Sec. 52-16B. Recordation Tax.
Montgomery County, Md., Code § 52-16B (2026)
Sec. 52-16B. Recordation Tax.LinkCopy Citation
(a)
Rates. The rates and the allocations of the recordation tax, levied under Md. Tax- Property Code §§12-101 to 12-118, as amended, are:
(1)
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)
$2.08, of which the net revenue must be reserved for and allocated to the County general fund; and
(B)
$2.37, of which the net revenue must be reserved for and allocated to the cost of capital improvements to public schools; and
(2)
if the consideration payable or principal amount of debt secured;
(A)
exceeds $500,000 and is less than or equal to $600,000, an additional $2.30 for each $500 or fraction of $500 of the amount over $500,000; and
(B)
exceeds $600,000 and less than or equal to $750,000, an additional $5.75 for each $500 or fraction of $500 of the amount over $600,000; and
(C)
exceeds $750,000 and less than or equal to $1,000,000, an additional $6.33 for each $500 or fraction of $500 of the amount over $750,000; and
(D)
exceeds $1,000,000, an additional $6.90 for each $500 or fraction of $500 of the amount over $1,000,000
(3)
Allocation of revenue collected. The net revenue collected under paragraph (2) must be reserved for and allocated as follows:
(A)
one-third for the cost of County government capital improvements; and
(B)
one-third for rent assistance for low and moderate income households, which must not be used to supplant any otherwise available funds; and
(C)
one-third for the cost of capital improvements for public schools.
(b)
Exemption. The first $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.
(a)
the cost of County government capital improvements; and
(b)
rental assistance programs for low- and moderate-income households, which must not be used to supplant any otherwise available funds.
Sec. 3. Effect of Previous Actions. Effective July 1, 2002, this Act supersedes Resolution No. 7-182. Any action taken under that resolution before that date, including the levy and collection of the recordation tax, is ratified and confirmed as if that action had been taken under authority of a law enacted by the County Council.
Sec. 4. Allocation of Revenue. During any fiscal year that begins on or after July 1, 2004, except a fiscal year that begins on July 1, 2010, the net revenue attributable to the increase in the rate of the recordation tax enacted in this Act must be reserved for and allocated to the cost of capital improvements to schools and educational technology for Montgomery College in the form of debt service for debt-eligible projects and current revenue for debt-eligible or non-debt-eligible projects.