MD
Maryland House Bill HB1428

Maryland 2025 Regular Session

Maryland House Bill HB1428 Compare Versions

Only one version of the bill is available at this time.
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22
33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *hb1428*
66
77 HOUSE BILL 1428
88 Q6, Q7, N1 5lr1573
99 CF SB 582
1010 By: Delegates Boafo and Amprey
1111 Introduced and read first time: February 7, 2025
1212 Assigned to: Environment and Transportation and Ways and Means
1313
1414 A BILL ENTITLED
1515
1616 AN ACT concerning 1
1717
1818 Sale of Residential Property – Taxes and Offers to Purchase 2
1919 (End Hedge Fund Control of Maryland Homes Act of 2025) 3
2020
2121 FOR the purpose of imposing an excise tax on the acquisition and excess ownership of 4
2222 certain single–family residences in the State by certain entities; providing for the 5
2323 calculation, collection, and distribution of the excise tax; establishing the Down 6
2424 Payment and Settlement Expense Loan Program Fund as a special, nonlapsing fund; 7
2525 requiring a person who offers certain residential real property for sale to a third 8
2626 party, during a certain period of time, to accept an offer to purchase the property 9
2727 made only by certain persons; altering the rate of the State transfer tax payable for 10
2828 an instrument of writing for a sale of certain residential real property under certain 11
2929 circumstances; and generally relating to sales of residential real property, an excise 12
3030 tax on the acquisition and excess ownership of single–family residences, and the 13
3131 State transfer tax. 14
3232
3333 BY repealing and reenacting, without amendments, 15
3434 Article – Housing and Community Development 16
3535 Section 4–302 and 4–303 17
3636 Annotated Code of Maryland 18
3737 (2019 Replacement Volume and 2024 Supplement) 19
3838
3939 BY adding to 20
4040 Article – Housing and Community Development 21
4141 Section 4–310 22
4242 Annotated Code of Maryland 23
4343 (2019 Replacement Volume and 2024 Supplement) 24
4444
4545 BY adding to 25
4646 Article – Real Property 26
4747 Section 10–804 27
4848 Annotated Code of Maryland 28 2 HOUSE BILL 1428
4949
5050
5151 (2023 Replacement Volume and 2024 Supplement) 1
5252
5353 BY repealing and reenacting, without amendments, 2
5454 Article – Tax – General 3
5555 Section 1–101(a) 4
5656 Annotated Code of Maryland 5
5757 (2022 Replacement Volume and 2024 Supplement) 6
5858
5959 BY adding to 7
6060 Article – Tax – General 8
6161 Section 1–101(g–2); 2–4B–01 and 2–4B–02 to be under the new subtitle “Subtitle 4B. 9
6262 Excess Ownership of Single–Family Residences Excise Tax Revenue 10
6363 Distribution”; 7.7–101 through 7.7–301 to be under the new title “Title 7.7. 11
6464 Excess Ownership of Single–Family Residences Excise Tax”; and 13–1001(h) 12
6565 Annotated Code of Maryland 13
6666 (2022 Replacement Volume and 2024 Supplement) 14
6767
6868 BY repealing and reenacting, with amendments, 15
6969 Article – Tax – General 16
7070 Section 1–101(g–2), 2–102(a), 13–201(4), 13–508(a) and (c), 13–509, and 13–1002 17
7171 Annotated Code of Maryland 18
7272 (2022 Replacement Volume and 2024 Supplement) 19
7373
7474 BY repealing and reenacting, with amendments, 20
7575 Article – Tax – Property 21
7676 Section 13–203(a) 22
7777 Annotated Code of Maryland 23
7878 (2019 Replacement Volume and 2024 Supplement) 24
7979
8080 BY adding to 25
8181 Article – Tax – Property 26
8282 Section 13–203(c) 27
8383 Annotated Code of Maryland 28
8484 (2019 Replacement Volume and 2024 Supplement) 29
8585
8686 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 30
8787 That the Laws of Maryland read as follows: 31
8888
8989 Article – Housing and Community Development 32
9090
9191 4–302. 33
9292
9393 There is a Down Payment and Settlement Expense Loan Program. 34
9494
9595 4–303. 35
9696 HOUSE BILL 1428 3
9797
9898
9999 The purpose of the Program is to provide financing for down payment and settlement 1
100100 expenses to enable eligible homebuyers to purchase homes. 2
101101
102102 4–310. 3
103103
104104 (A) IN THIS SECTION, “PROGRAM FUND” MEANS THE DOWN PAYMENT AND 4
105105 SETTLEMENT EXPENSE LOAN PROGRAM FUND. 5
106106
107107 (B) THERE IS A DOWN PAYMENT AND SETTLEMENT EXPENSE LOAN 6
108108 PROGRAM FUND. 7
109109
110110 (C) THE PURPOSE OF THE PROGRAM FUND IS TO SUPPORT TH E DOWN 8
111111 PAYMENT AND SETTLEMENT EXPENSE LOAN PROGRAM. 9
112112
113113 (D) THE DEPARTMENT SHALL ADMI NISTER THE PROGRAM FUND. 10
114114
115115 (E) (1) THE PROGRAM FUND IS A SPECIAL, NONLAPSING FUND THAT IS 11
116116 NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 12
117117
118118 (2) THE STATE TREASURER SHALL HOLD THE PROGRAM FUND 13
119119 SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE PROGRAM FUND. 14
120120
121121 (F) THE PROGRAM FUND CONSISTS OF : 15
122122
123123 (1) REVENUE DISTRIBUTED TO THE PROGRAM FUND UNDER § 16
124124 2–4B–02 OF THE TAX – GENERAL ARTICLE; 17
125125
126126 (2) MONEY APPROPRIATED I N THE STATE BUDGET TO THE PROGRAM 18
127127 FUND; AND 19
128128
129129 (3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 20
130130 THE BENEFIT OF THE PROGRAM FUND. 21
131131
132132 (G) THE PROGRAM FUND MAY BE USED ONLY TO PROVIDE FINANCING FOR 22
133133 DOWN PAYMENT AND SET TLEMENT EXPENSES TO ENABLE ELIGIBLE HOME BUYERS 23
134134 TO PURCHASE HOMES. 24
135135
136136 (H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE 25
137137 PROGRAM FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE IN VESTED. 26
138138
139139 (2) ANY INTEREST EARNINGS OF THE PROGRAM FUND SHALL BE 27
140140 CREDITED TO THE GENERAL FUND OF THE STATE. 28
141141 4 HOUSE BILL 1428
142142
143143
144144 (I) EXPENDITURES FROM THE PROGRAM FUND MAY BE MADE ONLY IN 1
145145 ACCORDANCE WITH THE STATE BUDGET . 2
146146
147147 (J) MONEY EXPENDED FROM T HE PROGRAM FUND FOR THE DOWN 3
148148 PAYMENT AND SETTLEMENT EXPENSE LOAN PROGRAM IS SUPPLEMENT AL TO AND 4
149149 IS NOT INTENDED TO T AKE THE PLACE OF FUN DING THAT O THERWISE WOULD BE 5
150150 APPROPRIATED FOR THE PROGRAM. 6
151151
152152 Article – Real Property 7
153153
154154 10–804. 8
155155
156156 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 9
157157 INDICATED. 10
158158
159159 (2) “COMMUNITY DEVELOPMENT ORGANIZATION ” HAS THE MEANING 11
160160 STATED IN § 6–201 OF THE HOUSING AND COMMUNITY DEVELOPMENT ARTICLE. 12
161161
162162 (3) “REAL ESTATE ENTERPRIS E” MEANS A BUSINESS THA T: 13
163163
164164 (I) IS CONDUCTED BY ONE O R MORE INDIVIDUALS ; 14
165165
166166 (II) OWNS REAL PROPERTY , INCLUDING IN A TENAN CY BY THE 15
167167 ENTIRETY; AND 16
168168
169169 (III) IS INVOLVED IN BUYING , SELLING, LEASING, OR MANAGING 17
170170 REAL PROPERTY . 18
171171
172172 (B) (1) THIS SECTION APPLIES ONLY TO THE SALE OF IMPROVED 19
173173 SINGLE–FAMILY RESIDENTIAL R EAL PROPERTY . 20
174174
175175 (2) THIS SECTION DOES NOT APPLY TO A SALE IN A N ACTION TO 21
176176 FORECLOSE A MORTGAGE , A DEED OF TRUST , OR ANY OTHER LIEN . 22
177177
178178 (C) DURING THE FIRST 30 DAYS AFTER A PERSON OFFERS A PROPERTY 23
179179 SUBJECT TO THIS SECT ION FOR SALE TO A TH IRD PARTY, THE PERSON MAY ACCEP T 24
180180 AN OFFER TO PURCHASE THE PROPERTY MADE ON LY BY AN INDIVIDUAL , A 25
181181 COMMUNITY DEVELOPMEN T ORGANIZATION , A NONPROFIT ORGANIZA TION, OR A 26
182182 REAL ESTATE ENTERPRI SE THAT OWNS AN INTE REST IN LESS THAN 3% OF ALL 27
183183 RESIDENTIAL REAL PRO PERTY LOCATED WITHIN THE COUNTY IN WHICH THE 28
184184 PROPERTY IS LOCATED . 29
185185
186186 Article – Tax – General 30
187187 HOUSE BILL 1428 5
188188
189189
190190 1–101. 1
191191
192192 (a) In this article the following words have the meanings indicated. 2
193193
194194 (G–2) “EXCESS OWNERSHIP OF S INGLE–FAMILY RESIDENCES EX CISE TAX” 3
195195 MEANS THE TAX IMPOSE D UNDER TITLE 7.7 OF THIS ARTICLE. 4
196196
197197 [(g–2)] (G–3) (1) “Executive Director” means the Executive Director of the 5
198198 Alcohol, Tobacco, and Cannabis Commission. 6
199199
200200 (2) “Executive Director” includes a deputy, an inspector, or any other 7
201201 individual acting within the scope of the Executive Director’s authority. 8
202202
203203 2–102. 9
204204
205205 (a) In addition to the duties set forth elsewhere in this article and in other articles 10
206206 of the Code, the Comptroller shall administer the laws that relate to: 11
207207
208208 (1) the admissions and amusement tax; 12
209209
210210 (2) the boxing and wrestling tax; 13
211211
212212 (3) the digital advertising gross revenues tax; 14
213213
214214 (4) THE EXCESS OWNERSHIP OF SINGLE–FAMILY RESIDENCES EX CISE 15
215215 TAX; 16
216216
217217 (5) the income tax; 17
218218
219219 [(5)] (6) the Maryland estate tax; 18
220220
221221 [(6)] (7) the Maryland generation–skipping transfer tax; 19
222222
223223 [(7)] (8) the motor carrier tax; 20
224224
225225 [(8)] (9) the motor fuel tax; 21
226226
227227 [(9)] (10) the sales and use tax; and 22
228228
229229 [(10)] (11) the savings and loan association franchise tax. 23
230230
231231 SUBTITLE 4B. EXCESS OWNERSHIP OF SINGLE–FAMILY RESIDENCES EXCISE TAX 24
232232 REVENUE DISTRIBUTION. 25
233233
234234 2–4B–01. 26 6 HOUSE BILL 1428
235235
236236
237237
238238 FROM THE EXCESS OWNER SHIP OF SINGLE–FAMILY RESIDENCES EX CISE TAX 1
239239 REVENUE, THE COMPTROLLER SHALL DIS TRIBUTE THE AMOUN T NECESSARY TO 2
240240 ADMINISTER THE EXCES S OWNERSHIP OF SINGL E–FAMILY RESIDENCES EX CISE TAX 3
241241 TO AN ADMINISTRATIVE COST ACCOUNT . 4
242242
243243 2–4B–02. 5
244244
245245 AFTER MAKING THE DIST RIBUTION REQUIRED UN DER § 2–4B–01 OF THIS 6
246246 SUBTITLE, THE COMPTROLLER SHALL DIS TRIBUTE THE REMAININ G EXCESS 7
247247 OWNERSHIP OF SINGLE –FAMILY RESIDENCES EX CISE TAX TO THE DOWN PAYMENT 8
248248 AND SETTLEMENT EXPENSE LOAN PROGRAM FUND ESTABLISHED UNDE R § 4–310 9
249249 OF THE HOUSING AND COMMUNITY DEVELOPMENT ARTICLE. 10
250250
251251 TITLE 7.7. EXCESS OWNERSHIP OF SINGLE–FAMILY RESIDENCES EXCISE TAX. 11
252252
253253 SUBTITLE 1. DEFINITIONS; GENERAL PROVISIONS. 12
254254
255255 7.7–101. 13
256256
257257 (A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 14
258258 INDICATED. 15
259259
260260 (B) “APPLICABLE DATE ” MEANS: 16
261261
262262 (1) FOR AN APPLICABLE TA XPAYER THAT BECOMES A HEDGE FUND 17
263263 TAXPAYER AFTER JULY 1, 2025, THE LAST DAY OF THE TAXABLE YEAR IMMEDIATELY 18
264264 PRECEDING THE TAXABL E YEAR THAT THE APPL ICABLE TAXPAYER BECO MES A 19
265265 HEDGE FUND TAXPAYER ; AND 20
266266
267267 (2) FOR ANY OTHER APPLIC ABLE TAXPAYER , THE LAST DAY OF THE 21
268268 FIRST FULL TAXABLE Y EAR ENDING ON OR AFT ER JULY 1, 2025. 22
269269
270270 (C) (1) “APPLICABLE ENTITY ” MEANS: 23
271271
272272 (I) A CORPORATION ; 24
273273
274274 (II) A LIMITED LIABILITY COMPANY; 25
275275
276276 (III) A PARTNERSHIP ; OR 26
277277
278278 (IV) A REAL ESTATE INVEST MENT TRUST. 27
279279 HOUSE BILL 1428 7
280280
281281
282282 (2) “APPLICABLE ENTITY ” DOES NOT INCLUDE : 1
283283
284284 (I) AN ORGANIZATION DESC RIBED UNDER § 501(C)(3) OF THE 2
285285 INTERNAL REVENUE CODE AND EXEMPT FROM TAXATION UNDER § 501(A) OF THE 3
286286 INTERNAL REVENUE CODE; OR 4
287287
288288 (II) AN ORGANIZATION PRIM ARILY ENGAGED IN THE 5
289289 CONSTRUCTION OR REHA BILITATION OF SINGLE –FAMILY RESIDENCES . 6
290290
291291 (D) “APPLICABLE SINGLE –FAMILY RESIDENCE” MEANS A SINGLE –FAMILY 7
292292 RESIDENCE ACQUIRED B Y AN APPLICABLE TAXP AYER BEFORE JULY 1, 2025. 8
293293
294294 (E) “APPLICABLE TAXPAYER ” MEANS AN APPLICABLE ENTITY THAT: 9
295295
296296 (1) MANAGES FUNDS POOLED FROM INVESTORS ; AND 10
297297
298298 (2) IS A FIDUCIARY OF TH E INVESTORS. 11
299299
300300 (F) “DISQUALIFIED SALE ” MEANS A SALE OR TRAN SFER TO: 12
301301
302302 (1) A CORPORATION OR OTH ER ENTITY ENGAGED IN A TRADE OR 13
303303 BUSINESS; OR 14
304304
305305 (2) AN INDIVIDUAL WHO OW NS ANOTHER SINGLE –FAMILY RESIDENCE 15
306306 AT THE TIME OF THE S ALE OR TRANSFER . 16
307307
308308 (G) “HEDGE FUND TAXPAYER ” MEANS AN APPLICABLE TAXPAYER THAT HAS 17
309309 $50,000,000 OR MORE IN NET VALUE OR ASSETS UNDER MANA GEMENT ON ANY DAY 18
310310 DURING A TAXABLE YEA R. 19
311311
312312 (H) (1) “SINGLE–FAMILY RESIDENCE ” MEANS A RESIDENTIAL PROPERTY 20
313313 CONSISTING OF ONE TO FOUR DWELLING UNITS LOCATED IN THE STATE. 21
314314
315315 (2) “SINGLE–FAMILY RESIDENCE ” DOES NOT INCLUDE : 22
316316
317317 (I) AN UNOCCUPIED SINGLE –FAMILY RESIDENCE ACQ UIRED 23
318318 THROUGH FORECLOSURE ; 24
319319
320320 (II) A SINGLE–FAMILY RESIDENCE THA T IS: 25
321321
322322 1. NOT RENTED OR LEASED ; AND 26
323323 8 HOUSE BILL 1428
324324
325325
326326 2. USED AS THE PRINCIPA L RESIDENCE OF ANY P ERSON 1
327327 WHO HAS AN OWNERSHIP INTEREST IN THE APPL ICABLE TAXPAYER THAT OWNS THE 2
328328 SINGLE–FAMILY RESIDENCE ; OR 3
329329
330330 (III) A SINGLE–FAMILY RESIDENCE CON STRUCTED, ACQUIRED, 4
331331 OR OPERATED WITH FED ERAL OR STATE FUNDS. 5
332332
333333 (I) “TAXABLE YEAR” MEANS A CALENDAR YEA R ENDING ON DECEMBER 31. 6
334334
335335 7.7–102. 7
336336
337337 (A) (1) AN EXCISE TAX IS IMPO SED ON THE ACQUISITI ON OF A 8
338338 SINGLE–FAMILY RESIDENCE BY AN APPLICABLE TAXPAY ER DURING A TAXABLE 9
339339 YEAR. 10
340340
341341 (2) THE EXCISE TAX RATE I MPOSED UNDER THIS SU BSECTION IS 11
342342 EQUAL TO 50% OF THE FAIR MARKET V ALUE OF THE SINGLE–FAMILY RESIDENCE . 12
343343
344344 (3) AN APPLICABLE TAXPAYE R SHALL BE TREATED A S ACQUIRING A 13
345345 SINGLE–FAMILY RESIDENCE IF THE APPLICABLE TAXPA YER ACQUIRES A MAJOR ITY 14
346346 OWNERSHIP INTEREST I N THE SINGLE–FAMILY RESIDENCE , REGARDLESS OF THE 15
347347 PERCENTAGE OF THAT O WNERSHIP INTEREST. 16
348348
349349 (B) (1) AN EXCISE TAX IS IMPO SED ON AN APPLICABLE TAXPAYER THAT 17
350350 FAILS TO SATISFY THE REQUIREMENT UNDER § 7.7–103(A) OF THIS SUBTITLE. 18
351351
352352 (2) THE EXCISE TAX IMPOSE D UNDER PARAGRAPH (1) OF THIS 19
353353 SUBSECTION IS EQUAL TO THE PRODUCT OF : 20
354354
355355 (I) $10,000; AND 21
356356
357357 (II) THE DIFFERENCE BETWE EN: 22
358358
359359 1. THE NUMBER OF APPLIC ABLE SINGLE –FAMILY 23
360360 RESIDENCES OWNED BY THE APPLICABLE TAXPA YER AS OF THE LAST D AY OF THE 24
361361 TAXABLE YEAR ; AND 25
362362
363363 2. A. FOR AN APPLICABLE TA XPAYER, THE MAXIMUM 26
364364 NUMBER OF SINGLE –FAMILY RESID ENCES UNDER § 7.7–103(B) OF THIS SUBTITLE ; 27
365365 AND 28
366366
367367 B. FOR A HEDGE FUND TAX PAYER, THE MAXIMUM 29
368368 NUMBER OF SINGLE –FAMILY RESIDENCES UN DER § 7.7–103(C) OF THIS SUBTITLE. 30 HOUSE BILL 1428 9
369369
370370
371371
372372 7.7–103. 1
373373
374374 (A) (1) AN APPLICABLE TAXPAYE R SATISFIES THE REQU IREMENTS OF 2
375375 THIS SECTION IF T HE NUMBER OF APPLICA BLE SINGLE–FAMILY RESIDENCES 3
376376 OWNED BY THE APPLICA BLE TAXPAYER AS OF T HE LAST DAY OF THE T AXABLE YEAR 4
377377 IS EQUAL TO OR LESS THAN THE MAXIMUM NUM BER PERMISSIBLE UNDE R 5
378378 SUBSECTION (B) OR (C) OF THIS SECTION. 6
379379
380380 (2) A SINGLE–FAMILY RESIDENCE T HAT IS SOLD OR TRANS FERRED IN 7
381381 A DISQUALIFIED SALE DURING THE TAXABLE Y EAR IS TREATED AS A SINGLE–FAMILY 8
382382 RESIDENCE OWNED BY T HE APPLICABLE TAXPAY ER AS OF THE LAST DA Y OF THE 9
383383 TAXABLE YEAR . 10
384384
385385 (3) AN APPLICABLE TAXPAYE R SHALL BE TREATED A S OWNING A 11
386386 SINGLE–FAMILY RESIDENCE IF THE APPLICABLE TAXPAYER OWNS A MAJORITY 12
387387 OWNERSHIP INTEREST I N THE SINGLE–FAMILY RESIDENCE , REGARDLESS OF THE 13
388388 PERCENTAGE OF THAT O WNERSHIP INTEREST . 14
389389
390390 (B) EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION , FOR ANY 15
391391 TAXABLE YEAR , THE MAXIMUM NUMBER OF SI NGLE–FAMILY RESIDENCES TH AT AN 16
392392 APPLICABLE TAXPAYER MAY OWN IS: 17
393393
394394 (1) FOR THE FIRST FULL T AXABLE YEAR BEGINNIN G AFTER THE 18
395395 APPLICABLE DATE , 25 PLUS 80% OF THE NUMBER OF APP LICABLE SINGLE –FAMILY 19
396396 RESIDENCES OWNED BY THE APPLICABLE TAXPA YER ON THE APPLICABLE DA TE; 20
397397
398398 (2) FOR THE SECOND FULL TAXABLE YEAR BEGINNI NG AFTER THE 21
399399 APPLICABLE DATE , 25 PLUS 60% OF THE NUMBER OF APP LICABLE SINGLE –FAMILY 22
400400 RESIDENCES OWNED BY THE APPLICABLE TAXPA YER ON THE APPLICABL E DATE; 23
401401
402402 (3) FOR THE THIRD FULL T AXABLE YEAR BEGINNING AFT ER THE 24
403403 APPLICABLE DATE , 25 PLUS 40% OF THE NUMBER OF APP LICABLE SINGLE –FAMILY 25
404404 RESIDENCES OWNED BY THE APPLICABLE TAXPA YER ON THE APPLICABL E DATE; 26
405405
406406 (4) FOR THE FOURTH FULL TAXABLE YEAR BEGINNI NG AFTER THE 27
407407 APPLICABLE DATE , 25 PLUS 20% OF THE NUMBER OF APPL ICABLE SINGLE–FAMILY 28
408408 RESIDENCES OWNED BY THE APPLICABLE TAXPA YER ON THE APPLICABL E DATE; 29
409409 AND 30
410410
411411 (5) FOR ANY TAXABLE YEAR BEGINNING MORE THAN 4 YEARS AFTER 31
412412 THE APPLICABLE DATE , 25. 32
413413 10 HOUSE BILL 1428
414414
415415
416416 (C) THE MAXIMUM NUMBER OF SINGLE–FAMILY RESIDENCES TH AT A 1
417417 HEDGE FUND TAXPAYER MAY OWN IS: 2
418418
419419 (1) FOR THE FIRST FULL T AXABLE YEAR BEGINNIN G AFTER THE 3
420420 APPLICABLE DATE , 80% OF THE NUMBER OF APP LICABLE SINGLE –FAMILY 4
421421 RESIDENCES OWNED BY THE HEDGE FUND TAXPA YER ON THE APPLICABL E DATE; 5
422422
423423 (2) FOR THE SECOND FULL TAXABLE YEAR BEGINNING AFTER THE 6
424424 APPLICABLE DATE , 60% OF THE NUMBER OF APP LICABLE SINGLE –FAMILY 7
425425 RESIDENCES OWNED BY THE HEDGE FUND TAXPA YER ON THE APPLICABL E DATE; 8
426426
427427 (3) FOR THE THIRD FULL T AXABLE YEAR BEGINNIN G AFTER THE 9
428428 APPLICABLE DATE , 40% OF THE NUMBER OF APPLICABLE SINGLE –FAMILY 10
429429 RESIDENCES OWNED BY THE HEDGE FUND TAXPA YER ON THE APPLICABL E DATE; 11
430430
431431 (4) FOR THE FOURTH FULL TAXABLE YEAR BEGINNI NG AFTER THE 12
432432 APPLICABLE DATE , 20% OF THE NUMBER OF APP LICABLE SINGLE –FAMILY 13
433433 RESIDENCES OWNED BY THE HEDGE FUND TA XPAYER ON THE APPLIC ABLE DATE; 14
434434 AND 15
435435
436436 (5) FOR ANY TAXABLE YEAR BEGINNING MORE THAN 4 YEARS AFTER 16
437437 THE APPLICABLE DATE , 0. 17
438438
439439 7.7–104. 18
440440
441441 THE COMPTROLLER SHALL ADO PT REGULATIONS TO CA RRY OUT THE 19
442442 PROVISIONS OF THIS T ITLE. 20
443443
444444 SUBTITLE 2. RETURNS, REPORTS, AND CERTIFICATIONS. 21
445445
446446 7.7–201. 22
447447
448448 (A) AN APPLICABLE TAXPAYE R SHALL COMPLETE , UNDER OATH , AND FILE 23
449449 WITH THE COMPTROLLER AN EXCESS OWNERSHIP OF SINGLE –FAMILY RESIDENCES 24
450450 EXCISE TAX RETURN , REPORT, AND CERTIFICATION FO R EACH TAXABLE YEAR . 25
451451
452452 (B) (1) THE COMPTROLLER S HALL REQUIRE AN APPL ICABLE TAXPAYER 26
453453 TO REPORT WITH THE R ETURN REQUIRED UNDER SUBSECTION (A) OF THIS SECTION 27
454454 THE INFORMATION THAT THE COMPTROLLER DETERMINE S IS NECESSARY TO 28
455455 CARRY OUT THE PROVIS IONS OF THIS TITLE. 29
456456
457457 (2) THE REPORT REQUIRED U NDER PARAGRAPH (1) OF THIS 30
458458 SUBSECTION SHALL , AT A MINIMUM, INCLUDE: 31 HOUSE BILL 1428 11
459459
460460
461461
462462 (I) THE DATES ON WHICH S INGLE–FAMILY RESIDENCES OW NED 1
463463 BY AN APPLICABLE TAX PAYER WERE ACQUIRED BY THE APPLICABLE TA XPAYER; 2
464464 AND 3
465465
466466 (II) WHETHER A PERSON ACQ UIRING THE SINGLE –FAMILY 4
467467 RESIDENCE FROM AN AP PLICABLE TAXPAYER OW NS ANY OTHER SINGLE –FAMILY 5
468468 RESIDENCE AT THE TIM E OF THE ACQUISITION . 6
469469
470470 (C) (1) IF AN APPLICABLE TAXP AYER SOLD OR TRANSFE RRED A 7
471471 SINGLE–FAMILY RESIDENCE DUR ING THE TAXABLE YEAR , THE APPLICABLE 8
472472 TAXPAYER SHALL INCLU DE WITH THE RETURN R EQUIRED UNDER SUBSECTION (A) 9
473473 OF THIS SECTION A CE RTIFICATION FROM EAC H INDIVIDUAL TO WHOM A 10
474474 SINGLE–FAMILY RESIDENCE IS SOLD OR TRANSFERRED . 11
475475
476476 (2) THE CERTIFICATION REQ UIRED UNDER THIS SUB SECTION SHALL 12
477477 BE SIGNED BY THE PUR CHASER OR TRANSFEREE AND STATE THE FO LLOWING: 13
478478
479479 (I) THE NAME AND ADDRESS OF THE PURCHASER OR 14
480480 TRANSFEREE ; AND 15
481481
482482 (II) THE SALE IS NOT A DI SQUALIFIED SALE . 16
483483
484484 7.7–202. 17
485485
486486 AN APPLICABLE TAXPAYE R REQUIRED TO FILE A RETURN UNDER § 7.7–201 OF 18
487487 THIS SUBTITLE SHALL MAINTAIN RECORDS OF ANY SINGLE–FAMILY RESIDENCE 19
488488 OWNED OR SOLD BY THE APPLICABLE TAXPAYER DURING THE TAXABLE Y EAR. 20
489489
490490 SUBTITLE 3. TAX PAYMENT. 21
491491
492492 7.7–301. 22
493493
494494 (A) AN APPLICABLE TAXPAYE R REQUIRED TO FILE A RETURN UNDER § 23
495495 7.7–201 OF THIS TITLE SHALL PAY THE EXCESS OWNER SHIP OF SINGLE –FAMILY 24
496496 RESIDENCES EXCISE TA X WITH THE RETURN . 25
497497
498498 (B) IF A CORPORATION , OTHER THAN A NONSTOC K, NONPROFIT 26
499499 CORPORATION , IS REQUIRED TO PAY T HE EXCESS OWNERSHIP OF SINGLE–FAMILY 27
500500 RESIDENCES EXCISE TA X, PERSONAL LIABILITY F OR THE TAX AND INTER EST AND 28
501501 PENALTIES ON THE TA X EXTENDS TO ANY OFF ICER OF THE CORPORAT ION WHO 29
502502 EXERCISES DIRECT CON TROL OVER ITS FISCAL MANAGEMENT . 30
503503 12 HOUSE BILL 1428
504504
505505
506506 (C) IF A LIMITED LIABILIT Y COMPANY , OR LIMITED LIABILITY 1
507507 PARTNERSHIP , INCLUDING A LIMITED PARTNERSHIP REGISTER ED AS A LIMITED 2
508508 LIABILITY LIMITED PA RTNERSHIP, IS REQUIRED TO PAY T HE EXCESS OWNERSHIP OF 3
509509 SINGLE–FAMILY RESIDENCES EX CISE TAX, PERSONAL LIABILITY F OR THE TAX AND 4
510510 INTEREST AND PENALTI ES ON THE TAX EXTEND S TO ANY PERSON WHO EXERCISES 5
511511 DIRECT CONTROL OVER THE FISCAL MANAGEMEN T OF THE LIMITED LIA BILITY 6
512512 COMPANY OR LIMITED L IABILITY PARTNERSHIP . 7
513513
514514 13–201. 8
515515
516516 In this subtitle, “tax information” means: 9
517517
518518 (4) any information contained in: 10
519519
520520 (i) an admissions and amusement tax return; 11
521521
522522 (ii) an alcoholic beverage tax return; 12
523523
524524 (iii) a bay restoration fee return; 13
525525
526526 (iv) a boxing and wrestling tax return; 14
527527
528528 (v) a digital advertising gross revenues tax return; 15
529529
530530 (vi) an E–9–1–1 fee return; 16
531531
532532 (vii) AN EXCESS OWNERSHIP OF SINGLE–FAMILY RESIDENCES 17
533533 EXCISE TAX RETURN ; 18
534534
535535 (VIII) a financial institution franchise tax return; 19
536536
537537 [(viii)] (IX) an inheritance tax return; 20
538538
539539 [(ix)] (X) a Maryland estate tax return; 21
540540
541541 [(x)] (XI) a motor carrier tax return; 22
542542
543543 [(xi)] (XII) a motor fuel tax return; 23
544544
545545 [(xii)] (XIII) an other tobacco products tax return; 24
546546
547547 [(xiii)] (XIV) a public service company franchise tax return; 25
548548
549549 [(xiv)] (XV) a sales and use tax return; 26
550550 HOUSE BILL 1428 13
551551
552552
553553 [(xv)] (XVI) a savings and loan association franchise tax return; 1
554554
555555 [(xvi)] (XVII) a tire recycling fee return; 2
556556
557557 [(xvii)] (XVIII) a tobacco tax return; or 3
558558
559559 [(xviii)] (XIX) a transportation services assessment return. 4
560560
561561 13–508. 5
562562
563563 (a) Within 30 days after the date on which a notice of assessment of the 6
564564 admissions and amusement tax, alcoholic beverage tax, boxing and wrestling tax, income 7
565565 tax, motor carrier tax, motor fuel tax, public service company franchise tax, EXCESS 8
566566 OWNERSHIP OF SI NGLE–FAMILY RESIDENCES EX CISE TAX, financial institution 9
567567 franchise tax, sales and use tax, or tobacco tax is mailed, a person or governmental unit 10
568568 against which the assessment is made may submit to the tax collector: 11
569569
570570 (1) an application for revision of the assessment; or 12
571571
572572 (2) except for the public service company franchise tax, if the assessment 13
573573 is paid, a claim for refund. 14
574574
575575 (c) The Comptroller or an employee of the Comptroller’s office expressly 15
576576 designated by the Comptroller promptly: 16
577577
578578 (1) (i) shall hold an informal hearing on a person’s or governmental 17
579579 unit’s admissions and amusement tax, alcoholic beverage tax, boxing and wrestling tax, 18
580580 EXCESS OWNERSHIP OF SINGLE–FAMILY RESIDENCES EX CISE TAX, income tax, motor 19
581581 carrier tax, motor fuel tax, sales and use tax, or tobacco tax application for revision or claim 20
582582 for refund under subsection (a) of this section; and 21
583583
584584 (ii) after the hearing: 22
585585
586586 1. shall act on the application for revision; and 23
587587
588588 2. may assess any additional tax, penalty, and interest due; 24
589589 and 25
590590
591591 (2) shall mail to the person or governmental unit a notice of final 26
592592 determination. 27
593593
594594 13–509. 28
595595
596596 (a) Notwithstanding a person’s failure to file a timely application for revision or 29
597597 claim for refund of an assessment of the admissions and amusement tax, alcoholic beverage 30
598598 tax, boxing and wrestling tax, EXCESS OWNERSHIP OF SINGLE–FAMILY RESIDENCES 31 14 HOUSE BILL 1428
599599
600600
601601 EXCISE TAX, income tax, motor carrier tax, motor fuel tax, sales and use tax, or tobacco 1
602602 tax under § 13–508(a) of this subtitle, the Comptroller or the Comptroller’s designee may 2
603603 issue an order decreasing or abating an assessment to correct an erroneous assessment. 3
604604
605605 (b) If action is taken under subsection (a) of this section, the order shall state 4
606606 clearly the reasons for decreasing or abating the assessment. 5
607607
608608 (c) Any order issued by the Comptroller under subsection (a) of this section shall 6
609609 be final and not subject to appeal. 7
610610
611611 (d) The Comptroller’s refusal to enter an order under subsection (a) of this section 8
612612 shall be final and not subject to appeal. 9
613613
614614 13–1001. 10
615615
616616 (H) A PERSON WHO IS REQUIR ED TO FILE AN EXCESS OWNERSHIP OF 11
617617 SINGLE–FAMILY RESIDENCES EX CISE TAX RETURN AND WHO WILLFULLY FAILS TO 12
618618 FILE THE RETURN AS R EQUIRED UNDER TITLE 7.7 OF THIS ARTICLE IS G UILTY OF A 13
619619 MISDEMEANOR AND , ON CONVICTION , IS SUBJECT TO A FINE NOT EXC EEDING $5,000 14
620620 OR IMPRISONMENT NOT EXCEEDING 5 YEARS OR BOTH . 15
621621
622622 13–1002. 16
623623
624624 (a) A person who willfully files a false alcoholic beverage tax return is guilty of 17
625625 perjury and, on conviction, is subject to the penalty for perjury. 18
626626
627627 (b) A person, including an officer of a corporation, who willfully files a false digital 19
628628 advertising gross revenues tax return, a false financial institution franchise tax return, a 20
629629 false public service company franchise tax return, or a false income tax return with the 21
630630 intent to evade the payment of tax due under this article is guilty of perjury and, on 22
631631 conviction, is subject to the penalty for perjury. 23
632632
633633 (c) Subsections (a) and (b) of this section apply to the alcoholic beverage, digital 24
634634 advertising gross revenues, EXCESS OWNERSHIP OF SINGLE–FAMILY RESIDENCES 25
635635 EXCISE, financial institution franchise, public service company franchise, and income 26
636636 taxes. 27
637637
638638 Article – Tax – Property 28
639639
640640 13–203. 29
641641
642642 (a) (1) Except as provided in subsections (a–1) [and], (b), AND (C) of this 30
643643 section, the rate of the transfer tax is 0.5% of the consideration payable for the instrument 31
644644 of writing. 32
645645
646646 (2) The consideration: 33 HOUSE BILL 1428 15
647647
648648
649649
650650 (i) includes the amount of any mortgage or deed of trust assumed 1
651651 by the grantee; and 2
652652
653653 (ii) subject to item (i) of this paragraph, includes only the amount 3
654654 paid or delivered in return for the sale of the property and does not include the amount of 4
655655 any debt forgiven or no longer secured by a mortgage or deed of trust on the property. 5
656656
657657 (C) (1) IN THIS SUBSECTION , “REAL ESTATE ENTERPRI SE” MEANS A 6
658658 BUSINESS THAT : 7
659659
660660 (I) IS CONDUCTED BY ONE OR MORE INDIVIDUALS ; 8
661661
662662 (II) OWNS REAL PROPERTY , INCLUDING IN A TENAN CY BY THE 9
663663 ENTIRETY; AND 10
664664
665665 (III) IS INVOLVED IN BUYIN G, SELLING, LEASING, OR MANAGING 11
666666 REAL PROPERTY . 12
667667
668668 (2) FOR A SALE OF IMPROVE D SINGLE–FAMILY RESIDENTIAL R EAL 13
669669 PROPERTY TO A REAL E STATE ENTERPRISE OR THE SUBSIDIARY OF A REAL ESTATE 14
670670 ENTERPRISE THAT HAS AN OWNERSHIP INTERES T IN RESIDENTIAL REA L PROPERTY 15
671671 IN THE STATE WITH A TOTAL AS SESSED VALUE EXCEEDI NG $12,000,000 OR AN 16
672672 OWNERSHIP INTEREST I N MORE THAN 120 SINGLE–FAMILY RESIDENTIAL R EAL 17
673673 PROPERTIES, THE RATE OF THE TRAN SFER TAX IS 15% OF THE CONSIDERATION 18
674674 PAYABLE FOR THE INST RUMENT OF WRITING . 19
675675
676676 (3) THE CONSIDERATION : 20
677677
678678 (I) INCLUDES THE AMOUNT OF ANY MORTGAGE O R DEED OF 21
679679 TRUST ASSUMED BY THE GRANTEE; AND 22
680680
681681 (II) SUBJECT TO ITEM (I) OF THIS PARAGRAPH , INCLUDES ONLY 23
682682 THE AMOUNT PAID OR D ELIVERED IN RETURN F OR THE SALE OF THE P ROPERTY AND 24
683683 DOES NOT INCLUDE THE AMOUNT OF ANY DEBT F ORGIVEN OR NO LONGER SECURED 25
684684 BY A MORTGAGE OR DEED OF TRU ST ON THE PROPERTY . 26
685685
686686 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 27
687687 1, 2025. 28
688688