WES MOORE, Governor Ch. 771
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Chapter 771
(House Bill 54)
AN ACT concerning
Property Tax – Transfer to Heir or Legatee – Payment Plans
FOR the purpose of exempting an instrument a grant of land transferring residential real
property from the estate of a decedent to an heir or a legatee of the decedent from
certain requirements for the payment of taxes on real property if the heir or legatee
of the decedent enters into a payment plan to pay all the taxes due and owed on the
property; exempting a grant of land that is subject to a payment plan for property
taxes from certain requirements for the payment of taxes if the grantee agrees to
assume the grantor’s obligations under the payment plan; requiring the State Tax
Sale Ombudsman to contract with a vendor to operate an installment payment
program for the payment of taxes in which any homeowner may enroll; authorizing
the governing body of a county or municipal corporation to establish, by law, an
installment payment program for taxes in arrears on any residential property; and
generally relating to the payment of property taxes.
BY repealing and reenacting, without amendments,
Article – Real Property
Section 3–104(a) and (b)
Annotated Code of Maryland
(2023 Replacement Volume)
BY repealing and reenacting, with amendments,
Article – Real Property
Section 3–104(c)
Annotated Code of Maryland
(2023 Replacement Volume)
BY repealing and reenacting, with amendments,
Article – Tax – Property
Section 2–112
Annotated Code of Maryland
(2019 Replacement Volume and 2023 Supplement)
BY adding to
Article – Tax – Property
Section 10–209
Annotated Code of Maryland
(2019 Replacement Volume and 2023 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERA L ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows: Ch. 771 2024 LAWS OF MARYLAND
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Article – Real Property
3–104.
(a) (1) The Clerk of the Circuit Court may record an instrument that effects a
change of ownership if the instrument is:
(i) Endorsed with the certificate of the collector of taxes of the
county in which the property is assessed, required under subsection (b) of this section;
(ii) 1. Accompanied by a complete intake sheet; or
2. Endorsed by the assessment office for the county as
provided in subsection (g)(8) of this section; and
(iii) Accompanied by a copy of the instrument, and any survey, for
submission to the Department of Assessments and Taxation.
(2) The Supervisor of Assessments shall transfer ownership of property in
the assessment records, effective as of the date of recordation, upon receipt from the Clerk
of the Circuit Court of a copy of the instrument, the completed intake sheet, and any survey
submitted under paragraph (1) of this subsection.
(b) (1) (i) Except as provided in subsection (c) of this section, property may
not be transferred on the assessment books or records until:
1. All public taxes, assessments, and charges currently due
and owed on the property have been paid to the treasurer, tax collector, or director of
finance of the county in which the property is assessed; and
2. All taxes on personal property in the county due by the
transferor have been paid when all land owned by the transferor in the county is being
transferred.
(ii) The certificate of the collecting agent designated by law, showing
that all taxes, assessments, and charges have been paid, shall be endorsed on the deed, and
the endorsement shall be sufficient authority for transfer on the assessment books.
(2) (i) Except as provided in subsection (c) of this section, in Allegany,
Cecil, Charles, Dorchester, Harford, Howard, Kent, Queen Anne’s, Somerset, and St.
Mary’s counties no property may be transferred on the assessment books or records until:
1. All public taxes, assessments, any charges due a
municipal corporation, and charges due on the property have been paid as required by law;
and WES MOORE, Governor Ch. 771
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2. All taxes on personal property in the county due by the
transferor have been paid when all land owned by the transferor in the county and
municipal corporation is being transferred.
(ii) The certificate of the collecting agent and municipal corporation
designated by law showing that all taxes, assessments, and charges have been paid, shall
be endorsed on the deed and the endorsement shall be sufficient authority for transfer on
the assessment books.
(c) (1) (i) 1. The requirements for prepayment of personal property
taxes in subsection (b) of this section do not apply to grants of land made:
[1.] A. By or on behalf of any mortgagee, lien creditor,
trustee of a deed of trust, judgment creditor, trustee in bankruptcy or receiver, and any
other court–appointed officer in an insolvency or liquidation proceeding; or
[2.] B. By a deed in lieu of foreclosure to any holder of a
mortgage or deed of trust or to the holder’s assignee or designee.
2. THE REQUIREMENTS FOR PAYMENT OF REAL
PROPERTY TAXES IN SU BSECTION (B) OF THIS SECTION DO N OT APPLY TO GRANTS
OF LAND THAT TRANSFE R RESIDENTIAL REAL P ROPERTY FROM THE EST ATE OF A
DECEDENT TO AN HEIR OR A LEGATEE OF THE DECEDENT , IF THE HEIR OR LEGATEE
OF THE DECEDENT ENTE RS INTO A PAYMENT PL AN TO PAY ALL PUBLIC TAXES,
ASSESSMENTS , AND CHARGES CURRENTL Y DUE AND OWED ON TH E PROPERTY WITH :
A. THE COUNTY OR MUNICIP AL CORPORATION TO
WHICH THE TAXES , ASSESSMENTS , AND CHARGES ARE DUE ; OR
B. THE STATE TAX SALE OMBUDSMAN .
3. THE CLERK OF THE CIRCUIT COURT COLLECTOR OF
TAXES FOR THE COUNTY OR MUNICIPAL CORPORA TION TO WHICH THE TA XES,
ASSESSMENTS, OR CHARGES ARE DUE SHALL PROVIDE THE HE IR OR LEGATEE OF A
DECEDENT TO WHOM PRO PERTY IS TRANSFERRED UNDER SUBSUBPARAGRAP H 2 OF
THIS SUBPARAGRAPH WI TH THE TOLL–FREE TELEPHONE NUMBE R AND WEBSITE
ADDRESS OF THE STATE TAX SALE OMBUDSMAN AND A BRIEF DESCRIPTION OF THE
SERVICES AND PROGRAM S AVAILABLE THROUGH THE OMBUDSMAN ’S OFFICE.
4. WHEN AN HEIR OR A LEG ATEE OF A DECEDENT
ENTERS INTO A PAYMEN T PLAN WITH A COUNTY , A MUNICIPAL CORPORAT ION, OR
THE STATE TAX SALE OMBUDSMAN UNDER SUBSU BPARAGRAPH 2 OF THIS
SUBPARAGRAPH , THE COLLECTOR OF TAX ES FOR THE COUNTY OR MUNICIPAL Ch. 771 2024 LAWS OF MARYLAND
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CORPORATION OR THE STATE TAX SALE OMBUDSMAN SHALL PROVI DE THE HEIR OR
LEGATEE WITH AN AFFI DAVIT OF THE PAYMENT PLAN, WHICH THE HEIR OR
LEGATEE SHALL PROVID E TO THE CLERK OF THE CIRCUIT COURT TO RECORD AN
INSTRUMENT TRANSFERR ING OWNERSHIP TO THE HEIR OR LEGATEE .
(ii) Notwithstanding any other provision of law, and except as
provided in subparagraph (iii) of this paragraph, after the recordation of a deed or other
instrument that effects a grant of land described in subparagraph [(i)] (I)1 of this
paragraph, the land shall be free and clear of, and unencumbered by, any lien or claim of
lien for any unpaid taxes on personal property.
(iii) Subparagraph (ii) of this paragraph does not apply to:
1. Any lien for unpaid taxes on personal property that
attached to the land by recording and indexing a notice as provided in § 14–804(b) of the
Tax – Property Article prior to the recording of the mortgage, lien, deed of trust, or other
encumbrance giving rise to the grant of land described in subparagraph [(i)] (I)1 of this
paragraph; or
2. Unpaid taxes on personal property owed by the transferee
or subsequent owner of the land after a grant of land described in subparagraph [(i)] (I)1
of this paragraph.
(iv) This paragraph does not affect the rights of the personal property
tax lienholder to make a claim to any surplus proceeds from a judicial sale of land resulting
in a grant of land described in subparagraph [(i)] (I)1 of this paragraph.
(2) Subsection (b) of this section does not apply in Charles, St. Mary’s,
Dorchester, Harford, Howard, Kent, Prince George’s, Worcester, Carroll, Montgomery,
Frederick and Washington counties to any deed executed as a mere conduit or for
convenience in holding and passing title, known popularly as a straw deed or, as provided
in § 4–108 of this article, a deed making a direct grant in lieu of a straw deed, or to a deed
which is a supplementary instrument merely confirming, correcting, or modifying a
previously recorded deed, if there is no actual consideration paid or to be paid for the
execution of the supplementary instrument.
(3) Subsection (b) of this section does not apply in Baltimore City and Anne
Arundel, Baltimore, Carroll, Frederick, St. Mary’s, or Washington counties to any deed
transferring property to the county when the controller or treasurer of the county has
certified that the conveyance does not impair the security for any public taxes, assessments,
and charges due on the remaining property of the grantor.
(4) (i) Property may be transferred on the assessment books or records
in July, August, or September if instead of paying the taxes required under subsection (b)(1)
of this section on a property transfer by assumption, a lender or the attorney handling the WES MOORE, Governor Ch. 771
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transfer of title files with the county treasurer, tax collector, or director of finance of the
county in which the property is assessed a statement that certifies that the lender
maintains a real estate tax escrow account.
(ii) Upon receipt of the statement required in subparagraph (i) of
this paragraph, the county treasurer, tax collector, or director of finance shall endorse on
the deed an appropriate certification and the endorsement shall be sufficient authority for
transfer on the assessment books.
(5) (I) [At] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS
PARAGRAPH , AT the time of transfer of real property subject to a semiannual payment
schedule for the payment of property taxes, only those semiannual payments that are due
for the current taxable year under § 10–204.3 of the Tax – Property Article must be paid
prior to the transfer of the property.
(II) THE SEMIANNUAL PAYMEN TS THAT ARE DUE FOR THE
CURRENT TAXABLE YEAR UNDER § 10–204.3 OF THE TAX – PROPERTY ARTICLE ARE
NOT REQUIRED TO BE P AID BEFORE THE TRANS FER OF THE PROPERTY IF:
1. THE PROPERTY IS RESID ENTIAL REAL PROPERTY
THAT IS BEING TRANSF ERRED FROM THE ESTAT E OF A DECEDENT TO A N HEIR OR A
LEGATEE OF THE DECEDENT ; AND
2. THE HEIR OR LEGATEE OF THE DECEDENT ENTE RS
INTO A PAYMENT PLAN TO PAY ALL PUBLIC TA XES, ASSESSMENTS , AND CHARGES
CURRENTLY DUE AND OW ED ON THE PROPERTY W ITH:
A. THE COUNTY OR MUNICIP AL CORPORATION TO
WHICH THE TAXES , ASSESSMENTS , AND CHARGES ARE DUE ; OR
B. THE STATE TAX SALE OMBUDSMAN .
(III) THE CLERK OF THE CIRCUIT COURT COLLECTOR OF TAXES
FOR THE COUNTY OR MU NICIPAL CORPORATION TO WHICH THE TAXES ,
ASSESSMENTS , OR CHARGES ARE DUE SHALL PROVIDE THE HE IR OR LEGATEE OF A
DECEDENT TO WHOM PRO PERTY IS TRANSF ERRED UNDER SUBPARAG RAPH (II) OF
THIS PARAGRAPH WITH THE TOLL–FREE TELEPHONE NUMBE R AND WEBSITE
ADDRESS OF THE STATE TAX SALE OMBUDSMAN AND A BRIEF DESCRIPTION OF THE
SERVICES AND PROGRAM S AVAILABLE THROUGH THE OMBUDSMAN ’S OFFICE.
(IV) WHEN AN HEIR OR A LEG ATEE OF A DECEDENT E NTERS
INTO A PAYMENT PLAN WITH A COUNTY, A MUNICIPAL CORPORAT ION, OR THE STATE
TAX SALE OMBUDSMAN UNDER SUBPA RAGRAPH (II) OF THIS PARAGRAPH , THE
COLLECTOR OF TAXES F OR THE COUNTY OR MUN ICIPAL CORPORATION O R THE Ch. 771 2024 LAWS OF MARYLAND
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STATE TAX SALE OMBUDSMAN SHALL PROVI DE THE HEIR OR LEGAT EE WITH AN
AFFIDAVIT OF THE PAY MENT PLAN, WHICH THE HEIR OR LE GATEE SHALL PROVIDE
TO THE CLERK OF THE CIRCUIT COURT TO RECORD AN IN STRUMENT
TRANSFERRING OWNERSH IP TO THE HEIR OR LE GATEE.
(6) (I) THE REQUIREMENTS FOR PAYME NT OF REAL PROPERTY
TAXES IN SUBSECTION (B) OF THIS SECTION DO N OT APPLY TO A GRANT OF LAND
THAT IS SUBJECT TO A PAYMENT PLAN FOR PRO PERTY TAXES WITH A C OUNTY, A
MUNICIPAL CORPORATIO N, OR THE STATE TAX SALE OMBUDSMAN IF THE GRAN TEE
ENTERS INTO AN AGREEMENT WITH THE COUNTY , MUNICIPAL CORPORATIO N, OR
THE STATE TAX SALE OMBUDSMAN TO ASSUME T HE GRANTOR ’S OBLIGATIONS
UNDER THE PAYMENT PL AN.
(II) THE COLLECTOR OF TAXE S FOR THE COUNTY OR
MUNICIPAL CORPORATIO N OR THE STATE TAX SALE OMBUDSMAN SHALL PROVIDE
THE GRANTEE WITH AN AFFIDAVIT OF THE PAY MENT PLAN, WHICH THE GRANTEE
SHALL PROVIDE TO THE CLERK OF THE CIRCUIT COURT TO RECORD AN
INSTRUMENT TRANSFERR ING OWNERSHIP TO THE GRANTEE.
Article – Tax – Property
2–112.
(a) (1) In this section the following words have the meanings indicated.
(2) “Homeowner” has the meaning stated in § 9–105 of this article.
(3) “Tax” has the meaning stated in § 14–801 of this article.
(b) There is a State Tax Sale Ombudsman in the Department.
(c) The Ombudsman:
(1) shall be appointed by the Director;
(2) shall be in the management service of the State Personnel Management
System; and
(3) may be removed from office only after a hearing before the Department
and a finding of incompetency or other good cause.
(d) The Ombudsman shall:
(1) assist homeowners to understand the process for collection of
delinquent taxes; WES MOORE, Governor Ch. 771
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(2) actively assist homeowners to apply for tax credits, discount programs,
and other public benefits that may assist the homeowners to pay delinquent taxes and
improve their financial situation;
(3) refer homeowners to legal services, housing counseling, and other social
services that may assist homeowners to pay delinquent taxes and improve their financial
situation;
(4) maintain a website that functions as a clearinghouse for information
concerning:
(i) the process for collection of delinquent taxes; and
(ii) services and programs that are available to assist homeowners
to pay delinquent taxes and improve their financial situation; and
(5) maintain a toll–free telephone number that a homeowner may call to
obtain individualized personal assistance with delinquent taxes.
(e) A county may, by law, establish a County Tax Sale Ombudsman to fulfill all
the responsibilities of the State Tax Sale Ombudsman under subsection (d) of this section
with respect to homeowners within the county.
(F) (1) THE OMBUDSMAN SHALL CONTR ACT WITH A VENDOR TO
OPERATE AN INSTALLME NT PAYMENT PROGRAM F OR THE PAYMENT OF TA XES IN
WHICH ANY HOMEOWNER MAY EN ROLL.
(2) THE INSTALLMENT PAYME NT PROGRAM SHALL ALL OW A
HOMEOWNER TO :
(I) MAKE ADVANCE PAYMENT S OF TAXES;
(II) MAKE PAYMENTS OF TAX ES CURRENTLY DUE ; OR
(III) MAKE PAYMENTS OF TAX ES IN ARREARS.
(3) (I) A HOMEOWNER WHOSE DWELLING IS SU BJECT TO A DEED
OF TRUST, A MORTGAGE , OR ANY OTHER ENCUMBR ANCE THAT INCLUDES T HE
ESCROWING OF TAX PAY MENTS MAY NOT ENROLL IN THE INSTALLMENT P AYMENT
PROGRAM FOR THE ADVA NCE PAYMENT OF TAXES .
(II) AN ADVANCE PAYMENT OF TAXES IS CALCU LATED BY
APPLYING THE CURRENT PROPERTY TAX RATE TO THE ASSESSMENT OF TH E
HOMEOWNER ’S PROPERTY FOR THE P RIOR YEAR. Ch. 771 2024 LAWS OF MARYLAND
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(III) IF THE ADVANCE PAYMEN T IS DIFFERENT THAN THE TAXES
DUE AS FINALLY DETER MINED, THE VENDOR SHALL :
1. BILL THE HOMEOWNER F OR THE UNPAID BALANCE ;
OR
2. REFUND ANY EXCESS TA X PAID.
(IV) THE FAILURE BY A HOME OWNER TO MAKE AN ADV ANCE
PAYMENT UNDER THE IN STALLMENT PAYMENT PR OGRAM MAY NOT BE CON SIDERED
TO BE A FAILURE TO P AY THE PROPERTY TAX WHEN DUE EXCEPT AS P ROVIDED
UNDER TITLE 10, SUBTITLE 1 OF THIS ARTICLE.
(4) THE OMBUDSMAN SHALL NOTIF Y THE COLLECTOR TO W HOM THE
TAXES ARE OWED WHEN A HOMEOWNER ENTERS I NTO AN INSTALLMENT P AYMENT
PLAN UNDER THIS SUBS ECTION.
(5) IF A HOMEOWNER IS IN COMPLIANCE WITH THE TERMS OF AN
INSTALLMENT PAYMENT PLA N, THE COLLECTOR MAY NO T TAKE ACTION UNDER
TITLE 14, SUBTITLE 8 OF THIS ARTICLE TO C OLLECT ANY PROPERTY TAXES IN
ARREARS THAT ARE INC LUDED IN THE INSTALL MENT PAYMENT PLAN .
(6) A HOMEOWNER IS NOT IN COMPLIANCE WITH THE TERMS OF AN
INSTALLMENT PAYMENT PL AN IF THE HOMEOWNER FAILS TO MAKE A PAYM ENT FOR
A PERIOD OF 90 DAYS AFTER THE DATE THE PAYMENT IS DUE , OR A LONGER PERIOD
DETERMINED BY THE OMBUDSMAN .
(7) IF A HOMEOWNER IS NOT IN COMPLIANCE WITH T HE TERMS OF AN
INSTALLMENT PAYMENT PLAN:
(I) THE OMBUDSMAN :
1. MAY TERMINATE THE IN STALLMENT PAYMENT PL AN;
AND
2. SHALL NOTIFY THE COL LECTOR TO WHOM THE T AXES
ARE OWED; AND
(II) THE COLLECTOR MAY TA KE ACTION UNDER TITLE 14,
SUBTITLE 8 OF THIS ARTICLE TO C OLLECT ANY PROPERTY TAXES IN AR REARS THAT
WERE INCLUDED IN THE INSTALLMENT PAYMENT PLAN.
WES MOORE, Governor Ch. 771
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(4) (8) THE COST OF THE CONTR ACT WITH THE VENDOR TO
OPERATE THE INSTALLM ENT PAYMENT PROGRAM SHALL BE PAID ENTIRE LY BY
REASONABLE FEES IMPO SED ON HOMEOWNERS EN ROLLED IN THE PR OGRAM.
10–209.
(A) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY , BY LAW,
ESTABLISH AN INSTALL MENT PAYMENT PROGRAM FOR TAXES IN ARREARS ON ANY
RESIDENTIAL PROPERTY .
(B) ANY FEE OR CHARGE OF ANY KIND THAT IS INC LUDED ON A PROPERTY
TAX BILL MAY BE PAID THROUGH THE INSTALLM ENT PAYMENT PROGRAM
AUTHORIZED UNDER SUB SECTION (A) OF THIS SECTION.
(C) (1) IF A PERSON IS IN COM PLIANCE WITH THE TER MS OF AN
INSTALLMENT PAYMENT PROGRAM UNDER THIS SECTI ON, THE COLLECTOR MAY
NOT TAKE ACTION UNDE R TITLE 14, SUBTITLE 8 OF THIS ARTICLE TO C OLLECT ANY
PROPERTY TAXES IN AR REARS THAT ARE INCLU DED IN THE INSTALLME NT PAYMENT
PROGRAM.
(2) A PERSON IS NOT IN COM PLIANCE WITH THE TER MS OF AN
INSTALLMENT PAYMENT PR OGRAM IF THE PERSON FAILS TO MAKE A PAYM ENT FOR
A PERIOD OF 90 DAYS AFTER THE DATE THE PAYMENT IS DUE , OR A LONGER PERIOD
DETERMINED BY THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORAT ION.
(3) IF A PERSON IS NOT IN COMPLIANCE WITH THE TERMS OF AN
INSTALLMENT PAYMENT PROGRAM, THE COLLECTOR MAY :
(I) TERMINATE THE PERSON ’S ENROLLMENT IN THE
INSTALLMENT PAYMENT PROGRAM; AND
(II) TAKE ACTION UNDER TITLE 14, SUBTITLE 8 OF THIS
ARTICLE TO COLLECT THE PROPERTY TAXES IN AR REARS THAT WERE INCL UDED IN
THE INSTALLMENT PAYM ENT PROGRAM .
(C) (D) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORA TION MAY PROVIDE , BY
LAW, FOR:
(1) ANY ADDITIONAL ELIGI BILITY CRITERIA FOR AN INSTALLMENT
PAYMENT PROGRAM UNDE R THIS SECTION;
Ch. 771 2024 LAWS OF MARYLAND
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(2) THE PROCESS FOR ENRO LLING IN AN INSTALLM ENT PAYMENT
PROGRAM;
(3) THE FREQUENCY AND DU E DATES OF INSTALLME NT PAYMENTS ;
AND
(4) ANY OTHER PROVISION NECESSARY TO CARRY O UT THIS SECTION.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2024.
Approved by the Governor, May 16, 2024.