Sec. 10-187. Transfer tax; exceptions
Codified through Bill No. CB-018-2026, adopted May 12, 2026, effective July 24, 2026. Source: Municode, Supplement 2026 Update 2. Editorial notes and legislative history omitted.
Prince George's County, Md., Code § 10-187 (2026)
Sec. 10-187. Transfer tax; exceptionsLinkCopy Citation
(a)
(1)
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.
(2)
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.
(3)
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.
(4)
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.
(5)
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.
(b)
(1)
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.
(2)
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.
(3)
(A)
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%.
(B)
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.
(C)
To qualify for the rate reduction under this paragraph, at least one grantee, other than a comaker or guarantor, must:
(i)
Occupy the residence as the grantee's principal residence; and
(ii)
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.
(D)
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.
(4)
(A)
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:
(i)
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
(ii)
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.
(B)
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.
(C)
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:
(i)
Occupy the residence as the grantee's principal residence; and
(ii)
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.
(D)
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.
(c)
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.
(d)
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.
(e)
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.
(f)
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.