HB1410 alters Maryland’s State transfer tax rules for certain first-time home buyers. The bill moves the exemption from § 13-203(b) to a new § 13-207(d) and provides that an instrument of writing transferring improved residential real property to a first-time Maryland home buyer who will occupy the property as a principal residence is not subject to the State transfer tax. It also preserves the existing definition of “first-time Maryland home buyer,” meaning an individual who has never owned in Maryland residential real property used as the individual’s principal residence.
The bill keeps the current rules for multiple grantees and co-makers/guarantors of purchase money financing, requiring that each grantee qualify or that a non-occupying co-maker/guarantor be involved. To claim the exemption, the grantee or the grantee’s agent must provide a sworn statement confirming eligibility and intended principal-residence occupancy, with additional requirements if an agent signs on the grantee’s behalf. The bill is set to take effect July 1, 2025.
Impact
If enacted, HB1410 would eliminate the State transfer tax on qualifying sales of improved residential real property to first-time Maryland home buyers who will live in the home as their principal residence. This would reduce closing costs for eligible buyers and reduce transfer tax revenue to the State on those transactions. The bill amends the Tax-Property Article by repealing the prior exemption language in § 13-203(b) and adding a new exemption provision in § 13-207(d), while leaving the eligibility framework and affidavit-style documentation requirements largely intact.
Sentiment
Based on the bill text and available context, the measure appears to be framed as a homeownership affordability and first-time buyer assistance proposal. There are no recorded votes or committee transcript excerpts provided, so no formal floor or committee sentiment can be measured from the available materials. The bill’s sponsors and structure suggest support for reducing upfront costs for new homebuyers, but the available record does not show broader debate or amendments.
Contention
The main policy issue is the fiscal tradeoff between helping first-time buyers and preserving State transfer tax revenue. Another possible point of contention is the scope of the benefit: the exemption is limited to buyers who have never owned qualifying residential property in Maryland and who will occupy the home as a principal residence, which may be seen as either appropriately targeted or too narrow depending on perspective. The sworn-statement requirement and treatment of co-makers/guarantors may also draw attention from title professionals and lenders because of compliance and documentation obligations.