EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*hb1410*
HOUSE BILL 1410
Q6 5lr2430
By: Delegates R. Long, Buckel, Hornberger, T. Morgan, and Reilly
Introduced and read first time: February 7, 2025
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
State Transfer Tax – Exemption for First–Time Home Buyers – Alterations 2
FOR the purpose of altering the exemption from the State transfer tax for instruments of 3
writing that transfer improved residential real property to certain first–time home 4
buyers; and generally relating to the State transfer tax. 5
BY repealing 6
Article – Tax – Property 7
Section 13–203(b) 8
Annotated Code of Maryland 9
(2019 Replacement Volume and 2024 Supplement) 10
BY adding to 11
Article – Tax – Property 12
Section 13–207(d) 13
Annotated Code of Maryland 14
(2019 Replacement Volume and 2024 Supplement) 15
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17
Article – Tax – Property 18
13–203. 19
[(b) (1) In this subsection, “first–time Maryland home buyer” means an 20
individual who has never owned in the State residential real property that has been the 21
individual’s principal residence. 22
2 HOUSE BILL 1410
(2) If there are two or more grantees, this subsection does not apply unless 1
each grantee is a first–time Maryland home buyer or a co–maker or guarantor of a purchase 2
money mortgage or purchase money deed of trust as defined in § 12–108(i) of this article 3
for the property and the co–maker or guarantor will not occupy the residence as the 4
co–maker’s or guarantor’s principal residence. 5
(3) Notwithstanding any other provision of law, for a sale of improved 6
residential real property to a first–time Maryland home buyer who will occupy the property 7
as a principal residence, the rate of the transfer tax is 0.25% of the consideration payable 8
for the instrument of writing and the transfer tax shall be paid entirely by the seller. 9
(4) To qualify for the exemption under paragraph (3) of this subsection, 10
each grantee or an agent of the grantee shall provide a statement that is signed under oath 11
by the grantee or agent of the grantee stating that: 12
(i) 1. the grantee is an individual who has never owned in the 13
State residential real property that has been the individual’s principal residence; and 14
2. the residence will be occupied by the grantee as the 15
grantee’s principal residence; or 16
(ii) 1. the grantee is a co–maker or guarantor of a purchase 17
money mortgage or purchase money deed of trust as defined in § 12–108(i) of this article 18
for the property; and 19
2. the grantee will not occupy the residence as the 20
co–maker’s or guarantor’s principal residence. 21
(5) A statement under paragraph (4) of this subsection by an agent of a 22
grantee shall state that the statement: 23
(i) is based on a diligent inquiry made by the agent with respect to 24
the facts set forth in the statement; and 25
(ii) is true to the best of the knowledge, information, and belief of the 26
agent.] 27
13–207. 28
(D) (1) IN THIS SUBSECTION , “FIRST–TIME MARYLAND HOME BUYER ” 29
MEANS AN INDIVIDUAL WHO HAS NEVER OWNED IN THE STATE RESIDENTIAL REA L 30
PROPERTY THAT HAS BE EN THE INDIVIDUAL ’S PRINCIPAL RESIDENC E. 31
(2) IF THERE ARE TWO OR M ORE GRANTEES , THIS SUBSECTION DOES 32
NOT APPLY UNLESS EACH GRANTEE IS A FIRST–TIME MARYLAND HOME BUYER O R A 33
CO–MAKER OR GUARANTOR O F A PURCHASE MONEY M ORTGAGE OR PURCHASE 34 HOUSE BILL 1410 3
MONEY DEED OF TRUST AS DEFINED IN § 12–108(I) OF THIS ARTICLE FOR THE 1
PROPERTY AND THE CO –MAKER OR GUARANTOR W ILL NOT OCCUPY THE R ESIDENCE 2
AS THE CO–MAKER’S OR GUARANTOR ’S PRINCIPAL RESIDENC E. 3
(3) AN INSTRUMENT OF WRITIN G THAT TRANSFERS IMPROVED 4
RESIDENTIAL REAL PROPERTY TO A FIRST –TIME MARYLAND HOME BUYER WHO 5
WILL OCCUPY THE PROP ERTY AS A PRINCIPAL RESIDENCE IS NOT SUBJECT TO TH E 6
TRANSFER TAX . 7
(4) TO QUALIFY FOR THE EX EMPTION UNDER PARAGR APH (3) OF THIS 8
SUBSECTION, EACH GRANTEE OR AN A GENT OF THE GRANTEE SHALL PROVIDE A 9
STATEMENT THAT IS SI GNED UNDER OATH BY T HE GRANTEE OR AGENT OF THE 10
GRANTEE STATING THAT : 11
(I) 1. THE GRANTEE IS AN IN DIVIDUAL WHO HAS NEV ER 12
OWNED IN THE STATE RESIDENTIAL REA L PROPERTY THAT HAS BEEN THE 13
INDIVIDUAL’S PRINCIPAL RESIDENC E; AND 14
2. THE RESIDENCE WILL B E OCCUPIED BY THE GR ANTEE 15
AS THE GRANTEE ’S PRINCIPAL RESIDENC E; OR 16
(II) 1. THE GRANTEE IS A CO –MAKER OR GUARANTOR O F A 17
PURCHASE MONEY MORTG AGE OR PURCHASE MONE Y DEED OF TRUST AS D EFINED 18
IN § 12–108(I) OF THIS ARTICLE FOR THE PROPERTY ; AND 19
2. THE GRANTEE WILL NOT OCCUPY THE RESIDENCE AS 20
THE CO–MAKER’S OR GUARANTOR ’S PRINCIPAL RESIDENCE . 21
(5) A STATEMENT UNDER PARA GRAPH (4) OF THIS SUBSECTION B Y AN 22
AGENT OF A GRANTEE S HALL STATE THAT THE STATEMENT: 23
(I) IS BASED ON A DILIGE NT INQUIRY MADE BY T HE AGENT 24
WITH RESPECT TO THE FACTS SET FORTH IN T HE STATEMENT ; AND 25
(II) IS TRUE TO THE BEST OF THE KNOWLEDGE , INFORMATION , 26
AND BELIEF OF THE AG ENT. 27
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 28
1, 2025. 29