “REAL ESTATE ENTERPRIS E” MEANS A BUSINESS THA T: 6
(I) IS CONDUCTED BY ONE O R MORE INDIVIDUALS ; 7
(II) OWNS REAL PROPERTY , INCLUDING IN A TENAN CY BY THE 8
ENTIRETY; AND 9
(III) IS INVOLVED IN BUYI NG, SELLING, LEASING, OR MANAGING 10
REAL PROPERTY . 11
(B) (1) THIS SECTION APPLIES ONLY TO THE SALE OF IMPROVED, 12
SINGLE–FAMILY RESIDENTIAL R EAL PROPERTY . 13
(2) THIS SECTION DOES NOT APPLY TO A SALE IN A N ACTION TO 14
FORECLOSE A MORTGAGE , A DEED OF TRUST , OR ANY OTHER LIEN. 15
(C) DURING THE FIRST 30 DAYS AFTER A PERSON OFFERS A PROPERTY 16
SUBJECT TO THIS SECT ION FOR SALE TO A TH IRD PARTY, THE PERSON MAY ACCEP T 17
AN OFFER TO PURCHASE THE PROPERTY MADE ON LY BY AN INDIVIDUAL , A 18
COMMUNITY DEVELOPMEN T ORGANIZATION , A NONPROFIT ORGANIZATION , OR A 19
REAL ESTATE ENTERPRI SE THAT OWNS AN INTE REST IN LESS THAN 3% OF ALL 20
RESIDENTIAL REAL PRO PERTY LOCATED WITHIN THE COUNTY IN WHICH THE 21
PROPERTY IS LOCATED . 22
Article – Tax – Property 23
13–203. 24
(a) (1) Except as provided in subsections [(a–1) and (b)] (A–1), (B), AND (C) of 25
this section, the rate of the transfer tax is 0.5% of the consideration payable for the 26
instrument of writing. 27
(2) The consideration: 28
(i) includes the amount of any mortgage or deed of trust assumed 29 SENATE BILL 945 3
by the grantee; and 1
(ii) subject to item (i) of this paragraph, includes only the amount 2
paid or delivered in return for the sale of the property and does not include the amount of 3
any debt forgiven or no longer secured by a mortgage or deed of trust on the property. 4
(C) (1) IN THIS SUBSECTION , “REAL ESTATE ENTERPRI SE” MEANS A 5
BUSINESS THAT : 6
(I) IS CONDUCTED BY ONE OR MORE INDIVIDUALS ; 7
(II) OWNS REAL PROPERTY , INCLUDING IN A TENAN CY BY THE 8
ENTIRETY; AND 9
(III) IS INVOLVED IN BUYIN G, SELLING, LEASING, OR MANAGING 10
REAL PROPERTY . 11
(2) FOR A SALE OF IMPROVE D, SINGLE–FAMILY RESIDENTIAL R EAL 12
PROPERTY TO A REAL E STATE ENTERPRISE OR THE SUBSIDIARY OF A REAL ESTATE 13
ENTERPRISE THAT HAS AN OWNERSHIP INTERES T IN RESIDENTIAL REA L PROPERTY 14
IN THE STATE WITH A TOTAL ASSESSED VALUE EXCEEDING $12,000,000 OR AN 15
OWNERSHIP INTEREST I N MORE THAN 120 SINGLE–FAMILY RESIDENTIAL R EAL 16
PROPERTIES, THE RATE OF THE TRAN SFER TAX IS 15% OF THE CONSIDERATION 17
PAYABLE FOR THE INST RUMENT OF WRITING . 18
(3) THE CONSIDERATION : 19
(I) INCLUDES THE AMOUNT OF ANY MORTGAGE OR D EED OF 20
TRUST ASSUMED BY THE GRANTEE; AND 21
(II) SUBJECT TO ITEM (I) OF THIS PARAGRAPH , INCLUDES ONLY 22
THE AMOUNT PAID OR D ELIVERED IN RETURN F OR THE SALE OF THE P ROPERTY AND 23
DOES NOT INCLUDE THE AMOUNT OF ANY DEB T FORGIVEN OR NO LON GER SECURED 24
BY A MORTGAGE OR DEE D OF TRUST ON THE PR OPERTY. 25
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 26
1, 2023. 27