Bill > HB342

This bill modifies the State transfer tax rates for both residential and non-residential property transactions, creating a graduated tax structure based on the property's sale price. For residential properties, the tax rates range from 0.25% for properties under $300,000 to 1.5% for properties at or above $3,000,000, with incremental increases at different price thresholds. For non-residential properties, the rates range from 0.5% for properties under $5,000,000 to 1.5% for properties at or above $40,000,000. The bill maintains a special provision for first-time Maryland home buyers, who can qualify for a reduced 0.25% transfer tax rate if they will occupy the property as their principal residence, with the tax to be paid entirely by the seller. Additionally, the bill adjusts the distribution of transfer tax revenue, requiring the Comptroller to calculate and deposit 28% of the remaining transfer tax revenue into the General Fund, with provisions to adjust this percentage based on historical deposit amounts. The changes will take effect on July 1, 2025, and apply to property transfer documents recorded on or after that date, potentially impacting real estate transactions and tax revenues in Maryland.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0342?ys=2025RS