(a) (1) A transfer of any interest in property is not subject to tax if the property is transferred to:
(A) any nonprofit hospital or nonprofit religious or charitable organization, association or corporation, or
(B) any municipal, County or State government, or any instrumentality, agency, or political subdivisions thereof.
(2) However, an exemption must not be granted to a transferor under Section 52-31(d) unless the transferor is a nonprofit hospital or nonprofit religious or charitable organization, association or corporation, or a municipal, County or State government or an instrumentality, agency or political subdivision thereof.
(b) A transfer, by will or descent, of real property is not subject to tax.
(c) A transfer of any interest in real property is not subject to tax if the transfer is between spouses or former spouses of real property owned by them jointly or individually, underthe terms of a separation agreement or divorce decree adjusting the parties' respective equities and rights in the real property.
(d) (1) A transfer of improved residential property in a cooperative housing corporation to the owner of a cooperative interest in the same corporation is not subject to tax if:
(A) the corporation consists of single-family detached residential units and was established on or before January 1, 1970; and
(B) the transfer is incident to or part of the termination of the corporation.
(2) However, a transfer covered by subsection (1) is not exempt from tax if:
(A) the transfer is incident to or part of the conversion of the corporation to a condominium; or
(B) the property is transferred to a person who:
(i) does not occupy the residential unit transferred; or
(ii) has received the same exemption for another property transferred as part of the same corporate termination.
(e) (1) The transfer of an interest in improved residential owner-occupied property is exempt from the transfer tax, to the extent allowed in paragraph (3), if the value of the full consideration is not more than $250,000.
(2) To receive an exemption under this subsection, the transferee must submit a statement signed under oath that the residence will be occupied by the transferee.
(3) The exemption under this subsection applies only to the first $500 of transfer tax payable by the transferee under the sales contract.
(4) The exemption under this subsection applies only if the contract to transfer the property is ratified on or after July 1, 1994, and on or before June 30, 1996, and settlement is completed by September 30, 1996.
(f) Transfers between spouses or domestic partners. The transfer of an interest in real property is not subject to tax if the transfer is between:
(1) spouses or former spouses; or
(2) domestic partners or former domestic partners of the same sex.
(g) Transfers between relatives. When property is transferred subject to an existing mortgage or deed of trust, the transfer tax does not apply to the unpaid principal balance of debt secured by the mortgage or deed of trust if the property is transferred to the transferor’s:
(1) son, daughter, stepson, or stepdaughter;
(2) parent or stepparent;
(3) son-in-law, daughter-in-law, stepson-in-law, or stepdaughter-in-law;
(4) parent-in-law or stepparent-in-law; or
(5) grandchild or step-grandchild. (Mont. Co. Code 1965, § 84-28; Ord. No. 6-32; 1973 L.M.C., ch. 33, § 1; 1980 L.M.C., ch. 20, § 1; 1994 L.M.C., ch. 18, § 1; 1994 L.M.C., ch. 19, § 1; 1995 L.M.C., ch. 16, § 1; 2002 L.M.C., ch. 7, § 1; 2003 L.M.C., ch. 7, § 1; 2016 L.M.C., ch. 7, § 2.)
Editor’s note—Section 52-34 (formerly § 52-24, 2016 L.M.C., ch. 7, § 1) is cited in Conaway v. Deane, 401 Md. 219, 932 A.2d 571 (2007). The above section is applied in Dean v. Director of Finance, 96 Md.App. 80, 623 A.2d 707 (1993).
See County Attorney Opinion dated 2/29/08 regarding when the State is exempt from the County’s farmland transfer tax.
2002 L.M.C., ch. 7, § 3, states, “The County Executive must issue regulations to establish requirements for proving that the transferor and transferee’s relationship qualifies for an exemption under Section 52-24(f) or (g) (now § 52-34(f) or (g), 2016 L.M.C., ch. 7, § 1) of the Code, as amended by this Act. The requirements for the exemption for domestic partners under Section 52-24(f) (now § 52-34(f), 2016 L.M.C., ch. 7, § 1), as amended by this Act, must be substantially identical to the requirements for the domestic partner of a County employee to qualify for County benefits under the Employee Benefits Equity Act of 1999.
1980 L.M.C., ch. 20, § 3, provides that this section shall apply retroactively to all properties transferred on or after January 1, 1980. The text of 1980 L.M.C., ch. 20, included only what is now designated as paragraphs (a), (b), and (c). Later enactments added the remaining paragraphs (d), (e), (f) and (g).