EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[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.
Italics indicate opposite chamber/conference committee amendments.
*hb0054*
HOUSE BILL 54
Q1, N1 (4lr0603)
ENROLLED BILL
— Ways and Means/Budget and Taxation —
Introduced by Delegate Atterbeary Delegates Atterbeary and Hill
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
Speaker.
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
2 HOUSE BILL 54
BY repealing and reenacting, without amendments, 1
Article – Real Property 2
Section 3–104(a) and (b) 3
Annotated Code of Maryland 4
(2023 Replacement Volume) 5
BY repealing and reenacting, with amendments, 6
Article – Real Property 7
Section 3–104(c) 8
Annotated Code of Maryland 9
(2023 Replacement Volume) 10
BY repealing and reenacting, with amendments, 11
Article – Tax – Property 12
Section 2–112 13
Annotated Code of Maryland 14
(2019 Replacement Volume and 2023 Supplement) 15
BY adding to 16
Article – Tax – Property 17
Section 10–209 18
Annotated Code of Maryland 19
(2019 Replacement Volume and 2023 Supplement) 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
Article – Real Property 23
3–104. 24
(a) (1) The Clerk of the Circuit Court may record an instrument that effects a 25
change of ownership if the instrument is: 26
(i) Endorsed with the certificate of the collector of taxes of the 27
county in which the property is assessed, required under subsection (b) of this section; 28
(ii) 1. Accompanied by a complete intake sheet; or 29
2. Endorsed by the assessment office for the county as 30
provided in subsection (g)(8) of this section; and 31
(iii) Accompanied by a copy of the instrument, and any survey, for 32
submission to the Department of Assessments and Taxation. 33
(2) The Supervisor of Assessments shall transfer ownership of property in 34
the assessment records, effective as of the date of recordation, upon receipt from the Clerk 35 HOUSE BILL 54 3
of the Circuit Court of a copy of the instrument, the completed intake sheet, and any survey 1
submitted under paragraph (1) of this subsection. 2
(b) (1) (i) Except as provided in subsection (c) of this section, property may 3
not be transferred on the assessment books or records until: 4
1. All public taxes, assessments, and charges currently due 5
and owed on the property have been paid to the treasurer, tax collector, or director of 6
finance of the county in which the property is assessed; and 7
2. All taxes on personal property in the county due by the 8
transferor have been paid when all land owned by the transferor in the county is being 9
transferred. 10
(ii) The certificate of the collecting agent designated by law, showing 11
that all taxes, assessments, and charges have been paid, shall be endorsed on the deed, and 12
the endorsement shall be sufficient authority for transfer on the assessment books. 13
(2) (i) Except as provided in subsection (c) of this section, in Allegany, 14
Cecil, Charles, Dorchester, Harford, Howard, Kent, Queen Anne’s, Somerset, and St. 15
Mary’s counties no property may be transferred on the assessment books or records until: 16
1. All public taxes, assessments, any charges due a 17
municipal corporation, and charges due on the property have been paid as required by law; 18
and 19
2. All taxes on personal property in the county due by the 20
transferor have been paid when all land owned by the transferor in the county and 21
municipal corporation is being transferred. 22
(ii) The certificate of the collecting agent and municipal corporation 23
designated by law showing that all taxes, assessments, and charges have been paid, shall 24
be endorsed on the deed and the endorsement shall be sufficient authority for transfer on 25
the assessment books. 26
(c) (1) (i) 1. The requirements for prepayment of personal property 27
taxes in subsection (b) of this section do not apply to grants of land made: 28
[1.] A. By or on behalf of any mortgagee, lien creditor, 29
trustee of a deed of trust, judgment creditor, trustee in bankruptcy or receiver, and any 30
other court–appointed officer in an insolvency or liquidation proceeding; or 31
[2.] B. By a deed in lieu of foreclosure to any holder of a 32
mortgage or deed of trust or to the holder’s assignee or designee. 33
4 HOUSE BILL 54
2. THE REQUIREMENTS FOR PAYMENT OF REAL 1
PROPERTY TAXES IN SU BSECTION (B) OF THIS SECTION DO N OT APPLY TO GRANTS 2
OF LAND THAT TRANSFE R RESIDENTIAL REAL P ROPERTY FROM THE EST ATE OF A 3
DECEDENT TO AN HEIR OR A LEGATEE OF THE DECEDENT , IF THE HEIR OR LEGATEE 4
OF THE DECEDENT ENTERS IN TO A PAYMENT PLAN TO PAY ALL PUBLIC TAXES , 5
ASSESSMENTS , AND CHARGES CURRENTL Y DUE AND OWED ON TH E PROPERTY WITH : 6
A. THE COUNTY OR MUNICIP AL CORPORATION TO 7
WHICH THE TAXES , ASSESSMENTS , AND CHARGES ARE DUE ; OR 8
B. THE STATE TAX SALE OMBUDSMAN . 9
3. THE CLERK OF THE CIRCUIT COURT COLLECTOR OF 10
TAXES FOR THE COUNTY OR MUNICIPAL CORPORA TION TO WHICH THE TA XES, 11
ASSESSMENTS , OR CHARGES ARE DUE SHALL PROVIDE THE HE IR OR LEGATEE OF A 12
DECEDENT TO WHOM PRO PERTY IS TRANSFERRED UNDER SUBSUBPARAGRAP H 2 OF 13
THIS SUBPARAGRAPH WI TH THE TOLL–FREE TELEPHONE NUMBE R AND WEBSITE 14
ADDRESS OF THE STATE TAX SALE OMBUDSMAN AND A BRIEF DESCRIPTION OF THE 15
SERVICES AND PROGRAM S AVAILABLE THROUGH THE OMBUDSMAN’S OFFICE. 16
4. WHEN AN HEIR OR A LEG ATEE OF A DECEDENT 17
ENTERS INTO A PAYMEN T PLAN WITH A COUNTY , A MUNICIPAL CORPORAT ION, OR 18
THE STATE TAX SALE OMBUDSMAN UNDER SUBSU BPARAGRAPH 2 OF THIS 19
SUBPARAGRAPH , THE COLLECTOR OF TAX ES FOR THE COUNTY OR MUNICIPAL 20
CORPORATION OR THE STATE TAX SALE OMBUDSMAN SHALL PROVI DE THE HEIR OR 21
LEGATEE WITH AN AFFI DAVIT OF THE PAYMENT PLAN, WHICH THE HEIR OR 22
LEGATEE SHALL PROVID E TO THE CLERK OF THE CIRCUIT COURT TO RECORD AN 23
INSTRUMENT TRANSFERR ING OWNERSHIP TO THE HEIR OR LEGATEE. 24
(ii) Notwithstanding any other provision of law, and except as 25
provided in subparagraph (iii) of this paragraph, after the recordation of a deed or other 26
instrument that effects a grant of land described in subparagraph [(i)] (I)1 of this 27
paragraph, the land shall be free and clear of, and unencumbered by, any lien or claim of 28
lien for any unpaid taxes on personal property. 29
(iii) Subparagraph (ii) of this paragraph does not apply to: 30
1. Any lien for unpaid taxes on personal property that 31
attached to the land by recording and indexing a notice as provided in § 14–804(b) of the 32
Tax – Property Article prior to the recording of the mortgage, lien, deed of trust, or other 33
encumbrance giving rise to the grant of land described in subparagraph [(i)] (I)1 of this 34
paragraph; or 35
HOUSE BILL 54 5
2. Unpaid taxes on personal property owed by the transferee 1
or subsequent owner of the land after a grant of land described in subparagraph [(i)] (I)1 2
of this paragraph. 3
(iv) This paragraph does not affect the rights of the personal property 4
tax lienholder to make a claim to any surplus proceeds from a judicial sale of land resulting 5
in a grant of land described in subparagraph [(i)] (I)1 of this paragraph. 6
(2) Subsection (b) of this section does not apply in Charles, St. Mary’s, 7
Dorchester, Harford, Howard, Kent, Prince George’s, Worcester, Carroll, Montgomery, 8
Frederick and Washington counties to any deed executed as a mere conduit or for 9
convenience in holding and passing title, known popularly as a straw deed or, as provided 10
in § 4–108 of this article, a deed making a direct grant in lieu of a straw deed, or to a deed 11
which is a supplementary instrument merely confirming, correcting, or modifying a 12
previously recorded deed, if there is no actual consideration paid or to be paid for the 13
execution of the supplementary instrument. 14
(3) Subsection (b) of this section does not apply in Baltimore City and Anne 15
Arundel, Baltimore, Carroll, Frederick, St. Mary’s, or Washington counties to any deed 16
transferring property to the county when the controller or treasurer of the county has 17
certified that the conveyance does not impair the security for any public taxes, assessments, 18
and charges due on the remaining property of the grantor. 19
(4) (i) Property may be transferred on the assessment books or records 20
in July, August, or September if instead of paying the taxes required under subsection (b)(1) 21
of this section on a property transfer by assumption, a lender or the attorney handling the 22
transfer of title files with the county treasurer, tax collector, or director of finance of the 23
county in which the property is assessed a statement that certifies that the lender 24
maintains a real estate tax escrow account. 25
(ii) Upon receipt of the statement required in subparagraph (i) of 26
this paragraph, the county treasurer, tax collector, or director of finance shall endorse on 27
the deed an appropriate certification and the endorsement shall be sufficient authority for 28
transfer on the assessment books. 29
(5) (I) [At] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 30
PARAGRAPH , AT the time of transfer of real property subject to a semiannual payment 31
schedule for the payment of property taxes, only those semiannual payments that are due 32
for the current taxable year under § 10–204.3 of the Tax – Property Article must be paid 33
prior to the transfer of the property. 34
(II) THE SEMIANNUAL PAYMEN TS THAT ARE DUE FOR THE 35
CURRENT TAXABLE YEAR UNDER § 10–204.3 OF THE TAX – PROPERTY ARTICLE ARE 36
NOT REQUIRED TO BE P AID BEFORE THE TR ANSFER OF THE PROPER TY IF: 37
6 HOUSE BILL 54
1. THE PROPERTY IS RESID ENTIAL REAL PROPERTY 1
THAT IS BEING TRANSF ERRED FROM THE ESTAT E OF A DECEDENT TO A N HEIR OR A 2
LEGATEE OF THE DECEDENT ; AND 3
2. THE HEIR OR LEGATEE OF THE DECEDENT ENTE RS 4
INTO A PAYMENT PLAN TO PAY ALL PUBLIC TAXES , ASSESSMENTS , AND CHARGES 5
CURRENTLY DUE AND OW ED ON THE PROPERTY W ITH: 6
A. THE COUNTY OR MUNICIP AL CORPORATION TO 7
WHICH THE TAXES , ASSESSMENTS , AND CHARGES ARE DUE ; OR 8
B. THE STATE TAX SALE OMBUDSMAN . 9
(III) THE CLERK OF THE CIRCUIT COURT COLLECTOR OF TAXES 10
FOR THE COUNTY OR MU NICIPAL CORPORATION TO WHICH THE TAXES , 11
ASSESSMENTS , OR CHARGES ARE DUE SHALL PROVIDE THE HE IR OR LEGATEE OF A 12
DECEDENT TO WHOM PRO PERTY IS TRANSFERRED UNDER SUBPARAGRAPH (II) OF 13
THIS PARAGRAPH WITH THE TOLL–FREE TELEPHONE NUMBE R AND WEBSITE 14
ADDRESS OF THE STATE TAX SALE OMBUDSMAN AND A BRIEF DESCRIPTION OF THE 15
SERVICES AND PROGRAM S AVAILABLE THROUGH THE OMBUDSMAN’S OFFICE. 16
(IV) WHEN AN HEIR OR A LEG ATEE OF A DECEDENT E NTERS 17
INTO A PAYMENT PLAN WITH A COUNTY, A MUNICIPAL CORPORAT ION, OR THE STATE 18
TAX SALE OMBUDSMAN UNDER SUBPA RAGRAPH (II) OF THIS PARAGRAPH , THE 19
COLLECTOR OF TAXES F OR THE COUNTY OR MUN ICIPAL CORPORATION OR THE 20
STATE TAX SALE OMBUDSMAN SHALL PROVI DE THE HEIR OR LEGAT EE WITH AN 21
AFFIDAVIT OF THE PAY MENT PLAN, WHICH THE HEIR OR LE GATEE SHALL PROVIDE 22
TO THE CLERK OF THE CIRCUIT COURT TO RECORD AN IN STRUMENT 23
TRANSFERRING OWNERSH IP TO THE HEIR OR L EGATEE. 24
(6) (I) THE REQUIREMENTS FOR PAYMENT OF REAL PROP ERTY 25
TAXES IN SUBSECTION (B) OF THIS SECTION DO N OT APPLY TO A GRANT OF LAND 26
THAT IS SUBJECT TO A PAYMENT PLAN FOR PRO PERTY TAXES WITH A C OUNTY, A 27
MUNICIPAL CORPORATIO N, OR THE STATE TAX SALE OMBUDSMAN IF THE GRANTEE 28
ENTERS INTO AN AGREE MENT WITH THE COUNTY , MUNICIPAL CORPORATIO N, OR 29
THE STATE TAX SALE OMBUDSMAN TO ASSUME T HE GRANTOR ’S OBLIGATIONS 30
UNDER THE PAYMENT PL AN. 31
(II) THE COLLECTOR OF TAXE S FOR THE COUNTY OR 32
MUNICIPAL CORPORATIO N OR THE STATE TAX SALE OMBUDSMAN SHALL PROVI DE 33
THE GRANTEE WITH AN AFFIDAVIT OF THE PAY MENT PLAN, WHICH THE GRANTEE 34
SHALL PROVIDE TO THE CLERK OF THE CIRCUIT COURT TO RECORD AN 35
INSTRUMENT TRANSFERR ING OWNERSHIP TO THE GRANTEE. 36
HOUSE BILL 54 7
Article – Tax – Property 1
2–112. 2
(a) (1) In this section the following words have the meanings indicated. 3
(2) “Homeowner” has the meaning stated in § 9–105 of this article. 4
(3) “Tax” has the meaning stated in § 14–801 of this article. 5
(b) There is a State Tax Sale Ombudsman in the Department. 6
(c) The Ombudsman: 7
(1) shall be appointed by the Director; 8
(2) shall be in the management service of the State Personnel Management 9
System; and 10
(3) may be removed from office only after a hearing before the Department 11
and a finding of incompetency or other good cause. 12
(d) The Ombudsman shall: 13
(1) assist homeowners to understand the process for collection of 14
delinquent taxes; 15
(2) actively assist homeowners to apply for tax credits, discount programs, 16
and other public benefits that may assist the homeowners to pay delinquent taxes and 17
improve their financial situation; 18
(3) refer homeowners to legal services, housing counseling, and other social 19
services that may assist homeowners to pay delinquent taxes and improve their financial 20
situation; 21
(4) maintain a website that functions as a clearinghouse for information 22
concerning: 23
(i) the process for collection of delinquent taxes; and 24
(ii) services and programs that are available to assist homeowners 25
to pay delinquent taxes and improve their financial situation; and 26
(5) maintain a toll–free telephone number that a homeowner may call to 27
obtain individualized personal assistance with delinquent taxes. 28
8 HOUSE BILL 54
(e) A county may, by law, establish a County Tax Sale Ombudsman to fulfill all 1
the responsibilities of the State Tax Sale Ombudsman under subsection (d) of this section 2
with respect to homeowners within the county. 3
(F) (1) THE OMBUDSMAN SHALL CONTR ACT WITH A VENDOR TO 4
OPERATE AN INSTALLME NT PAYMENT PROGRAM F OR THE PAYMENT OF TA XES IN 5
WHICH ANY HOMEOWNER MAY ENROLL. 6
(2) THE INSTALLMENT PAYME NT PROGRAM SHALL ALL OW A 7
HOMEOWNER TO : 8
(I) MAKE ADVANCE PAYMENT S OF TAXES; 9
(II) MAKE PAYMENTS OF TAX ES CURRENTLY DUE ; OR 10
(III) MAKE PAYMENTS OF TAX ES IN ARREARS. 11
(3) (I) A HOMEOWNER WHOSE DWEL LING IS SUBJECT TO A DEED 12
OF TRUST, A MORTGAGE , OR ANY OTHER ENCUMBR ANCE THAT INCLUDES T HE 13
ESCROWING OF TAX PAY MENTS MAY NOT ENROLL IN THE INSTALLMENT P AYMENT 14
PROGRAM FOR THE ADVA NCE PAYMENT OF TAXES . 15
(II) AN ADVANCE PAYMENT OF TA XES IS CALCULATED BY 16
APPLYING THE CURRENT PROPERTY TAX RATE TO THE ASSESSMENT OF TH E 17
HOMEOWNER ’S PROPERTY FOR THE P RIOR YEAR. 18
(III) IF THE ADVANCE PAYMEN T IS DIFFERENT THAN THE TAXES 19
DUE AS FINALLY DETER MINED, THE VENDOR SHALL : 20
1. BILL THE HOMEOWNER F OR THE UNPAID BALANC E; 21
OR 22
2. REFUND ANY EXCESS TA X PAID. 23
(IV) THE FAILURE BY A HOME OWNER TO MAKE AN ADV ANCE 24
PAYMENT UNDER THE IN STALLMENT PAYMENT PR OGRAM MAY NOT BE CON SIDERED 25
TO BE A FAILURE TO P AY THE PROPERTY TAX WHEN DUE EXCEPT AS P ROVIDED 26
UNDER TITLE 10, SUBTITLE 1 OF THIS ARTICLE. 27
(4) THE OMBUDSMAN SHALL NOTIF Y THE COLLECTOR TO W HOM THE 28
TAXES ARE OWED WHEN A HOMEOWNER ENTERS I NTO AN INSTALLMENT P AYMENT 29
PLAN UNDER THIS SUBS ECTION. 30
HOUSE BILL 54 9
(5) IF A HOMEOWNER IS IN COMPLIANCE WITH THE TERMS OF AN 1
INSTALLMENT PAYMENT PLAN, THE COLLECTOR MAY NO T TAKE ACTION UNDER 2
TITLE 14, SUBTITLE 8 OF THIS ARTICLE TO C OLLECT ANY PROPERTY TAXES IN 3
ARREARS THAT ARE INC LUDED IN THE INSTALL MENT PAYMENT PLAN . 4
(6) A HOMEOWNER IS NOT IN COMPLIANCE WITH THE TERMS OF AN 5
INSTALLMENT PAYMENT PLAN IF THE HOMEOWNE R FAILS TO MAKE A PAYMENT FOR 6
A PERIOD OF 90 DAYS AFTER THE DATE THE PAYMENT IS DUE , OR A LONGER PERIOD 7
DETERMINED BY THE OMBUDSMAN . 8
(7) IF A HOMEOWNER IS NOT IN COMPLIANCE WITH T HE TERMS OF AN 9
INSTALLMENT PAYMENT PLAN: 10
(I) THE OMBUDSMAN : 11
1. MAY TERM INATE THE INSTALLMEN T PAYMENT PLAN ; 12
AND 13
2. SHALL NOTIFY THE COL LECTOR TO WHOM THE T AXES 14
ARE OWED; AND 15
(II) THE COLLECTOR MAY TA KE ACTION UNDER TITLE 14, 16
SUBTITLE 8 OF THIS ARTICLE TO C OLLECT ANY PROPERTY TAXES IN ARREARS THA T 17
WERE INCLUDED IN TH E INSTALLMENT PAYMEN T PLAN. 18
(4) (8) THE COST OF THE CONTR ACT WITH THE VENDOR TO 19
OPERATE THE INSTALLM ENT PAYMENT PROGRAM SHALL BE PAID ENTIRE LY BY 20
REASONABLE FEES IMPO SED ON HOMEOWNERS EN ROLLED IN THE PROGRA M. 21
10–209. 22
(A) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 23
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY , BY LAW, 24
ESTABLISH AN INSTALL MENT PAYMENT PROGRAM FOR TAXES IN ARREARS ON ANY 25
RESIDENTIAL PROPERTY . 26
(B) ANY FEE OR CHARGE OF ANY KIND THAT IS INC LUDED ON A PROPERTY 27
TAX BILL MAY BE PAID THROU GH THE INSTALLMENT P AYMENT PROGRAM 28
AUTHORIZED UNDER SUB SECTION (A) OF THIS SECTION. 29
(C) (1) IF A PERSON IS IN COM PLIANCE WITH THE TER MS OF AN 30
INSTALLMENT PAYMENT PROGRAM UNDER THIS S ECTION, THE COLLECTOR MAY 31
NOT TAKE ACTION UNDE R TITLE 14, SUBTITLE 8 OF THIS ARTICLE TO C OLLECT ANY 32 10 HOUSE BILL 54
PROPERTY TAXES IN AR REARS THAT ARE INCLU DED IN THE INSTALLME NT PAYMENT 1
PROGRAM. 2
(2) A PERSON IS NOT IN COM PLIANCE WITH THE TER MS OF AN 3
INSTALLMENT PAYMENT PROGRAM IF THE PERSO N FAILS TO MAKE A PA YMENT FOR 4
A PERIOD OF 90 DAYS AFTER THE DATE THE PAYMENT IS DUE , OR A LONGER PERIOD 5
DETERMINED BY THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 6
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION . 7
(3) IF A PERSON IS NOT IN COMPLIANCE WITH THE TERMS OF AN 8
INSTALLMENT PAYMENT PROGRAM, THE COLLECTOR MAY : 9
(I) TERMINATE THE PERSON ’S ENROLLMENT IN THE 10
INSTALLMENT PAYMENT PROGRAM; AND 11
(II) TAKE ACTION UNDER TITLE 14, SUBTITLE 8 OF THIS 12
ARTICLE TO COLLECT T HE PROPERTY TAXES IN ARREARS THAT WERE IN CLUDED IN 13
THE INSTALLMENT PAYM ENT PROGRAM . 14
(C) (D) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 15
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATIO N MAY PROVIDE , BY 16
LAW, FOR: 17
(1) ANY ADDITIONAL ELIGI BILITY CRITERIA FOR AN INSTALLMENT 18
PAYMENT PROGRAM UNDE R THIS SECTION; 19
(2) THE PROCESS FOR ENRO LLING IN AN INSTALLM ENT PAYMENT 20
PROGRAM; 21
(3) THE FREQUENCY AND DU E DATES OF IN STALLMENT PAYMENTS ; 22
AND 23
(4) ANY OTHER PROVISION NECESSARY TO CARRY O UT THIS SECTION. 24
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 25
1, 2024. 26