§ 13-407. Limitations on county transfer taxes

   (a) Increase in county rate limited. --

   (1) Unless a greater rate of tax was imposed before July 1, 1979, a county may not impose county transfer tax on a transfer subject to the agricultural land transfer tax under Subtitle 3 of this title at a rate greater than the county rate applicable to the transfer of improved residential property in that county.

   (2) If a county has imposed a county transfer tax at a rate that exceeds the rate applicable to the transfer of improved residential property, the total rate of tax that applies to a transfer subject to the agricultural land transfer tax may not exceed 5% plus the rate that applies to improved residential property under the county transfer tax.

   (3) If the total rate of tax that applies to a transfer subject to the agricultural land transfer tax exceeds the maximum rate allowed under paragraph (2) of this subsection, the tax that applies to the transfer:

      (i) is payable at the rate specified for the agricultural land transfer tax; and

      (ii) the rate of the county transfer tax shall be reduced as necessary to comply with the 5% limit.

(b) Prohibition on county transfer tax. -- After July 1, 1979, for the transfer of land subject to the agricultural land transfer tax, a county may not:

   (1) impose a county transfer tax at a rate above the rate that was in effect on July 1, 1979; or

   (2) increase the rate of a county transfer tax above the rate that was in effect on July 1, 1979.

HISTORY: An. Code 1957, art. 81, § 278F; 1985, ch. 8, § 2.