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Read. Follow. Verify.Maryland Senate Bill 725 Requires Compliance Certificates and Sets 2% Transfer Tax for Certain Federal Property Transfers
Last action · February 12, 2026: Hearing 3/05 at 1:00 p.m. (Judicial Proceedings)Sponsor: Jeff Waldstreicher
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What This Bill Would Do
Maryland Senate Bill 725 prohibits circuit court clerks from recording real property ownership changes from the United States to private parties unless accompanied by a issued by the Office of the Attorney General and the State Department of Assessments and Taxation. The bill also establishes a 2% State transfer tax rate paid entirely by the transferor for real property previously held by the United States conveyed on or after July 1, 2026, with revenues dedicated to Program Open Space.
Parties acquiring real property formerly owned by the federal government must obtain a state compliance certificate before recording the transfer and pay a higher 2% transfer tax rate, while state agencies gain new review authority over federal-to-private property conveyances.
- Senate Bill 725 was introduced in the Maryland Senate during the 2026 Regular Session by Senator Waldstreicher. context
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
parties acquiring real property from the United States
Must submit request forms and obtain a Certificate of Compliance from state agencies before their property transfer instrument can be recorded by the circuit court clerk.
transferors of real property formerly held by the United States
Must pay a 2% State transfer tax on the value of the real property when the property was conveyed by the United States on or after July 1, 2026.
clerks of the circuit court
Must enforce the certification requirement before recording applicable real property instruments and establish uniform statewide procedures with the Administrative Office of the Courts.
Key Facts
- Clerks of the circuit court are prohibited from recording real property ownership changes from the United States to private parties unless accompanied by a Certificate of Compliance.
- Exempted from the certificate requirement are transfers from the United States back to the United States, public instrumentalities, the State, counties, municipal corporations, or other political subdivisions.
- The Office of the Attorney General and the State Department of Assessments and Taxation must review changes of ownership and issue, deny, or request more information regarding certificates of compliance.
- The Office of the Attorney General and the State Department of Assessments and Taxation must establish fees for review and certificate issuance set to cover the full costs of carrying out the section.
Show all 9 facts
- Fees collected for review and certificate issuance must be deposited in the General Fund of the State.
- A 2% State transfer tax rate is established for instruments conveying real property where the United States was the most recent title holder conveyed on or after July 1, 2026.
- The 2% transfer tax under this section must be paid entirely by the transferor.
- Transfer tax revenue generated from the 2% rate under § 13-203(c) must be credited by the Comptroller to Program Open Space (Title 5, Subtitle 9 of the Natural Resources Article).
- This Act takes effect July 1, 2026, and applies to instruments of writing recorded on or after that date.
Frequently Asked Questions
Who must issue the Certificate of Compliance for real property transferred from the United States?
Who pays the 2% transfer tax on applicable former federal properties?
Where do the fees collected for the review and issuance of certificates go?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently filed. The next step in the legislative lifecycle is Committee.
Procedural history
2 actions- Feb 12, 2026SenateHearing 3/05 at 1:00 p.m. (Judicial Proceedings)
- Feb 6, 2026SenateIntroducedFirst Reading Judicial Proceedings and Budget and Taxation
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Transfer Tax Revenue Dedicated to Program Open Space
Revenues from the newly established 2% transfer tax rate are directly funneled to Program Open Space funds managed under the Natural Resources Article.
Connected Entities
Sources
mgaleg.maryland.gov
Analysis Score
0–100- Significance65How much this matters to a regular citizen
- Controversy40Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz25Current news / social attention level
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