HARRY HUGHES, Governor

4375

(A)  THE TAXES IMPOSED ON INSTRUMENTS OF CONVEYANCE OF
PROPERTY OR TRANSFER OF TITLE TO PROPERTY BY SECTIONS 277
AND 278A OF THIS ARTICLE, AND BY THE TRANSFER TAXES OF THE
COUNTIES AND THE CITY OF BALTIMORE, ARE APPLICABLE TO THE
TRANSACTIONS DESCRIBED IN SUBSECTIONS (B) AND (C) OF THIS
SECTION, EXCEPT AS PROVIDED IN SUBSECTION (E).

(B)  THE TAXES REFERRED TO IN SUBSECTION (A) APPLY TO
WRITTEN INSTRUMENTS CONVEYING THE REAL PROPERTY OF A
CORPORATION TO ITS SHAREHOLDERS ON THE LIQUIDATION,
DISSOLUTION, OR TERMINATION OF THAT CORPORATION.

(C)  THE TAXES REFERRED TO IN SUBSECTION (A) APPLY TO
WRITTEN INSTRUMENTS CONVEYING THE REAL PROPERTY OF A
PARTNERSHIP TO ITS PARTNERS ON THE LIQUIDATION, DISSOLUTION,
TERMINATION OR WINDING UP OF THE AFFAIRS OF THAT
PARTNERSHIP.

(D)  IN DETERMINING THE AMOUNT OF CONSIDERATION ON
WHICH THE TAXES ARE TO BE BASED, THE ASSESSED VALUATION OF
THE PROPERTY INVOLVED SHALL BE USED IN CALCULATING THE FULL
CASH VALUE OF THE PROPERTY AS DETERMINED BY THE DEPARTMENT
AT THE LAST DATE OF FINALITY SHALL BE USED.

(E)  A TRANSACTION DESCRIBED IN SUBSECTIONS (B) AND (C)
MAY NOT BE TAXED TO THE EXTENT THAT:

(1)  PROPERTY IS CONVEYED TO A PERSON WHO WAS AN
ORIGINAL SHAREHOLDER OR PARTNER OF THE ENTITY INVOLVED;

(2)  PROPERTY IS CONVEYED TO A DIRECT DESCENDANT
OR RELATIVE WITHIN 2 DEGREES OF A PERSON WHO WAS AN ORIGINAL
SHAREHOLDER OR PARTNER OF THE ENTITY INVOLVED; OR

(3)  PROPERTY IS CONVEYED TO A PERSON WHO
ACQUIRED THE STATUS OF SHAREHOLDER OR PARTNER BY GIFT OR
DEVISE FROM AN ORIGINAL SHAREHOLDER OR PARTNER OF THE ENTITY
INVOLVED.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1982.

Approved June 1, 1982.

CHAPTER 814
(Senate Bill 752)
AN ACT concerning
Creation of a State Debt - Frederick County Jail Loan of 1982