Budget Bill includes proposed changes to 
which will impact recordation taxes on Indemnity Deed of Trusts (IDOTs)
House Bill 87, Budget Reconciliation and Financing Act of 2012, if passed will impact the recording taxes on commercial transactions starting July , 2012. More specifically, the budget bill proposes revisions to the Annotated Code of Maryland, Tax- Property Article 12-105 (f). Recordation tax would apply to Indemnity Mortgages (including Deed of Trusts “IDOTs”) or other security interest in real property that secures a guarantee of repayment of a loan for which the Guarantor is not primarily liable. Recordation taxes will apply in the same manner as if the guarantor where primarily liable for the guaranteed loan. This revision in the code to recordation taxes, however, will not apply to an indemnity mortgage that secures a guarantee of repayment of a loan for less than $1,000,000.
For a full text of House Bill 87,
mlis.state.md.us/2012rs/billfile/hb0087.htm
Stay tuned…Lakeside Title Company will update you as to this and any other legislative changes enacted which impact our industry.
