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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0033*
SENATE BILL 33
Q6 6lr1282
(PRE–FILED) CF HB 82
By: Senator West
Requested: October 21, 2025
Introduced and read first time: January 14, 2026
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Recordation and Transfer Taxes – Exemption for Related Business Entities – 2
Common Law Trusts 3
FOR the purpose of altering an exemption from the recordation tax and State and county 4
transfer tax for transfers between related business entities to include transfers 5
involving common law trusts; and generally relating to exemptions from the 6
recordation tax and State and county transfer tax. 7
BY repealing and reenacting, with amendments, 8
Article – Tax – Property 9
Section 12–108(p) and 13–405(c) 10
Annotated Code of Maryland 11
(2019 Replacement Volume and 2025 Supplement) 12
BY repealing and reenacting, without amendments, 13
Article – Tax – Property 14
Section 13–207(a)(9) 15
Annotated Code of Maryland 16
(2019 Replacement Volume and 2025 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Tax – Property 20
12–108. 21
(p) (1) (i) In this subs ection the following words have the meanings 22
indicated. 23
2 SENATE BILL 33
(ii) “Business entity” means a limited liability company, corporation, 1
limited partnership, [or] statutory trust, OR COMMON LAW TRUST. 2
(iii) “Owner” means a member, stockholder, limited partne r, or 3
beneficial owner of a business entity OR OTHER PERSON, AS DEFINED IN § 12–101 OF 4
THE CORPORATIONS AND ASSOCIATIONS ARTICLE. 5
(iv) “Ownership interest” means a membership interest, stock, 6
limited partnership interest, or beneficial interest. 7
(2) An instrument of writing is not subject to recordation tax if the 8
instrument of writing is: 9
(i) a transfer of title to real property between a parent business 10
entity and its wholly owned subsidiary business entity or between 2 or more subsidiary 11
business entities wholly owned by the same parent business entity, if the parent business 12
entity is an original owner of the subsidiary business entity, or became an owner through 13
gift or bequest from an original owner of the subsidiary business entity, for: 14
1. no consideration; 15
2. nominal consideration; or 16
3. consideration that comprises only the issuance, 17
cancellation, or surrender of the ownership interests of a subsidiary business entity; 18
(ii) an instrument of writing made pursuant to the reorganization of 19
a business entity as described in § 368(a) of the Internal Revenue Code; or 20
(iii) a transfer of title to real property from a subsidiary business 21
entity to its parent business entity for no consideration, nominal consideration or 22
consideration that comprises only the issuance, cancellation, or surrender of a subsidiary’s 23
ownership interest, where the parent business entity: 24
1. previously owned the real property; 25
2. currently owns the ownership interest of the subsidiary 26
and has owned that ownership interest for a period greater than 18 months; or 27
3. acquires the ownership interest of a subsidiary business 28
entity which has been in existence and has owned the real property for a period of 2 years. 29
13–207. 30
(a) An instrument of writing is not subject to transfer tax to the same extent that 31
it is not subject to recordation tax under: 32
SENATE BILL 33 3
(9) § 12 –108(p) of this article (Transfer of property between related 1
business entities); 2
13–405. 3
(c) A corporate, limited liability company, [or] partnership, OR OTHER transfer 4
as described in § 12 –108(p), (q), (v), (w), (y), and (bb) of this article is not subject to the 5
county transfer tax. 6
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 7
1, 2026, and shall be applicable to instruments of writing recorded on or after July 1, 2026. 8