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Section 12-108.
(a)(1) Except as provided in subsection (2) of this subsection, no registration fee shall be paid on a written instrument transferring or granting a security interest in property:
(i) USA;
(ii) land;
iii) a national agency, or
(iv) A political subdivision of the State.
(2) The mayor of the City of Baltimore and the city council or governing body of the county may by law impose a uniform registration fee on all documentation to secure reimbursement pursuant to title 41 of the Code, title 14, subtitle 1 .
(b) If the security agreement is:
(1) in a complete motor vehicle registered with the Department of Motor Vehicles; either
(2) On board and completed upon filing with the Department of Natural Resources.
(c) When property is transferred under a mortgage or deed of trust, if a written document transfers the property from the transferor to:
(1) spouse or former spouse;
(2) son, daughter, stepson or stepdaughter;
(3) father or stepfather;
(4) son-in-law, daughter-in-law, stepdaughter, stepdaughter;
(5) father-in-law or stepfather;
(6) brother, sister, stepbrother or stepsister; either
(7) grandchildren or step-grandchildren.
(d) Written instruments transferring assets between spouses or former spouses are not subject to registration tax.
(e) Supplementary written instruments are not subject to presentation fee, except in the following cases:
(1) The actual remuneration is paid in a supplementary document; either
(2) Increase the amount of debt by a supplementary written instrument.
(f) Previously registered written instruments are not subject to registration tax if the instrument or counterparty is registered in another county or in the same county.
(g)(1) In this subsection, “original mortgagor” includes:
(i) the individual assumes a debt secured by the personal purchase of immovable property as a principal residence and pays registration tax on the consideration paid for that property; and
(ii) a trustee of a living trust if:
1. The mortgaged property is used as the principal residence of the trust's resident, and
2. A trustee or settlor of a trust has originally assumed or entered into a debt secured by a mortgage or trust deed.
PCS. 2. A mortgage deed or trust deed is tax-exempt if the refinancing amount secured by the mortgage or trust deed does not exceed the outstanding principal secured by the existing mortgage or deed at the time of refinancing. Letter of guarantee for real estate refinancing, namely:
(i) 1. It is used as the principal residence of the original mortgagor, and
2. Refinanced by the original mortgagor or original mortgagor and spouse, or
(ii) is used as the principal residence of the settlor of the living trust if the mortgage or deed of trust is provided by the trustee of the trust.
(3) To qualify for an exemption under subsection , a statement signed by the original mortgagor or an agent of the original mortgagor, stating:
(i) the person is the original mortgagor or agent of the original mortgagor;
(ii) if the mortgage or deed of trust is provided by the trustee of the trust, the mortgaged property is the principal residence of the original mortgagor or settlor of the living trust; and
(iii) The outstanding principal amount of the original mortgage or deed of trust being refinanced.
(4) A declaration made by an agent of the original mortgagor under subsection 3 of this subsection must state this statement:
(i) is based on Agent's careful investigation of the facts set forth in the Statement; and
(ii) is true to the agent's knowledge, information and belief.
(h) Mechanics lien or crop lien on paperwork related to agricultural produce or equipment used in an agricultural operation is exempt from filing fee.
(i)(1) In this subsection, “purchase money mortgage deed” or “purchase money deed” means a mortgage deed or deed of trust:
(i) given by the transferee of the real property in respect of the property purchased;
(ii) delivered as part of the same transaction as a written transfer document of the purchased property and subject to tax reporting;
(iii) state on your face that you guarantee all or part of the purchase price for the property, or state on your face that it is a purchase money mortgage or purchase money deed;
(iv) is executed in full within 30 days after the date on which the written instrument transferring property is executed in full; and
(v) Registered within 30 days of the date on which the transfer of title was officially recorded in writing.
(2) For the purposes of this subsection, the date of execution of an instrument is the later of—
i) the date of the last confirmation, or
(ii) the date on the instrument.
(3) There is no registration fee for home purchase mortgages or home purchase deeds.
(j) Transfer of mortgage deeds or trust deeds is exempt from presentation duty.
(k) Security agreements filed or filed under the Maryland Uniform Commercial Code are exempt from filing tax:
(1) If presented or registered:
(i) perfect a security interest in the stock;
(ii) perfect contractual rights, intangible assets in general or real guarantees in accounts;
(iii) perfect a security interest in agricultural products or equipment used in an agricultural operation;
(iv) perfect a security interest taken or retained by the seller of the encumbered property to secure all or part of the price; either
(v) a lease of public property or facilities if the security agreement on its face states that it does not create a security interest; either
(2) If filed or registered with the department pursuant to § 9-501(a)(2) of the Commercial Code.
(l) Judicial decisions are not subject to the registration fee.
(m) The publication is exempt from registration fee.
(n) Fulfilled orders are not subject to presentation tax.
(o) A participation agreement evidencing a person's interest in a note, mortgage, or deed of trust is based on a loan previously recorded to a mortgagee or granted under a trust document and is not subject to registration tax.
(p) If the written instrument is:
PCS. through a subsidiary or a subsidiary A gift or bequest from the original shareholder of the company to become a shareholder of:
(i) not considered;
(ii) nominal consideration, the
(iii) the consideration includes only the issue, cancellation or surrender of shares in the subsidiary;
(2) A written instrument pursuant to a reorganization described in Section 368(a) of the Internal Revenue Code, or
(3) Transfer of ownership of immovable property from a subsidiary to its parent company free of charge, nominally or solely consisting of the issue, cancellation or delivery of shares in the subsidiary, when the parent company:
(i) previously owned real property;
(ii) owns shares in the subsidiary and has held them for more than 18 months; either
(iii) Acquisition of shares in a subsidiary that has existed and owned real estate for 2 years.
(q) If the transferee is:
(1) the original shareholder of the company, the original member of the limited partnership and the original partner of the general partnership;
(2) A direct descendant or relative within two parents of the original shareholder of the company, the original member of the limited company or the original partner in the civil partnership; either
(3) A shareholder, member, or partner who is a shareholder, member, or partner through a gift or bequest from an original shareholder of a corporation, an original member of a limited liability company, or an original partner of a partnership.
(r) Installment contracts on land described in section 10-101(b) of the Property Clause are exempt from estate tax.
(s) purchase option contracts for real estate are not subject to presentation tax.
(t) A deed of transfer of ownership of an immovable property is not covered by estate tax if a previous agreement for the sale of immovable property between the same parties has paid estate tax.
(u) Section 3-101 of the Real Estate Clause provides that there is no need to pay the registration fee for tenancies of less than 7 years which are not required to be filed.
(v) The articles of association or other documents evidencing the incorporation of a foreign company are exempt from the presentation fee if there is a transfer of immovable property:
(1) From the parent company to the subsidiary company;
2) From the subsidiary to the parent company, where the parent company:
(i) previously owned real property;
(ii) owns shares in the subsidiary and has held them for more than 18 months; either
(iii) Acquisition of shares in a subsidiary that already exists and owns real estate for 2 years; either
3. Merger of a non-existent company into its successor, when the non-existent company acquires ownership of immovable property, land registration tax is paid if transfer tax is required at that time.
w) Is the land registration tax and the transfer tax paid when the company merges into a new company, acquires the merger document or other documents proving the merger of the foreign company, the ownership of real property without paying the registration tax.
1. Unless otherwise provided in this subsection, a written document on the transfer of real estate from a co-operative housing company to a co-operative housing company upon termination of a co-operative housing company is not subject to notification if the co-operative housing company consists of. of a single dwelling unit and was established on or before January 1, 1970.
(2) The exception in subsection 1 of this subsection does not apply to:
(i) convert a co-operative housing society into an apartment system; either
(ii) transfer of ownership to:
1. Does not occupy the transferred property, or
2. Has received the credit allowed under this section for other property transferred as part of the termination of the same corporation.
(3) The exception in subsection 1 of this subsection applies only to the following counties:
(i) is not subject to a county real estate transfer tax; either
(ii) The property described in this subsection is exempt by law from any local transfer tax.
(y) (1) (i) In this subsection the following words have the meanings specified.
(ii) "foreign partnership", "foreign limited partnership", "foreign limited partnership", "foreign limited partnership" and "foreign joint venture" refer to a partnership, limited partnership, limited liability partnership or joint venture organized or specified under the laws of the United States , the other state or a territory, possession or district of the United States.
(iii) "Predecessor Entity" includes:
1. Maryland partnership or foreign partnership;
2. A Maryland limited partnership or foreign limited partnership;
3. A Maryland limited liability company or a foreign limited liability company;
4. A Maryland limited liability limited partnership or foreign limited liability limited partnership, and
5. Maryland joint venture or foreign joint venture.
(2) A written instrument transferring title to real property from a predecessor entity or a trustee or representative of a predecessor entity to an LLC is exempt from reporting if:
(i) 1. The limited liability company has the same members as the converted partnership, limited partnership, limited partnership, or limited partnership, or
2. The members of the limited liability company are the same partners in the transformed joint venture;
(ii) the distribution of the profits and losses of each member's LLC is the same as that member's distribution of the profits and losses of the converted predecessor entity; and
(iii) Written transfer of title to real property representing the dissolution of the predecessor entity for the purpose of its conversion into a limited liability company.
(z) has expired.
(aa) If the transferee or lessee is an affiliated authority as defined in § 13-701(t), the Maryland Stadium Authority transfers title to real property or creates a leasehold interest in real property pursuant to this financial institution article.
(bb) (1) In this subsection, "real estate business" means a business, including a sole proprietorship or a whole leasing business, operated by one or more persons who own real property and which is primarily engaged in the purchase, sale, rental or administration of real estate.
PCS. 2. A written document transferring ownership of real estate from a natural person or a natural person engaged in real estate business to a limited liability company is exempt from filing if:
(i) transfer without consideration other than the issuing LLC's membership interest;
(ii) The members of the limited liability company are the same as partners in the real estate development company;
(iii) Each member's distribution of profits and losses to a limited liability company is the same as that member's distribution of profits and losses to a real estate development company;
(iv) the transfer is part of the discontinuation of the real estate business, and
(v) All real property owned personally and used in any commercial real estate business is vested in a limited liability company.
(3) A person's other business interests unrelated to the real estate business and not affected by the transfer of ownership to the LLC will not affect the person's ability to apply for the filing fee exemption described in this subsection.
(cc) (1) (i) In this subsection the following words have the meanings specified.
(ii) "Land Trust" means a qualified conservation organization:
1. Is a qualified organization under section 170(h)(3) of the Internal Revenue Code and the regulations adopted pursuant to that section, and
2. A cooperation agreement has been signed with the Maryland Environmental Trust Fund.
(iii) "Protective easement" means a restriction or limitation in the use of water or lands, or any improvement or reliance thereon, as described in Section 2-118 of the Real Property Articles.
(2) A written transfer document or transfer of a conservation easement to a land trust is exempt from filing tax.
(3) Written documents transferring fee simple ownership to a land trust are exempt from filing tax if the land trust files a declaration of intent to use the land:
i) assist in the conservation of natural areas;
(ii) environmental education for the public;
(iii) protect agricultural land and promote sustainable use of agricultural land;
(iv) promote conservation in general, or
(v) maintain a natural area or wildlife sanctuary for public use.
FAQs
Maryland Taxes - Property Sections 12-108? ›
(s) An option agreement for the purchase of real property is not subject to recordation tax. (t) A deed conveying title to real property is not subject to recordation tax if recordation tax was paid on a prior contract of sale between the same parties for the real property.
What is 12 104 of the tax property article Maryland? ›Section 12-104 - Evidence of Consideration or Debt. (2) an affidavit under oath that accompanies the instrument of writing and that is signed by a party to the instrument of writing or by an agent of a party.
What is Maryland Tax Property Article 12 117? ›Tax on consideration payable for transfer of controlling interest in real property entity. (a) (1) In this section the following words have the meanings indicated. (iii) more than 80% of the beneficial interest in a trust.
At what age do you stop paying property taxes in MD? ›Be at least 65 years of age.
Do 100 disabled veterans pay property taxes in Maryland? ›Disabled Veteran Exemption
Tax-Property Article § 7-208 provides an exemption for the dwelling of a veteran who has a disability that the Veterans' Administration (“VA") has determined is 100% service-connected, permanently, and totally disabling.
§ 14-104. (a) In this section, "first-time Maryland home buyer" means an individual who has never owned in the State residential real property that has been the individual's principal residence.
How to avoid estate tax in Maryland? ›Property passing to a child or other lineal descendant, spouse of a child or other lineal descendant, spouse, parent, grandparent, stepchild or stepparent, siblings or a corporation having only certain of these persons as stockholders is exempt from taxation.
What is Maryland Tax Property Article 10 912? ›Section 10-912 of the Tax-General Article, Annotated Code of Maryland, provides for income tax withholding on sales or transfers of real property and associated tangible personal property in Maryland by nonresident individuals and nonresident entities.
What is Maryland Tax Property Article 13 203? ›§13–203. (a) (1) Except as provided in subsections (a–1) and (b) of this section, the rate of the transfer tax is 0.5% of the consideration payable for the instrument of writing.
What is Maryland Tax Property Article 8 209? ›§8–209. (3) prevent the forced conversion of open space land to more intensive uses because of the economic pressures caused by the assessment of the land at rates or levels incompatible with its practical use for farming. (2) not be affected adversely by neighboring land uses of a more intensive nature.
Does Maryland give seniors a break on property taxes? ›
Starting in tax year 2022, residents who are at least 65 on the last day of the tax year may be eligible for a nonrefundable tax credit of up to $1,000.
What is the new Maryland tax law for seniors? ›This bill creates a subtraction modification against the State income tax for 100% of the income received by an individual who (1) is receiving old age or survivor Social Security benefits or (2) is at least age 65 and is not employed full time. The exemption is phased in over six years, beginning with tax year 2023.
How much can a 70 year old earn without paying taxes? ›Basically, if you're 65 or older, you have to file a tax return in 2022 if your gross income is $14,700 or higher. If you're married filing jointly and both 65 or older, that amount is $28,700. If you're married filing jointly and only one of you is 65 or older, that amount is $27,300.
What does Maryland do for 100 disabled veterans? ›A free lifetime hunting license is available to Maryland residents certified as a former prisoners of as well as to 100% service-connected disabled veterans. The lifetime license includes the bow stamp, muzzleloader stamp, and furbearer permit.
How do I apply for property tax exemption in Maryland? ›Apply for an Exemption
Obtain an application for exemption from the State Department of Assessments and Taxation (SDAT) and file it with that agency. For more information, call SDAT at 410-512-4900.
forth at Section 7-208 of the Tax-Property Article of the Maryland Annotated Code, Calvert County grants a real property tax refund upon the County portion of the real property tax paid upon the principal residence of a qualifying disabled veteran through the date that the Veterans Administration makes the ...
Can I sell my house as is in Maryland? ›Selling a house “as is” in Maryland
While sellers can opt to issue a disclaimer/sell the house "as is", they still need to mention latent defects - and be advised, buyers may see a disclaimer as an attempt to hide something. A latent defect is a problem that's known to the seller, but not visible to the buyer.
(a) Whenever the tenant or tenants fail to pay the rent when due and payable, it shall be lawful for the landlord to have again and repossess the premises in accordance with this section.
What has to be disclosed when selling a house in Maryland? ݤ 10-702(e)(1) states that you must disclose the condition of the water and sewer systems, the structural systems, the plumbing, electrical, heating and air conditioning systems, the existence of wood-destroying insects, the presence of hazardous materials, and any other material defects known to the seller.
How much can you inherit without paying taxes in Maryland? ›The estate tax threshold for Maryland is $5 million as of 2023. This means that if you die and your total estate is worth less than $5 million, the estate owes nothing at all to the state of Maryland.
Who is exempt from property taxes in Maryland? ›
Property Tax Exemption- Disabled Veterans and Surviving Spouses. Armed Services veterans with a permanent and total service connected disability rated 100% by the Veterans Administration may receive an exemption from real property taxes on the dwelling house and surrounding yard.
Do beneficiaries pay inheritance tax in Maryland? ›The Maryland Inheritance Tax applies to all beneficiaries unless they have a specific exemption from the tax. A decedent's spouse, child, stepchild, grandchild, step-grandchild, parent, grandparent or sibling are exempt from paying Maryland Inheritance Tax.
What is Maryland real property Article 14 117? ›(1) A contract for the initial sale of a new home, as defined in the Maryland Home Builder Registration Act, shall be contingent on the purchaser obtaining a written commitment for a loan secured by the property, unless the contract contains a provision expressly stating that it is not contingent.
What is Maryland Tax Property Article 10 402? ›(a) (1) Except for tax sales as provided by Title 14, Subtitle 8 of this article, if real property ownership is transferred on or after the date of finality and before the semiannual date of finality, the transferee is liable for the property tax on real property for the taxable year that begins after the transfer.
What is Maryland tax General Article 11 109? ›Section 11-109 - List of tangible personal property and services (a) The Comptroller shall publish on the Comptroller's website, as a general guide for vendors, a comprehensive list of tangible personal property and services the sale or use of which are subject to the sales and use tax.
What is Maryland Tax Property Article 7 202? ›Section 7-202 - Charitable or Educational Purposes. (ii) any other fraternal or sororal organization the membership of which is restricted wholly or largely to students or graduates of an educational institution or a professional school.
What is Maryland Tax Property Article 7 245? ›§7–245. (a) A person's personal property is not subject to valuation or to property tax if all of the person's personal property statewide had a total original cost of less than $20,000. (2) require the person to submit a personal property tax return.
What is property tax rule 313? ›Rule 313 (Contd.)
preponderance of the evidence that the purchase price, whether paid in money or otherwise, is not the full cash value of the property. (d) All testimony shall be taken under oath or affirmation. (e) The hearing need not be conducted according to technical rules relating to evidence and witnesses.
(a) (1) Except as provided in subsection (b) of this section, on redemption, the plaintiff or the holder of a certificate of sale may be reimbursed for expenses incurred in any action or in preparation for any action to foreclose the right of redemption as provided in this section.
What is Maryland tax Article 7 203? ›Section 7-203 - Unauthorized removal of property (a) Without the permission of the owner, a person may not take and carry away from the premises or out of the custody of another or use of the other, or the other's agent, or a governmental unit any property, including: (1) a vehicle; (2) a motor vehicle; (3) a vessel; ...
What is 7 204 of the tax property article of the Annotated Code of Maryland? ›
Subject to § 7-204.1 of this subtitle, property that is owned by a religious group or organization is not subject to property tax if the property is actually used exclusively for: (1) public religious worship; (2) a parsonage or convent; or (3) educational purposes.
Do you have to pay income tax after age 75? ›There is no age at which you no longer have to submit a tax return and most senior citizens do need to file taxes every year. However if Social Security is your only form of income then it is not taxable. In the case of a married couple who file jointly, this must be true of both spouses.
At what age is Social Security no longer taxed? ›Social Security benefits may or may not be taxed after 62, depending in large part on other income earned. Those only receiving Social Security benefits do not have to pay federal income taxes.
Do you have to apply for homestead exemption every year in Maryland? ›Maryland requires all homeowners to submit a one-time application to establish eligibility for the Homestead Tax Credit.
What are the tax changes for seniors in 2023? ›If you're 65 or older, your additional standard deduction increases from $1,400 to $1,500 if you're married and from $1,750 to $1,850 if you're single or the head of household. Marginal tax rates are the same in 2023 as in 2022. The lowest rate is still 10 percent and the highest is still 37 percent.
What is the new tax return for seniors? ›What Is the Additional Standard Deduction for Seniors? For the 2022 tax year (filed in 2023), taxpayers age 65 and older can take an additional standard deduction of $1,750 for single or head of household, or $1,400 for married filing jointly or qualifying widow(er).
Do I have to pay Social Security tax after age 70? ›Yes, Social Security is taxed federally after the age of 70. If you get a Social Security check, it will always be part of your taxable income, regardless of your age.
How do I get the $16728 Social Security bonus? ›To acquire the full amount, you need to maximize your working life and begin collecting your check until age 70. Another way to maximize your check is by asking for a raise every two or three years. Moving companies throughout your career is another way to prove your worth, and generate more money.
What is the average Social Security check at age 70? ›Average Social Security Benefit at 70
Bear in mind that the average Social Security benefit at age 70 is by definition higher than the average Social Security benefit for all retirees, as 70 is the latest age at which you can file for benefits. As of December 2022, the overall average benefit was $1,825.14.
Social Security recipients will get an 8.7% raise for 2023, compared with the 5.9% increase that beneficiaries received in 2022. Maximum earnings subject to the Social Security tax also went up, from $147,000 to $160,200.
Do disabled veterans pay vehicle registration in Maryland? ›
NEW – 100% Disabled Veterans Receive Free Registration for all license plate types.
Does Maryland tax military retired pay? ›Maryland is one of just 14 states that does not have a complete exemption of military retirement income from taxation. West Virginia and Pennsylvania both fully exempt this income from taxation, and Virginia and Delaware's exemptions outperform Maryland's current exemptions, according to legislative analysts.
Do veterans get free fishing license in Maryland? ›Fishing in Maryland
Complimentary annual tidal and non-tidal licenses are available to residents and nonresidents who are blind. A complimentary lifetime license is available to Maryland residents who are 100% service connected disabled veterans or former prisoners of war.
Disabled Veteran Exemption
The exemption is for the disabled veteran's dwelling, which must be their principal residence. The dwelling includes the lot or curtilage and structures necessary to use the property as a residence, such as a garage or utility shed.
Increased Standard Deduction
When you're over 65, the standard deduction increases. The specific amount depends on your filing status and changes each year. The standard deduction for seniors this year is actually the 2022 amount, filed by April 2023.
Maryland Tax - General Section 11-204
(ii) is engaged primarily in providing a program to render its best efforts to contain, clean up, and otherwise mitigate spills of oil or other substances occurring in United States coastal and tidal waters.
Maryland's average effective property tax rate of 0.99% is right at the national average, which is also 0.99%. However, because Maryland generally has high property values, Maryland homeowners pay more in annual property taxes than homeowners in most other states.
What is 10 912 of the tax general article annotated code of maryland? ›Section 10-912 of the Tax-General Article, Annotated Code of Maryland, provides for income tax withholding on sales or transfers of real property and associated tangible personal property in Maryland by nonresident individuals and nonresident entities.
How is Maryland property tax calculated? ›The amount of the tax bill is determined by two factors: (1) the assessment and (2) the property tax rate for each jurisdiction (state, county, & municipal). Assessments are based on the fair market value of the property and are issued by the Department of Assessments and Taxation, an agency of state government.
How is tax calculated in Maryland? ›For tax year 2021, Maryland's personal tax rates begin at 2% on the first $1000 of taxable income and increase up to a maximum of 5.75% on incomes exceeding $250,000 (or $300,000 for taxpayers filing jointly, heads of household, or qualifying widow(ers).
What state has cheapest property tax? ›
1. Hawaii. Hawaii residents enjoy the lowest property tax rate in the U.S. However, the high cost of living and limited housing opportunities make it a very expensive place to live.
What is Section 8 203 of the real property Article of the Maryland Code? ›(8) (i) A tenant shall have the right to pay any damages directly to the landlord or require the landlord to use the tenant's security deposit, if any, before the landlord makes a claim against the surety bond.
What is CP 15 108 Annotated Code of Maryland? ›Section 15-108 - Subpoena power in criminal investigation (a) (1) For the limited purpose of furthering an ongoing criminal investigation, a State's Attorney or a deputy State's Attorney designated in writing by the State's Attorney may issue in the county served by the State's Attorney a subpoena to a person to ...
What is Maryland real property 14 204? ݤ 14-204. (a) A lien may be enforced and foreclosed by the party who obtained the lien in the same manner, and subject to the same requirements, as the foreclosure of mortgages or deeds of trust on property in this State containing a power of sale or an assent to a decree.
What is Maryland annotated code 12 111? ›If any person enters on any private land under the authority of this section or of any court order passed pursuant to it and damages or destroys any land or personal property on it, the owner of the property has a cause of action for damages against the jurisdiction that authorized the entrance.