WILLIAM DONALD SCHAEFER, Governor Ch. 599

(V) ARTICLES OF MERGER OR OTHER DOCUMENT WHICH
EVIDENCES A MERGER OF FOREIGN CORPORATIONS OR FOREIGN
LIMITED PARTNERSHIPS; AND

(VI) ARTICLES OF CONSOLIDATION OR OTHER DOCUMENT
WHICH EVIDENCES A CONSOLIDATION OF FOREIGN CORPORATIONS.

(3) "INSTRUMENT OF WRITING" DOES NOT INCLUDE:

(I) A MORTGAGE..DEED OF TRUST, OR OTHER CONTRACT
THAT CREATES AN ENCUMBRANCE ON REAL PROPERTY; OR

(II) A SECURITY AGREEMENT, AS DEFINED IN § 12-101(E)
OF THE TAX - PROPERTY ARTICLE OF THE ANNOTATED CODE OF
MARYLAND.

B. THE COUNTY COMMISSIONERS MAY IMPOSE A TRANSFER TAX
ON AN INSTRUMENT OF WRITING:

(1) RECORDED WITH THE CLERK OF THE CIRCUIT COURT FOR
ST. MARY'S COUNTY; OR

(2) FILED WITH THE STATE DEPARTMENT OF ASSESSMENTS

AND TAXATION.

C. A TRANSFER TAX UNDER THIS SECTION:

(1) SHALL BE ESTABLISHED BY ORDINANCE;

(2) MAY NOT EXCEED 1%; AND

(3) DOES NOT APPLY TO:

(I) AN INSTRUMENT OF WRITING EXEMPT FROM THE
STATE TRANSFER TAX UNDER § 13-207 OF THE TAX - PROPERTY ARTICLE
OF THE ANNOTATED CODE OF MARYLAND; OR

(II) A TRANSFER OF LAND SUBJECT TO THE
AGRICULTURAL LAND TRANSFER TAX UNDER TITLE 13, SUBTITLE 3 OF
THE TAX - PROPERTY ARTICLE OF THE ANNOTATED CODE OF
MARYLAND.

D. (1) THE PROCEEDS FROM THE TRANSFER TAX MAY ONLY BE
USED TO PAY FOR CAPITAL PROJECTS.

(2) THE COUNTY COMMISSIONERS SHALL STATE IN THE
COUNTY BUDGET EACH YEAR:

(I) AN ESTIMATE OF THE REVENUE TO BE RECEIVED
FROM THE TRANSFER TAX FOR BOTH THE CURRENT AND THE ENSUING
FISCAL YEARS;

(II) THE REVENUE RECEIVED FROM THE TRANSFER TAX

- 2627 -