Bill > HB82

This bill expands the exemption from recordation and transfer taxes for certain transfers of real property between related business entities to include common law trusts. Previously, this exemption applied to limited liability companies, corporations, limited partnerships, and statutory trusts. The bill defines "business entity" to now encompass common law trusts, and "owner" to include other persons as defined in the Corporations and Associations Article. This change means that transfers of property between a parent business entity and its wholly owned subsidiary, or between subsidiaries owned by the same parent, will be exempt from these taxes under specific conditions, such as no or nominal consideration, or when the transfer is part of a reorganization. The exemption also applies to transfers from a subsidiary back to its parent under certain ownership duration requirements. The bill clarifies that these exemptions extend to county transfer taxes as well, and the changes are set to take effect on July 1, 2026.

Budget and Finance, Justice

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0082?ys=2026RS