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Thanks to the Prince George's County State Delegation and County Executive Jack Johnson, County police officers and municipal police officers will save thousands of dollars when buying a home in Prince Georges' County.

HB 1026 - Prince George's County - Transfer Tax - County Police Officers, introduced by Delegate Justin Ross (D-22) eliminates the county transfer tax for county police officers who are first time home buyers and reduces the tax to 1% for police who are not first time buyers.

The PGCAR Legislative Committee worked vigorously to move this legislation through the 2006 Maryland General Assembly. Governor Ehrlich signed the bill into law on May 2, 2006.

The new law took effect July 1, 2006 and it is anticipated that the County Finance Office will prepare an affidavit to facilitate the changes in the tax collection process. The specifics of the bill are as follows:

1. POLICE FIRST TIME HOMEBUYERS - Eliminates the County transfer tax of 1.4% for Prince George's County Police Officers and municipal police Officers serving local communities in the County WHO ARE FIRST TIME HOMEBUYERS.

2. Police Homeowners - Reduces the County transfer tax from 1.4% to 1% for County Police and Municipal Police who currently own homes and wish to purchase a new residence.

POTENTIAL TAX SAVINGS: Given an Average Sale Price of $355,034 (March 2006)
Police First Time Homebuyers:	$355,034	x	1.4%	=	$4,970.48	Tax Savings
Police Homeowners:	$355,034	x	0.4%	=	$1,420.14	Tax Savings

TO QUALIFY:

3. The purchase property must be improved residential property located in Prince George's County, Maryland.

4. At least one of the Purchasers must be employed as a Prince George's County Police Officer or a municipal corporation police officer serving in Prince George's County.

5. The police officer must reside in the property as his/her principal residence.

6. A qualified purchaser must maintain their employment as a County Police Officer or Municipal Police Officer for three years following the purchase or they will be required to repay the tax.

7. Applicable to settlements occurring after July 1, 2006.

REALTORS® Conducting Business in Prince George's County — Log in to Members Only for PG Form 1330, a new one-page contract addendum to be used for eligible home buyers to receive their transfer tax credit.