VETOES
House Bill No. 483

AN ACT concerning

Recordation Tax - Property Partly in State

FOR the purpose of altering the method of calculating the
recordation tax for certain instruments of writing that
secure interests in certain nonexempt personal and real
property located partly in this State; and generally
relating to the calculation of the recordation tax for
instruments of writing involving property located partly in
this State.

BY repealing and reenacting, with amendments,

Article - Tax - Property
Section 12-105(a)
Annotated Code of Maryland
(1986 Volume and 1986 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Tax - Property

12-105.

(a) (1) For a deed, deed of trust, or mortgage transferring
title to real property located partly in the State, the
recordation tax applies to the consideration payable or the
principal amount of the debt secured in the same ratio that the
value of the real property that is located in the State bears to
the value of the entire property.

(2)  FOR A SECURITY AGREEMENT COVERING PERSONAL
PROPERTY THAT IS NOT EXEMPT UNDER § 12-108(H) § 12-108(K) OF THIS
TITLE AND IS LOCATED PARTLY IN THIS STATE, RECORDATION TAX
APPLIES TO THE PRINCIPAL AMOUNT OF THE DEBT SECURED IN THE SAME
RATIO THAT THE VALUE OF THE NONEXEMPT PERSONAL PROPERTY LOCATED
IN THIS STATE BEARS TO THE VALUE OF THE ENTIRE PERSONAL PROPERTY.

(3)  FOR TRANSACTIONS THAT INVOLVE INSTRUMENTS OF
WRITING DESCRIBED IN BOTH PARAGRAPHS (1) AND (2) OF THIS
SUBSECTION, THE RECORDATION TAX APPLIES TO THE CONSIDERATION
PAYABLE OR THE PRINCIPAL AMOUNT OF THE DEBT SECURED IN THE SAME
RATIO THAT THE SUM OF THE VALUES OF THE REAL PROPERTY AND THE
NONEXEMPT PERSONAL PROPERTY LOCATED IN THIS STATE BEARS TO THE
VALUE OF THE ENTIRE PROPERTY.

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