Bill Positions

Bill Number: HB 983

Bill Title: Recordation and Transfer Tax - Controlling Interest Transfers

Bill Sponsor(s): Delegates Stukes and Cardin

Subject: Budget & Tax

Committee: W&M

Bill Summary: This bill would have removed the $1 million threshold for the imposition of recordation and transfer taxes on transfers of controlling interests in entities owning Maryland real property. The bill would also have required that every LLC created in Maryland list in its articles of organization the name and address of each organizer and member with the authority to execute instruments on behalf of the LLC.

History: Legislation enacted at the 2007 special session imposed transfer and recordation taxes on the transfer of a controlling interest in an entity with assets that included at least $1 million of real property located in Maryland. In 2009 this bill was withdrawn by the sponsor.

Chamber Position: Oppose

Position Summary: Every bill proposing to tax controlling interest transfers from 1990 to 2007 recognized the importance of exempting small businesses from the controlling interest tax. Nothing has changed since the law became effective 7 months ago to alter that policy. There is no compelling policy reason to require the listing of LLC organizers and members or the filing of articles of amendment when such members change.

Position Statement:Coming soon

Chamber Staff: Ronald Wineholt

General Assembly: Click here to view the bill on the Maryland General Assembly's website.