§ 17.1-1. Tax imposed.

(a) In general.

An excise tax, to be known as the Yield Tax, shall be levied and collected based upon the tax yield from any transaction for which recordation taxes and transfer taxes are due pursuant to Subtitles 16 and 17 of this article.

(b) Exemptions.

(1) In general.

The Yield Tax does not apply to:

(i) any mortgage or deed of trust recorded within 6 months of the effective date of this subtitle and securing a loan the proceeds of which will provide funding for the construction and completion to the issuance of a certificate of use and occupancy of a project and for which a full but not a partial building permit has been issued prior to the effective date of this subtitle; or

(ii) any deed and any purchase money mortgage or deed of trust related thereto for the conveyance of a residential property to be occupied by the grantee of such deed and which deed is delivered pursuant to a bona fide contract of sale that has been entered into between the grantor and grantee of such deed within 2 years of the effective date of this subtitle.

(2) Supporting affidavit required.

The facts to substantiate the foregoing exemptions shall be set forth in an affidavit made on personal knowledge of the affiant and under penalties of perjury on forms to be furnished by the Director of Finance and including supporting documents that verify compliance with the requirement for the exemption.