Counties Charge Transfer Tax on Forgiven Debt

Similar to County Assessors using a pre-foreclosure sale price for assessed value,  Jurisdictions in Maryland are struggling with the issue of how to calculate transfer taxes on short sales, stating that transfer taxes on short sales are not to be calculated on the sales price, but rather on the sales price PLUS the amount of forgiven debt.   While Montgomery County has delayed implementation and is reviewing the issue, Anne Arundel County has indicated that it is now calculating its county transfer tax on the sales price PLUS the amount of the seller’s forgiven debt.

I am wondering if any other states or localities are doing this and, if so, what have people done in response?   It makes no sense to ask the purchaser of a short sale to pay taxes on an amount over and above the sales price, the seller rarely has money to pay  additional amounts and it is difficult enough to get lenders to approve short sales as it is without decreasing the money that is available to satisfy the debt Any thoughts?