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A Maryland real estate agent is advising a client about the Maryland state transfer tax. Which of the following statements about the Maryland state transfer tax is NOT correct?

Correct Answer

D) The state transfer tax and the county recordation tax are the same tax collected by the same agency

The Maryland state transfer tax and the county recordation tax are two distinct taxes collected by different entities. The state transfer tax is collected by the state under Tax-Property Article §§ 13-101 et seq. The county recordation tax is a separate tax imposed by each county under Tax-Property Article §§ 12-101 et seq. and varies by jurisdiction. They are not the same tax and are not collected by the same agency.

Answer Options
A
The standard Maryland state transfer tax rate is 0.5% of the consideration
B
When a first-time homebuyer purchases a principal residence, the rate is reduced to 0.25%
C
When a first-time homebuyer is involved, the seller is responsible for paying the transfer tax
D
The state transfer tax and the county recordation tax are the same tax collected by the same agency

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Related Topics & Key Terms

Key Terms:

transfer_taxrecordation_taxfirst_time_homebuyerreverse_questiontax_distinction
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