PARRIS N. GLENDENING, Governor

J.R. 2

Joint Resolution No. 2
(House Joint Resolution No. 5)

A House Joint Resolution concerning

Payment of Property Taxes - Changing to Postpayment Schedule

FOR the purpose of requesting the Governor to appoint Legislative Policy Committee to
create a task force to study changing the schedule for payment of property taxes;
providing for the membership of the task force; requiring the Department of Fiscal
Services to provide staff to the task force; providing for certain notice procedures
for meetings of the task force; providing for a certain report; and generally relating
to a task force to study changing the schedule for payment of property taxes.

WHEREAS, Maryland has the second highest rate in the nation of real property
transfer taxes and the highest net impact on home purchase prices; and

WHEREAS, The housing industry is a major factor in providing stimulation for the
economy of Maryland; and

. WHEREAS, Maryland is one of the few states that require prepayment of real
property taxes in advance; and

WHEREAS, The cost of settlement is a major factor to a homebuyer when
purchasing housing; and

WHEREAS, It is recognized that to reverse the payment of real property taxes to
require payment at the end of a taxable year instead of at the beginning of the taxable
year, the change must be phased in over an appropriate period of time to give the local
governments the opportunity to factor the revenue change into the fiscal planning for
their budgets; now, therefore, be it

RESOLVED BY THE GENERAL ASSEMBLY OF MARYLAND, That the
Governor Legislative Policy Committee is requested to appoint create a task force to
study changing the payment of property taxes from the current prepayment schedule to a
postpayment schedule over a multiyear period in an effort to reduce closing costs in
Maryland; and be it further

RESOLVED, That the task force be composed of 9 13 members, including:

(1)     A member Two members of the House of Delegates of Maryland,
appointed by the Speaker of the House, who shall serve as chairman one of whom shall be
designated by the Speaker of the House as co-chairman of the task force;

(2)     A member Two members of the Senate of Maryland, appointed by the
President of the Senate; one of whom shall be designated by the President of the Senate
as co-chairman of the task force;

(3)     The following members appointed by the Governor President of the
Senate and Speaker of the House:

(i) A representative of the Governor's office;
- 3619 -