New Recordation and Transfer Tax Exemption for Transfers to Land Trusts

Date: December 17, 2003
Although many legislative attempts have been made by the General Assembly to limit or eliminate exemptions for recordation and transfer taxes, one additional exemption was actually added to the Maryland statutes to encourage transfers of interest in land to conservation organizations. The new law exempts instruments in writing that transfer specified conservation easements and fee simple interests from recordation and state and county transfer taxes if the transfer is to both a qualified land trust and the United States, the State or agency or subdivision of the State. An instrument of writing conveying conservation easement or fee simple title to a land trust is not subject to recordation and transfer tax if the land trust files a declaration of intent to convey its conservation easement or fee simple title to the United States, the state, an agency of the State or a political subdivision of the state within 18 months date of the declaration. This article is published for the clients and other friends of Whiteford, Taylor & Preston L.L.P. This article has been prepared for general informational purposes only and are not intended as legal advice.