HARRY HUGHES, Governor

2181

CHAPTER 622

(House Bill 1040)

AN ACT concerning

Taxes - Transfer and Recordation - Exempt
Divorce Transfers

FOR the purpose of exempting property transfers as part of
divorce property settlements and divorce decrees from
the recordation tax and State property transfer tax and
local property transfer taxes; establishing exemptions
for certain individuals under certain circumstances;
and generally relating to recordation and transfer
taxes.

BY repealing and reenacting, with amendments,

Article 81 - Revenue and Taxes

Section 277(b) and 278A(b)

Annotated Code of Maryland

(1975 Replacement Volume and 1979 Supplement)

BY adding to

Article 81 - Revenue and Taxes

Section 278E

Annotated Code of Maryland

"(1975 Replacement Volume and 1979 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 81 - Revenue and Taxes

277.

(b) (1) In the case of instruments conveying title to
property, the tax shall be at the rate of 55 cents for each
$500 or fractional part thereof of the actual consideration
paid or to be paid; in the case of instruments securing a
debt, the tax shall be at the rate of 55 cents for each $500
of the principal amount of the debt secured.

(2) When any property subject to a mortgage or
deed of trust is transferred to a spouse, former spouse,

son, daughter, or parent PARENT, SON-IN-LAW,

DAUGHTER-IN-LAW, OR PARENT-IN-LAW of the transferor, the tax
is not applicable to the amount of any outstanding mortgage
debt assumed by the transferee. When spouses or former
spouses transfer property to each other [subject to a
separation agreement] AS PART OF A DIVORCE PROPERTY