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:
(3)
An assignment of a lessee's interest.
(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.
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.
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 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.
C. 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.
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.