Maryland’s administrative Tax Court has ruled that the state’s jurisdictions cannot require that lenders and purchasers of foreclosed properties pay the recordation taxes on guarantor-backed deeds of trust. The decision means Howard County will have to return more than $500,000 in collected taxes.

Ballard Spahr partner Jon M. Laria, who is not involved in the case, said the ruling was in line with a 1989 advisory opinion from the state Attorney General that recordation taxes on IDOTs were owed exclusively by the guarantor. He said Howard County should have abided by that opinion.

“Counties are hungry for revenue during these times, but the law is the law,” Mr. Laria said. “I think that Howard County overreached.”


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