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

SB 33 expands an existing tax exemption for property transfers between related business entities to include common law trusts. It amends Maryland law to explicitly allow transfers of real property between parent companies and subsidiaries (or among subsidiaries) involving common law trusts to qualify for exemption from recordation and transfer taxes. This applies to transfers with no consideration, nominal consideration, or consideration limited to ownership interest changes, provided specific ownership history requirements are met. The change takes effect July 1, 2026, and affects business entities using common law trusts in related-party property transfers. Individual homeowners or unrelated transfers are not impacted by this provision.