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HB 82

Recordation and Transfer Taxes - Exemption for Related Business Entities - Common Law Trusts

2026 Regular Session Introduced by Jon Cardin

HB 82 expands Maryland real estate transfer tax exemptions for inter-related business entity transfers and common law trusts, reducing transaction costs but lowering state revenue.

Hearing 2/03 at 1:00 p.m.
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Bill Summary · HB 82

Legislative bill overview

HB 82 proposes to expand Maryland's recordation and transfer tax exemptions to include transfers between related business entities and common law trusts. Currently, Maryland law provides limited exemptions for certain types of transfers; this bill would broaden those exemptions to cover additional business structures and trust arrangements that maintain common ownership or control.

Why is this important

Recordation and transfer taxes can significantly increase the cost of real estate transactions. This exemption could reduce transaction costs for family businesses, multi-entity holdings, and estate planning strategies, potentially making it easier and cheaper for businesses to restructure or consolidate properties. However, it also reduces state revenue from these taxes, which fund local recording offices and services.

Potential points of contention

  • Revenue impact: The bill reduces state and local tax revenue; the fiscal impact depends on how frequently related-entity transfers occur in Maryland
  • Definition concerns: "Related business entities" and "common law trusts" require clear legal definitions to prevent misuse; ambiguous language could enable tax avoidance
  • Equity questions: The exemption primarily benefits property owners with multiple business entities or sophisticated trust structures, potentially creating disparities compared to individual homeowners who pay full taxes

Compiled from official sources — confirm details with the bill’s official record.

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