MD SB725

Circuit court clerks are prohibited from recording property transfers from the United States to private parties unless accompanied by a Certificate of Compliance issued jointly by the Office of the Attorney General and the State Department of Assessments and Taxation.

Transfers to government entities are exempt from the certification requirement, including transfers to the U.S. government, Maryland state government, counties, municipalities, and public instrumentalities.

A 2% state transfer tax applies to real property that was formerly held by the United States and conveyed on or after July 1, 2026, calculated on the assessed property value rather than sale price, with the transferor responsible for full payment.

Revenue from the 2% transfer tax is dedicated to Program Open Space for land conservation and recreation purposes.

Effective date is July 1, 2026, with provisions declared severable if any portion is found invalid by a court.