Md. Code Regs. 18.13.02.06

Current through Register Vol. 51, No. 22, November 1, 2024

Section 18.13.02.06 - Determination of Consideration

A. The Department determines the amount of consideration payable for the transfer of a controlling interest and imposes the corresponding tax based upon:

(1) The report referenced in Regulation .05 of this chapter; and

(2) Any other information secured by the Department.

B. Consideration payable for the transfer of a controlling interest includes all consideration payable under a plan of transfer, regardless of whether it has been totally paid at the time of the final transfer.

C. If the Department determines that there has been a failure to establish the consideration attributable to the transfer of the controlling interest, the Department will impose the tax upon that proportion of the fair market value of the real property directly or beneficially owned by the real property entity that equals the same proportion of the controlling interest being transferred.

D. The fair market value referenced in §C of this regulation is the value of the real property determined by the Department as of the date of finality immediately preceding the final transfer.

Md. Code Regs. 18.13.02.06