Ch. 3

2007 Laws of Maryland

(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
TITLE, THE RECORDATION TAX IS APPLIED AT THE RATE SET UNDER
§ 12-103(B) OF THIS TITLE 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 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 TITLE.

(2)      THE RECORDATION TAX IS NOT IMPOSED ON THE TRANSFER
OF A CONTROLLING INTEREST IN A REAL PROPERTY ENTITY EFFECTED IN MORE
THAN ONE TRANSACTION IF:

(I) THE TRANSFER IS COMPLETED OVER A PERIOD OF
MORE THAN 12 MONTHS; OR

(II) THE TRANSFER IS NOT MADE IN ACCORDANCE WITH A
PLAN OF TRANSFER.

(3)      THE RECORDATION TAX IS NOT IMPOSED ON THE TRANSFER
OF A CONTROLLING INTEREST IN A REAL PROPERTY ENTITY TO ANOTHER
BUSINESS IF THE OWNERSHIP INTERESTS IN THE TRANSFEREE BUSINESS
ENTITY ARE HELD BY THE SAME PERSONS AND IN THE SAME PROPORTION AS IN
THE REAL PROPERTY ENTITY THE CONTROLLING INTEREST OF WHICH WAS
TRANSFERRED.

(4)      THE RECORDATION TAX IS NOT IMPOSED ON THE TRANSFER
OF A CONTROLLING INTEREST IN A REAL PROPERTY ENTITY IF EACH
TRANSFEROR, EACH TRANSFEREE, AND EACH REAL PROPERTY ENTITY IS:

(I) A SUBSIDIARY CORPORATION, ALL OF THE STOCK OF
WHICH IS OWNED, DIRECTLY OR INDIRECTLY, BY A COMMON PARENT
CORPORATION;

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