Except as provided in Subsection (b) of this Section, the County Council is authorized and empowered to impose a tax at a rate not to exceed 1.4% of the actual consideration paid or to be paid under every instrument of writing conveying title to real property, or any interest therein, in the County, offered for record and recorded in the County. Conveyances to the State, any agency of the State, or any political Subdivision of the State shall not be subject to the tax imposed under this Section. The term "instrument of writing" shall include deeds, mortgages, deeds of trust, leases, contracts and agreements, but shall not include purchase money mortgages, purchase money deeds of trust, assignments of mortgages or releases. On any refinancing of property by the original mortgagor or mortgagors, the tax shall apply only to the consideration over and above the amount of the original mortgage or deed of trust. The County Council may, by ordinance, provide that any instrument of writing for the refinancing of property by the original mortgagor or mortgagors shall not be subject to the tax imposed under this Section. As to a mortgage or deed of trust on the mortgagor's principal residence recorded after the recordation of a purchase money mortgage or purchase money deed of trust, when more than 12 months has elapsed since the recording of the prior mortgage or deed of trust, the County Council may by ordinance exempt all or any part of the consideration in excess of the amount of the original mortgage or deed of trust. The Council may not impose a tax on the consideration represented by the assumption of a mortgage or deed of trust on an instrument of writing conveying title to real property between a husband and wife. The tax authorized under Subsection (a) of this Section does not apply to a mortgage or deed of trust on property that is owned by a religious group if the property is exempt from the property tax under Section 7-204 of the Tax-Property Article of the Annotated Code of Maryland. Subject to the provisions of subparagraphs (B), (C), and (D) of this paragraph, for a sale of improved residential real property to a Prince George's County classroom teacher who will occupy the residence as a principal residence, the rate of the transfer tax imposed under this section may not exceed 1.0%. If there are two or more grantees, this paragraph does not apply unless at least one grantee is a Prince George's County classroom teacher. To qualify for the rate reduction under this paragraph, at least one grantee, other than a comaker or guarantor, must: Occupy the residence as the grantee's principal residence; and Be employed as a classroom teacher by the Prince George's County Public School System for a minimum of three (3) years following the purchase of the residential property. If a classroom teacher who receives the rate reduction under this paragraph does not satisfy the requirements of subparagraph (C) of this paragraph, the classroom teacher shall pay the balance of the transfer tax that would have been payable without the rate reduction. Subject to the provisions of subparagraphs (B), (C), and (D) of this paragraph, for a sale of improved residential real property to a Prince George's County police officer or deputy sheriff or a municipal police officer who operates in Prince George's County who will occupy the property as a principal residence: The transfer tax authorized under Subsection (a) of this Section does not apply to the police officer's or deputy sheriff's first purchase of residential real property in Maryland that is located in Prince George's County; and The rate of the transfer tax authorized under Subsection (a) of this Section may not exceed 1.0% for the police officer's or deputy sheriff's second or subsequent purchase in Prince George's County. If there are two (2) or more grantees, an exemption or rate reduction under this paragraph applies if at least one (1) grantee is a Prince George's County police officer or deputy sheriff or a municipal police officer who operates in Prince George's County. To qualify for an exemption or a rate reduction under this paragraph, at least one (1) grantee, other than a co-maker or guarantor, must: Occupy the residence as the grantee's principal residence; and Be employed as a police officer or deputy sheriff by Prince George's County or a municipal corporation in Prince George's County for a minimum of three (3) years following the purchase of the residential property. If a police officer or deputy sheriff who receives an exemption or rate reduction under this paragraph fails to satisfy the requirements of subparagraph (C) of this paragraph, the police officer or deputy sheriff shall pay the balance of the transfer tax that would have been payable without the exemption or rate reduction. The Council may, by ordinance, provide for deferral or abatement of the tax imposed by this Section on the transfer of property to fulfill the terms of a valid listing agreement between the grantor or grantee and a valid contract entered into by the grantor for the purchase of another property. However, a deferral may not be for more than three hundred sixty-five (365) days, and abatement shall be contingent upon conveyance of all the grantee's interest to a third party within the same three hundred sixty five (365) days. There shall be no deferral or abatement of the tax imposed by this Section on the conveyance of title or interest therein to the third party. In Prince George's County, if residential real property is intended to be the principal residence of the transferee, the transferee may elect to pay the transfer tax in six (6) equal installments. The first installment shall be paid on the date of transfer, and the remaining installments shall be paid on or before the last day of each succeeding month. If the transfer taxes are paid in installments, there shall be an additional fee established by the Director of Finance which shall be reasonably equivalent to the interest lost and additional administrative cost resulting from the payment of the transfer tax in installments. The Director of Finance shall adopt regulations to implement the provisions of this Section, including regulations establishing the method for calculating the additional fee required. Any deferred tax and additional fee authorized under this Section shall be a lien against the property from the time of recordation of the instrument until the tax and fee have been paid in full, unless the County Council provides an alternative method for securing payment. Any deferred tax under this Subsection involving Federal loans or federally insured or guaranteed loans shall take a secondary lien status where so required by Federal Law. For accounting purposes, Prince George's County may accrue as revenue for the fiscal year in which the transfer occurs all revenues due from the transfer tax on the transfer, regardless of whether all of the revenues will actually be collected in that fiscal year. Tax revenue collected under this Section exceeding any additional fee for deferred payments authorized under Subsection (d) of this Section shall be used only for funding of public education within the Instructional Salaries, Instructional Materials and Related Costs, Special Education, and Fixed Charges budget categories in the County. The governing body of the County may provide by law that instruments of writing recorded as a result of the transfer of real property from the County or the Housing Authority to organizations certified pursuant to the County's Opportunity Housing Program and financing for the development of such projects are exempt from the tax authorized under Subsection (a) of this Section.

A tax is imposed at the rate of one and four-tenths percent (1.4%) of actual consideration paid or to be paid under every instrument of writing conveying title to real property, or any interest therein, in the County, offered for record and recorded in the County. Conveyances to the State or any agency thereof or any political subdivision of the State shall not be subject to the tax imposed by this Section. In the case of a lease for a term of years, not perpetually renewable, the tax provided for in this Section shall be computed and be based upon the capitalization at ten percent (10%) of the average annual rent over the entire term of the lease, including any renewable term, plus the actual consideration other than rent paid or to be paid. Where the average annual rental cannot be determined or accurately estimated from the terms contained in the lease for payment thereof, the tax shall be based upon eighty percent (80%) of the assessed value of the property described in the lease. The Director of Finance is designated the collecting officer in the County to collect the tax imposed by this Section. For the purposes of this Section, instrument of writing shall include deeds, mortgages, deeds of trust, leases, contracts and agreements, but shall not include purchase money mortgages, purchase money deeds of trust, assignments of mortgages, or releases. Upon any refinancing of property by the original mortgagor or mortgagors, the tax shall apply only to the consideration over and above the amount of the original mortgage or deed of trust. Any mortgage or deed of trust on a mortgagor's principal residence recorded after the recordation of a purchase money mortgage or purchase money deed of trust, where more than twelve months has elapsed since the recording of the prior mortgage or deed of trust, shall be exempt from the tax imposed by this Section. For purposes of this Section, "purchase money mortgage" or "purchase money deed of trust" means a mortgage or deed of trust that: Is given by the transferee of real property with respect to the property purchased; Is delivered as part of the same transaction as the instrument of writing that transfers the property purchased and that is subject to the County transfer tax; Recites on its face that it secures, in whole or in part, the purchase money for the property or otherwise recites on its face that it is a purchase money mortgage or purchase money deed of trust; Is fully executed within 30 days of the date that the instrument of writing transferring the property is fully executed; and Is recorded no later than 30 days after the date that the instrument of writing transferring the property is duly recorded. For the purposes of this Section, the date that an instrument is fully executed is the later of: The date of the last acknowledgment; or The date on the instrument of writing. Taxes imposed by this Section shall be deferred or abated for not more than one hundred and eighty (180) days on the transfer of property to fulfill the terms of a valid listing agreement, subject to the following requirements and conditions: The party offering for record an instrument in writing transferring title as part of such listing agreement shall certify, in writing on said instrument, that the transfer of property is to fulfill the terms of a valid listing agreement between the grantor and grantee; that a valid contract has been entered into by the grantor for the purchase of another property; and that it is the intent to transfer all interest in such property to a third party within the same one hundred and eighty (180) days. There shall be no deferral or abatement of the tax imposed by this Section upon the conveyance of title or interest to a third party. Failure to offer for record an instrument in writing transferring title to the third party within the same one hundred and eighty (180) days shall result in a lien being placed on such property for the taxes otherwise required by this Section.

The party offering for record an instrument in writing transferring title to real property, or an interest therein, in the County shall pay the tax imposed to the Director of Finance. Upon such payment, the Director shall enter a notation of the payment upon the instrument of writing conveying title.

In the case of deeds conveying property lying partly within and partly without the County, the tax shall apply only to such proportion of the consideration paid or to be paid as the value of the property within this County bears to the value of the whole property conveyed. Upon deeds of trust or mortgages conveying property lying partly within and partly without the County, the tax shall apply only to such proportion of the debt secured as the value of the property within the County bears to the value of the whole property conveyed.

No person shall offer for record an instrument of writing conveying title to any property, or any interest thereon, subject to the tax imposed by Section 10-188 without having paid the tax. No person shall misrepresent the amount of the actual consideration in such transaction. The transfer tax imposed by Section 10-188 on the conveyance of a single-family residential dwelling may be deemed paid for purposes of Sections 10-189 and 10-191(a) upon payment by personal note in such form, terms, and amount as may be acceptable to the Director of Finance. In any event, the Director of Finance shall be required to accept a note which is not due in less than ninety (90) days.

The recordation tax imposed by Title 12, Tax-Property Article, Annotated Code of Maryland, on written instruments, shall be at the rate of Two Dollars and Seventy-Five Cents ($2.75) for each Five Hundred Dollars ($500.00) on all instruments of writing subject to the tax. Pursuant to the authority of Section 12-108(a)(2), Tax-Property Article, Annotated Code of Maryland, the tax is levied on all instruments of writing that secure the repayment of any indebtedness funded in any part, directly or indirectly, from the proceeds of bonds issued under Title 5, Article 83A, Annotated Code of Maryland, relating to industrial buildings for counties and municipalities. The tax imposed shall be paid to and collected by the Director of the Office of Finance of Prince George's County. Recordation taxes collected under the provisions of Subsection (b) shall be paid into the "Bus Service Fund," created and operated pursuant to the requirements of Section 10-255.01.