EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0054*
HOUSE BILL 54
Q1, N1 4lr0603
(PRE–FILED)
By: Delegate Atterbeary
Requested: September 7, 2023
Introduced and read first time: January 10, 2024
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Property Tax – Transfer to Heir – Payment Plans 2
FOR the purpose of exempting an instrument transferring residential real property from 3
the estate of a decedent to an heir of the decedent from certain requirements for the 4
payment of taxes on real property if the heir of the decedent enters into a payment 5
plan to pay all the taxes due and owed on the property; requiring the State Tax Sale 6
Ombudsman to contract with a vendor to operate an installment payment program 7
for the payment of taxes in which any homeowner may enroll; authorizing the 8
governing body of a county or municipal corporation to establish, by law, an 9
installment payment program for taxes in arrears on any residential property; and 10
generally relating to the payment of property taxes. 11
BY repealing and reenacting, without amendments, 12
Article – Real Property 13
Section 3–104(a) and (b) 14
Annotated Code of Maryland 15
(2023 Replacement Volume) 16
BY repealing and reenacting, with amendments, 17
Article – Real Property 18
Section 3–104(c) 19
Annotated Code of Maryland 20
(2023 Replacement Volume) 21
BY repealing and reenacting, with amendments, 22
Article – Tax – Property 23
Section 2–112 24
Annotated Code of Maryland 25
(2019 Replacement Volume and 2023 Supplement) 26
2 HOUSE BILL 54
BY adding to 1
Article – Tax – Property 2
Section 10–209 3
Annotated Code of Maryland 4
(2019 Replacement Volume and 2023 Supplement) 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7
Article – Real Property 8
3–104. 9
(a) (1) The Clerk of the Circuit Court may record an instrument that effects a 10
change of ownership if the instrument is: 11
(i) Endorsed with the certificate of the collector of taxes of the 12
county in which the property is assessed, required under subsection (b) of this section; 13
(ii) 1. Accompanied by a complete intake sheet; or 14
2. Endorsed by the assessment office for the county as 15
provided in subsection (g)(8) of this section; and 16
(iii) Accompanied by a copy of the instrument, and any survey, for 17
submission to the Department of Assessments and Taxation. 18
(2) The Supervisor of Assessments shall transfer ownership of property in 19
the assessment records, effective as of the date of recordation, upon receipt from the Clerk 20
of the Circuit Court of a copy of the instrument, the completed intake sheet, and any survey 21
submitted under paragraph (1) of this subsection. 22
(b) (1) (i) Except as provided in subsection (c) of this section, property may 23
not be transferred on the assessment books or records until: 24
1. All public taxes, assessments, and charges currently due 25
and owed on the property have been paid to the treasurer, tax collector, or director of 26
finance of the county in which the property is assessed; and 27
2. All taxes on personal property in the county due by the 28
transferor have been paid when all land owned by the transferor in the county is being 29
transferred. 30
(ii) The certificate of the collecting agent designated by law, showing 31
that all taxes, assessments, and charges have been paid, shall be endorsed on the deed, and 32
the endorsement shall be sufficient authority for transfer on the assessment books. 33
HOUSE BILL 54 3
(2) (i) Except as provided in subsection (c) of this section, in Allegany, 1
Cecil, Charles, Dorchester, Harford, Howard, Kent, Queen Anne’s, Somerset, and St. 2
Mary’s counties no property may be transferred on the assessment books or records until: 3
1. All public taxes, assessments, any charges due a 4
municipal corporation, and charges due on the property have been paid as required by law; 5
and 6
2. All taxes on personal property in the county due by the 7
transferor have been paid when all land owned by the transferor in the county and 8
municipal corporation is being transferred. 9
(ii) The certificate of the collecting agent and municipal corporation 10
designated by law showing that all taxes, assessments, and charges have been paid, shall 11
be endorsed on the deed and the endorsement shall be sufficient authority for transfer on 12
the assessment books. 13
(c) (1) (i) 1. The requirements for prepayment of personal property 14
taxes in subsection (b) of this section do not apply to grants of land made: 15
[1.] A. By or on behalf of any mortgagee, lien creditor, 16
trustee of a deed of trust, judgment creditor, trustee in bankruptcy or receiver, and any 17
other court–appointed officer in an insolvency or liquidation proceeding; or 18
[2.] B. By a deed in lieu of foreclosure to any holder of a 19
mortgage or deed of trust or to the holder’s assignee or designee. 20
2. THE REQUIREMENTS FOR PAYMENT OF REAL 21
PROPERTY TAXES IN SU BSECTION (B) OF THIS SECTION DO N OT APPLY TO GRANTS 22
OF LAND THAT TRANSFE R RESIDENTIAL REAL P ROPERTY FROM THE EST ATE OF A 23
DECEDENT TO AN HEIR OF THE DECEDENT , IF THE HEIR OF THE D ECEDENT ENTERS 24
INTO A PAYMENT PLAN TO PAY ALL PUBLIC TA XES, ASSESSMENTS , AND CHARGES 25
CURRENTLY DUE AND OW ED ON THE PROPERTY W ITH: 26
A. THE COUNTY OR MUNICIPAL C ORPORATION TO 27
WHICH THE TAXES , ASSESSMENTS , AND CHARGES ARE DUE ; OR 28
B. THE STATE TAX SALE OMBUDSMAN. 29
3. THE CLERK OF THE CIRCUIT COURT SHALL PROVIDE 30
THE HEIR OF A DECEDE NT TO WHOM PROPERTY IS TRANSFERRED UNDER 31
SUBSUBPARAGRAPH 2 OF THIS SUBPARAGRAPH WITH THE TOLL–FREE TELEPHONE 32
NUMBER AND WEBSITE A DDRESS OF THE STATE TAX SALE OMBUDSMAN AND A 33
BRIEF DESCRIPTION OF THE SERVICES AND PRO GRAMS AVAILABLE THRO UGH THE 34
OMBUDSMAN ’S OFFICE. 35 4 HOUSE BILL 54
(ii) Notwithstanding any other provision of law, and except as 1
provided in subparagraph (iii) of this paragraph, after the recordation of a deed or other 2
instrument that effects a grant of land described in subparagraph [(i)] (I)1 of this 3
paragraph, the land shall be free and clear of, and unencumbered by, any lien or claim of 4
lien for any unpaid taxes on personal property. 5
(iii) Subparagraph (ii) of this paragraph does not apply to: 6
1. Any lien for unpaid taxes on personal property that 7
attached to the land by recording and indexing a notice as provided in § 14–804(b) of the 8
Tax – Property Article prior to the recording of the mortgage, lien, deed of trust, or other 9
encumbrance giving rise to the grant of land described in subparagraph [(i)] (I)1 of this 10
paragraph; or 11
2. Unpaid taxes on personal property owed by the transferee 12
or subsequent owner of the land after a grant of land described in subparagraph [(i)] (I)1 13
of this paragraph. 14
(iv) This paragraph does not affect the rights of the personal property 15
tax lienholder to make a claim to any surplus proceeds from a judicial sale of land resulting 16
in a grant of land described in subparagraph [(i)] (I)1 of this paragraph. 17
(2) Subsection (b) of this section does not apply in Charles, St. Mary’s, 18
Dorchester, Harford, Howard, Kent, Prince George’s, Worcester, Carroll, Montgomery, 19
Frederick and Washington counties to any deed executed as a mere condu it or for 20
convenience in holding and passing title, known popularly as a straw deed or, as provided 21
in § 4–108 of this article, a deed making a direct grant in lieu of a straw deed, or to a deed 22
which is a supplementary instrument merely confirming, correcting, or modifying a 23
previously recorded deed, if there is no actual consideration paid or to be paid for the 24
execution of the supplementary instrument. 25
(3) Subsection (b) of this section does not apply in Baltimore City and Anne 26
Arundel, Baltimore, Carroll, Frederick, St. Mary’s, or Washington counties to any deed 27
transferring property to the county when the controller or treasurer of the county has 28
certified that the conveyance does not impair the security for any public taxes, assessments, 29
and charges due on the remaining property of the grantor. 30
(4) (i) Property may be transferred on the assessment books or records 31
in July, August, or September if instead of paying the taxes required under subsection (b)(1) 32
of this section on a property transfer by assumption, a lender or the attorney handling the 33
transfer of title files with the county treasurer, tax collector, or director of finance of the 34
county in which the property is assessed a statement that certifies that the lender 35
maintains a real estate tax escrow account. 36
(ii) Upon receipt of the statement required in subparagraph (i) of 37
this paragraph, the county treasurer, tax collector, or director of finance shall endorse on 38 HOUSE BILL 54 5
the deed an appropriate certification and the endorsement shall be sufficient authority for 1
transfer on the assessment books. 2
(5) (I) [At] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 3
PARAGRAPH , AT the time of transfer of real property subject to a semiannual payment 4
schedule for the payment of property taxes, only those semiannual payments that are due 5
for the current taxable year under § 10–204.3 of the Tax – Property Article must be paid 6
prior to the transfer of the property. 7
(II) THE SEMIANNUAL PAYMEN TS THAT ARE DUE FOR THE 8
CURRENT TAXABLE YEAR UNDER § 10–204.3 OF THE TAX – PROPERTY ARTICLE ARE 9
NOT REQUIRED TO BE P AID BEFORE THE TRANS FER OF THE PROPERTY IF: 10
1. THE PROPERTY IS RESID ENTIAL REAL PROPERTY 11
THAT IS BEING TRANSF ERRED FROM THE ESTAT E OF A DECEDENT TO A N HEIR OF 12
THE DECEDENT ; AND 13
2. THE HEIR OF THE DECEDENT ENTERS INTO A 14
PAYMENT PLAN TO PAY ALL PUBLIC TAXES , ASSESSMENTS , AND CHARGES 15
CURRENTLY DUE AND OW ED ON THE PROPERTY W ITH: 16
A. THE COUNTY OR MUNICIPAL CORPORA TION TO 17
WHICH THE TAXES , ASSESSMENTS , AND CHARGES ARE DUE ; OR 18
B. THE STATE TAX SALE OMBUDSMAN . 19
(III) THE CLERK OF THE CIRCUIT COURT SHALL PROVIDE T HE 20
HEIR OF A DECEDENT T O WHOM PROPERTY IS T RANSFERRED UNDER 21
SUBPARAGRAPH (II) OF THIS PARAGRAPH WI TH THE TOLL –FREE TELEPHONE 22
NUMBER AND WEBSITE A DDRESS OF THE STATE TAX SALE OMBUDSMAN AND A 23
BRIEF DESCRIPTION OF THE SERVICES AND PRO GRAMS AVAILABLE THRO UGH THE 24
OMBUDSMAN ’S OFFICE. 25
Article – Tax – Property 26
2–112. 27
(a) (1) In this section the following words have the meanings indicated. 28
(2) “Homeowner” has the meaning stated in § 9–105 of this article. 29
(3) “Tax” has the meaning stated in § 14–801 of this article. 30
(b) There is a State Tax Sale Ombudsman in the Department. 31
6 HOUSE BILL 54
(c) The Ombudsman: 1
(1) shall be appointed by the Director; 2
(2) shall be in the management service of the State Personnel Management 3
System; and 4
(3) may be removed from office only after a hearing before the Department 5
and a finding of incompetency or other good cause. 6
(d) The Ombudsman shall: 7
(1) assist homeowners to understand the p rocess for collection of 8
delinquent taxes; 9
(2) actively assist homeowners to apply for tax credits, discount programs, 10
and other public benefits that may assist the homeowners to pay delinquent taxes and 11
improve their financial situation; 12
(3) refer homeowners to legal services, housing counseling, and other social 13
services that may assist homeowners to pay delinquent taxes and improve their financial 14
situation; 15
(4) maintain a website that functions as a clearinghouse for information 16
concerning: 17
(i) the process for collection of delinquent taxes; and 18
(ii) services and programs that are available to assist homeowners 19
to pay delinquent taxes and improve their financial situation; and 20
(5) maintain a toll–free telephone number that a homeowner may call to 21
obtain individualized personal assistance with delinquent taxes. 22
(e) A county may, by law, establish a County Tax Sale Ombudsman to fulfill all 23
the responsibilities of the State Tax Sale Ombudsman under subsection (d) of this section 24
with respect to homeowners within the county. 25
(F) (1) THE OMBUDSMAN SHALL CONTR ACT WITH A VENDOR TO 26
OPERATE AN INSTALLME NT PAYMENT PROGRAM F OR THE PAYMENT OF TAXES IN 27
WHICH ANY HOMEOWNER MAY ENROLL. 28
(2) THE INSTALLMENT PAYME NT PROGRAM SHALL ALLOW A 29
HOMEOWNER TO : 30
(I) MAKE ADVANCE PAYMENT S OF TAXES; 31 HOUSE BILL 54 7
(II) MAKE PAYMENTS OF TAX ES CURRENTLY DUE ; OR 1
(III) MAKE PAYMENTS OF TAX ES IN ARREARS. 2
(3) (I) A HOMEOWNER WHOSE DWEL LING IS SUBJECT TO A DEED 3
OF TRUST, A MORTGAGE , OR ANY OTHER ENCUMBR ANCE THAT INCLUDES T HE 4
ESCROWING OF TAX PAY MENTS MAY NOT ENROLL IN THE INSTALLMENT PAYMENT 5
PROGRAM FOR THE ADVA NCE PAYMENT OF TAXES . 6
(II) AN ADVANCE PAYMENT OF TAXES IS CALCULATED BY 7
APPLYING THE CURRENT PROPERTY TAX RATE TO THE ASSE SSMENT OF THE 8
HOMEOWNER ’S PROPERTY FOR THE P RIOR YEAR. 9
(III) IF THE ADVANCE PAYMEN T IS DIFFERENT THAN THE TAXES 10
DUE AS FINALLY DETER MINED, THE VENDOR SHALL : 11
1. BILL THE HOMEOWNER FOR THE UNPAID BALAN CE; 12
OR 13
2. REFUND ANY EXCESS TA X PAID. 14
(IV) THE FAILURE BY A HOME OWNER TO MAKE AN ADVANCE 15
PAYMENT UNDER THE INSTALLMENT PAYMENT PROGRAM MAY NOT BE C ONSIDERED 16
TO BE A FAILURE TO P AY THE PROPERTY TAX WHEN DUE EXCEPT AS P ROVIDED 17
UNDER TITLE 10, SUBTITLE 1 OF THIS ARTICLE. 18
(4) THE COST OF THE CONTRACT WITH THE VE NDOR TO OPERATE THE 19
INSTALLMENT PAYMENT PROGRAM SHALL BE PAI D ENTIRELY BY REASONABLE FEES 20
IMPOSED ON HOMEOWNER S ENROLLED IN THE PR OGRAM. 21
10–209. 22
(A) THE GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORA TION 23
MAY, BY LAW, ESTABLISH AN INSTALL MENT PAYMENT PROGRAM FOR TAXES IN 24
ARREARS ON ANY RESID ENTIAL PROPERTY. 25
(B) ANY FEE OR CHARGE OF ANY KIND THAT IS INC LUDED ON A PROPERTY 26
TAX BILL MAY BE PAID THROUGH THE INSTALLM ENT PAYMENT PROGR AM 27
AUTHORIZED UNDER SUB SECTION (A) OF THIS SECTION. 28
(C) THE GOVERNING BODY OF A COUNTY OR MUNICIPA L CORPORATION MAY 29
PROVIDE, BY LAW, FOR: 30 8 HOUSE BILL 54
(1) ANY ADDITIONAL ELIGI BILITY CRITERIA FOR AN INSTALLMENT 1
PAYMENT PROGRAM UNDE R THIS SECTION; 2
(2) THE PROCE SS FOR ENROLLING IN AN INSTALLMENT PAYME NT 3
PROGRAM; 4
(3) THE FREQUENCY AND DU E DATES OF INSTALLME NT PAYMENTS ; 5
AND 6
(4) ANY OTHER PROVISION NECESSARY TO CARRY O UT THIS SECTION. 7
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 8
1, 2024. 9