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Sponsor proposes tiered transfer tax to ease costs for typical buyers; industry groups warn of higher costs and market impacts
Summary
Delegate Sheila Ruth's HB 12‑13 would adopt progressive transfer‑tax tiers to lower costs for typical buyers and incentivize affordable multifamily development; supporters argued it helps affordability and could raise revenue for preservation, while builders and multifamily associations warned the change could increase transaction costs, depress investment and raise rents.
Delegate Sheila Ruth presented House Bill 12‑13 as a multifaceted approach to make transfer taxes more progressive — cutting or holding rates for lower‑value single‑family transactions, reducing or holding rates for deed‑restricted multifamily projects that reserve units as affordable, and increasing rates for higher‑value transactions. "For single family homes... under $400,000, you would pay less in transfer tax... up to $650,000, you would pay no more," Ruth said.
Proponents including the Maryland Center on Economic Policy described distributional gains and said the bill could raise revenue while protecting median buyers. Christopher Meyer told the committee the bill would double eligibility thresholds and increase the renters' tax credit and that DLS previously recommended a similar measure.
Opponents — including Robert Etton of the Maryland Building Industry Association, the Apartment and Office Building Association and the Maryland Realtors — cautioned that the bill’s graduated structure would raise the cost of many transactions, could sweep typical family homes into higher tiers over time as prices climb, and could hurt multifamily investment. The building industry cited fiscal estimates in the hundreds of millions over time and urged an unfavorable report.
The committee closed the series of hearings for the day and planned to reconvene for votes.
