3258

LAWS OF MARYLAND

Ch. 808

YEARS, THE FUNDS HAVE NOT BEEN EXPENDED OR COMMITTED BY A
SUBDIVISION, THEY SHALL BE PAID TO THE COMPTROLLER OF THE
TREASURY WHO SHALL PLACE THE FUNDS IN THE MARYLAND
AGRICULTURAL PRESERVATION FUND. HOWEVER, OVER A 5-YEAR
PERIOD, ANY SUBDIVISION SHALL BE ALLOCATED IN THE AGGREGATE
THE FUNDS IT WOULD HAVE BEEN ENTITLED TO RECEIVE IF ABLE TO
UTILIZE THEM. DESPITE THE PROVISIONS OF THIS SECTION, 50
PERCENT OF THE AMOUNT RETAINED BY MONTGOMERY COUNTY SHALL BE
HELD IN A SPECIAL FUND ACCOUNT AND DEEMED AND USED AS THE
STATE MATCHING SHARE FOR AGRICULTURAL LAND PRESERVATION.

(J) A SUBDIVISION OF THE STATE MAY NOT IMPOSE A LOCAL
TRANSFER TAX UPON THE TRANSFER OF AGRICULTURAL LAND SUBJECT
TO THIS SECTION AT A RATE THAT IS GREATER THAN THE LOCAL
TRANSFER TAX IMPOSED ON IMPROVED RESIDENTIAL PROPERTY IN
THAT SUBDIVISION.

(J) A COUNTY MAY NOT IMPOSE A LOCAL TRANSFER TAX ON
THE TRANSFER OF LAND SUBJECT TO THE PROVISIONS OF THIS
SECTION AT A RATE THAT IS GREATER THAN THE LOCAL TRANSFER
TAX RATE APPLICABLE TO IMPROVED RESIDENTIAL PROPERTY IN THAT
COUNTY, UNLESS THE GREATER TAX WAS LEVIED BEFORE JULY 1,
1979. A COUNTY MAY NOT IMPOSE A LOCAL TRANSFER TAX AT A
RATE, OR INCREASE A LOCAL TRANSFER TAX TO A RATE, ABOVE THE
RATE IMPOSED AS OF JULY 1, 1979 ON ANY LAND SUBJECT TO THE
PROVISIONS OF THIS SECTION. FURTHERMORE, IN ANY COUNTY THAT
HAS IMPOSED A TRANSFER TAX AT A RATE IN EXCESS OF THE RATE
OF THE TRANSFER TAX LEVIED ON IMPROVED RESIDENTIAL PROPERTY,
THE COMBINATION OF THE STATE AND LOCAL TRANSFER TAX RATES
MAY NOT EXCEED 5 PERCENT PLUS THE RATE APPLICABLE TO
IMPROVED RESIDENTIAL PROPERTY. IF THE COMBINED RATES EXCEED
THE MAXIMUM ALLOWABLE RATE, THE TAX IMPOSED BY THIS SECTION
SHALL BE COLLECTED IN FULL, AND THE LOCAL TAX SHALL BE
REDUCED AS REQUIRED.

(K) ON THE EXECUTION OF A CONTRACT FOR THE TRANSFER OF
ANY INTEREST IN LAND WHICH WILL BE SUBJECT TO THE TAX
IMPOSED BY THIS SECTION, THE SELLER SHALL NOTIFY THE BUYER
IN WRITING THAT THE LAND BEING TRANSFERRED MAY BE SUBJECT TO
THE AGRICULTURAL TRANSFER TAX. IF THE SELLER FAILS TO
NOTIFY THE BUYER, THE SELLER IS LIABLE TO THE BUYER FOR THE
AMOUNT OF THE TAX PAID BY THE BUYER.

(L) THE DEPARTMENT SHALL PROMULGATE RULES AND
REGULATIONS TO IMPLEMENT THE PROVISIONS OF THIS SECTION.

(M) THE TAX IMPOSED BY THIS SECTION IS IN ADDITION TO
ANY OTHER TRANSFER TAX IMPOSED BY THIS ARTICLE.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1981.

Approved May 19, 1981.