Expedited Bill No.
15-16
Concerning: Recordation Tax - Rates -
Allocations - Amendments
Revised: May
18, 2016
Draft No.§____
Introduced:
April
19, 2016
Enacted:
May
18, 2016
Executive: _ _ _ _ _ _ _ _ __
Effective:
September 1,
2016
Sunset Date: ---'-'N=on:..:..:e=---------
Ch. _ _ , Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President Floreen
AN EXPEDITED ACT
to:
(1)
increase the rate of the recordation tax levied under state law for certain transactions;
(2)
allocate the revenue received from the recordation tax for certain uses; and
(3)
generally amend the law governing the recordation tax
By amending
Montgomery County Code
Chapter 52, Taxation
Section 52-16B
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Added by amendment.
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Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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EXPEDITED BILL
No. 15-16
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Sec. 1. Section 52-16B is amended as follows:
52-16B. Recordation Tax.
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(a)
Rates.
The rates and the allocations of the recordation tax, levied under
[state law] Md. Tax-Property Code §§12-101to12-118, as amended, are:
(1)
[$3.45] for each $500 or fraction of $500 of consideration payable
or of the principal amount of the debt secured for an instrument of
writing, including the amount of any mortgage or deed of trust
assumed by a grantee;
(A)
[[$2.20]] $2.08, of which the net revenue must be reserved
for and allocated to the County general fund; and
ill)
[[$2.00]] $2.37, of which the net revenue must be reserved
for and allocated to the cost of capital improvements to
schools; and
(2)
if the consideration payable or principal amount of debt secured
exceeds $500,000, an additional [$1.55] $2.30 for each $500 or
fraction of $500 of the amount over $500,000,,, of which the net
revenue must be reserved for and allocated equally to:
(A)
ill)
the cost of County government capital improvements; and
rent assistance for low and moderate income households,
which must not be used to supplant any otherwise available
funds.
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(b)
Exemption.
The first [[$50,000]] $100.000 of the consideration payable
on the conveyance of any owner-occupied residential property is exempt
from the recordation tax if the buyer of that property is an individual and
intends to use the property as the buyer's principal residence by actually
occupying the residence for at least 7 months of the 12-month period
immediately after the property is conveyed.
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EXPEDITED BILL NO.
15-16
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Sec. 2. Prior allocations.
The allocation of recordation tax revenue made in Section 1 replaces each
allocation of recordation tax revenue established in previously enacted uncodified
legislation.
Sec. 3. Expedited Effective Date.
The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on the date on which it becomes
law, and applies to any transaction which occurs on or after [[July 1, 2016]] September
1. 2016.
Approved:
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Nancy Floreen, Pr sident, County Council
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Approved:
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Isiah Leggett, County Executive
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Date
This is a correct copy ofCouncil action.
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Linda M. Lauer, Clerk of the Council
Date
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