Ch. 694                                          LAWS OF MARYLAND

residential facility is held by a corporation, the shareholders
or members of which, by virtue of such ownership or membership,
are entitled to enter into an occupancy agreement for a
particular residential unit. This tax shall not be applicable to
transfers made pursuant to the purchase of a building by or on
behalf of a bona fide tenants association. The tax shall be paid
by the initial transferor of the residential unit and shall be in
addition to the tax provided in paragraph (5) of this
subsection[.]; OR

(5) One [(l)] percent of the value of the
consideration for any other transfer INCLUDING ANY NONRESIDENTIAL
LEASEHOLD INTEREST AND FEE INTEREST UNDER SUBSECTION (A)(IV)
ABOVE BASED ON THE:

(I)  AVERAGE ANNUAL RENT OVER THE TERM OF THE
LEASE, INCLUDING RENEWALS, CAPITALIZED AT 10 PERCENT PLUS ANY
ADDITIONAL CONSIDERATION PAYABLE, OTHER THAN RENT; OR

(II)  IF THE AVERAGE ANNUAL RENT CAN NOT BE
DETERMINED, THE GREATER OF:

1.  105 PERCENT OF THE MINIMUM AVERAGE
ANNUAL RENT, AS DETERMINED BY THE LEASE, CAPITALIZED AT 10
PERCENT, PLUS ANY ADDITIONAL CONSIDERATION PAYABLE, OTHER THAN
RENT; OR

2.  150 PERCENT OF THE ASSESSMENT OF THE
REAL PROPERTY SUBJECT TO LEASE.

[(b)] (C) No transfer of any interest in such property
shall be taxed hereunder where the transfer is to any nonprofit
hospital or nonprofit religious or charitable organization,
association or corporation, nor to any municipal, county or State
government, or instrumentalities, agencies or political
subdivisions thereof; provided, that no exemption shall be
granted hereunder to a transfer under paragraph (a)(1) of this
section unless the transferor is a nonprofit hospital or
nonprofit religious or charitable organization, association or
corporation, or a municipal, county or State government, or
instrumentality, agency or political subdivision thereof. The
county council may provide for any additional exemptions from the
provisions of this section.

[(c)] (D) No tax levied pursuant to this section shall
apply to transfers pursuant to contracts or agreements entered
into prior to the effective date of such tax.

[(d)] (E) The county council is further empowered and
authorized to fix a penalty not in excess of one thousand dollars
[($1,000.00)] or imprisonment not exceeding six [(6)] months, or
both such fine and imprisonment, for violation of the provisions

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