3968

VETOES

(iii) consideration that comprises only the
issuance, cancellation, or surrender of a subsidiary's stock; or

(2) a deed made:

(i) under a reorganization described in §
368(a) of the Internal Revenue Code; or

(ii) under §§ 371 through 374 of the Internal
Revenue Code.

(c)  A county that imposes a county transfer tax shall
certify annually to the Department:

(1)  the rate of the tax;

(2)  the applicability of the county transfer tax; and

(3)  the legal authority for the county transfer tax.

(d)  (1) The Department shall:

(i) collect any county transfer tax imposed
under subsection (a) of this section; and

(ii) promptly remit the county transfer tax
collected together with copies of supporting documents to the
Comptroller.

(2) from the revenue received, the Comptroller shall:

(i) deduct the cost to the Department of
collecting county transfer tax under this section; and

(ii) distribute the remainder of the revenue to
the county in which the property that is transferred is located.

(e)  (1) Articles of transfer that are subject to county
transfer tax under this section also may be taxable under §
13-202 or § 13-302 of this title or § 12-102 of this article.

(2) Before a transfer of title may be made under
articles of transfer for any property for which a property
certificate is required under § 3-112 of the Corporations and
Associations Article, all recordation and transfer taxes shall be
paid.

[(f) This section does not apply to Baltimore County.]

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall

take effect February , 1986.