• Tax-Property Article
  • August 10, 2017 | Authors: Neil J. Schechter; Timothy D. A. Chriss; David H. Fishman; Y. Jeffrey Spatz; Edward J. Levin; Seth M. Rotenberg; Searle E. Mitnick; William D. Shaughnessy; Peter B. Rosenwald; Danielle Stager Zoller
  • Law Firm: Gordon Feinblatt LLC - Baltimore Office
  • 11. Chapters 242 and 243 (SB 753/HB 861)

    Tax Sales - Foreclosure of Right of Redemption - Naming of Defendants
    Tax – Property Article adding Section 14–836(b)(8)

    This Act sets forth procedures for a tax sale foreclosure plaintiff to name a defendant when the plaintiff has reason to believe that the defendant is deceased. If the plaintiff knows of the deceased defendant’s personal representative, the plaintiff must join the personal representative as a defendant to the tax sale foreclosure action. If the plaintiff does not know the deceased defendant’s personal representative, the plaintiff must file an affidavit to that effect and join the deceased defendant’s successors as defendants, as well as the deceased defendant. This Act should bring greater certainty to tax sale purchasers pursuing foreclosure and reduce future challenges to tax sale foreclosures.

    Effective October 1, 2017.

    12. Chapter 615 (HB 1573)

    Prince George's County - Tax Sales - Limited Auction and Foreclosure for Abandoned Property PG 411-17
    Tax – Property Article repealing and reenacting, with amendments Sections 14–817, 14–821, and 14–833(c); adding Section 14–833(h)

    This bill sets forth procedures for a limited auction for tax sales in Prince George’s County. The limited auction will occur prior to any public auction and will only be open to residents of Prince George’s County and certain groups of Prince George’s County public employees, including police department employees, federal government employees, veterans, and public school employees. The person who obtains a tax sale certificate at the limited auction cannot assign the certificate to another party. A participant in the limited auction can only bid in his or her individual capacity.

    Effective July 1, 2017.

    13. Chapters 63 and 64 (SB 111/HB 363)

    Recordation and Transfer Taxes - Exemptions - Property Conveyed From Sole Proprietorship to Limited Liability Company
    Tax – Property Article repealing and reenacting with amendments Sections 12–108(y) and 12–117(a)(6)(i) and (c)(1)

    These Acts exempt from recordation and transfer taxes the transfer of real property from a sole proprietorship that converts to a limited liability company if the sole member of the limited liability company is identical to the converting sole proprietor and other relevant exemption conditions are met. The other requirements are that the member’s allocation of profits and losses in the limited liability company must be identical to the member’s allocation of profits and losses of the converting sole proprietorship and the deed represents the dissolution of the sole proprietorship for purposes of conversion. A sole proprietorship includes an individual who owns an interest in real property in the individual’s name. These Acts also specify that the transfer of a controlling interest in a limited liability company that is the product of a prior, untaxed conversion from a sole proprietorship is subject to recordation and transfer taxes.

    Effective July 1, 2017.

    14. Chapter 538 (HB 469)

    Recordation and Transfer Tax - Principal Residence Surrendered in Bankruptcy - Exemption
    Tax – Property Article repealing and reenacting with amendments Sections 13–207(a)(23) and (24); adding Section 12–108(gg), 13–207(a)(25), and 13–413

    This Act exempts from recordation and transfer taxes the recordation of a deed transferring residential real property to the secured party under a purchase money deed of trust when the property was the grantor’s principal residence and the property was surrendered to the secured party in connection with a Chapter 7 bankruptcy.

    Effective July 1, 2017.

    15. Chapter 239 (HB 351)

    Property Tax - Homestead Property Tax Credit Percentage – Deadlines
    Tax – Property Article repealing and reenacting, with amendments, Sections 2–205(c) and 9–105(e)

    This Act extends the deadline by which Baltimore City and county governments (from November 15 to March 15) and municipalities (from November 25 to March 25) must set or alter the homestead property tax credit percentage in a taxable year and then notify the SDAT of any changes. The bill authorizes the SDAT to recalculate the constant yield tax rate if a county or municipality changes the homestead tax credit percentage. Finally, the Act requires assessment notices to include a statement that the taxable assessment may change if a county or municipality changes the homestead tax credit percentage and that the final taxable assessment will be stated on the next property tax bill.

    Effective June 1, 2017, and applies to taxable years beginning after June 30, 2018.

    16. Chapter 241 (HB 1323)

    Property Tax - Credit for Revitalization Districts
    Tax – Property Article adding Section 9–259

    This Act authorizes local governments to grant, by law, a property tax credit for a dwelling that is (1) located in a revitalization district; (2) owned by a homeowner who, on or after June 1, 2017, made substantial improvements to the dwelling in compliance with the code and laws applied to dwellings; and (3) reassessed at a higher value. The property tax credit phases out over a five-year period. The bill specifies the value of the property tax credit as well as procedures for administering the property tax credit.

    Effective June 1, 2017, and applies to taxable years beginning after June 30, 2017.

    17. Chapter 529 (HB 1394)

    Property Tax - Reassessment After Appeal
    Tax – Property Article repealing and reenacting, with amendments, Section 8–205

    This Act prohibits the SDAT, when conducting a real property reassessment after an appeal, from automatically eliminating a reduction in an assessment of the property that was granted by a Property Tax Assessment Appeals Board or the Maryland Tax Court. The SDAT may eliminate a reduction in the assessment that was granted if the specific reason for the reduction no longer applies. This Act codifies existing practice regarding the reassessment of properties after an appeal.

    Effective October 1, 2017.

    18. Chapter 530 (HB 1402)

    Property Tax Appeals - Payment of Refunds – Deadline
    Tax – Property Article Adding Section 14–516

    This Act requires the tax collector to whom property tax was paid to make a full refund to a taxpayer within 30 days after the SDAT provides notice to the tax collector that an appeal authority has issued a decision that reduces the assessed value of property. The notice must include a list of all properties for which an appeal authority has calculated that a taxpayer is due a refund as a result of a decision by the appeal authority to reduce the assessed value of the property. An appeal authority includes a supervisor, the SDAT, the Property Tax Assessment Appeals Board (PTAAB), the Maryland Tax Court, and any other court authorized to hear property tax appeals.

    Effective October 1, 2017.

    19. Chapter 537 (HB 592)

    Real Property Tax - Assessment Appeals Process
    Tax – Property Article repealing and reenacting, without amendments, Sections 8–401(a) and (b) and 8–404

    This Act requires the supervisor of assessments and the Property Tax Assessment Appeals Boards (PTAAB) to hold hearings on appeals regarding the value or classification of homeowner occupied residential real properties no later than 120 days after receiving the appeal unless a postponement is requested. The supervisor of assessments must send a written notice of the final value or classification of a dwelling to the person making the appeal no later than 60 days after the appeal hearing. PTAAB must send an order or notice of assessment of a dwelling to the person making the appeal no later than 30 days after making the appeal.

    Effective January 1, 2018.