3006                                    LAWS OF MARYLAND                                 Ch. 797

BY VIRTUE OF SUCH OWNERSHIP OR MEMBERSHIP, ARE ENTITLED TO
ENTER INTO AN OCCUPANCY AGREEMENT FOR A PARTICULAR
RESIDENTIAL UNIT. THIS TAX SHALL NOT BE APPLICABLE TO
TRANSFERS MADE PURSUANT TO THE PURCHASE OF A BUILDING BY OR
ON BEHALF OF A BONAFIDE TENANTS ASSOCIATION. THE TAX SHALL
BE PAID BY THE INITIAL TRANSFEROR OF THE RESIDENTIAL UNIT
AND SHALL BE IN ADDITION TO THE TAX PROVIDED IN PARAGRAPH
(5) OF THIS SUBSECTION.

[(4)] (5) One percent of the value of the
consideration for any other transfer.

(b)  No transfer of any interest in such property shall
be taxed hereunder where the transfer is to any nonprofit
hospital or nonprofit religious or charitable organization,
association or corporation, nor to any municipal, county or
State government, or instrumentalities, agencies or
political subdivisions thereof; provided, that no exemption
shall be granted hereunder to a transfer under paragraph
(a)(1) of this section unless the transferor is a nonprofit
hospital or nonprofit religious or charitable organization,
association or corporation, or a municipal, county or State
government, or instrumentality, agency or political
subdivision thereof. The county council may provide for any
additional exemptions from the provisions of this section.

(c)  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)  The county council is further empowered and
authorized) to fix a penalty not in excess of one thousand
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.

SECTION 2. AND BE IT FURTHER ENACTED, That section(s)
of the Annotated Code of Maryland be repealed, amended, or
enacted to read as follows:

Article - Corporations and Associations

5-6A-09.

THIS SUBTITLE MAY NOT BE CONSTRUED TO RESTRICT THE
AUTHORITY OF MONTGOMERY COUNTY TO REGULATE THE CONVERSION OF
RESIDENTIAL RENTAL PROPERTY TO A SYSTEM OF COOPERATIVE

HOUSING CORPORATION OWNERSHIP UNDER WHICH TITLE TO A

MULTI-UNIT RESIDENTIAL FACILITY IS HELD BY A CORPORATION,
THE SHAREHOLDERS OR MEMBERS OF WHICH, BY VIRTUE OF SUCH
OWNERSHIP OR MEMBERSHIP, ARE ENTITLED TO ENTER INTO AN
OCCUPANCY AGREEMENT FOR A PARTICULAR RESIDENTIAL UNIT.