SPIRO T. AGNEW, Governor                       1277

the powers of Montgomery County to levy and impose a tax of
6% on the transfer in Montgomery County of any fee simple
interest in real property which, during the five years preceding,
was assessed on the basis of being devoted to farm or agricultural
use, and on transfers of land which has been rezoned to a more
intensive use at the instance of the transferor or transferee.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 1 of Chapter 180 of the Laws of Maryland, 1961, the
same also being Section 2-217 2-127 of the Montgomery County Code
(1965 Edition), titled "Administration," subtitled "Division 4.
Taxation Generally," be and it is hereby repealed and reenacted, with
amendments, to read as follows:

Sec. 2 217 2-127. Real property transfer tax.

(a)    Generally. The county council for Montgomery County is
empowered and authorized to levy and impose by resolution or ordi-
nance a tax to be paid and collected on the transfer in Montgomery
County of any fee simple interest in real property, except by way
of mortgage, deed of trust, or deed or trust for the benefit of
creditors, and on the transfer of any leasehold interest in real prop-
erty, where such lease contains a covenant for perpetual renewal.
[, at a rate not to exceed one percent of the value of the considera-
tion for such transfer.] The rate of such tax shall not exceed:

(1)    6% on OF THE VALUE OF THE CONSIDERATION FOR
any transfer of land (EXCLUDING IMPROVEMENTS THEREON)
which, while owned by the transferor, has been assessed at any time
during the 5 years preceding transfer on the basis of being actively
devoted to farm or agricultural use. The tax shall be paid by the
transferor of such land-; OR

(2)    6% on OF THE VALUE OF THE CONSIDERATION FOR
any transfer of real property which, AFTER THE EFFECTIVE
DATE OF ANY SUCH RATE OF TAX has been rezoned to a more in-
tensive use at the instance of the transferor or transferee., EX-
CLUDING THE VALUE OF IMPROVEMENTS CONSTRUCTED
AFTER SUCH REZONING; OR

(3)    1% on OF THE VALUE OF THE CONSIDERATION FOR
any other transfer.

(b)    Exceptions. No transfer of any interest in such prop-
erty shall be taxed hereunder where the transfer is to any non-
profit, hospital, religious or charitable organization, association or
corporation, nor to any municipal, county or state government, or
instrumentalities, agencies or political subdivisions thereof.

(c)    Applicability to certain transfers. No tax levied pursuant
to this section shall apply to transfers pursuant to contracts or
agreements entered into prior to the effective date of such tax.

(d)    Penalty for violations. The county council is further em-
powered and authorized to fix a penalty not in excess of one thou-
sand dollars or imprisonment not exceeding six months, or both
such fine and imprisonment, for violation of the provisions of any
resolution or ordinance of the county council adopted pursuant to
this section. (1961, ch. 180, sec. 1.)