MD (Baltimore City) Notification

Effective January 11, 2019, purchase transactions with consideration exceeding $1,000,000.00 in Baltimore City, MD will be subject to a Yield Tax. According to the Baltimore City directive the Yield tax is calculated by taking 0.15% on  the amount collected under SUBTITLE 16, Transfer Tax and 0.6% on the amount collected under SUBTITLE 17, Recordation Tax.

While TitleExpress can calculate the Recordation Tax and Transfer Tax that is used as a base for the Yield tax calculation; TitleExpress is not currently able to accommodate the additional calculation for the Yield tax. 

The Yield Tax will need to be calculated manually for properties in Baltimore City whose consideration exceeds $1,000,000.00. See the Instructions and example provided below to calculate the Yield tax. We apologize for any inconvenience this may cause.

Instructions on how to Calculate this tax with an example is below. 

If the Sales price is: $2,000,000.00

The City Transfer Tax calculates to $30,000.00 

The  Recordation tax  calculates to $20,000.00 

 

     $30,000.00 x 0.6%   =   $180.00
     $20,000.00 x 0.15% =   $  30.00

                                          $210.00 - Yield Tax

Yield Tax: Payable to "Director of Finance – Baltimore City", separate from Transfer Tax and Recordation Tax checks. However, the amounts due for both the transfer tax portion of the Yield Tax and the Recordation tax portion of the Yield Tax can be combined and submitted in one check. 

Thank you for using TitleExpress. 

Posted on 1/23/2019 11:02:00 AM by esarber@firstam.com

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August 21. 2019 01:49