HB1295 creates a Baltimore County transfer tax exemption for certain first-time home buyers purchasing improved residential real property to use as their principal residence. The bill defines a “first-time Maryland home buyer” as an individual who has never owned residential real property in Maryland that was the individual’s principal residence. If there are multiple grantees, the exemption generally applies only if each grantee qualifies, or if a co-maker or guarantor is involved and will not occupy the home as a principal residence.
To claim the exemption, the grantee or the grantee’s agent must provide a sworn statement certifying eligibility and intended occupancy. The bill also specifies that an agent’s statement must be based on diligent inquiry and made to the best of the agent’s knowledge, information, and belief. The act takes effect July 1, 2025.
Impact
The bill would add a new section to the Tax-Property Article establishing Subtitle 6, Baltimore County Transfer Tax, and would exempt qualifying first-time home buyer transactions from Baltimore County’s transfer tax. Its practical effect is to reduce closing costs for eligible purchasers of owner-occupied homes in Baltimore County, while leaving the tax in place for other transfers and nonqualifying buyers. It also creates documentation requirements for buyers and agents to support the exemption claim.
Sentiment
The available record does not include committee testimony or recorded votes, so there is no direct evidence of support or opposition from hearings or floor action. Based on the bill’s purpose, it appears designed as a housing-affordability measure aimed at helping first-time buyers, which typically draws favorable reception, but the provided materials do not show an official sentiment beyond introduction and referral to committee.
Contention
The main policy issue is the scope of the exemption: it is limited to first-time Maryland home buyers who will occupy the property as a principal residence, and it excludes most transactions involving multiple grantees unless each qualifies or the nonoccupying party is only a co-maker or guarantor. Potential points of concern include reduced transfer-tax revenue for Baltimore County, the administrative burden of verifying eligibility, and the need to prevent misuse through false sworn statements. No specific opposing stakeholders are identified in the provided materials.