HARRY HUGHES, Governor                                       485

SETTLEMENT OR DIVORCE DECREE IS NOT SUBJECT TO A COUNTY TRANSFER
TAX.

REVISOR'S NOTE: This section is new language derived
without substantive change from former Art. 81, §
278E.

The reference to "former spouses" is added for clarity
and to conform to the language used in § 12-108(d) of
this subtitle.

The former phrase "[notwithstanding any other
provision of law" is deleted as superfluous.

Defined terms: "County transfer tax" § 13-401
"Instrument of writing" § 13-101
"Property" § 1-101

13-404. COUNTY TRANSFER TAX ON CORPORATE TRANSFERS.

(A)  IMPOSITION OF COUNTY TAX.

EXCEPT AS PROVIDED UNDER SUBSECTIONS (B) AND (F) OF THIS
SECTION, THE DEPARTMENT SHALL COLLECT COUNTY TRANSFER TAX AT THE
RATE SET BY EACH COUNTY FOR ARTICLES OF TRANSFER FILED WITH THE
DEPARTMENT AS' REQUIRED BY § 3-107 OF THE CORPORATIONS AND
ASSOCIATIONS ARTICLE.

(B)  EXEMPTIONS FROM TAX.

ARTICLES OF TRANSFER ARE NOT SUBJECT TO COUNTY TRANSFER TAX
IF THE ARTICLES OF TRANSFER ARE FOR:

(1)  A TRANSFER OF REAL PROPERTY BETWEEN A PARENT
CORPORATION AND ITS SUBSIDIARY CORPORATION OR BETWEEN 2 OR MORE
SUBSIDIARY CORPORATIONS WHOLLY OWNED BY THE SAME PARENT
CORPORATION FOR:

(I)  NO CONSIDERATION;

(II)  NOMINAL CONSIDERATION; OR

(III)  CONSIDERATION THAT COMPRISES ONLY THE
ISSUANCE, CANCELLATION, OR SURRENDER OF A SUBSIDIARY'S STOCK; OR

(2)  A DEED MADE:

(I)  UNDER A REORGANIZATION DESCRIBED IN §
368(A) OF THE INTERNAL REVENUE CODE; OR

(II)  UNDER §§ 371 THROUGH 374 OF THE INTERNAL
REVENUE CODE.

(C)  CERTIFICATION OF TAX RATES.