Ch. 468                                    2003 LAWS OF MARYLAND

(II) FILED WITH THE MARYLAND DEPARTMENT OF ASSESSMENTS
AND TAXATION.

(2) THE COUNTY COMMISSIONERS MAY NOT IMPOSE A TRANSFER TAX
UNLESS THE COUNTY IMPOSES A BUILDING EXCISE TAX AS AUTHORIZED UNDER §
2-701 OF THIS SUBTITLE.

(C)     THE TRANSFER TAX RATE UNDER THIS SECTION:

(1)      SHALL BE ESTABLISHED BY ORDINANCE; AND

(2)      MAY NOT EXCEED:

(I)      0.5% FOR A FISCAL YEAR BEGINNING AFTER JUNE 30, 2003, BUT
BEFORE JULY 1, 2008; AND

(II)     1% FOR ALL FISCAL YEARS ANY FISCAL YEAR BEGINNING
AFTER JUNE 30, 2008.

(D)     (1) THE COUNTY DIRECTOR OF FINANCE SHALL DEPOSIT THE
REVENUES FROM THE TRANSFER TAX INTO A SPECIAL FUND.

(2)      EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION, THE
REVENUES FROM THE TRANSFER TAX MAY BE USED ONLY FOR:

(I)      SCHOOL RENOVATION AND CONSTRUCTION;

(II)     PUBLIC SAFETY, INCLUDING GRANTS AND LOANS TO
VOLUNTEER FIRE AND RESCUE COMPANIES FOR CAPITAL EXPENDITURES;

(III)   TRANSPORTATION PROJECTS; AND

(IV)    DEBT REDUCTION.

(3)      FOR EACH FISCAL YEAR, AT LEAST $400,000 OF THE REVENUES FROM
THE TRANSFER TAX SHALL BE USED FOR AGRICULTURAL LAND PRESERVATION AND
OTHER MEASURES TO ENHANCE THE VIABILITY OF AGRICULTURE IN WASHINGTON
COUNTY.

(E)     (1) THE TRANSFER TAX DOES NOT APPLY TO:

(I)      AN INSTRUMENT OF WRITING EXEMPT FROM THE STATE
TRANSFER TAX UNDER § 13-207 OF THE TAX - PROPERTY ARTICLE OF THE
ANNOTATED CODE OF MARYLAND; OR

(II)     A TRANSFER OF LAND SUBJECT TO THE AGRICULTURAL LAND
TRANSFER TAX UNDER TITLE 13, SUBTITLE 3 OF THE TAX - PROPERTY ARTICLE OF
THE ANNOTATED CODE OF MARYLAND.

(2) THE COUNTY COMMISSIONERS MAY PROVIDE FOR ADDITIONAI
EXEMPTIONS TO THE TRANSFER TAX, INCLUDING, BUT NOT LIMITED TO,
EXEMPTIONS FOR:

(I) FIRST-TIME HOME BUYERS;
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