|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3862
|
|
|
|
|
|
VETOES
|
|
|
|
|
|
|
|
|
|
|
|
|
Honorable Marvin Mandel
Governor of Maryland
State House
Annapolis, Maryland 21404
Re: House Bill 522
Dear Governor Mandel:
At your request, we have reviewed House Bill 522,
which amends Article 81, Section 277, subsection (t). At
the present time, subsection (t) provides for collection,
by the State Department of Assessments and Taxation, of a
tax payable upon the filing with the Department of
Articles of Sale, Lease, Exchange or other transfer of
all or substantially all of the property and assets of a
corporation. House Bill 522 seeks to transfer this tax
collection burden to the counties and Baltimore City.
House Bill 522 also amends Article 81, Section 277A to
relieve the Department of Assessments and Taxation of the
duty of collecting local transfer taxes imposed on the
sale or transfer of real property, upon the filing of
Articles of Sale, Lease, Exchange or other transfer of
all or substantially all of the property and assets of a
corporation. Finally, this House Bill seeks to amend
Article 81, Section 278A, which deals with the State
property tax on such transfers, to provide a time in
which the taxes are to be payable.
In our view, while this bill in constitutional, it
contains a serious legal defect which should be carefully
considered prior to signing it into law. The purpose
clause of the bill states that the bill requires "the
payment of such taxes within a certain period of time."
In fact, in dealing with each of the taxes, the effect of
the bill is to provide an uncertain, open-ended and
arguably nonsensical payment date for the tax.
For example, in amending Section 277, subsection
(t), the bill divides subsection (t) into three sections.
Subsection (t)(1) provides that the tax is imposed on the
transfer or title to real property and is payable upon
the filing with the State Department of Assessments and
Taxation of Articles of Sale, Lease, Exchange or other
transfer of all or substantially all of a corporation's
property and assets. Subsection (t)(2) provides that the
tax is to be collected at the local level pursuant to an
agreement between the subdivision and the Clerk of the
Circuit Court. It is subsection (t)(3) which creates the
difficulty. That section provides that the tax shall be
"due and payable not less than 30 days after the date on
which the articles became effective under the
Corporations and Associations Article upon filing with a
county or Baltimore City by the transferee of a deed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
 |
