Wicomico County, MD Article X Transfer Tax

[1992, ch. 399]

§ 203-23 Authority to impose tax; applicability.

A. Definitions.

(1) In this section "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 of 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 County Council may impose a transfer tax on an instrument of writing:

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

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

C. A transfer tax under this section:

(1) Shall be established by ordinance;

(2) May not exceed 1%; and

(3) 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; or

(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.[1]

[1] Editor's Note: Bill No. 2000-5, adopted 5-31-2000, added §§ 203-24 through 203-29 to impose a transfer tax. Said bill and tax were subsequently repealed 11-12-2000. Bill No. 2001-8, adopted 6-26-2001, provided for the refund of certain transfer taxes collected under the provisions of Bill No. 2000-5. The preamble and Section I of Bill No. 2001-8 read as follows:

"WHEREAS, on May 31, 2000, pursuant to authority granted under Chapter 399 of the Acts of 1992, the Wicomico County Council passed Wicomico County Council Bill No. 2000-5 as an emergency measure effective from the date of its passage, imposing a 1% local transfer tax; and

WHEREAS, the bill, enacting the transfer tax was petitioned to referendum under the Wicomico County Charter and was rejected by the voters of Wicomico County at an election held November 7, 2000; and

WHEREAS, because the ordinance imposing the transfer tax had been enacted as an emergency measure, the transfer tax remained in effect from the date of its enactment until 30 days after the election; and

WHEREAS, the Wicomico County Council has determined it is in the public interest to refund to taxpayers the tax revenue collected during the limited period when the transfer tax was in effect to reaffirm government's responsiveness to the citizens of the County as expressed in the voters' rejection of the tax; and

WHEREAS, the General Assembly of Maryland has concurred with the County Council's determination of public purpose and has granted authority to the Wicomico County Council to provide for the return of amounts collected under the local transfer tax while it was briefly in effect, through House Bill 1436.

SECTION I: BE IT ENACTED AND ORDAINED BY THE COUNTY COUNCIL OF WICOMICO COUNTY, MARYLAND, IN LEGISLATIVE SESSION as follows:

A. The Wicomico County Council hereby finds that a public purpose would be served by refunding the transfer tax previously collected under Legislative Bill No. 2000-5, for the reasons set forth above.

B. Wicomico County hereby authorizes the distribution of refunds of the local transfer tax collected pursuant to Wicomico County Council Bill No. 2000-5, authorized by the General Assembly in Chapter 399 of the Acts of 1992. The tax was assessed and collected during the period from the enactment of the tax on May 21, 2000 until termination of the tax after rejection of the Legislation by voters in a referendum at the November 7, 2000, election. The distribution of refunds shall be in accordance with the following procedures.

C. Application for Refund.

(1) Any person desiring a refund shall file, in duplicate, with the Director of Finance a written, sworn application therefor, signed by the applicant, to assist in confirming the identity of the individual paying the tax and the amount paid.

A. The application shall include the following:

i. The original receipt issued by the Clerk of the Court when the transfer tax was paid, or evidence acceptable to the Director establishing payment.

ii. Copy of the Real Estate Settlement sheet evidencing who paid the transfer tax. (buyer or seller)

iii. Copy of the "State of Maryland Land Instrument Intake Sheet" listing the property and parties involved.

(2) All applications for refunds must be submitted within 60 days from the effective date of this legislation.

D. Amount of Refund.

(1) The amount refunded will be reduced by costs incurred by Wicomico County which are associated with the collection, enforcement and refund of the tax.

(2) Failure to comply with or accept the above requirements by any applicant shall result in a refusal to award any refund of the transfer tax to that particular applicant. Bill No. 2002-2, adopted 2-19-2002, amended Subsection C of Bill No. 2001-8 to add the following:

(3) Pursuant to Legislative Bill No. 2002-2 the period for acceptance of applications for refund shall reopen upon the effective date of the legislation. All applications shall be submitted on or before April 30, 2002. Applications submitted after April 30, 2002 shall be rejected."