Caroline County, MD Transfer Tax

The rate of the transfer tax is 0.5% of the consideration payable for the instrument of writing. The consideration includes the amount of any mortgage or deed of trust assumed by the grantee.

§ 166-4 Evidence of consideration.

The consideration payable shall be described in:

The recitals or the acknowledgement of the instrument of writing; or

A statement, under oath, that accompanies the instrument of writing and that is signed by a party to the instrument of writing or by an agent of a party.

§ 166-5 Calculation of tax.

The calculation of the transfer tax shall be determined in the same manner as provided by § 13-205 of the Tax-Property Article of the Annotated Code of Maryland.

§ 166-6 Imposition of tax on corporate and partnership transfers.

The County transfer tax shall be imposed on an instrument of writing that transfers the real property of a corporation to its stockholders or the real property of a partnership to its partners in the same manner as provided in § 13-206 of the Tax-Property Article of the Annotated Code of Maryland, as amended from time to time.

§ 166-7 Exemptions from tax.

The transfer tax does not apply to:

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

The first $25,000 of the consideration payable on 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.

The first $75,000 of the consideration payable on 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 all grantees, that each is a first-time homebuyer and that the residence will be occupied by the grantees.

§ 166-8 Payment of tax.

The transfer tax shall be paid to the Clerk, or to the Department if the instrument of writing is filed with the Department.

An instrument of writing subject to the transfer tax may not be recorded unless a statement is attached to or stamped on the instrument of writing that indicates:

(1)

That the transfer tax has been paid.

(2)

The amount of transfer tax paid.

The presence of the statement required by Subsection B of this section on an instrument of writing is prima facie evidence of payment of transfer tax.

§ 166-9 Distribution of revenue.

The revenue from the transfer tax shall be paid to the County Comptroller for Caroline County for deposit in a special County fund to be designated "Capital Improvement Fund."

[Amended 5-8-2007 by Bill No. 2007-1; 10-9-2007 by Bill No. 2007-5]

Amounts on deposit in the Capital Improvement Fund may be used and applied for the following public purposes:

(1)

Payment of the principal of and interest on any general obligation notes issued by the County pursuant to public local law.

(2)

Payment of an interest-free loan to any other fund of the County, provided that the loan is repaid to the Capital Improvement Fund on or before January 1 immediately following the end of the fiscal year in which the loan was made.

(3)

Payment of County matching funds for program open space.

(4)

Payment on a pay-as-you-go basis of all or a portion of the costs of any capital project of the County, including design, architectural, engineering, planning, financial and legal costs.

(5)

Payment of maintenance or repair costs, provided that the payment is required to meet or avert a bona fide emergency.

Amounts on deposit in the Capital Improvement Fund may be pledged as additional security for any general obligation notes issued under public local law.

Prior to the beginning of each fiscal year, the County shall develop an annual budget for the Capital Improvement Fund, including revenue estimates and proposed appropriations. Except for a payment required to meet or avert a bona fide emergency, appropriations from the Capital Improvement Fund in any fiscal year shall not exceed 50% of the estimated revenue to be deposited in the Capital Improvement Fund during that fiscal year until the balance in the Capital Improvement Fund exceeds $750,000. Any amount on deposit in the Capital Improvement Fund in excess of $750,000 may be appropriated for any of the purposes specified in Subsection B of this section.

Anything in this § 166-9 notwithstanding, the county commissioners of Caroline County, Maryland (the County Commissioners), upon a declaration of a financial emergency or exigent financial circumstances, may reduce the Capital Improvement Fund below $750,000 and may use or transfer monies in the Capital Improvement Fund for capital projects and/or transfer to the general fund for operating costs and expenses or other general fund expenditures.

[Added 4-20-2010 by Bill No. 2010-2]

The Capital Improvement Fund may be utilized as provided for in § 166-9E more than once, including during the same fiscal period and including during any replenishment period.

[Added 4-20-2010 by Bill No. 2010-2]

Except as may be required pursuant to §§ 166-9E and 166-9F, the County Commissioners shall allow the Capital Improvement Fund to be replenished to the otherwise stated required level from the transfer tax as otherwise provided for in § 166-9.

[Added 4-20-2010 by Bill No. 2010-2]

§ 166-10 Limitations imposed by state law.

The transfer tax is subject to the provisions of Subtitle 4, Title 13, of the Tax-Property Article of the Annotated Code of Maryland, as amended from time to time.