Real Estate survives the Special Session
November 20th, 2007 Categories: Maryland Real Estate News
Some good news here, the Special Session of the Maryland General Assembly failed in many of their attempts to further tax Marylanders when it came to the real estate industry.
Victory was claimed by the MANY folks who came out to oppose the outrageous taxes on the already battered real estate industry.
Everybody who emailed, called, faxed, wrote, and marched help save our local real estate market from further taxes. The real winners are the home buyers, tenants, landlords, investors, home sellers, contractors, lenders, Realtors, Home Inspectors…..I could keep going.
To find out more read on!
Real Estate Related Proposals
- Proposal to add property management as a taxable service. Would have raised landlord costs and tenants rents!
- Green Fund: The House and Senate approved a final bill that did not include real estate taxes as the funding source.
- Maryland Resident Real Estate Withholding Tax: The Maryland General Assembly did not pass legislation that would have subjected Maryland residents to a 4.75% withholding tax on any gain from the sale of their real estate when the net proceeds exceeded $250,000 or $500,000.
- Change of Residency from 6 months to 3 months: The Maryland General Assembly deleted a provision from the original Senate tax bill that would have required a non resident to file Maryland taxes if the person resides in Maryland for more than 3 months. Typically, states require a non resident to reside in the state for more than 6 months before requiring the person to file taxes.
- Controlling Interests: The General Assembly passed a provision that will apply recordation and transfer taxes to the sale of a controlling interest in a business entity if more than 80% of the controlling interest transfers and more than 80% of the entity is comprised of real property exceeding $1 million in value.
- State Property Tax Reduction: The General Assembly removed the Governor’s proposed reduction in the State Property Tax. As proposed by the Governor, this provision would have reduced the state property tax by about three cents.
- A loophole enabling corporations from avoiding the transfer and recordation taxes was closed. A win for Uncle Martin.
As you can see, the majority of the real estate tax increases that were proposed were squarely defeated. Again, thanks goes to everybody that made this happen.
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Great news for Maryland property owners. We are in the midst of yet another tax reform in this years Legislative Session. I hope we come out a winner!
Comment by Paula Henry, Indianapolis Real Estate — November 24, 2007 #