WILLIAM DONALD SCHAEFER, Governor

Ch. 156

CHAPTER 156

(Senate Bill 247)

AN ACT concerning

State Transfer Tax - Exemption

FOR the purpose of exempting from the State transfer tax a
certain amount of the value of residentially improved
owner occupied real property providing that a certain part
of the consideration payable for the instrument of writing
for certain real property is exempt from the State transfer
tax under certain circumstances; and providing for a delayed
effective date.

BY repealing and reenacting, with amendments,

Article - Tax - Property

Section 13-203

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

13-203.

(A)   [The] EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS
SECTION, THE rate of the transfer tax is 0.5% of the
consideration payable for the instrument of writing. The
consideration includes the amount of any mortgage or deed of
trust assumed by the grantee.

(B) THE FIRST $40,000 OF CONSIDERATION FOR OWNER OCCUPIED
REAL PROPERTY THAT IS IMPROVED BY A RESIDENTIAL STRUCTURE IS NOT
SUBJECT TO THE TRANSFER TAX.

(B) THE TRANSFER TAX DOES NOT APPLY TO THE FIRST $20,000 OF
THE CONSIDERATION PAYABLE FOR AN INSTRUMENT OF WRITING FOR
RESIDENTIALLY IMPROVED OWNER-OCCUPIED REAL PROPERTY, PROVIDED
THAT THE INSTRUMENT OF WRITING IS ACCOMPANIED BY A STATEMENT
UNDER OATH SIGNED BY THE GRANTEE THAT THE RESIDENCE WILL BE
OCCUPIED BY THE GRANTEE.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1987 1988.

Approved April 29, 1987.

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