WILLIAM DONALD SCHAEFER, Governor                    Ch. 670

BY repealing and reenacting, with amendments,

Article - Tax - Property
Section 12-105(c) and 13-205(a)
Annotated Code of Maryland
(1986 Volume and 1988 Supplement)

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

Article - Real Property

8-110.

(b)  Except for apartment and cooperative leases, any
reversion reserved in a lease for longer than 15 years is
redeemable, at the option of the tenant, after a notice of one
month to the landlord[, for]:

(1)  FOR a sum equal to the [capitalization of the]
ANNUAL rent reserved MULTIPLIED BY:

(I)  25, WHICH IS CAPITALIZATION AT 4
PERCENT ; , IF THE LEASE WAS EXECUTED FROM APRIL 8, 1884 TO APRIL
5, 1888, BOTH INCLUSIVE;

(II)  8.33, WHICH IS CAPITALIZATION AT 12
PERCENT, IF THE LEASE WAS OR IS CREATED AFTER JULY 1, 1982; OR

(III)  16.66, WHICH IS CAPITALIZATION AT 6
PERCENT, IF THE LEASE WAS CREATED AT ANY OTHER TIME;

(2)  FOR A LESSER SUM IF SPECIFIED IN THE LEASE; OR

(3)  FOR A SUM TO WHICH THE PARTIES MAY AGREE AT THE
TIME OF REDEMPTION [at a rate not exceeding 6 percent per year.
If a lease is created after July 1, 1982, it is redeemable at the
option of the tenant, after a notice of 1 month to the landlord,
for a sum equal to the capitalization of the rent reserved at a
rate not exceeding 12 percent per year. If a lease was executed
between April 8, 1884 and April 5, 1888, the redemption price may
be some other sum specified in the lease not exceeding 4 percent
capitalization of the reversion].

Article - Tax - Property

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

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