[Adopted 2-21-1989 by Bill No. 88-4]
In this Article, the following words have the meanings indicated:
CLERK
The Clerk of Circuit Court for Caroline County.
COUNTY
County Commissioners of Caroline County, Maryland.
DEPARTMENT
The State Department of Assessments and Taxation.
INSTRUMENT OF WRITING
A written instrument that conveys title to, or a leasehold interest in, real property.
A. 
INCLUDES:
(1) 
A deed or contract.
(2) 
A lease.
(3) 
An assignment of a lessee's interest.
(4) 
Articles of transfer.
(5) 
Articles of merger or other document which evidences a merger of foreign corporations or foreign limited partnerships.
(6) 
Articles of consolidation or other document which evidences a consolidation of foreign corporations.
B. 
Does not include:
(1) 
A mortgage, deed of trust or other contract that creates an encumbrance on real property.
(2) 
A security agreement, as defined in § 12-101(E) of the Tax-Property Article, Annotated Code of Maryland.
TRANSFER TAX
The tax imposed under this Article.
A County transfer tax shall be imposed on an instrument of writing recorded with the Clerk or filed with the Department.
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.
The consideration payable shall be described in:
A. 
The recitals or the acknowledgement of the instrument of writing; or
B. 
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.
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.
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.
[Amended 10-11-2022 by Bill No. 2022-004]
The transfer tax 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. 
The first $25,000 of the consideration payable on an instrument of writing conveying owner-occupied residential property if the grantee intends to use the property as the grantee's principal residence by actually occupying the residence for at least seven months of a twelve-month period. To qualify for an exemption under this Subsection B, each grantee or an agent of a grantee, shall include a statement in the recitals or in the acknowledgment of the instrument, an affidavit under oath, signed by the grantee or agent of the grantee, stating that:
(1) 
The property being conveyed is improved residential real property; and
(2) 
The grantee intends to use the property as the grantee's principal residence by actually occupying the residence for at least seven months of a twelve-month period.
(3) 
A statement under this Subsection B by an agent of a grantee shall state that the statement:
(a) 
Is based on a diligent inquiry made by the agent with respect to the facts set forth in the statement; and
(b) 
Is true to the best of the knowledge, information, and belief of the agent.
C. 
The first $75,000 of the consideration payable on an instrument of writing conveying improved residential real property to a first-time Maryland home buyer who will occupy the property as a principal residence. To qualify for an exemption under this Subsection C, each grantee or an agent of the grantee shall provide a statement that is signed under oath by the grantee or agent of the grantee, stating that:
(1) 
The grantee is an individual who has never owned in the State of Maryland residential real property that has been the individual's principal residence; and
(2) 
The residence will be occupied by the grantee as the grantee's principal residence; or
(3) 
The grantee is a co-maker or guarantor of a purchase money mortgage or purchase money deed of trust as defined in § 12-108(i) of the Tax-Property Article for the property; and
(4) 
The grantee will not occupy the residence as the co-maker's or guarantor's principal residence.
(5) 
A statement under this Subsection C by a grantee shall state that the statement is true upon the personal knowledge of the grantee. A statement by an agent of a grantee shall state that the statement:
(a) 
Is based on a diligent inquiry made by the agent with respect to the facts set forth in the statement; and
(b) 
Is true to the best of the knowledge, information, and belief of the agent.
A. 
The transfer tax shall be paid to the Clerk, or to the Department if the instrument of writing is filed with the Department.
B. 
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.
C. 
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.
A. 
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]
B. 
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.
C. 
Amounts on deposit in the Capital Improvement Fund may be pledged as additional security for any general obligation notes issued under public local law.
D. 
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.
E. 
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]
F. 
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]
G. 
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]
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.