2794                                          LAWS OF MARYLAND                                      Ch. 570

(C) FOR A LEASE OF REAL PROPERTY CREATING OR TRANSFERRING A
PERPETUALLY RENEWABLE GROUND RENT, RECORDATION TAX APPLIES TO THE

ANNUAL GROUND RENT CAPITALIZED AT 6% PLUS ANY ADDITIONAL

CONSIDERATION PAYABLE. HOWEVER, WHEN A REVERSIONARY INTEREST
KNOWN AS A PERPETUALLY RENEWABLE GROUND RENT IS CREATED, THE
REVERSIONARY INTEREST IS NOT SUBJECT TO RECORDATION TAX.

13-105.

(A) FOR A LEASE OF REAL PROPERTY CREATING OR TRANSFERRING A
PERPETUALLY RENEWABLE GROUND RENT, TRANSFER TAX APPLIES TO THE

ANNUAL GROUND RENT CAPITALIZED AT 6% PLUS ANY ADDITIONAL

CONSIDERATION PAYABLE. HOWEVER, WHEN A REVERSIONARY INTEREST
KNOWN AS A PERPETUALLY RENEWABLE GROUND RENT IS CREATED, THE
REVERSIONARY INTEREST IS NOT SUBJECT TO TRANSFER TAX.

12-105.

(C) IF A LEASE OF REAL PROPERTY CREATING A PERPETUALLY
RENEWABLE GROUND RENT IS RECORDED WITHOUT A TRANSFER OF THE
REVERSIONARY ESTATE FOR FULL CONSIDERATION OTHER THAN THE GROUND
RENT BEING RECORDED AT THE SAME TIME, THE RECORDATION TAX APPLIES
TO THE ANNUAL GROUND RENT CAPITALIZED AT THE RATE AS DETERMINED
UNDER § 8-110 OF THE REAL PROPERTY ARTICLE PLUS ANY ADDITIONAL
CONSIDERATION PAYABLE. IF THE LEASE IS RECORDED AT THE SAME TIME
WITH THE TRANSFER OF THE REVERSIONARY ESTATE CREATED FOR FULL
CONSIDERATION, THE LEASE IS NOT SUBJECT TO RECORDATION TAX.

13-205.

(A) IF A LEASE OF REAL PROPERTY CREATING A PERPETUALLY
RENEWABLE GROUND RENT IS RECORDED WITHOUT A TRANSFER OF THE
REVERSIONARY ESTATE FOR FULL CONSIDERATION OTHER THAN THE GROUND
RENT BEING RECORDED AT THE SAME TIME, THE TRANSFER TAX APPLIES TO
THE ANNUAL GROUND RENT CAPITALIZED AT THE RATE AS DETERMINED
UNDER § 8-110 OF THE REAL PROPERTY ARTICLE PLUS ANY ADDITIONAL
CONSIDERATION PAYABLE. IF THE LEASE IS RECORDED AT THE SAME TIME
WITH THE TRANSFER OF THE REVERSIONARY ESTATE CREATED FOR FULL
CONSIDERATION, THE LEASE IS NOT SUBJECT TO TRANSFER TAX.

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall
take effect February 1, 1986.

Approved May 28, 1985.

CHAPTER 571
(Senate Bill 773)
AN ACT concerning