Ch. 411

2003 LAWS OF MARYLAND

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
June 1, 2003 and shall be applicable to all taxable years beginning after June 30,
2003.

Approved May 22, 2003.

CHAPTER 411
(House Bill 163)

AN ACT concerning

Recordation Tax - Refinancing Instrument - Exemption for Spouses

FOR the purpose of altering a certain exemption from the recordation tax for a
mortgage or deed of trust that secures the refinancing of real property; making
this Act an emergency measure; and generally relating to an exemption from the
recordation tax for a mortgage or deed of trust that secures the refinancing of
real property.

BY repealing and reenacting, with amendments,
Article - Tax - Property
Section 12-108(g)
Annotated Code of Maryland
(2001 Replacement Volume and 2002 Supplement)

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

Article - Tax - Property

12-108.

(g) (1) In this subsection, "original mortgagor" includes an individual who
assumed a debt secured by real property that the individual purchased as a principal
residence and who paid the recordation tax on the consideration paid for the property.

(2)     A mortgage or deed of trust is not subject to recordation tax to the
extent that it secures the refinancing of an amount not greater than the unpaid
principal amount secured by an existing mortgage or deed of trust at the time of
refinancing [by the original mortgagor] IF THE MORTGAGE OR DEED OF TRUST
SECURES THE REFINANCING of real property that is:

(I)      used as a principal residence by the original mortgagor; AND

(II)     BEING REFINANCED BY THE ORIGINAL MORTGAGOR OR BY THE
ORIGINAL MORTGAGOR AND THE SPOUSE OF THE ORIGINAL MORTGAGOR,

(3)     To qualify for an exemption under paragraph (2) of this subsection an
original mortgagor or agent of the original mortgagor shall include a statement in the

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