Harford County, MD Article IV Transfer Tax

[Added by Ch. 423 of the Laws of 1992 and Bill No. 93-3[1]]

[1] Editor's Note: This bill also provided in Section 2 as follows: The transfer tax imposed by this Act does not apply to an instrument of writing that conveys title to real property and is recorded or filed on or before December 31, 1993 if: A. a fully executed contract of sale for the property is entered into on or before June 30, 1993; and B. closing and the transfer of legal title to the property are completed on or before December 31, 1993, to the same person who executed the contract as the buyer.

§ 123-50 Establishment.

A. Definition.

(1) In this Article "instrument of writing" means a written instrument that conveys title to, or a leasehold interest in, real property.

(2) "Instrument of writing" includes:

(a) A deed or contract;

(b) A lease;

(c) An assignment of a lessee's interest;

(d) Articles of transfer;

(e) Articles of merger or other document which evidences a merger of foreign corporations or foreign limited partnerships; and

(f) Articles of consolidation or other document which evidences a consolidation of foreign corporations.

(3) "Instrument of writing" does not include:

(a) A mortgage, deed or trust, or other contract that creates an encumbrance on real property; or

(b) A security agreement, as defined in § 12-101(E) of the Tax-Property Article of the Annotated Code of Maryland.

B. The transfer tax is imposed on an instrument of writing:

(1) Recorded with the Clerk of the Circuit Court for Harford County; or

(2) Filed with the State Department of Assessments and Taxation.

C. A transfer tax under this section:

(1) Shall be imposed at the rate of 1% of the consideration payable for the instrument of writing; and

(2) Does not apply to:

(a) An instrument of writing exempt from the state transfer tax under § 13-207 of the Tax-Property Article of the Annotated Code of Maryland;

(b) 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; or

(c) The first $30,000 of consideration payable for an instrument of writing for residentially-improved, owner-occupied real property, provided that the instrument of writing is accompanied by a statement under oath signed by the grantee that the residence will be occupied by the grantee.

D. The exemption provided under Subsection C(3)(c) of this Article shall be applied against the grantee's transfer tax payment required under this section, unless the grantor has agreed by contract to pay the entire county transfer tax, in which case the exemption shall be applied against the grantor's transfer tax.

§ 123-51 Collection.

The Treasurer of Harford County shall collect the transfer tax.

§ 123-52 Distribution.

The proceeds of the transfer tax received by the Treasurer under § 123-51 of this Article shall be distributed as follows:

A. 50% shall be dedicated to the county's agricultural land preservation program; and

B. 50% shall be dedicated to fund school site acquisition, school construction or to pay indebtedness incurred on or after July 1, 1993 for school site acquisition or school construction.

§ 123-53 Exemption or credits.

The County Council, by law, may provide for exemptions from or credits against the transfer tax imposed under this Article.