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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1009*
HOUSE BILL 1009
N1, Q6 6lr0993
CF 6lr2227
By: Delegate Korman
Introduced and read first time: February 6, 2026
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Transfer of Real Property – Recordation Certification and State Transfer Tax 2
(Land Transfer Accountability Act) 3
FOR the purpose of prohibiting a clerk of the circuit court from recording an instrument 4
that effects a change of ownership of real property from the United States to certain 5
persons unless the instrument is accompanied by a certain certificate; requiring the 6
Office of the Attorney General and the State Department of Assessments and 7
Taxation to review certain changes of ownership of real property and issue a certain 8
certificate subject to certain requirements; requiring the clerk of each circuit court, 9
in conjunction with the Administrative Office of the Courts, to establish certain 10
uniform statewide procedures for receiving and recording certain certificates ; 11
establishing a State transfer tax rate on an instrument of writing that conveys title 12
to certain real property that was formerly held and conveyed by the United States; 13
and generally relating to real property instruments and the State transfer tax. 14
BY repealing and reenacting, with amendments, 15
Article – Real Property 16
Section 3–104(a) 17
Annotated Code of Maryland 18
(2023 Replacement Volume and 2025 Supplement) 19
BY adding to 20
Article – Real Property 21
Section 3–104.3 22
Annotated Code of Maryland 23
(2023 Replacement Volume and 2025 Supplement) 24
BY repealing and reenacting, with amendments, 25
Article – Tax – Property 26
Section 13–203(a) and 13–209(a) 27
Annotated Code of Maryland 28
2 HOUSE BILL 1009
(2019 Replacement Volume and 2025 Supplement) 1
BY adding to 2
Article – Tax – Property 3
Section 13–203(c) 4
Annotated Code of Maryland 5
(2019 Replacement Volume and 2025 Supplement) 6
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7
That the Laws of Maryland read as follows: 8
Article – Real Property 9
3–104. 10
(a) (1) [The] SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , THE 11
clerk of the circuit court may record an instrument that effects a change of ownership if the 12
instrument is: 13
(i) Endorsed with the certificate of the collector of taxes of the 14
county in which the property is assessed, required under subsection (b) of this section; 15
(ii) 1. Accompanied by a complete intake sheet; or 16
2. Endorsed by the assessment office for the county as 17
provided in subsection (g)(8) of this section; and 18
(iii) Accompanied by a copy of the instrument, and any survey, for 19
submission to the Department of Assessments and Taxation. 20
(2) The Supervisor of Assessments shall transfer ownership of property in 21
the assessment records, effective as o f the date of recordation, on receipt from the clerk of 22
the circuit court of a copy of the instrument, the completed intake sheet, and any survey 23
submitted under paragraph (1) of this subsection or documents received through an 24
electronic recordation system. 25
(3) (I) THIS PARAGRAPH DOES NOT APPLY TO THE RECO RDATION 26
OF AN INSTRUMENT THA T EFFECTS A CHANGE O F OWNERSHIP FROM THE UNITED 27
STATES TO: 28
1. THE UNITED STATES OR A PUBLIC 29
INSTRUMENTALITY OF THE UNITED STATES; 30
2. THE STATE; 31
HOUSE BILL 1009 3
3. A COUNTY, A MUNICIPAL CORPORATIO N, OR ANY 1
OTHER POLITICAL SUBDIVISION OF THE STATE; 2
4. A PUBLIC INSTRUMENTALITY OF THE STATE; OR 3
5. ANY GOVERNMENTAL UNIT OF THE STATE. 4
(II) THE CLERK OF THE CIRC UIT COURT MAY NOT RE CORD AN 5
INSTRUMENT THAT EFFE CTS A CHANGE OF OWNE RSHIP OF PROPERTY FROM THE 6
UNITED STATES TO ANOTHER PERSON UNLESS THE INSTRUMENT IS ACCOMPANIED 7
BY A CERTIFICATE OF COMPLIANCE ISSUED IN ACCORDANCE WITH § 3–104.3 OF 8
THIS SUBTITLE. 9
3–104.3. 10
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 11
INDICATED. 12
(2) “CERTIFICATE OF COMPLIANCE” MEANS A CERTIFICATE ISSUED 13
BY THE OFFICE AND THE DEPARTMENT CERTIFYING THAT A CHANGE OF 14
OWNERSHIP, AND ANY RELATED INST RUMENT THAT EFFECTS THE CHANGE , 15
COMPLIES WITH ALL AP PLICABLE STATE AND FEDERAL LAW S, RULES, AND 16
REGULATIONS. 17
(3) “DEPARTMENT” MEANS THE STATE DEPARTMENT OF 18
ASSESSMENTS AND TAXATION. 19
(4) “OFFICE” MEANS THE OFFICE OF THE ATTORNEY GENERAL. 20
(5) “REQUEST FORM” MEANS A FORM PROVIDED BY THE OFFICE AND 21
THE DEPARTMENT THAT A PARTY TO A CHANGE OF OWNERSHIP USES TO REQUEST 22
A CERTIFICATE OF COMPLIANCE. 23
(B) THIS SECTION APPLIES TO THE ISSUANCE OF A CERTIFICATE OF 24
COMPLIANCE FOR AN INS TRUMENT THAT EFFECTS A CHANGE OF OWNERSHI P OF 25
REAL PROPERTY FROM THE UNITED STATES TO ANOTHER PERSON IN ACCORDANCE 26
WITH § 3–104(A)(3) OF THIS SUBTITLE. 27
(C) (1) TO REQUEST A CERTIFICATE OF COMPLIANCE, A PARTY TO A 28
CHANGE OF OWNERSHIP SHALL SUBMIT: 29
(I) A COMPLETED REQUEST FO RM TO THE OFFICE AND THE 30
DEPARTMENT; AND 31
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(II) ANY OTHER INFORMATION THAT THE OFFICE AND THE 1
DEPARTMENT REQUIRE. 2
(2) (I) ON RECEIPT OF A COMPLETED REQUE ST FORM , THE 3
OFFICE, IN COLLABORATION WITH THE DEPARTMENT, SHALL REVIEW THE CHANGE 4
OF OWNERSHIP AND THE RELATED INSTRUMENT THAT EFFECTS THE CHANGE FOR 5
COMPLIANCE WITH APPLICABLE STATE AND FEDERAL LAW S, RULES, AND 6
REGULATIONS. 7
(II) DURING A REVIEW UNDER SUBPARAGRAPH (I) OF THIS 8
PARAGRAPH, THE OFFICE AND THE DEPARTMENT MAY REQUES T ADDITIONAL 9
INFORMATION FROM ANY PARTY TO THE CHANGE OF OWNERSHIP. 10
(3) (I) AFTER COMPLETING THE REVIEW UNDER PARAGRAPH (2) 11
OF THIS SUBSECTION , THE OFFICE AND THE DEPARTMENT SHALL DETERMINE 12
WHETHER TO: 13
1. ISSUE A CERTIFICATE OF COMPLIANCE; 14
2. DENY THE REQUEST FOR THE CERTIFICATE OF 15
COMPLIANCE; OR 16
3. REQUEST ADDITIONAL IN FORMATION FROM ONE OR 17
MORE PARTIES TO THE CHANGE OF OWNERSHIP. 18
(II) THE OFFICE AND THE DEPARTMENT SHALL PROV IDE A 19
DETERMINATION UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH IN WRITING TO 20
THE PARTY THAT SUBMITTED THE REQUEST FORM. 21
(III) A DENIAL UNDER SUBPARAGRAPH (I)2 OF THIS PARAGRAPH 22
SHALL PROVIDE THE REASONS AND LEGAL BASIS FOR THE DENIAL. 23
(4) IF A REQUEST IS DENIED, A PARTY MAY RESUBMIT A REQUEST 24
FORM TO THE OFFICE AND THE DEPARTMENT AFTER CORRECTING ALL 25
DEFICIENCIES IDENTIFIED UNDER PARAGRAPH (3)(III) OF THIS SUBSECTION. 26
(D) THE OFFICE AND THE DEPARTMENT SHALL: 27
(1) DEVELOP A STANDARDIZED REQUEST FORM; 28
(2) MAKE THE REQUEST FORM PUBLICLY AVAILABLE O N THE 29
RESPECTIVE WEBSITES OF THE OFFICE AND THE DEPARTMENT; AND 30
HOUSE BILL 1009 5
(3) ESTABLISH STANDARDS AND PROCEDURES FOR: 1
(I) THE RECEIPT AND PROCESSING OF REQUEST FORMS; 2
(II) THE LEGAL REVIEW OF CHANGES OF OWNERSHIP AND 3
RELATED INSTRUMENTS THAT ARE SUBJECT TO THIS SECTION; AND 4
(III) THE ISSUANCE OF CERTIFICATES OF COMPLIANCE. 5
(E) (1) THE OFFICE AND THE DEPARTMENT SHALL ESTABLISH FEES FOR: 6
(I) THE REVIEW OF A CHANGE OF OWNER SHIP UNDER 7
SUBSECTION (C)(2) OF THIS SECTION; AND 8
(II) THE ISSUANCE OF A CERTIFICATE OF COMPLIANCE. 9
(2) THE OFFICE AND THE DEPARTMENT SHALL ESTABLISH THE FEES 10
UNDER PARAGRAPH (1) OF THIS SUBSECTION IN AN AMOUNT THAT IS SU FFICIENT 11
TO PAY THE COSTS OF CARRYING OUT THIS SECTION. 12
(3) THE FEES COLLECTED UN DER THIS SUBSECTION SHALL BE 13
DEPOSITED IN THE GENERAL FUND OF THE STATE. 14
(F) THE CLERK OF EACH CIRCUIT COURT , IN CONJUNCTION WITH THE 15
ADMINISTRATIVE OFFICE OF THE COURTS, SHALL ESTABLISH UNIFORM STATEWIDE 16
PROCEDURES TO RECEIV E AND RECORD CERTIFI CATES OF COMPLIANCE ISSUED 17
UNDER THIS SECTION. 18
(G) THE OFFICE AND THE DEPARTMENT SHALL ADOP T REGULATIONS TO 19
IMPLEMENT THIS SECTION. 20
Article – Tax – Property 21
13–203. 22
(a) (1) Except as provided in subse ctions (a –1) [and], (b), AND (C) of this 23
section, the rate of the transfer tax is 0.5% of the consideration payable for the instrument 24
of writing. 25
(2) The consideration: 26
(i) includes the amount of any mortgage or deed of trust assumed 27
by the grantee; and 28
6 HOUSE BILL 1009
(ii) subject to item (i) of this paragraph, includes only the amount 1
paid or delivered in return for the sale of the property and does not include the amount of 2
any debt forgiven or no longer secured by a mortgage or deed of trust on the property. 3
(C) (1) THE RATE OF THE TRANS FER TAX IS 2% OF THE VALUE OF THE 4
REAL PROPERTY DETERM INED BY THE DEPARTMENT AT THE DAT E OF FINALITY 5
IMMEDIATELY PRECEDING THE DATE OF TRANSFER FOR AN INSTRUMENT OF 6
WRITING THAT CONVEYS TITLE TO REAL PROPERTY IF: 7
(I) THE UNITED STATES WAS THE MOST RECENT TITLE 8
HOLDER OF THE REAL P ROPERTY BEFORE THE PERSON CONVEYING TITLE TO THE 9
REAL PROPERTY; AND 10
(II) THE TITLE FROM THE UNITED STATES UNDER ITEM (I) OF 11
THIS PARAGRAPH WAS CONVEYED ON OR AFTER JULY 1, 2026. 12
(2) NOTWITHSTANDING ANY O THER PROVISION OF LA W, THE 13
TRANSFER TAX UNDER T HIS SUBSECTION SHALL BE PAID ENTIRELY BY THE 14
TRANSFEROR. 15
13–209. 16
(a) (1) Before any other distribution under this section, in any fiscal year that 17
bonds secured by a pledge of the State transfer tax are outstanding, the revenue from the 18
transfer tax shall be used to pay, as and when due, the principal of and interest on the 19
bonds. 20
(2) The Department shall deduct the cost of administering the transfer tax 21
from the taxes collected under this title and credit those revenues to the fund established 22
under § 1–203.3 of the Corporations and Associations Article. 23
(3) (I) Except as provided in paragraph (4) of this subsection AND 24
SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, after deducting the revenues 25
required under paragraphs (1) and (2) of this subsection, the revenue from transfer tax is 26
payable to the Comptroller for deposit in a special fund. 27
(II) BEFORE DEPOSITING THE REMAINING TRANSFER T AX 28
REVENUE IN A SPECIAL FUND UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH, THE 29
COMPTROLLER SHALL CREDIT THE TRANSFER TAX REVENUE ATTRIBUT ABLE TO 30
THE TRANSFER TAX RAT E UNDER § 13–203(C) TO THE PURPOSES SPEC IFIED IN 31
TITLE 5, SUBTITLE 9 OF THE NATURAL RESOURCES ARTICLE (PROGRAM OPEN 32
SPACE). 33
HOUSE BILL 1009 7
(4) In any fiscal year in which transfer tax revenue is used to pay debt 1
service on outstanding bonds under paragraph (1) of this subsection, the distribution of 2
revenues in the special fund under this section and as specified in § 5–903(a)(2)(i)1A of the 3
Natural Resources Article, for State land acquisition, or to the Agricultural Land 4
Preservation Fund to the extent any debt service is attributable to that Fund, shall be 5
reduced by an amount equal to the debt service for the fiscal year. 6
SECTION 2. AND BE IT FURTHER ENACTED, That, if any provision of this Act or 7
the application of any provision of this Act to any person or circumstance is held invalid for 8
any reason in a court of competent jurisdiction, the invalidity does not affect other 9
provisions or any other application of this Act that can be given effect without the invalid 10
provision or application, and for this purpose the provisions of this Act are declared 11
severable. 12
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 13
1, 2026, and shall be applicable to instruments of writing recorded on or after July 1, 2026. 14