Prince George's County v. McMahon

BELL, Judge.

We are asked in this case to decide the basis upon which the state recordation tax and the local Prince George’s County transfer tax should be computed for a wraparound deed of trust. 1 We hold that based on Article 81 § 277 of the Md.Code, the recordation tax should be assessed on the “principal amount of the debt then incurred” by the transaction, which includes the amount of a prior debt only if extinguished by the proceeds of the new deed of trust. We further hold that based on Prince George’s County Code § 10-187, the local transfer taxes, upon refinancing, are computed only…