Martin O'Malley, Governor

Ch. 3

(II) FOR THE PURPOSES OF THIS PARAGRAPH, THE VALUE
OF REAL PROPERTY SHALL BE AS DETERMINED BY THE DEPARTMENT FOR
PROPERTY TAX ASSESSMENT PURPOSES AS OF THE DATE OF TRANSFER
WITHOUT REDUCTION FOR ANY MORTGAGE, DEED OF TRUST, OR OTHER LIEN ON
OR SECURITY INTEREST IN THE REAL PROPERTY.

(III) "REAL PROPERTY ENTITY" DOES NOT INCLUDE AN
ENTITY WITH LAND HOLDINGS THAT, OTHER THAN HOMESITES OR AREAS OF
COMMERCIAL 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, WAS 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 TITLE.

(2) (1) 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
ON 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.

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