EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1428*
HOUSE BILL 1428
Q6, Q7, N1 5lr1573
CF SB 582
By: Delegates Boafo and Amprey
Introduced and read first time: February 7, 2025
Assigned to: Environment and Transportation and Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Sale of Residential Property – Taxes and Offers to Purchase 2
(End Hedge Fund Control of Maryland Homes Act of 2025) 3
FOR the purpose of imposing an excise tax on the acquisition and excess ownership of 4
certain single–family residences in the State by certain entities; providing for the 5
calculation, collection, and distribution of the excise tax; establishing the Down 6
Payment and Settlement Expense Loan Program Fund as a special, nonlapsing fund; 7
requiring a person who offers certain residential real property for sale to a third 8
party, during a certain period of time, to accept an offer to purchase the property 9
made only by certain persons; altering the rate of the State transfer tax payable for 10
an instrument of writing for a sale of certain residential real property under certain 11
circumstances; and generally relating to sales of residential real property, an excise 12
tax on the acquisition and excess ownership of single–family residences, and the 13
State transfer tax. 14
BY repealing and reenacting, without amendments, 15
Article – Housing and Community Development 16
Section 4–302 and 4–303 17
Annotated Code of Maryland 18
(2019 Replacement Volume and 2024 Supplement) 19
BY adding to 20
Article – Housing and Community Development 21
Section 4–310 22
Annotated Code of Maryland 23
(2019 Replacement Volume and 2024 Supplement) 24
BY adding to 25
Article – Real Property 26
Section 10–804 27
Annotated Code of Maryland 28 2 HOUSE BILL 1428
(2023 Replacement Volume and 2024 Supplement) 1
BY repealing and reenacting, without amendments, 2
Article – Tax – General 3
Section 1–101(a) 4
Annotated Code of Maryland 5
(2022 Replacement Volume and 2024 Supplement) 6
BY adding to 7
Article – Tax – General 8
Section 1–101(g–2); 2–4B–01 and 2–4B–02 to be under the new subtitle “Subtitle 4B. 9
Excess Ownership of Single–Family Residences Excise Tax Revenue 10
Distribution”; 7.7–101 through 7.7–301 to be under the new title “Title 7.7. 11
Excess Ownership of Single–Family Residences Excise Tax”; and 13–1001(h) 12
Annotated Code of Maryland 13
(2022 Replacement Volume and 2024 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Tax – General 16
Section 1–101(g–2), 2–102(a), 13–201(4), 13–508(a) and (c), 13–509, and 13–1002 17
Annotated Code of Maryland 18
(2022 Replacement Volume and 2024 Supplement) 19
BY repealing and reenacting, with amendments, 20
Article – Tax – Property 21
Section 13–203(a) 22
Annotated Code of Maryland 23
(2019 Replacement Volume and 2024 Supplement) 24
BY adding to 25
Article – Tax – Property 26
Section 13–203(c) 27
Annotated Code of Maryland 28
(2019 Replacement Volume and 2024 Supplement) 29
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 30
That the Laws of Maryland read as follows: 31
Article – Housing and Community Development 32
4–302. 33
There is a Down Payment and Settlement Expense Loan Program. 34
4–303. 35
HOUSE BILL 1428 3
The purpose of the Program is to provide financing for down payment and settlement 1
expenses to enable eligible homebuyers to purchase homes. 2
4–310. 3
(A) IN THIS SECTION, “PROGRAM FUND” MEANS THE DOWN PAYMENT AND 4
SETTLEMENT EXPENSE LOAN PROGRAM FUND. 5
(B) THERE IS A DOWN PAYMENT AND SETTLEMENT EXPENSE LOAN 6
PROGRAM FUND. 7
(C) THE PURPOSE OF THE PROGRAM FUND IS TO SUPPORT TH E DOWN 8
PAYMENT AND SETTLEMENT EXPENSE LOAN PROGRAM. 9
(D) THE DEPARTMENT SHALL ADMI NISTER THE PROGRAM FUND. 10
(E) (1) THE PROGRAM FUND IS A SPECIAL, NONLAPSING FUND THAT IS 11
NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 12
(2) THE STATE TREASURER SHALL HOLD THE PROGRAM FUND 13
SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE PROGRAM FUND. 14
(F) THE PROGRAM FUND CONSISTS OF : 15
(1) REVENUE DISTRIBUTED TO THE PROGRAM FUND UNDER § 16
2–4B–02 OF THE TAX – GENERAL ARTICLE; 17
(2) MONEY APPROPRIATED I N THE STATE BUDGET TO THE PROGRAM 18
FUND; AND 19
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 20
THE BENEFIT OF THE PROGRAM FUND. 21
(G) THE PROGRAM FUND MAY BE USED ONLY TO PROVIDE FINANCING FOR 22
DOWN PAYMENT AND SET TLEMENT EXPENSES TO ENABLE ELIGIBLE HOME BUYERS 23
TO PURCHASE HOMES. 24
(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE 25
PROGRAM FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE IN VESTED. 26
(2) ANY INTEREST EARNINGS OF THE PROGRAM FUND SHALL BE 27
CREDITED TO THE GENERAL FUND OF THE STATE. 28
4 HOUSE BILL 1428
(I) EXPENDITURES FROM THE PROGRAM FUND MAY BE MADE ONLY IN 1
ACCORDANCE WITH THE STATE BUDGET . 2
(J) MONEY EXPENDED FROM T HE PROGRAM FUND FOR THE DOWN 3
PAYMENT AND SETTLEMENT EXPENSE LOAN PROGRAM IS SUPPLEMENT AL TO AND 4
IS NOT INTENDED TO T AKE THE PLACE OF FUN DING THAT O THERWISE WOULD BE 5
APPROPRIATED FOR THE PROGRAM. 6
Article – Real Property 7
10–804. 8
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 9
INDICATED. 10
(2) “COMMUNITY DEVELOPMENT ORGANIZATION ” HAS THE MEANING 11
STATED IN § 6–201 OF THE HOUSING AND COMMUNITY DEVELOPMENT ARTICLE. 12
(3) “REAL ESTATE ENTERPRIS E” MEANS A BUSINESS THA T: 13
(I) IS CONDUCTED BY ONE O R MORE INDIVIDUALS ; 14
(II) OWNS REAL PROPERTY , INCLUDING IN A TENAN CY BY THE 15
ENTIRETY; AND 16
(III) IS INVOLVED IN BUYING , SELLING, LEASING, OR MANAGING 17
REAL PROPERTY . 18
(B) (1) THIS SECTION APPLIES ONLY TO THE SALE OF IMPROVED 19
SINGLE–FAMILY RESIDENTIAL R EAL PROPERTY . 20
(2) THIS SECTION DOES NOT APPLY TO A SALE IN A N ACTION TO 21
FORECLOSE A MORTGAGE , A DEED OF TRUST , OR ANY OTHER LIEN . 22
(C) DURING THE FIRST 30 DAYS AFTER A PERSON OFFERS A PROPERTY 23
SUBJECT TO THIS SECT ION FOR SALE TO A TH IRD PARTY, THE PERSON MAY ACCEP T 24
AN OFFER TO PURCHASE THE PROPERTY MADE ON LY BY AN INDIVIDUAL , A 25
COMMUNITY DEVELOPMEN T ORGANIZATION , A NONPROFIT ORGANIZA TION, OR A 26
REAL ESTATE ENTERPRI SE THAT OWNS AN INTE REST IN LESS THAN 3% OF ALL 27
RESIDENTIAL REAL PRO PERTY LOCATED WITHIN THE COUNTY IN WHICH THE 28
PROPERTY IS LOCATED . 29
Article – Tax – General 30
HOUSE BILL 1428 5
1–101. 1
(a) In this article the following words have the meanings indicated. 2
(G–2) “EXCESS OWNERSHIP OF S INGLE–FAMILY RESIDENCES EX CISE TAX” 3
MEANS THE TAX IMPOSE D UNDER TITLE 7.7 OF THIS ARTICLE. 4
[(g–2)] (G–3) (1) “Executive Director” means the Executive Director of the 5
Alcohol, Tobacco, and Cannabis Commission. 6
(2) “Executive Director” includes a deputy, an inspector, or any other 7
individual acting within the scope of the Executive Director’s authority. 8
2–102. 9
(a) In addition to the duties set forth elsewhere in this article and in other articles 10
of the Code, the Comptroller shall administer the laws that relate to: 11
(1) the admissions and amusement tax; 12
(2) the boxing and wrestling tax; 13
(3) the digital advertising gross revenues tax; 14
(4) THE EXCESS OWNERSHIP OF SINGLE–FAMILY RESIDENCES EX CISE 15
TAX; 16
(5) the income tax; 17
[(5)] (6) the Maryland estate tax; 18
[(6)] (7) the Maryland generation–skipping transfer tax; 19
[(7)] (8) the motor carrier tax; 20
[(8)] (9) the motor fuel tax; 21
[(9)] (10) the sales and use tax; and 22
[(10)] (11) the savings and loan association franchise tax. 23
SUBTITLE 4B. EXCESS OWNERSHIP OF SINGLE–FAMILY RESIDENCES EXCISE TAX 24
REVENUE DISTRIBUTION. 25
2–4B–01. 26 6 HOUSE BILL 1428
FROM THE EXCESS OWNER SHIP OF SINGLE–FAMILY RESIDENCES EX CISE TAX 1
REVENUE, THE COMPTROLLER SHALL DIS TRIBUTE THE AMOUN T NECESSARY TO 2
ADMINISTER THE EXCES S OWNERSHIP OF SINGL E–FAMILY RESIDENCES EX CISE TAX 3
TO AN ADMINISTRATIVE COST ACCOUNT . 4
2–4B–02. 5
AFTER MAKING THE DIST RIBUTION REQUIRED UN DER § 2–4B–01 OF THIS 6
SUBTITLE, THE COMPTROLLER SHALL DIS TRIBUTE THE REMAININ G EXCESS 7
OWNERSHIP OF SINGLE –FAMILY RESIDENCES EX CISE TAX TO THE DOWN PAYMENT 8
AND SETTLEMENT EXPENSE LOAN PROGRAM FUND ESTABLISHED UNDE R § 4–310 9
OF THE HOUSING AND COMMUNITY DEVELOPMENT ARTICLE. 10
TITLE 7.7. EXCESS OWNERSHIP OF SINGLE–FAMILY RESIDENCES EXCISE TAX. 11
SUBTITLE 1. DEFINITIONS; GENERAL PROVISIONS. 12
7.7–101. 13
(A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 14
INDICATED. 15
(B) “APPLICABLE DATE ” MEANS: 16
(1) FOR AN APPLICABLE TA XPAYER THAT BECOMES A HEDGE FUND 17
TAXPAYER AFTER JULY 1, 2025, THE LAST DAY OF THE TAXABLE YEAR IMMEDIATELY 18
PRECEDING THE TAXABL E YEAR THAT THE APPL ICABLE TAXPAYER BECO MES A 19
HEDGE FUND TAXPAYER ; AND 20
(2) FOR ANY OTHER APPLIC ABLE TAXPAYER , THE LAST DAY OF THE 21
FIRST FULL TAXABLE Y EAR ENDING ON OR AFT ER JULY 1, 2025. 22
(C) (1) “APPLICABLE ENTITY ” MEANS: 23
(I) A CORPORATION ; 24
(II) A LIMITED LIABILITY COMPANY; 25
(III) A PARTNERSHIP ; OR 26
(IV) A REAL ESTATE INVEST MENT TRUST. 27
HOUSE BILL 1428 7
(2) “APPLICABLE ENTITY ” DOES NOT INCLUDE : 1
(I) AN ORGANIZATION DESC RIBED UNDER § 501(C)(3) OF THE 2
INTERNAL REVENUE CODE AND EXEMPT FROM TAXATION UNDER § 501(A) OF THE 3
INTERNAL REVENUE CODE; OR 4
(II) AN ORGANIZATION PRIM ARILY ENGAGED IN THE 5
CONSTRUCTION OR REHA BILITATION OF SINGLE –FAMILY RESIDENCES . 6
(D) “APPLICABLE SINGLE –FAMILY RESIDENCE” MEANS A SINGLE –FAMILY 7
RESIDENCE ACQUIRED B Y AN APPLICABLE TAXP AYER BEFORE JULY 1, 2025. 8
(E) “APPLICABLE TAXPAYER ” MEANS AN APPLICABLE ENTITY THAT: 9
(1) MANAGES FUNDS POOLED FROM INVESTORS ; AND 10
(2) IS A FIDUCIARY OF TH E INVESTORS. 11
(F) “DISQUALIFIED SALE ” MEANS A SALE OR TRAN SFER TO: 12
(1) A CORPORATION OR OTH ER ENTITY ENGAGED IN A TRADE OR 13
BUSINESS; OR 14
(2) AN INDIVIDUAL WHO OW NS ANOTHER SINGLE –FAMILY RESIDENCE 15
AT THE TIME OF THE S ALE OR TRANSFER . 16
(G) “HEDGE FUND TAXPAYER ” MEANS AN APPLICABLE TAXPAYER THAT HAS 17
$50,000,000 OR MORE IN NET VALUE OR ASSETS UNDER MANA GEMENT ON ANY DAY 18
DURING A TAXABLE YEA R. 19
(H) (1) “SINGLE–FAMILY RESIDENCE ” MEANS A RESIDENTIAL PROPERTY 20
CONSISTING OF ONE TO FOUR DWELLING UNITS LOCATED IN THE STATE. 21
(2) “SINGLE–FAMILY RESIDENCE ” DOES NOT INCLUDE : 22
(I) AN UNOCCUPIED SINGLE –FAMILY RESIDENCE ACQ UIRED 23
THROUGH FORECLOSURE ; 24
(II) A SINGLE–FAMILY RESIDENCE THA T IS: 25
1. NOT RENTED OR LEASED ; AND 26
8 HOUSE BILL 1428
2. USED AS THE PRINCIPA L RESIDENCE OF ANY P ERSON 1
WHO HAS AN OWNERSHIP INTEREST IN THE APPL ICABLE TAXPAYER THAT OWNS THE 2
SINGLE–FAMILY RESIDENCE ; OR 3
(III) A SINGLE–FAMILY RESIDENCE CON STRUCTED, ACQUIRED, 4
OR OPERATED WITH FED ERAL OR STATE FUNDS. 5
(I) “TAXABLE YEAR” MEANS A CALENDAR YEA R ENDING ON DECEMBER 31. 6
7.7–102. 7
(A) (1) AN EXCISE TAX IS IMPO SED ON THE ACQUISITI ON OF A 8
SINGLE–FAMILY RESIDENCE BY AN APPLICABLE TAXPAY ER DURING A TAXABLE 9
YEAR. 10
(2) THE EXCISE TAX RATE I MPOSED UNDER THIS SU BSECTION IS 11
EQUAL TO 50% OF THE FAIR MARKET V ALUE OF THE SINGLE–FAMILY RESIDENCE . 12
(3) AN APPLICABLE TAXPAYE R SHALL BE TREATED A S ACQUIRING A 13
SINGLE–FAMILY RESIDENCE IF THE APPLICABLE TAXPA YER ACQUIRES A MAJOR ITY 14
OWNERSHIP INTEREST I N THE SINGLE–FAMILY RESIDENCE , REGARDLESS OF THE 15
PERCENTAGE OF THAT O WNERSHIP INTEREST. 16
(B) (1) AN EXCISE TAX IS IMPO SED ON AN APPLICABLE TAXPAYER THAT 17
FAILS TO SATISFY THE REQUIREMENT UNDER § 7.7–103(A) OF THIS SUBTITLE. 18
(2) THE EXCISE TAX IMPOSE D UNDER PARAGRAPH (1) OF THIS 19
SUBSECTION IS EQUAL TO THE PRODUCT OF : 20
(I) $10,000; AND 21
(II) THE DIFFERENCE BETWE EN: 22
1. THE NUMBER OF APPLIC ABLE SINGLE –FAMILY 23
RESIDENCES OWNED BY THE APPLICABLE TAXPA YER AS OF THE LAST D AY OF THE 24
TAXABLE YEAR ; AND 25
2. A. FOR AN APPLICABLE TA XPAYER, THE MAXIMUM 26
NUMBER OF SINGLE –FAMILY RESID ENCES UNDER § 7.7–103(B) OF THIS SUBTITLE ; 27
AND 28
B. FOR A HEDGE FUND TAX PAYER, THE MAXIMUM 29
NUMBER OF SINGLE –FAMILY RESIDENCES UN DER § 7.7–103(C) OF THIS SUBTITLE. 30 HOUSE BILL 1428 9
7.7–103. 1
(A) (1) AN APPLICABLE TAXPAYE R SATISFIES THE REQU IREMENTS OF 2
THIS SECTION IF T HE NUMBER OF APPLICA BLE SINGLE–FAMILY RESIDENCES 3
OWNED BY THE APPLICA BLE TAXPAYER AS OF T HE LAST DAY OF THE T AXABLE YEAR 4
IS EQUAL TO OR LESS THAN THE MAXIMUM NUM BER PERMISSIBLE UNDE R 5
SUBSECTION (B) OR (C) OF THIS SECTION. 6
(2) A SINGLE–FAMILY RESIDENCE T HAT IS SOLD OR TRANS FERRED IN 7
A DISQUALIFIED SALE DURING THE TAXABLE Y EAR IS TREATED AS A SINGLE–FAMILY 8
RESIDENCE OWNED BY T HE APPLICABLE TAXPAY ER AS OF THE LAST DA Y OF THE 9
TAXABLE YEAR . 10
(3) AN APPLICABLE TAXPAYE R SHALL BE TREATED A S OWNING A 11
SINGLE–FAMILY RESIDENCE IF THE APPLICABLE TAXPAYER OWNS A MAJORITY 12
OWNERSHIP INTEREST I N THE SINGLE–FAMILY RESIDENCE , REGARDLESS OF THE 13
PERCENTAGE OF THAT O WNERSHIP INTEREST . 14
(B) EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION , FOR ANY 15
TAXABLE YEAR , THE MAXIMUM NUMBER OF SI NGLE–FAMILY RESIDENCES TH AT AN 16
APPLICABLE TAXPAYER MAY OWN IS: 17
(1) FOR THE FIRST FULL T AXABLE YEAR BEGINNIN G AFTER THE 18
APPLICABLE DATE , 25 PLUS 80% OF THE NUMBER OF APP LICABLE SINGLE –FAMILY 19
RESIDENCES OWNED BY THE APPLICABLE TAXPA YER ON THE APPLICABLE DA TE; 20
(2) FOR THE SECOND FULL TAXABLE YEAR BEGINNI NG AFTER THE 21
APPLICABLE DATE , 25 PLUS 60% OF THE NUMBER OF APP LICABLE SINGLE –FAMILY 22
RESIDENCES OWNED BY THE APPLICABLE TAXPA YER ON THE APPLICABL E DATE; 23
(3) FOR THE THIRD FULL T AXABLE YEAR BEGINNING AFT ER THE 24
APPLICABLE DATE , 25 PLUS 40% OF THE NUMBER OF APP LICABLE SINGLE –FAMILY 25
RESIDENCES OWNED BY THE APPLICABLE TAXPA YER ON THE APPLICABL E DATE; 26
(4) FOR THE FOURTH FULL TAXABLE YEAR BEGINNI NG AFTER THE 27
APPLICABLE DATE , 25 PLUS 20% OF THE NUMBER OF APPL ICABLE SINGLE–FAMILY 28
RESIDENCES OWNED BY THE APPLICABLE TAXPA YER ON THE APPLICABL E DATE; 29
AND 30
(5) FOR ANY TAXABLE YEAR BEGINNING MORE THAN 4 YEARS AFTER 31
THE APPLICABLE DATE , 25. 32
10 HOUSE BILL 1428
(C) THE MAXIMUM NUMBER OF SINGLE–FAMILY RESIDENCES TH AT A 1
HEDGE FUND TAXPAYER MAY OWN IS: 2
(1) FOR THE FIRST FULL T AXABLE YEAR BEGINNIN G AFTER THE 3
APPLICABLE DATE , 80% OF THE NUMBER OF APP LICABLE SINGLE –FAMILY 4
RESIDENCES OWNED BY THE HEDGE FUND TAXPA YER ON THE APPLICABL E DATE; 5
(2) FOR THE SECOND FULL TAXABLE YEAR BEGINNING AFTER THE 6
APPLICABLE DATE , 60% OF THE NUMBER OF APP LICABLE SINGLE –FAMILY 7
RESIDENCES OWNED BY THE HEDGE FUND TAXPA YER ON THE APPLICABL E DATE; 8
(3) FOR THE THIRD FULL T AXABLE YEAR BEGINNIN G AFTER THE 9
APPLICABLE DATE , 40% OF THE NUMBER OF APPLICABLE SINGLE –FAMILY 10
RESIDENCES OWNED BY THE HEDGE FUND TAXPA YER ON THE APPLICABL E DATE; 11
(4) FOR THE FOURTH FULL TAXABLE YEAR BEGINNI NG AFTER THE 12
APPLICABLE DATE , 20% OF THE NUMBER OF APP LICABLE SINGLE –FAMILY 13
RESIDENCES OWNED BY THE HEDGE FUND TA XPAYER ON THE APPLIC ABLE DATE; 14
AND 15
(5) FOR ANY TAXABLE YEAR BEGINNING MORE THAN 4 YEARS AFTER 16
THE APPLICABLE DATE , 0. 17
7.7–104. 18
THE COMPTROLLER SHALL ADO PT REGULATIONS TO CA RRY OUT THE 19
PROVISIONS OF THIS T ITLE. 20
SUBTITLE 2. RETURNS, REPORTS, AND CERTIFICATIONS. 21
7.7–201. 22
(A) AN APPLICABLE TAXPAYE R SHALL COMPLETE , UNDER OATH , AND FILE 23
WITH THE COMPTROLLER AN EXCESS OWNERSHIP OF SINGLE –FAMILY RESIDENCES 24
EXCISE TAX RETURN , REPORT, AND CERTIFICATION FO R EACH TAXABLE YEAR . 25
(B) (1) THE COMPTROLLER S HALL REQUIRE AN APPL ICABLE TAXPAYER 26
TO REPORT WITH THE R ETURN REQUIRED UNDER SUBSECTION (A) OF THIS SECTION 27
THE INFORMATION THAT THE COMPTROLLER DETERMINE S IS NECESSARY TO 28
CARRY OUT THE PROVIS IONS OF THIS TITLE. 29
(2) THE REPORT REQUIRED U NDER PARAGRAPH (1) OF THIS 30
SUBSECTION SHALL , AT A MINIMUM, INCLUDE: 31 HOUSE BILL 1428 11
(I) THE DATES ON WHICH S INGLE–FAMILY RESIDENCES OW NED 1
BY AN APPLICABLE TAX PAYER WERE ACQUIRED BY THE APPLICABLE TA XPAYER; 2
AND 3
(II) WHETHER A PERSON ACQ UIRING THE SINGLE –FAMILY 4
RESIDENCE FROM AN AP PLICABLE TAXPAYER OW NS ANY OTHER SINGLE –FAMILY 5
RESIDENCE AT THE TIM E OF THE ACQUISITION . 6
(C) (1) IF AN APPLICABLE TAXP AYER SOLD OR TRANSFE RRED A 7
SINGLE–FAMILY RESIDENCE DUR ING THE TAXABLE YEAR , THE APPLICABLE 8
TAXPAYER SHALL INCLU DE WITH THE RETURN R EQUIRED UNDER SUBSECTION (A) 9
OF THIS SECTION A CE RTIFICATION FROM EAC H INDIVIDUAL TO WHOM A 10
SINGLE–FAMILY RESIDENCE IS SOLD OR TRANSFERRED . 11
(2) THE CERTIFICATION REQ UIRED UNDER THIS SUB SECTION SHALL 12
BE SIGNED BY THE PUR CHASER OR TRANSFEREE AND STATE THE FO LLOWING: 13
(I) THE NAME AND ADDRESS OF THE PURCHASER OR 14
TRANSFEREE ; AND 15
(II) THE SALE IS NOT A DI SQUALIFIED SALE . 16
7.7–202. 17
AN APPLICABLE TAXPAYE R REQUIRED TO FILE A RETURN UNDER § 7.7–201 OF 18
THIS SUBTITLE SHALL MAINTAIN RECORDS OF ANY SINGLE–FAMILY RESIDENCE 19
OWNED OR SOLD BY THE APPLICABLE TAXPAYER DURING THE TAXABLE Y EAR. 20
SUBTITLE 3. TAX PAYMENT. 21
7.7–301. 22
(A) AN APPLICABLE TAXPAYE R REQUIRED TO FILE A RETURN UNDER § 23
7.7–201 OF THIS TITLE SHALL PAY THE EXCESS OWNER SHIP OF SINGLE –FAMILY 24
RESIDENCES EXCISE TA X WITH THE RETURN . 25
(B) IF A CORPORATION , OTHER THAN A NONSTOC K, NONPROFIT 26
CORPORATION , IS REQUIRED TO PAY T HE EXCESS OWNERSHIP OF SINGLE–FAMILY 27
RESIDENCES EXCISE TA X, PERSONAL LIABILITY F OR THE TAX AND INTER EST AND 28
PENALTIES ON THE TA X EXTENDS TO ANY OFF ICER OF THE CORPORAT ION WHO 29
EXERCISES DIRECT CON TROL OVER ITS FISCAL MANAGEMENT . 30
12 HOUSE BILL 1428
(C) IF A LIMITED LIABILIT Y COMPANY , OR LIMITED LIABILITY 1
PARTNERSHIP , INCLUDING A LIMITED PARTNERSHIP REGISTER ED AS A LIMITED 2
LIABILITY LIMITED PA RTNERSHIP, IS REQUIRED TO PAY T HE EXCESS OWNERSHIP OF 3
SINGLE–FAMILY RESIDENCES EX CISE TAX, PERSONAL LIABILITY F OR THE TAX AND 4
INTEREST AND PENALTI ES ON THE TAX EXTEND S TO ANY PERSON WHO EXERCISES 5
DIRECT CONTROL OVER THE FISCAL MANAGEMEN T OF THE LIMITED LIA BILITY 6
COMPANY OR LIMITED L IABILITY PARTNERSHIP . 7
13–201. 8
In this subtitle, “tax information” means: 9
(4) any information contained in: 10
(i) an admissions and amusement tax return; 11
(ii) an alcoholic beverage tax return; 12
(iii) a bay restoration fee return; 13
(iv) a boxing and wrestling tax return; 14
(v) a digital advertising gross revenues tax return; 15
(vi) an E–9–1–1 fee return; 16
(vii) AN EXCESS OWNERSHIP OF SINGLE–FAMILY RESIDENCES 17
EXCISE TAX RETURN ; 18
(VIII) a financial institution franchise tax return; 19
[(viii)] (IX) an inheritance tax return; 20
[(ix)] (X) a Maryland estate tax return; 21
[(x)] (XI) a motor carrier tax return; 22
[(xi)] (XII) a motor fuel tax return; 23
[(xii)] (XIII) an other tobacco products tax return; 24
[(xiii)] (XIV) a public service company franchise tax return; 25
[(xiv)] (XV) a sales and use tax return; 26
HOUSE BILL 1428 13
[(xv)] (XVI) a savings and loan association franchise tax return; 1
[(xvi)] (XVII) a tire recycling fee return; 2
[(xvii)] (XVIII) a tobacco tax return; or 3
[(xviii)] (XIX) a transportation services assessment return. 4
13–508. 5
(a) Within 30 days after the date on which a notice of assessment of the 6
admissions and amusement tax, alcoholic beverage tax, boxing and wrestling tax, income 7
tax, motor carrier tax, motor fuel tax, public service company franchise tax, EXCESS 8
OWNERSHIP OF SI NGLE–FAMILY RESIDENCES EX CISE TAX, financial institution 9
franchise tax, sales and use tax, or tobacco tax is mailed, a person or governmental unit 10
against which the assessment is made may submit to the tax collector: 11
(1) an application for revision of the assessment; or 12
(2) except for the public service company franchise tax, if the assessment 13
is paid, a claim for refund. 14
(c) The Comptroller or an employee of the Comptroller’s office expressly 15
designated by the Comptroller promptly: 16
(1) (i) shall hold an informal hearing on a person’s or governmental 17
unit’s admissions and amusement tax, alcoholic beverage tax, boxing and wrestling tax, 18
EXCESS OWNERSHIP OF SINGLE–FAMILY RESIDENCES EX CISE TAX, income tax, motor 19
carrier tax, motor fuel tax, sales and use tax, or tobacco tax application for revision or claim 20
for refund under subsection (a) of this section; and 21
(ii) after the hearing: 22
1. shall act on the application for revision; and 23
2. may assess any additional tax, penalty, and interest due; 24
and 25
(2) shall mail to the person or governmental unit a notice of final 26
determination. 27
13–509. 28
(a) Notwithstanding a person’s failure to file a timely application for revision or 29
claim for refund of an assessment of the admissions and amusement tax, alcoholic beverage 30
tax, boxing and wrestling tax, EXCESS OWNERSHIP OF SINGLE–FAMILY RESIDENCES 31 14 HOUSE BILL 1428
EXCISE TAX, income tax, motor carrier tax, motor fuel tax, sales and use tax, or tobacco 1
tax under § 13–508(a) of this subtitle, the Comptroller or the Comptroller’s designee may 2
issue an order decreasing or abating an assessment to correct an erroneous assessment. 3
(b) If action is taken under subsection (a) of this section, the order shall state 4
clearly the reasons for decreasing or abating the assessment. 5
(c) Any order issued by the Comptroller under subsection (a) of this section shall 6
be final and not subject to appeal. 7
(d) The Comptroller’s refusal to enter an order under subsection (a) of this section 8
shall be final and not subject to appeal. 9
13–1001. 10
(H) A PERSON WHO IS REQUIR ED TO FILE AN EXCESS OWNERSHIP OF 11
SINGLE–FAMILY RESIDENCES EX CISE TAX RETURN AND WHO WILLFULLY FAILS TO 12
FILE THE RETURN AS R EQUIRED UNDER TITLE 7.7 OF THIS ARTICLE IS G UILTY OF A 13
MISDEMEANOR AND , ON CONVICTION , IS SUBJECT TO A FINE NOT EXC EEDING $5,000 14
OR IMPRISONMENT NOT EXCEEDING 5 YEARS OR BOTH . 15
13–1002. 16
(a) A person who willfully files a false alcoholic beverage tax return is guilty of 17
perjury and, on conviction, is subject to the penalty for perjury. 18
(b) A person, including an officer of a corporation, who willfully files a false digital 19
advertising gross revenues tax return, a false financial institution franchise tax return, a 20
false public service company franchise tax return, or a false income tax return with the 21
intent to evade the payment of tax due under this article is guilty of perjury and, on 22
conviction, is subject to the penalty for perjury. 23
(c) Subsections (a) and (b) of this section apply to the alcoholic beverage, digital 24
advertising gross revenues, EXCESS OWNERSHIP OF SINGLE–FAMILY RESIDENCES 25
EXCISE, financial institution franchise, public service company franchise, and income 26
taxes. 27
Article – Tax – Property 28
13–203. 29
(a) (1) Except as provided in subsections (a–1) [and], (b), AND (C) of this 30
section, the rate of the transfer tax is 0.5% of the consideration payable for the instrument 31
of writing. 32
(2) The consideration: 33 HOUSE BILL 1428 15
(i) includes the amount of any mortgage or deed of trust assumed 1
by the grantee; and 2
(ii) subject to item (i) of this paragraph, includes only the amount 3
paid or delivered in return for the sale of the property and does not include the amount of 4
any debt forgiven or no longer secured by a mortgage or deed of trust on the property. 5
(C) (1) IN THIS SUBSECTION , “REAL ESTATE ENTERPRI SE” MEANS A 6
BUSINESS THAT : 7
(I) IS CONDUCTED BY ONE OR MORE INDIVIDUALS ; 8
(II) OWNS REAL PROPERTY , INCLUDING IN A TENAN CY BY THE 9
ENTIRETY; AND 10
(III) IS INVOLVED IN BUYIN G, SELLING, LEASING, OR MANAGING 11
REAL PROPERTY . 12
(2) FOR A SALE OF IMPROVE D SINGLE–FAMILY RESIDENTIAL R EAL 13
PROPERTY TO A REAL E STATE ENTERPRISE OR THE SUBSIDIARY OF A REAL ESTATE 14
ENTERPRISE THAT HAS AN OWNERSHIP INTERES T IN RESIDENTIAL REA L PROPERTY 15
IN THE STATE WITH A TOTAL AS SESSED VALUE EXCEEDI NG $12,000,000 OR AN 16
OWNERSHIP INTEREST I N MORE THAN 120 SINGLE–FAMILY RESIDENTIAL R EAL 17
PROPERTIES, THE RATE OF THE TRAN SFER TAX IS 15% OF THE CONSIDERATION 18
PAYABLE FOR THE INST RUMENT OF WRITING . 19
(3) THE CONSIDERATION : 20
(I) INCLUDES THE AMOUNT OF ANY MORTGAGE O R DEED OF 21
TRUST ASSUMED BY THE GRANTEE; AND 22
(II) SUBJECT TO ITEM (I) OF THIS PARAGRAPH , INCLUDES ONLY 23
THE AMOUNT PAID OR D ELIVERED IN RETURN F OR THE SALE OF THE P ROPERTY AND 24
DOES NOT INCLUDE THE AMOUNT OF ANY DEBT F ORGIVEN OR NO LONGER SECURED 25
BY A MORTGAGE OR DEED OF TRU ST ON THE PROPERTY . 26
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 27
1, 2025. 28