§ 37.002 COUNTY TRANSFER TAX IMPOSED.

   (A)   For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

      INSTRUMENT OF WRITING. A written instrument that conveys title to or a leasehold interest in real property. 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;

         (f)   Articles of consolidation or other document which evidences a consolidation of foreign corporations.

      INSTRUMENT OF WRITING does not include:

         (a)   A mortgage, deed or trust or other contract that creates an encumbrance on real property;

         (b)   A security agreement, as defined in Md. Code, Tax-Property Article, § 12-101(e).

   (B)   The County Commissioners may impose a transfer tax on an instrument of writing:

      (1)   Recorded with the Clerk of the Circuit Court for Garrett 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 Md. Code, Tax- Property Article, § 13-207;

         (b)   A transfer of land subject to the agricultural land transfer tax under Md. Code, Tax- Property Article, Title 13, Subtitle 3; or

         (c)   The first $50,000 of the consideration payable for an instrument of writing for the transferred real property.

(1986 Code, § 106-1)