EXPLANATION: CAPITALS indicate matter added to existing law.
[Brackets] indicate matter deleted from existing law.
* WARNING: THIS IS AN UNOFFICIAL, INTRODUCTORY COPY OF THE BILL.
THE OFFICIAL COPY CONSIDERED BY THE CITY COUNCIL IS THE FIRST READER COPY.
INTRODUCTORY*
CITY OF BALTIMORE
COUNCIL BILL
Introduced by: Councilmember Mitchell
A BILL ENTITLED
AN ORDINANCE concerning
Title
Transfer Tax - Partial Exemption
FOR the purpose of establishing a partial exemption from the local transfer tax for certain residential properties; specifying how the exemption is to be allocated between the buyer and seller; providing for a special effective date; and generally relating to the local transfer tax.
Body
BY adding
Article 28 - Taxes
Section(s) 17-2(d)
Baltimore City Code
(Edition 2000)
SECTION 1. BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF BALTIMORE, That the Laws of Baltimore City read as follows:
Baltimore City Code
Article 28. Taxes
Subtitle 17. Transfer Tax
§ 17-2. Tax imposed - in general.
(D) PARTIAL EXEMPTION FOR OWNER-OCCUPIED RESIDENCE.
(1) IN GENERAL.
THE TAX IMPOSED BY THIS SUBTITLE DOES NOT APPLY TO THE FIRST $22,000 OF THE CONSIDERATION PAYABLE ON THE CONVEYANCE OF OWNER-OCCUPIED RESIDENTIAL PROPERTY IF THE INSTRUMENT IN WRITING IS ACCOMPANIED BY A STATEMENT, SIGNED UNDER OATH BY THE BUYER, THAT THE BUYER WILL USE THE PROPERTY AS THE BUYER'S PRINCIPAL RESIDENCE BY ACTUALLY OCCUPYING THE PROPERTY FOR AT LEAST 7 MONTHS OF THE 12-MONTH PERIOD IMMEDIATELY FOLLOWING THE CONVEYANCE.
(2) APPLICATION.
(I) EXCEPT AS SPECIFIED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH, THE BUYER SHALL RECEIVE THE ENTIRE EXEMPTION PROVIDED BY THIS SUBSECTION (D), IRRESPECTIVE OF (A) ANY CONTRACTUAL PROVISIONS CONCERNING THE DIVISION OF TAXES BETWEEN THE BUYER AND THE SELLER AND (B) THE PRESUMPTION UNDER STATE REAL PROPERTY ARTICLE § 14-104(B) {"DIVISION OF ... TAX: PRESUMPTION"}.
(II) THE SELLER SHALL RECEIVE THE ENTIRE EXEMPTION PROVIDED BY THIS SUBSECTION (D) IF (A) THE SELLER HAS AGREED BY CONTRACT TO PAY THE ENTIRE AMOUNT OF THE TAX IMPOSED BY THIS SUBTITLE OR (B) THE SELLER IS RESPONSIBLE FOR PAYING THE ENTIRE AMOUNT OF THE TAX UNDER STATE REAL PROPERTY ARTICLE § 14-104(C) {"DIVISION OF ... TAX: FIRST-TIME MARYLAND HOME-BUYERS"}.
SECTION 2. AND BE IT FURTHER ORDAINED, That the catchlines contained in this Ordinance are not law and may not be considered to have been enacted as a part of this or any prior Ordinance.
SECTION 3. AND BE IT FURTHER ORDAINED, That this Ordinance takes effect September 1, 2005, as to any instrument conveying title or securing a debt that contains a notary acknowledgment dated on or after September 1, 2005, and is presented for recordation on or after September 1, 2005.
dlr05-373~intro/06Jul05
art28/TrnsfrTx/aa:me
dlr05-373~intro/06Jul05
- 2 -
art28/TrnsfrTx/aa:me