(May 27, 2022) Maryland Realtors issue a report each year on the Maryland Legislative session, which ran from Jan. 12 to April 11, to summarize the legislation that affects the real estate industry.
Below are a few of the items from the report that passed:
• HB528/SB 425 – Real Estate Associate Brokers and Salespersons – Compensation – Payment from Title Insurance Producer; Effective Oct.1, 2022
Clarifies that title companies may pay compensation to a real estate licensee on behalf of the real estate broker according to a written disbursement authorization provided by the real estate broker.
The clarification seeks to continue “pay at the table” options provided by some real estate and title companies. Previously, the Real Estate Commission expressed concern over the statutory authority for such transactions which had been common for over 30 years.
• HB69/SB 247 – State Department of Assessments and Taxation – Real Property; Effective October 1, 2022
Requires the State Department of Assessments and Taxation (SDAT) to publish on its website a plain language description of the methodology used to determine property values.
The bill also clarifies the type of information that an Appeals Authority may use when reviewing a property’s value including depreciation factors.
• HB 203/SB 197 – Homestead Property Tax Credit Program – Retroactive Qualification and Calculation of the Credit; Effective June 30, 2022
Would permit SDAT to apply the Homestead Property Tax Credit retroactively in situations where a homeowner failed to apply for the credit in the previous year.
• HB 809/SB 976 – Property Tax Exemption – Disabled Veteran, Active Duty and Surviving Spouse; Effective Oct. 1, 2022
Establishes a process for eligible individuals to apply for the disabled veteran property tax exemption prior to purchase.
This would allow a purchaser to have the benefit of the tax credit calculated in their loan payments and closing costs.
The state is required to process the application within 15 days. The tax exemption applies only to 100 percent disabled veterans and their surviving spouses and applies to 100 percent of the state and local property tax.
– Lauren Bunting is an Associate Broker with Keller Williams Realty of Delmarva in Ocean City.