2013 Maryland Legislation: Recordation and Transfer Tax Exemptions Expanded for IDOTs and Affiliated Entity Transfers

The Bloomberg BNA Tax Management Weekly State Tax Report filters through current state developments and analyzes those critical to multistate tax planning.

In this article John Orrick and William Hoffman, of Linowes and Blocher LLP, discuss Maryland legislation that allows refinanced commercial loans, whether secured by an indemnity deed of trust (IDOT) or other security interest, to escape recordation tax to the extent of the existing loan's outstanding principal balance. They note how refinancing is further facilitated by an increased exemption amount for IDOTs, and a new exemption for transfers between affiliated limited liability companies, which may be particularly beneficial in the context of forming special purpose entities.