Maryland 2025 Regular Session

Maryland House Bill HB1410 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW .
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb1410
6	6
7	7	HOUSE BILL 1410
8	8	Q6 5lr2430
9	9
10	10	By: Delegates R. Long, Buckel, Hornberger, T. Morgan, and Reilly
11	11	Introduced and read first time: February 7, 2025
12	12	Assigned to: Ways and Means
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	State Transfer Tax – Exemption for First–Time Home Buyers – Alterations 2
19	19
20	20	FOR the purpose of altering the exemption from the State transfer tax for instruments of 3
21	21	writing that transfer improved residential real property to certain first–time home 4
22	22	buyers; and generally relating to the State transfer tax. 5
23	23
24	24	BY repealing 6
25	25	Article – Tax – Property 7
26	26	Section 13–203(b) 8
27	27	Annotated Code of Maryland 9
28	28	(2019 Replacement Volume and 2024 Supplement) 10
29	29
30	30	BY adding to 11
31	31	Article – Tax – Property 12
32	32	Section 13–207(d) 13
33	33	Annotated Code of Maryland 14
34	34	(2019 Replacement Volume and 2024 Supplement) 15
35	35
36	36	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
37	37	That the Laws of Maryland read as follows: 17
38	38
39	39	Article – Tax – Property 18
40	40
41	41	13–203. 19
42	42
43	43	[(b) (1) In this subsection, “first–time Maryland home buyer” means an 20
44	44	individual who has never owned in the State residential real property that has been the 21
45	45	individual’s principal residence. 22
46	46	2 HOUSE BILL 1410
47	47
48	48
49	49	(2) If there are two or more grantees, this subsection does not apply unless 1
50	50	each grantee is a first–time Maryland home buyer or a co–maker or guarantor of a purchase 2
51	51	money mortgage or purchase money deed of trust as defined in § 12–108(i) of this article 3
52	52	for the property and the co–maker or guarantor will not occupy the residence as the 4
53	53	co–maker’s or guarantor’s principal residence. 5
54	54
55	55	(3) Notwithstanding any other provision of law, for a sale of improved 6
56	56	residential real property to a first–time Maryland home buyer who will occupy the property 7
57	57	as a principal residence, the rate of the transfer tax is 0.25% of the consideration payable 8
58	58	for the instrument of writing and the transfer tax shall be paid entirely by the seller. 9
59	59
60	60	(4) To qualify for the exemption under paragraph (3) of this subsection, 10
61	61	each grantee or an agent of the grantee shall provide a statement that is signed under oath 11
62	62	by the grantee or agent of the grantee stating that: 12
63	63
64	64	(i) 1. the grantee is an individual who has never owned in the 13
65	65	State residential real property that has been the individual’s principal residence; and 14
66	66
67	67	2. the residence will be occupied by the grantee as the 15
68	68	grantee’s principal residence; or 16
69	69
70	70	(ii) 1. the grantee is a co–maker or guarantor of a purchase 17
71	71	money mortgage or purchase money deed of trust as defined in § 12–108(i) of this article 18
72	72	for the property; and 19
73	73
74	74	2. the grantee will not occupy the residence as the 20
75	75	co–maker’s or guarantor’s principal residence. 21
76	76
77	77	(5) A statement under paragraph (4) of this subsection by an agent of a 22
78	78	grantee shall state that the statement: 23
79	79
80	80	(i) is based on a diligent inquiry made by the agent with respect to 24
81	81	the facts set forth in the statement; and 25
82	82
83	83	(ii) is true to the best of the knowledge, information, and belief of the 26
84	84	agent.] 27
85	85
86	86	13–207. 28
87	87
88	88	(D) (1) IN THIS SUBSECTION , “FIRST–TIME MARYLAND HOME BUYER ” 29
89	89	MEANS AN INDIVIDUAL WHO HAS NEVER OWNED IN THE STATE RESIDENTIAL REA L 30
90	90	PROPERTY THAT HAS BE EN THE INDIVIDUAL ’S PRINCIPAL RESIDENC E. 31
91	91
92	92	(2) IF THERE ARE TWO OR M ORE GRANTEES , THIS SUBSECTION DOES 32
93	93	NOT APPLY UNLESS EACH GRANTEE IS A FIRST–TIME MARYLAND HOME BUYER O R A 33
94	94	CO–MAKER OR GUARANTOR O F A PURCHASE MONEY M ORTGAGE OR PURCHASE 34 HOUSE BILL 1410 3
95	95
96	96
97	97	MONEY DEED OF TRUST AS DEFINED IN § 12–108(I) OF THIS ARTICLE FOR THE 1
98	98	PROPERTY AND THE CO –MAKER OR GUARANTOR W ILL NOT OCCUPY THE R ESIDENCE 2
99	99	AS THE CO–MAKER’S OR GUARANTOR ’S PRINCIPAL RESIDENC E. 3
100	100
101	101	(3) AN INSTRUMENT OF WRITIN G THAT TRANSFERS IMPROVED 4
102	102	RESIDENTIAL REAL PROPERTY TO A FIRST –TIME MARYLAND HOME BUYER WHO 5
103	103	WILL OCCUPY THE PROP ERTY AS A PRINCIPAL RESIDENCE IS NOT SUBJECT TO TH E 6
104	104	TRANSFER TAX . 7
105	105
106	106	(4) TO QUALIFY FOR THE EX EMPTION UNDER PARAGR APH (3) OF THIS 8
107	107	SUBSECTION, EACH GRANTEE OR AN A GENT OF THE GRANTEE SHALL PROVIDE A 9
108	108	STATEMENT THAT IS SI GNED UNDER OATH BY T HE GRANTEE OR AGENT OF THE 10
109	109	GRANTEE STATING THAT : 11
110	110
111	111	(I) 1. THE GRANTEE IS AN IN DIVIDUAL WHO HAS NEV ER 12
112	112	OWNED IN THE STATE RESIDENTIAL REA L PROPERTY THAT HAS BEEN THE 13
113	113	INDIVIDUAL’S PRINCIPAL RESIDENC E; AND 14
114	114
115	115	2. THE RESIDENCE WILL B E OCCUPIED BY THE GR ANTEE 15
116	116	AS THE GRANTEE ’S PRINCIPAL RESIDENC E; OR 16
117	117
118	118	(II) 1. THE GRANTEE IS A CO –MAKER OR GUARANTOR O F A 17
119	119	PURCHASE MONEY MORTG AGE OR PURCHASE MONE Y DEED OF TRUST AS D EFINED 18
120	120	IN § 12–108(I) OF THIS ARTICLE FOR THE PROPERTY ; AND 19
121	121
122	122	2. THE GRANTEE WILL NOT OCCUPY THE RESIDENCE AS 20
123	123	THE CO–MAKER’S OR GUARANTOR ’S PRINCIPAL RESIDENCE . 21
124	124
125	125	(5) A STATEMENT UNDER PARA GRAPH (4) OF THIS SUBSECTION B Y AN 22
126	126	AGENT OF A GRANTEE S HALL STATE THAT THE STATEMENT: 23
127	127
128	128	(I) IS BASED ON A DILIGE NT INQUIRY MADE BY T HE AGENT 24
129	129	WITH RESPECT TO THE FACTS SET FORTH IN T HE STATEMENT ; AND 25
130	130
131	131	(II) IS TRUE TO THE BEST OF THE KNOWLEDGE , INFORMATION , 26
132	132	AND BELIEF OF THE AG ENT. 27
133	133
134	134	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 28
135	135	1, 2025. 29