Baltimore County - Transfer Tax - Exemption for First-Time Home Buyers
HB0602 would create a new subtitle in the Tax-Property Article establishing a Baltimore County transfer tax exemption for certain first-time Maryland home buyers. The bill defines a first-time Maryland home buyer as an individual who has never owned residential real property in Maryland that served as the individual’s principal residence. If an instrument of writing transfers improved residential real property to such a buyer, and the buyer will occupy the property as a principal residence, the transfer would not be subject to the Baltimore County transfer tax.
The bill also addresses transactions with multiple grantees. If there are two or more grantees, the exemption applies only if each grantee is a first-time Maryland home buyer or a co-maker/guarantor of the purchase money mortgage or deed of trust who 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 confirming eligibility, and an agent’s statement must be based on diligent inquiry and be true to the best of the agent’s knowledge, information, and belief. The act would take effect July 1, 2026.
HB0602 would amend Maryland’s property tax law by adding a Baltimore County-specific transfer tax exemption in the Tax-Property Article. It would reduce or eliminate transfer tax liability on qualifying home purchases by first-time buyers who intend to live in the property, and it would impose documentation requirements on buyers and agents to verify eligibility. The bill affects Baltimore County’s transfer tax administration, homebuyers, real estate transactions, and closing practices for qualifying residential property transfers.
Based on the bill text and available context, the measure appears generally supportive of homeownership and first-time buyers, with no recorded votes or committee testimony indicating opposition or controversy at this stage. The bill’s purpose is straightforward and targeted, suggesting a favorable policy framing around affordability and access to homeownership in Baltimore County. Because the bill had only a hearing listed and no transcript or vote history provided, the overall sentiment cannot be measured beyond this generally positive legislative intent.
The main potential points of contention are likely to be fiscal and administrative rather than ideological. Baltimore County could experience reduced transfer tax revenue, which may concern local officials or budget watchers, while real estate professionals may focus on the sworn-statement requirement and the need to verify first-time buyer status. Another possible issue is the narrow scope of the exemption: it applies only in Baltimore County and only to buyers who have never owned Maryland principal-residence property, which may prompt questions about fairness, enforcement, and whether the benefit should be broader or more uniform across the state.