STATE TAX on Selling self Directed 401k Trust owned home

[Justin Summers]

Question.. I'm selling a rental owned by my self directed 401k and all the proceeds are going back into my 401k.. 

This is in Maryland.. The title company is unsure if they should withhold the state 8.25% witholding of the sales price for state income taxes since the trust is not a Maryland resident..

My questions.

1. I know I don't owe federal taxes on the sale because they are deferred but would I owe state taxes at the time of sale? 

2. If I don't owe state taxes should I claim an exemption to the title company withholding? 

Thanks for any help

Justin