EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*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
Committee Report: Favorable with amendments
House action: Adopted
Read second time: February 24, 2024
CHAPTER ______
AN ACT concerning 1
Property Tax – Transfer to Heir or Legatee – Payment Plans 2
FOR the purpose of exempting an instrument a grant of land transferring residential real 3
property from the estate of a decedent to an heir or a legatee of the decedent from 4
certain requirements for the payment of taxes on real property if the heir or legatee 5
of the decedent enters into a payment plan to pay all the taxes due and owed on the 6
property; exempting a grant of land that is subject to a payment plan for property 7
taxes from certain requirements for the payment of taxes if the grantee agrees to 8
assume the grantor’s obligations under the payment plan; requiring the State Tax 9
Sale Ombudsman to contract with a vendor to operate an installment payment 10
program for the payment of taxes in which any homeowner may enroll; authorizing 11
the governing body of a county or municipal corporation to establish, by law, an 12
installment payment program for taxes in arrears on any residential property; and 13
generally relating to the payment of property taxes. 14
BY repealing and reenacting, without amendments, 15
Article – Real Property 16
Section 3–104(a) and (b) 17
Annotated Code of Maryland 18
(2023 Replacement Volume) 19
BY repealing and reenacting, with amendments, 20
Article – Real Property 21
Section 3–104(c) 22 2 HOUSE BILL 54
Annotated Code of Maryland 1
(2023 Replacement Volume) 2
BY repealing and reenacting, with amendments, 3
Article – Tax – Property 4
Section 2–112 5
Annotated Code of Maryland 6
(2019 Replacement Volume and 2023 Supplement) 7
BY adding to 8
Article – Tax – Property 9
Section 10–209 10
Annotated Code of Maryland 11
(2019 Replacement Volume and 2023 Supplement) 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – Real Property 15
3–104. 16
(a) (1) The Clerk of the Circuit Court may record an instrument that effects a 17
change of ownership if the instrument is: 18
(i) Endorsed with the certificate of the collector of taxes of the 19
county in which the property is assessed, required under subsection (b) of this section; 20
(ii) 1. Accompanied by a complete intake sheet; or 21
2. Endorsed by the assessment office for the county as 22
provided in subsection (g)(8) of this section; and 23
(iii) Accompanied by a copy of the instrument, and any survey, for 24
submission to the Department of Assessments and Taxation. 25
(2) The Supervisor of Assessments shall transfer ownership of property in 26
the assessment records, effective as of the date of recordation, upon receipt from the Clerk 27
of the Circuit Court of a copy of the instrument, the completed intake sheet, and any survey 28
submitted under paragraph (1) of this subsection. 29
(b) (1) (i) Except as provided in subsection (c) of this section, property may 30
not be transferred on the assessment books or records until: 31
1. All public taxes, assessments, and charges currently due 32
and owed on the property have been paid to the treasurer, tax collector, or director of 33
finance of the county in which the property is assessed; and 34 HOUSE BILL 54 3
2. All taxes on personal property in the county due by the 1
transferor have been paid when all land owned by the transferor in the county is being 2
transferred. 3
(ii) The certificate of the collecting agent designated by law, showing 4
that all taxes, assessments, and charges have been paid, shall be endorsed on the deed, and 5
the endorsement shall be sufficient authority for transfer on the assessment books. 6
(2) (i) Except as provided in subsection (c) of this section, in Allegany, 7
Cecil, Charles, Dorchester, Harford, Howard, Kent, Queen Anne’s, Somerset, and St. 8
Mary’s counties no property may be transferred on the assessment books or records until: 9
1. All public taxes, assessments, any charges due a 10
municipal corporation, and charges due on the property have been paid as required by law; 11
and 12
2. All taxes on personal property in the county due by the 13
transferor have been paid when all land owned by the transferor in the county and 14
municipal corporation is being transferred. 15
(ii) The certificate of the collecting agent and municipal corporation 16
designated by law showing that all taxes, assessments, and charges have been paid, shall 17
be endorsed on the deed and the endorsement shall be sufficient authority for transfer on 18
the assessment books. 19
(c) (1) (i) 1. The requirements for prepayment of personal property 20
taxes in subsection (b) of this section do not apply to grants of land made: 21
[1.] A. By or on behalf of any mortgagee, lien creditor, 22
trustee of a deed of trust, judgment creditor, trustee in bankruptcy or receiver, and any 23
other court–appointed officer in an insolvency or liquidation proceeding; or 24
[2.] B. By a deed in lieu of foreclosure to any holder of a 25
mortgage or deed of trust or to the holder’s assignee or designee. 26
2. THE REQUIREMENTS FOR PAYMENT OF REAL 27
PROPERTY TAXES IN SU BSECTION (B) OF THIS SECTION DO N OT APPLY TO GRANTS 28
OF LAND THAT TRANSFER RESIDENTIAL REAL PROPERTY FROM T HE ESTATE OF A 29
DECEDENT TO AN HEIR OR A LEGATEE OF THE DECEDENT , IF THE HEIR OR LEGATEE 30
OF THE DECEDENT ENTE RS INTO A PAYMENT PL AN TO PAY ALL PUBLIC TAXES, 31
ASSESSMENTS , AND CHARGES CURRENTL Y DUE AND OWED ON TH E PROPERTY WITH: 32
A. THE COUNTY OR MUNICIP AL CORPORATION TO 33
WHICH THE TAXES , ASSESSMENTS , AND CHARGES ARE DUE ; OR 34
4 HOUSE BILL 54
B. THE STATE TAX SALE OMBUDSMAN . 1
3. THE CLERK OF THE CIRCUIT COURT COLLECTOR OF 2
TAXES FOR THE COUNTY OR MUNICIPAL CORPORA TION TO WHICH THE TAXES , 3
ASSESSMENTS , OR CHARGES ARE DUE SHALL PROVIDE THE HE IR OR LEGATEE OF A 4
DECEDENT TO WHOM PRO PERTY IS TRANSFERRED UNDER SUBSUBPARAGRAP H 2 OF 5
THIS SUBPARAGRAPH WI TH THE TOLL–FREE TELEPHONE NUMBE R AND WEBSITE 6
ADDRESS OF THE STATE TAX SALE OMBUDSMAN AND A BRIEF DE SCRIPTION OF THE 7
SERVICES AND PROGRAM S AVAILABLE THROUGH THE OMBUDSMAN ’S OFFICE. 8
4. WHEN AN HEIR OR A LEG ATEE OF A DECEDENT 9
ENTERS INTO A PAYMEN T PLAN WITH A COUNTY , A MUNICIPAL CORPORAT ION, OR 10
THE STATE TAX SALE OMBUDSMAN UNDER S UBSUBPARAGRAPH 2 OF THIS 11
SUBPARAGRAPH , THE COLLECTOR OF TAX ES FOR THE COUNTY OR MUNICIPAL 12
CORPORATION OR THE STATE TAX SALE OMBUDSMAN SHALL PROVI DE THE HEIR OR 13
LEGATEE WITH AN AFFI DAVIT OF THE PAYMENT PLAN, WHICH THE HEIR OR 14
LEGATEE SHALL PROVID E TO THE CLERK OF THE CIRCUIT COURT TO RECORD AN 15
INSTRUMENT TRANSFERR ING OWNERSHIP TO THE HEIR OR LEGATEE . 16
(ii) Notwithstanding any other provision of law, and except as 17
provided in subparagraph (iii) of this paragraph, after the recordation of a deed or other 18
instrument that effects a grant of land described in subparagraph [(i)] (I)1 of this 19
paragraph, the land shall be free and clear of, and unencumbered by, any lien or claim of 20
lien for any unpaid taxes on personal property. 21
(iii) Subparagraph (ii) of this paragraph does not apply to: 22
1. Any lien for unpaid taxes on personal property that 23
attached to the land by recording and indexing a notice as provided in § 14–804(b) of the 24
Tax – Property Article prior to the recording of the mortgage, lien, deed of trust, or other 25
encumbrance giving rise to the grant of land described in subparagraph [(i)] (I)1 of this 26
paragraph; or 27
2. Unpaid taxes on personal property owed by the transferee 28
or subsequent owner of the land after a grant of land described in subparagraph [(i)] (I)1 29
of this paragraph. 30
(iv) This paragraph does not affect the rights of the personal property 31
tax lienholder to make a claim to any surplus proceeds from a judicial sale of land resulting 32
in a grant of land described in subparagraph [(i)] (I)1 of this paragraph. 33
(2) Subsection (b) of this section does not apply in Charles, St. Mary’s, 34
Dorchester, Harford, Howard, Kent, Prince George’s, Worcester, Carroll, Montgomery, 35
Frederick and Washington counties to any deed executed as a mere conduit or for 36
convenience in holding and passing title, known popularly as a straw deed or, as provided 37 HOUSE BILL 54 5
in § 4–108 of this article, a deed making a direct grant in lieu of a straw deed, or to a deed 1
which is a supplementary instrument merely confirming, correcting, or modifying a 2
previously recorded deed, if there is no actual consideration paid or to be paid for the 3
execution of the supplementary instrument. 4
(3) Subsection (b) of this section does not apply in Baltimore City and Anne 5
Arundel, Baltimore, Carroll, Frederick, St. Mary’s, or Washington counties to any deed 6
transferring property to the county when the controller or treasurer of the county has 7
certified that the conveyance does not impair the security for any public taxes, assessments, 8
and charges due on the remaining property of the grantor. 9
(4) (i) Property may be transferred on the assessment books or records 10
in July, August, or September if instead of paying the taxes required under subsection (b)(1) 11
of this section on a property transfer by assumption, a lender or the attorney handling the 12
transfer of title files with the county treasurer, tax collector, or director of finance of the 13
county in which the property is assessed a statement that certifies that the lender 14
maintains a real estate tax escrow account. 15
(ii) Upon receipt of the statement required in subparagraph (i) of 16
this paragraph, the county treasurer, tax collector, or director of finance shall endorse on 17
the deed an appropriate certification and the endorsement shall be sufficient authority for 18
transfer on the assessment books. 19
(5) (I) [At] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 20
PARAGRAPH , AT the time of transfer of real property subject to a semiannual payment 21
schedule for the payment of property taxes, only those semiannual payments that are due 22
for the current taxable year under § 10–204.3 of the Tax – Property Article must be paid 23
prior to the transfer of the property. 24
(II) THE SEMIANNUAL PAYMEN TS THAT ARE DUE FOR THE 25
CURRENT TAXABLE YEAR UNDER § 10–204.3 OF THE TAX – PROPERTY ARTICLE ARE 26
NOT REQUIRED TO BE P AID BEFORE THE TRANS FER OF THE PROPERTY IF: 27
1. THE PROPERTY IS RESID ENTIAL REAL PROPERTY 28
THAT IS BEING TRANSF ERRED FROM THE ESTAT E OF A DECEDENT TO A N HEIR OR A 29
LEGATEE OF THE DECE DENT; AND 30
2. THE HEIR OR LEGATEE OF THE DECEDENT ENTE RS 31
INTO A PAYMENT PLAN TO PAY ALL PUBLIC TA XES, ASSESSMENTS , AND CHARGES 32
CURRENTLY DUE AND OW ED ON THE PROPERTY W ITH: 33
A. THE COUNTY OR MUNICIP AL CORPORATION TO 34
WHICH THE TAXES , ASSESSMENTS , AND CHARGES ARE DUE ; OR 35
B. THE STATE TAX SALE OMBUDSMAN . 36
6 HOUSE BILL 54
(III) THE CLERK OF THE CIRCUIT COURT COLLECTOR OF TAXES 1
FOR THE COUNTY OR MU NICIPAL CORPORATION TO WHICH THE TAXES , 2
ASSESSMENTS , OR CHARGES ARE DUE SHALL PROVIDE THE HE IR OR LEGATEE OF A 3
DECEDENT TO WHOM PRO PERTY IS TRANSFERRED UNDER SUBPARAGRAPH (II) OF 4
THIS PARAGRAPH WITH THE TOLL–FREE TELEPHONE NUMBE R AND WEBSITE 5
ADDRESS OF THE STATE TAX SALE OMBUDSMAN AND A BRIEF DESCRIPTION OF THE 6
SERVICES AND PROGRAM S AVAILABLE THROUGH THE OMBUDSMAN’S OFFICE. 7
(IV) WHEN AN HEIR OR A LEG ATEE OF A DECEDENT E NTERS 8
INTO A PAYMENT PLAN WITH A COUNTY, A MUNICIPAL CORPORAT ION, OR THE STATE 9
TAX SALE OMBUDSMAN UNDER SUBPA RAGRAPH (II) OF THIS PARAGRAPH , THE 10
COLLECTOR OF TAXES F OR THE COUNTY OR MUN ICIPAL CORPORATION OR THE 11
STATE TAX SALE OMBUDSMAN SHALL PROVI DE THE HEIR OR LEGAT EE WITH AN 12
AFFIDAVIT OF THE PAY MENT PLAN, WHICH THE HEIR OR LE GATEE SHALL PROVIDE 13
TO THE CLERK OF THE CIRCUIT COURT TO RECORD AN IN STRUMENT 14
TRANSFERRING OWNERSH IP TO THE HEIR OR L EGATEE. 15
(6) (I) THE REQUIREMENTS FOR PAYMENT OF REAL PROP ERTY 16
TAXES IN SUBSECTION (B) OF THIS SECTION DO N OT APPLY TO A GRANT OF LAND 17
THAT IS SUBJECT TO A PAYMENT PLAN FOR PRO PERTY TAXES WITH A C OUNTY, A 18
MUNICIPAL CORPORATIO N, OR THE STATE TAX SALE OMBUDSMAN IF THE GRANTEE 19
ENTERS INTO AN AGREE MENT WITH THE COUNTY , MUNICIPAL CORPORATIO N, OR 20
THE STATE TAX SALE OMBUDSMAN TO ASSUME T HE GRANTOR ’S OBLIGATIONS 21
UNDER THE PAYMENT PL AN. 22
(II) THE COLLECTOR OF TAXE S FOR THE COUNTY OR 23
MUNICIPAL CORPORATIO N OR THE STATE TAX SALE OMBUDSMAN SHALL PROVI DE 24
THE GRANTEE WITH AN AFFIDAVIT OF THE PAY MENT PLAN, WHICH THE GRANTEE 25
SHALL PROVIDE TO THE CLERK OF THE CIRCUIT COURT TO RECORD AN 26
INSTRUMENT TRANSFERR ING OWNERSHIP TO THE GRANTEE. 27
Article – Tax – Property 28
2–112. 29
(a) (1) In this section the following words have the meanings indicated. 30
(2) “Homeowner” has the meaning stated in § 9–105 of this article. 31
(3) “Tax” has the meaning stated in § 14–801 of this article. 32
(b) There is a State Tax Sale Ombudsman in the Department. 33
(c) The Ombudsman: 34
HOUSE BILL 54 7
(1) shall be appointed by the Director; 1
(2) shall be in the management service of the State Personnel Management 2
System; and 3
(3) may be removed from office only after a hearing before the Department 4
and a finding of incompetency or other good cause. 5
(d) The Ombudsman shall: 6
(1) assist homeowners to understand the process for collection of 7
delinquent taxes; 8
(2) actively assist homeowners to apply for tax credits, discount programs, 9
and other public benefits that may assist the homeowners to pay delinquent taxes and 10
improve their financial situation; 11
(3) refer homeowners to legal services, housing counseling, and other social 12
services that may assist homeowners to pay delinquent taxes and improve their financial 13
situation; 14
(4) maintain a website that functions as a clearinghouse for information 15
concerning: 16
(i) the process for collection of delinquent taxes; and 17
(ii) services and programs that are available to assist homeowners 18
to pay delinquent taxes and improve their financial situation; and 19
(5) maintain a toll–free telephone number that a homeowner may call to 20
obtain individualized personal assistance with delinquent taxes. 21
(e) A county may, by law, establish a County Tax Sale Ombudsman to fulfill all 22
the responsibilities of the State Tax Sale Ombudsman under subsection (d) of this section 23
with respect to homeowners within the county. 24
(F) (1) THE OMBUDSMAN SHALL CONTR ACT WITH A VENDOR TO 25
OPERATE AN INSTALLME NT PAYMENT PROGRAM F OR THE PAYM ENT OF TAXES IN 26
WHICH ANY HOMEOWNER MAY ENROLL. 27
(2) THE INSTALLMENT PAYME NT PROGRAM SHALL ALL OW A 28
HOMEOWNER TO : 29
(I) MAKE ADVANCE PAYMENT S OF TAXES; 30
(II) MAKE PAYMENTS OF TAX ES CURRENTLY DUE ; OR 31 8 HOUSE BILL 54
(III) MAKE PAYMENTS OF TAX ES IN ARREARS. 1
(3) (I) A HOMEOWNER WHOSE DWEL LING IS SUBJECT TO A DEED 2
OF TRUST, A MORTGAGE , OR ANY OTHER ENCUMBR ANCE THAT INCLUDES T HE 3
ESCROWING OF TAX PAY MENTS MAY NOT ENROLL IN THE INSTALLMENT P AYMENT 4
PROGRAM FOR THE ADVA NCE PAYMENT OF TAXES . 5
(II) AN ADVANCE PAYM ENT OF TAXES IS CALC ULATED BY 6
APPLYING THE CURRENT PROPERTY TAX RATE TO THE ASSESSMENT OF TH E 7
HOMEOWNER ’S PROPERTY FOR THE P RIOR YEAR. 8
(III) IF THE ADVANCE PAYMEN T IS DIFFERENT THAN THE TAXES 9
DUE AS FINALLY DETER MINED, THE VENDOR SHALL : 10
1. BILL THE HOMEOWNER FOR THE UNPAID BALANCE ; 11
OR 12
2. REFUND ANY EXCESS TA X PAID. 13
(IV) THE FAILURE BY A HOME OWNER TO MAKE AN ADV ANCE 14
PAYMENT UNDER THE IN STALLMENT PAYMENT PR OGRAM MAY NOT BE CON SIDERED 15
TO BE A FAILURE TO P AY THE PROPERTY TAX WHEN DUE EXCEPT AS P ROVIDED 16
UNDER TITLE 10, SUBTITLE 1 OF THIS ARTICLE. 17
(4) THE OMBUDSMAN SHALL NO TIFY THE COLLECTOR T O WHOM THE 18
TAXES ARE OWED WHEN A HOMEOWNER ENTERS I NTO AN INSTALLMENT P AYMENT 19
PLAN UNDER THIS SUBS ECTION. 20
(5) IF A HOMEOWNER IS IN COMPLIANCE WITH THE TERMS OF AN 21
INSTALLMENT PAYMENT PLAN, THE COLLECTOR MAY NO T TAKE ACTION UNDER 22
TITLE 14, SUBTITLE 8 OF THIS ARTICLE TO C OLLECT ANY PROPERTY TAXES IN 23
ARREARS THAT ARE INC LUDED IN THE INSTALL MENT PAYMENT PLAN . 24
(6) A HOMEOWNER IS NOT IN COMPLIANCE WITH THE TERMS OF AN 25
INSTALLMENT PAYMENT PLAN IF THE HOMEOWNE R FAILS TO MAKE A PA YMENT FOR 26
A PERIOD OF 90 DAYS AFTER THE DATE THE PAYMENT IS DUE , OR A LONGER PERIOD 27
DETERMINED BY THE OMBUDSMAN . 28
(7) IF A HOMEOWNER IS NOT IN COMPLIANCE WITH T HE TERMS OF AN 29
INSTALLMENT PAYMENT PLAN: 30
(I) THE OMBUDSMAN : 31
HOUSE BILL 54 9
1. MAY TERMINATE THE IN STALLMENT PAYMENT PL AN; 1
AND 2
2. SHALL NOTIFY THE COL LECTOR TO WHOM THE T AXES 3
ARE OWED; AND 4
(II) THE COLLECTOR MAY TA KE ACTION UNDER TITLE 14, 5
SUBTITLE 8 OF THIS ARTICLE TO C OLLECT ANY PROPERTY TAXES IN ARREARS THA T 6
WERE INCLUDED IN THE INSTALLMENT PAYMENT PLAN. 7
(4) (8) THE COST OF THE CONTR ACT WITH THE VENDOR TO 8
OPERATE THE INSTALLM ENT PAYMENT PROGRAM SHALL BE PAID ENTIRE LY BY 9
REASONABLE FEES IMPOSED ON HOMEOWNERS ENROLLED IN THE PROGRAM . 10
10–209. 11
(A) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 12
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY , BY LAW, 13
ESTABLISH AN INSTALL MENT PAYMENT PROGRAM FOR TAXES IN ARREARS ON ANY 14
RESIDENTIAL PROPERTY . 15
(B) ANY FEE OR CHARGE OF ANY KIND THAT IS INC LUDED ON A PROPERTY 16
TAX BILL MAY BE PAID THROUGH THE INSTALLMENT PAYMENT PROGRAM 17
AUTHORIZED UNDER SUB SECTION (A) OF THIS SECTION. 18
(C) (1) IF A PERSON IS IN COM PLIANCE WITH THE TER MS OF AN 19
INSTALLMENT PAYMENT PROGRAM UNDER THIS S ECTION, THE COLLECTOR MAY 20
NOT TAKE ACTION UNDE R TITLE 14, SUBTITLE 8 OF THIS ARTICLE TO COLLECT A NY 21
PROPERTY TAXES IN AR REARS THAT ARE INCLU DED IN THE INSTALLME NT PAYMENT 22
PROGRAM. 23
(2) A PERSON IS NOT IN COM PLIANCE WITH THE TER MS OF AN 24
INSTALLMENT PAYMENT PROGRAM IF THE PERSO N FAILS TO MAKE A PA YMENT FOR 25
A PERIOD OF 90 DAYS AFTER THE DATE THE PAYMENT IS DUE, OR A LONGER PERIOD 26
DETERMINED BY THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 27
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION . 28
(3) IF A PERSON IS NOT IN COMPLIANCE WITH THE TERMS OF AN 29
INSTALLMENT PAYMENT PROGRAM, THE COLLECTOR MAY : 30
(I) TERMINATE THE PERSON ’S ENROLLMENT IN THE 31
INSTALLMENT PAYMENT PROGRAM; AND 32
10 HOUSE BILL 54
(II) TAKE ACTION UNDER TITLE 14, SUBTITLE 8 OF THIS 1
ARTICLE TO COLLECT T HE PROPERTY TAXES IN ARREARS THAT WERE IN CLUDED IN 2
THE INSTALLMENT PAYM ENT PROGRAM. 3
(C) (D) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 4
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORA TION MAY PROVIDE , BY 5
LAW, FOR: 6
(1) ANY ADDITIONAL ELIGI BILITY CRITERIA FOR AN INSTALLMENT 7
PAYMENT PROGRAM UNDE R THIS SECTION; 8
(2) THE PROCESS FOR ENRO LLING IN AN INSTALLM ENT PAYMENT 9
PROGRAM; 10
(3) THE FREQUENCY AND DU E DATES OF INSTALLME NT PAYMENTS ; 11
AND 12
(4) ANY OTHER PROVISION NECESSARY TO CARRY O UT THIS SECTION. 13
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 14
1, 2024. 15
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.