Transfer Tax

Baltimore City Code art. 28, div. III, subtit. 17

in effect

Baltimore City Code, Article 28, § 17-1 Definitions.

§ 17-1. Definitions. (a) In general. As used herein, the following definitions shall apply. (b) Estate. (1) “Estate” means real property and chattels real of every description, including, but not limited to, fee simple estate, leasehold estate, limited estate, and legal and equitable interests in real property. (2) But the term “estate” specifically does not include land installment contracts, such a contract for the purposes of this subtitle being defined as a legally binding executory agreement under which: (i) the vendor agrees to sell an interest in property to the vendee and the vendee agrees to pay the purchase price in 5 or more subsequent payments exclusive of any down payment; and (ii) the vendor retains title as security for the vendee’s obligation. (c) Estate of inheritance. “Estate of inheritance” means any estate which may descend to heirs, otherwise known as an estate in fee simple. (d) Mortgage. The term “mortgage” as used in this subtitle, shall include deeds of trust made to secure the repayment of indebtedness. (e) Transfer. “Transfer” means the acts of the parties, or of the law, by which the title to any estate of inheritance or freehold, or any declaration or limitation of use, or any estate above 7 years, is conveyed from 1 person to another. (Ord. 81-367; Ord. 76-151; Ord. 76-141; Ord. 75-807; Ord. 72-089; Ord. 69-511; Ord. 67-1102; Ord. 67-1052; Ord. 67-992; Ord. 67-926; Ord. 66-792; Ord. 63-048.)

Baltimore City Code, Article 28, § 17-2 Tax imposed — In general.

§ 17-2. Tax imposed — In general. (a) In general. (1) A tax is hereby levied and imposed upon the transfer of any estate of inheritance or freehold, of any declaration or limitation of use, or any estate above 7 years, in Baltimore City, at the rate of 1½% of the taxable basis thereof, as hereinafter defined. (2) Except that the tax levied and imposed hereunder shall not apply to any lease or sublease for an initial term of not more than 7 years which contains any provisions for renewal for 1 or more succeeding stated terms of not more than 7 years each, if under such provision for renewal the right to effect or prevent each such renewal term shall be optional with either the landlord or the tenant. (b) When payable. Said tax shall be payable before the written instrument intending to effect such transfer shall be offered to the Clerk of the Circuit Court for Baltimore City for recordation. (c) How payable; receipt. (1) The payment of the tax levied and imposed hereunder: (i) shall be made to the Director of Finance of Baltimore City, at a place designated by the said Director of Finance; and (ii) shall be evidenced by the affixing of an official receipt upon such written instrument by the Director of Finance or his authorized representative. (2) Such receipt shall be in such form as may be designated by the Director of Finance. (d) Partial exemption for owner-occupied residence. (1) In general. The tax imposed by this subtitle does not apply to the first $22,000 of the consideration payable on the conveyance of owner-occupied residential property if: (i) the total consideration payable on the conveyance is less than $250,000; and (ii) the instrument in writing is accompanied by a statement, signed under oath by the buyer, that the buyer will use the property as the buyer’s principal residence by actually occupying the property for at least 7 months of the 12-month period immediately following the conveyance. (2) Application. (i) Except as specified in subparagraph (ii) of this paragraph, the buyer shall receive the entire exemption provided by this subsection (d), irrespective of (A) any contractual provisions concerning the division of taxes between the buyer and the seller and (B) the presumption under State Real Property Article § 14-104(b) {“Division of ... Tax: Presumption”}. (ii) The seller shall receive the entire exemption provided by this subsection (d) if (A) the seller has agreed by contract to pay the entire amount of the tax imposed by this subtitle or (B) the seller is responsible for paying the entire amount of the tax under State Real Property Article § 14-104(c) {“Division of ... Tax: First-time Maryland Home-buyers”}. (06-312; Ord. 81-367; Ord. 76-151; Ord. 76-141; Ord. 75-807; Ord. 72-089; Ord. 69-511; Ord. 67-1102; Ord. 67-1052; Ord. 67-992; Ord. 67-926; Ord. 63-048.)

Baltimore City Code, Article 28, § 17-3 Tax imposed — Corporate transfers.

§ 17-3. Tax imposed — Corporate transfers. (a) In general. A tax is hereby levied and imposed upon the transfer of real property affected by filing of articles of sale, lease, exchange, or other transfer of all or substantially all the property and assets of a corporation with respect to the property subject to the certificate required under State Corporations and Associations Article § 3-112, at the rate of 1½% of the taxable basis thereof, as hereinafter defined. (b) When and how payable. (1) The tax shall be payable pursuant to the provisions of State Tax-Property Article § 13-404. (2) No written instrument evidencing the transfer of property taxable hereunder shall be received for recording in Baltimore City until the original of the articles of sale, lease, exchange or other transfer shall have been exhibited to the Clerk of the Circuit Court for Baltimore City showing that the tax herein levied and imposed has been paid to the State and, if any additional tax is payable on the written instrument, it has been paid. (Ord. 81-367; Ord. 76-151; Ord. 76-141; Ord. 75-807; Ord. 72-089; Ord. 69-511; Ord. 67-1102; Ord. 67-1052; Ord. 67-992; Ord. 67-926.)

Baltimore City Code, Article 28, § 17-4 Tax imposed — Other instruments.

§ 17-4. Tax imposed — Other instruments. (a) In general. No attornment agreement, memorandum of lease, assignment of lease, or other instrument (referred to collectively herein as “other instrument”) intended to publicize or giving or intended to give constructive notice of the existence of a lease which has not been recorded but which is taxable hereunder, whether or not such other instrument gives such constructive notice in point of law, shall be received for recording until the original lease shall have been exhibited to the clerk and the tax paid thereon, in addition to whatever tax may be payable on such other instrument. (b) Scope. Nothing in this section shall be taken to apply to any lease not taxable under § 17-1 of this subtitle. (Ord. 81-367; Ord. 76-151; Ord. 76-141; Ord. 75-807; Ord. 72-089; Ord. 69-511; Ord. 67-1102; Ord. 67-1052; Ord. 67-992; Ord. 67-926.)

Baltimore City Code, Article 28, § 17-5 Taxable basis.

§ 17-5. Taxable basis. (a) “Taxable basis” defined. Except as otherwise provided in this section, “taxable basis” means the cash consideration and the value of any other consideration paid or agreed to be paid for the property transferred, including the amount of any liens or encumbrances on the property other than current property taxes and other municipal charges. (b) Documentation. (1) The cash consideration plus the value of any other consideration paid or agreed to be paid for the property, including the amount of liens or encumbrances on the property, shall be stated in a written affidavit, made on personal knowledge of the affiant and under penalties of perjury, on forms to be furnished by the Director of Finance. (2) The Director of Finance may not accept the affidavit unless it is accompanied by written proof of the purchase price for the property. This proof shall include a copy of the settlement sheet, contract of sale, or other document the Director of Finance finds adequate. (3) The affidavit and accompanying documents shall be filed with the Director of Finance at the time that the tax is paid. (c) Consideration other than cash, etc. – In general. If any part of the consideration paid or agreed to be paid for the property consists of anything other than (i) cash paid or agreed to be paid or (ii) the amount of liens or encumbrances on the property,“taxable basis” means the greater of: (1) the consideration stated in accordance with subsections (a) and (b) of this section; or (2) the full cash value of the property, as most recently determined by the State Department of Assessments and Taxation. (d) Consideration other than cash, etc. – Transfer of ground rent. For a transfer of a perpetually renewable ground rent, if any part of the consideration paid or agreed to be paid consists of anything other than (i) cash paid or agreed to be paid or (ii) the amount of liens or encumbrances, “taxable basis” means the greater of: (1) the consideration stated in accordance with subsections (a) and (b) of this section; or (2) either: (i) the redemption value of the ground rent, if redeemable; or (ii) if irredeemable, the capitalization at 5% of the ground rent. (e) Leases not perpetually renewable. (1) For a lease for a term above 7 years, not perpetually renewable,“taxable basis” means the capitalization at 10% of the average annual base rental for the property over the entire term of the lease, including all renewal terms, plus the cash consideration and the value of any other consideration paid or agreed to be paid, other than the base rent. (2) If the average annual rental cannot be determined at the time of recording the lease or the attornment agreement, memorandum of lease, assignment of lease, or other instrument intended to give notice of the lease, or if any part of the consideration paid or agreed to be paid for the rental of the property consists of anything other than cash paid or agreed to be paid, the value of which cannot be readily determined, then in either case: (i) the stipulated cash base rental (excluding indeterminable items of every kind, such as percentage of sales, taxes, maintenance, and repair costs and utilities) shall be used as the basis for tax computation; and (ii) “taxable basis” means the greater of: (A) the minimum average annual rental ascertainable from the terms of the lease, plus 5% of the minimum average annual rental, the whole to be capitalized at 10%, plus any consideration paid or agreed to be paid, other than rent; or (B) the full cash value of the property, as most recently determined by the State Department of Assessments and Taxation. (Ord. 04-694; Ord. 81-367; Ord. 76-151; Ord. 76-141; Ord. 75-807; Ord. 72-089; Ord. 69-511; Ord. 67-1102; Ord. 67-1052; Ord. 67-992; Ord. 67-926; Ord. 66-792; Ord. 63-048.)

Baltimore City Code, Article 28, § 17-6 Life estates, remainders, and reversions.

§ 17-6. Life estates, remainders, and reversions. (a) Valuation of life estate. The value of life estates subject to the tax levied and imposed by this subtitle shall be determined in the same manner as the value of life estates are determined from time to time, for federal estate tax purposes under the Internal Revenue Code and regulations promulgated thereunder. (b) Valuation of remainders and reversions. The remainders and reversions after a life estate or life estates shall be valued by determining the value of the whole and deducting therefrom the value of the preceding estates determined as aforesaid. (Ord. 63-048.)

Baltimore City Code, Article 28, § 17-7 Property partly outside City.

§ 17-7. Property partly outside City. In the case of a transfer of property lying partly within and partly without Baltimore City, the tax levied and imposed by this subtitle shall be based only upon the taxable basis of the portion or fractional part of said property which lies within Baltimore City. (Ord. 63-048.)

Baltimore City Code, Article 28, § 17-8 Exemptions.

§ 17-8. Exemptions. The tax levied and imposed by this subtitle shall not apply to the following: (1) where the taxable basis is less than $100; (2) transfers by way of mortgage securing a debt; (3) transfers by way of bona fide gift or without any consideration; (4) transfers to the United States, the State of Maryland, or any political subdivision thereof, or the Mayor and City Council of Baltimore, or any instrumentality or agency of said respective bodies politic; (5) transfers by the Housing Authority of Baltimore City to transferees who, in connection with such transfers, grant mortgages which are insured by the Federal Housing Administration or by the U.S. Department of Housing and Urban Development pursuant to Section 235 of the National Housing Act or successor program of the National Housing Act (12 U.S.C. §1701 et seq.), as amended from time to time; (6) transfers of property which in the hands of the transferee, immediately after such transfer, shall be entitled to exemption from taxation pursuant to Article 81, § 9 of the Annotated Code of Maryland (1957) {cf. Tax-Property Article, Title 7, Subtitle 1}; (7) a transfer to a mortgagee when the instrument intending to effect such transfer is presented for recording simultaneously with a deed from such mortgagee to the federal or state government or any instrumentality, agency, or political subdivision thereof; (8) a transfer made for the partitioning in kind between joint owners or undivided interests, provided there is no consideration paid or to be paid in connection with such transfers other than the division of the jointly-owned property; (9) a transfer under the last will and testament of a decedent, or a transfer to the heirs or next of kin of a decedent under the law of descent and distribution of the State of Maryland; (10) a transfer made expressly for the purpose of confirming or correcting a transfer previously made, if there is no taxable basis in excess of $100 for such transfer; or (11) a transfer made expressly for any of the following purposes: (i) the transfer of title to real property between a subsidiary corporation and its parent corporation for no consideration, for nominal consideration, or in sole consideration of the issue or cancellation or surrender of a subsidiary’s stock; (ii) the transfer of title to real property between 2 or more subsidiary corporations wholly owned by the same parent corporation for no consideration, for nominal consideration, or in sole consideration of the issue or the cancellation or surrender of a subsidiary’s stock; or (iii) deed made pursuant to reorganizations within the meaning of § 368(a), or in accordance with §§ 371 to 374, inclusive, of the Internal Revenue Code of the United States duly accepted for filing by the State Department of Assessments and Taxation. (Ord. 72-089; Ord. 63-048.)

Baltimore City Code, Article 28, § 17-9 Payment required for recordation.

§ 17-9. Payment required for recordation. (a) Payment required. No written instrument intended to effect a transfer which is subject to the tax levied and imposed by this subtitle shall be presented to the Clerk of the Circuit Court for Baltimore City for recordation among the Land Records of Baltimore City unless and until such tax shall have been paid to the Director of Finance. (b) Notations for transfers not subject to tax. When the Director of Finance shall determine that a particular transfer is not subject to the tax levied and imposed by this subtitle, he shall so indicate by legend or notation on the written instrument intending to effect such transfer. (Ord. 76-151; Ord. 76-141; Ord. 63-048.)

Baltimore City Code, Article 28, § 17-10 Interest and civil penalties.

§ 17-10. Interest and civil penalties. In the event any written instrument intending to effect a transfer subject to the tax levied and imposed under this subtitle is recorded by the Clerk of the Circuit Court for Baltimore City without such tax having been first paid, the person and/or other legal entity liable for the payment of such tax shall be assessed by the Director of Finance of Baltimore City for: (1) the amount of the tax due; (2) plus interest at the rate of ½% per month, or fractional part thereof, accounting from the date when such written instrument was received for recordation; and (3) a penalty of 10% of the tax due. (Ord. 76-151; Ord. 76-141; Ord. 63-048.)

Baltimore City Code, Article 28, § 17-11 Liability for tax.

§ 17-11. Liability for tax. (a) Transferors and transferees, jointly and severally. The tax levied and imposed by this subtitle, and all increases, interest, and penalties thereon, shall be and become, from the time due and payable, the debt of the legal and equitable transferors and transferees, jointly and severally, of the property affected by or involved in any written instrument intending to effect a transfer subject to such tax. (b) But governmental transferors. Except that, in the case of transfers by the United States, the State of Maryland, or any political subdivision thereof, or the Mayor and City Council of Baltimore, or any instrumentality or agency of said respective bodies politic, which transfers are not exempt under § 17-7 of this subtitle, the tax levied and imposed by this subtitle, and all increases, interest and penalties thereon, shall be and become, from the time due and payable, the debt of the legal and equitable transferees only, and shall not become the debt of any of the aforementioned bodies politic or any instrumentality or agency thereof. (Ord. 72-089; Ord. 63-048.)

Baltimore City Code, Article 28, § 17-12 Administration of subtitle.

§ 17-12. Administration of subtitle. (a) General powers of Director of Finance. In order to properly carry out and enforce the provisions of this subtitle and to collect the tax levied and imposed hereunder, the Director of Finance is hereby authorized and empowered: (1) subject to Title 4 {“Administrative Procedure Act – Regulations”} of the City General Provisions Article, to make, adopt, promulgate, and amend, from time to time, such rules and regulations as he may deem necessary or proper: (i) to carry out and enforce the provisions of this subtitle; (ii) to fully collect the tax imposed by this subtitle; and (iii) to define or construe any of the terms and provisions used in this subtitle in connection with the imposition or collection of said tax; (2) with the approval of the City Solicitor: (i) to compromise disputed claims in connection with the tax levied and imposed by this subtitle; and (ii) for good and sufficient causes shown, to abate or remit interest and penalties and to rebate and refund any taxes erroneously or improperly paid; (3) to delegate any of his powers, duties, and functions under the provisions of this subtitle to the City Collector or any other agent, representative, or employee of the Mayor and City Council of Baltimore; (4) to conduct investigations concerning any matter covered by this subtitle and, at any time and in connection therewith, to require by subpoena or summons the attendance and testimony of witnesses and the production of any books, accounts, records, papers, and correspondence relating to any matter which the Director of Finance is authorized by this subtitle to determine; and (5) to sign subpoenas, administer oaths, and affirmations, examine witnesses, and receive evidence. (b) Enforcing subpoenas, etc. In case of disobedience of any subpoena or the contumacy of any witness appearing before the Director of Finance, or his duly authorized agent or representative, the Director of Finance may apply to the Circuit Court for Baltimore City for an order requiring the person subpoenaed to obey the subpoena or to give evidence or to produce books, accounts, records, papers, and correspondence touching the matter in question. (c) Self-incrimination. (1) No person shall be excused from testifying or producing any books, papers, records, or data in any investigation or upon any hearing when ordered to do so by the Director of Finance or his duly authorized agent or representative, upon the ground that the testimony or evidence, documentary or otherwise, may tend to incriminate him or subject him to criminal penalty, but no such testimony or evidence, documentary or otherwise, shall be used in any subsequent prosecution against the individual supplying the same. (2) No individual so testifying shall be exempt from prosecution and punishment for perjury committed in so testifying. (Text Conformed 02/25/21; Ord. 76-141; Ord. 63-048.)

Baltimore City Code, Article 28, § 17-13 Appeals.

§ 17-13. Appeals. (a) Appeal to BMZA. In the event that any person or other legal entity who is legally liable for the payment of the tax levied and imposed by this subtitle is aggrieved by any determination, decision, order, or notice of any kind which is made, rendered, issued, or given under the provisions of this subtitle, such person or other legal entity, within 20 days after notice of any such determination, decision, order, or notice has been given to or mailed to such person or other legal entity, shall have the right to appeal therefrom to the Board of Municipal and Zoning Appeals for review by it. (b) Consideration by BMZA. Upon reasonable notice in accordance with its rules and the provisions of the Baltimore City Charter, the Board: (1) shall hold a hearing; and (2) by a majority vote thereof, shall have the power and authority to reverse or affirm, wholly or partly, or modify the determination, decision, order, or notice appealed from. (c) Judicial and appellate review. (1) Judicial review. A person aggrieved by a determination of the Board of Municipal and Zoning Appeals under this section may seek judicial review of that decision by petition to the Circuit Court for Baltimore City in accordance with the Maryland Rules of Procedure. (2) Appellate review. A party to the judicial review may appeal the court’s final judgment to the Court of Special Appeals in accordance with the Maryland Rules of Procedure. (Ord. 19-332; Ord. 04-672; Ord. 63-048.)

Baltimore City Code, Article 28, § 17-14 Court Clerk not responsible for collections.

§ 17-14. Court Clerk not responsible for collections. Nothing contained in this subtitle shall be taken or construed as imposing any duty or liability upon the Clerk of the Circuit Court for Baltimore City in connection with the imposition, payment or collection of the tax imposed by this subtitle, or the administration or enforcement of the provisions of this subtitle. (Ord. 63-048.)

Baltimore City Code, Article 28, § 17-15 {Reserved}

Baltimore City Code, Article 28, § 17-16 Criminal penalties.

§ 17-16. Criminal penalties. (a) In general. Any person or other legal entity who: (1) willfully offers to the Clerk of the Circuit Court for Baltimore City for recordation or who has recorded any written instrument intending to effect a transfer subject to the tax levied and imposed under this subtitle without first having paid the tax imposed by this subtitle; (2) willfully misrepresents the amount of value of the consideration constituting the taxable basis in a transfer of property subject to the tax levied and imposed under this subtitle; (3) participates or aids in any manner in the evasion of the tax levied and imposed by this subtitle; (4) willfully violates any of the rules or regulations made, adopted or promulgated by the Director of Finance under the provisions of this subtitle; or (5) willfully violates any of the provisions of this subtitle, shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $500 for each and every such offense. (b) Forgery. Any person who forges or counterfeits any official receipt or legend or the signature of the Director of Finance, or facsimile thereof, or of his duly authorized representative, or who in any manner affixes or causes to be affixed any such forged or counterfeit receipt, legend, or signature to any written instrument intending to effect a transfer subject to the tax levied and imposed under this subtitle, shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $500, or be imprisoned for not more than 6 months, or both, in the discretion of the Court, for each and every such offense. (Ord. 81-367; Ord. 76-141; Ord. 63-048.)

Source: City of Baltimore Department of Legislative Reference, City of Baltimore Law Library (codes.baltimorecity.gov; Open Law Library bulk XML)URL: https://codes.baltimorecity.gov/us/md/cities/baltimore/code/28/III/17Fetched: 10/25/2026