GigiGodwin,PresidentandCEO

MontgomeryCountyChamberofCommerce51MonroeStreet,Suite1800Rockville,MD20850

301-738-0015www.mcccmd.com

SENATE BILL 111: RECORDATION AND TRANSFER TAXES – EXEMPTIONS – PROPERTY CONVEYED FROM SOLE PROPRIETORSHIP TO LIMITED

LIABILITY COMPANY

BUDGET AND TAXATION COMMITTEE

FEBRUARY 1, 2017

SUPPORT TheMontgomeryCountyChamberofCommerce("MCCC"),asthevoiceofMontgomeryCountybusiness,supportsSenateBill111,whichexemptsatransferofrealpropertyfromasoleproprietorshiptoalimitedliabilitycompanyfromrecordationandtransfertaxesifthesolememberofthelimitedliabilitycompanyisidenticaltotheconvertingsoleproprietorandspecifiedotherconditionsaremet;andprovidingthatthetransferofacontrollinginterestinalimitedliabilitycompanythatistheproductofanuntaxedconversionfromasoleproprietorshipissubjecttotherecordationandtransfertaxunderspecifiedcircumstances.EconomiccompetitivenessisakeyareaoffocusforMCCCinpursuitofacceleratingthesuccessofourmembers.GiventherecentincreaseintheMontgomeryCountyrecordationtax,webelieveitisimportanttoavoidpenalizinganindividualwho,foravarietyofreasons,wouldneedtotransferrealpropertyfromasoleproprietorshiptoalimitedliabilitycompany.Forthesereasons,werequestafavorablereportonSenateBill111.

TheMontgomeryCountyChamberofCommerce(MCCC)acceleratesthesuccessofourmembersbyadvocatingforincreasedbusinessopportunities,strategicinvestmentininfrastructureandbalancedtax

reformtoadvanceMetroMarylandasaregional,nationalandgloballocationforbusinesssuccess.Establishedin1959,MCCCisanindependentnon-profitmembershiporganizationandisproudtobea

MontgomeryCountyGreenCertifiedBusiness.

To Lead, Advocate and Connect as the Voice of Business