ACTIVITY RELATED TO AGRICULTURAL PRODUCTION, ARE ENTIRELY SUBJECT TO AN
AGRICULTURAL USE ASSESSMENT UNDER § 8-209 OF THIS ARTICLE.

(B) (1) THE RECORDATION TAX IS IMPOSED ON THE TRANSFER OF A
CONTROLLING INTEREST IN A REAL PROPERTY ENTITY AS IF THE REAL PROPERTY
DIRECTLY OR BENEFICIALLY OWNED BY THE REAL PROPERTY ENTITY WERE
CONVEYED BY AN INSTRUMENT OF WRITING THAT IS RECORDED WITH THE CLERK
OF THE CIRCUIT COURT FOR A COUNTY OR FILED WITH THE DEPARTMENT UNDER §
12-102 OF THIS SUBTITLE.

(2) (I) THE RECORDATION TAX IS IMPOSED ON THE CONSIDERATION
PAYABLE FOR THE TRANSFER OF THE CONTROLLING INTEREST IN THE REAL
PROPERTY ENTITY.

(II) THE CONSIDERATION TO WHICH THE RECORDATION TAX
APPLIES INCLUDES THE AMOUNT OF:

1. ANY MORTGAGE, DEED OF TRUST, OR OTHER LIEN UPON
OR SECURITY INTEREST IN THE REAL PROPERTY DIRECTLY OR BENEFICIALLY
OWNED BY THE REAL PROPERTY ENTITY; AND

2. ANY OTHER DEBT OR ENCUMBRANCE OF THE REAL
PROPERTY ENTITY.

(III) THE CONSIDERATION TO WHICH THE RECORDATION TAX
APPLIES IS REDUCED BY THE AMOUNT ALLOCABLE TO THE ASSETS OF THE REAL
PROPERTY ENTITY OTHER THAN REAL PROPERTY.

(IV) THE REAL PROPERTY ENTITY HAS THE BURDEN OF
ESTABLISHING TO THE SATISFACTION OF THE DEPARTMENT THE CONSIDERATION
REFERRED TO IN SUBPARAGRAPH (I) OF THIS PARAGRAPH AND THE AMOUNT OF ANY
CONSIDERATION ALLOCABLE TO ASSETS OTHER THAN REAL PROPERTY REFERRED
TO IN SUBPARAGRAPH (III) OF THIS PARAGRAPH.

(V) IF THE REAL PROPERTY ENTITY FAILS TO ESTABLISH THE
AMOUNT. OF CONSIDERATION REFERRED TO IN SUBPARAGRAPH (I) OF THIS
PARAGRAPH, THE RECORDATION TAX IS IMPOSED ON THE VALUE OF THE REAL
PROPERTY DIRECTLY OR BENEFICIALLY OWNED BY THE REAL PROPERTY ENTITY
DETERMINED BY THE DEPARTMENT AT THE DATE OF FINALITY IMMEDIATELY
BEFORE THE DATE OF THE FINAL TRANSFER.

(3) EXCEPT AS OTHERWISE PROVIDED IN § 12-103(D) OF THIS SUBTITLE,
THE RECORDATION TAX IS APPLIED AT THE RATE SET UNDER § 12-103(B) OF THIS
SUBTITLE BY THE COUNTY WHERE THE REAL PROPERTY IS LOCATED.

(C) (1) THE TRANSFER OF A CONTROLLING INTEREST IN A REAL PROPERTY
ENTITY IS NOT SUBJECT TO THE RECORDATION TAX IF THE TRANSFER OF THE REAL
PROPERTY BY AN INSTRUMENT OF WRITING BETWEEN THE SAME PARTIES AND
UNDER THE SAME CIRCUMSTANCES WOULD HAVE BEEN EXEMPT UNDER § 12-108 OF
THIS SUBTITLE.

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VETOES

H.B. 753