Transfer for residential use of the owner or immediate family; parcel smaller than zoning requirements
(a) If the amount of agricultural land transferred is not greater than the applicable residential minimum zoning size in effect at the time of transfer, an instrument of writing for the residential use of the owner of the agricultural land or the owner's immediate family is not subject to the agricultural land transfer tax.
Declaration of intent to farm agricultural land for at least five years, application for farm or agricultural use assessment
(b)(1) Except as provided in paragraph (2) of this subsection, an instrument of writing that transfers title to agricultural land that is eligible for farm or agricultural use assessment under § 8-209 of this article is not subject to the agricultural land transfer tax if the transferee:
(i) files with the supervisor before the transfer a declaration of intent to farm the agricultural land that specifies that all of the transferred agricultural land will remain in farm or agricultural use for at least 5 full consecutive taxable years; and
(ii) applies for farm or agricultural use assessment under § 8-209 of this article for the land that is transferred.
(2)(i) If there is a failure to comply with a declaration of intent filed under paragraph (1) of this subsection including the building of nonagricultural improvements or nonagricultural site improvements or there is a failure to qualify for the farm or agricultural use assessment under § 8-209 of this article during the time that a declaration of intent is in effect, the agricultural land transfer tax, plus penalty, is due on that portion of the land that fails to comply with the declaration of intent or to qualify for farm or agricultural use.
(ii) The tax and penalty due under this subsection are a lien on the agricultural land that was transferred. The tax and penalty are due on the earlier of:
1. the next date on which property tax on the agricultural land is due under § 10-102 of this article; or
2. the date of the next transfer of any part of the agricultural land.
(3) For the purpose of paragraph (2) of this subsection, the supervisor shall calculate the amount of the agricultural land transfer tax due by:
(i) determining the fair market value of the land subject to the tax as of the most recent July 1 and providing the property owner with a notice of that value, which the property owner may appeal as provided by § 8-404 of this article;
(ii) multiplying the fair market value of the land subject to the tax by the rate of tax provided under § 13-303 of this subtitle; and
(iii) adding to the tax calculated under subparagraph (ii) of this paragraph a penalty in the amount of 10% of the tax due.
Declaration of intent to farm a portion of agricultural land for at least five years, subdivide a portion of land, application for farm or agricultural use assessment
(c)(1) An instrument of writing that transfers title to agricultural land that is eligible for farm or agricultural use assessment or that received the agricultural use assessment as of the most recent July 1 under § 8-209 of this article is subject to the agricultural land transfer tax as provided in paragraph (2) of this subsection, if the transferee:
(i) files with the supervisor before the transfer a declaration of intent to farm the land that specifies that part of the agricultural land will remain in farm or agricultural use for at least 5 full consecutive taxable years;
(ii) for a parcel that can be further subdivided into 2 or more parcels, provides the supervisor with a survey that accurately identifies the location of the land and the amount of acreage that is subject to the declaration of intent; and
(iii) applies for farm or agricultural use assessment for part of the agricultural land that is transferred.
(2) The agricultural land transfer tax applies to the value of the land not subject to the declaration of intent, exclusive of the items stated in § 13-304 of this subtitle.
(3) For the purpose of paragraph (2) of this subsection, the supervisor:
(i) shall determine the fair market value of the land not subject to the declaration of intent as of the most recent July 1 and provide the transferee with a notice of that value, which the transferee may appeal as provided by § 8-404 of this article; and
(ii) calculate the amount of the tax due by multiplying the fair market value of the land subject to the tax by the rate of the tax provided under § 13-303 of this subtitle.
(4) If there is a failure to comply with a declaration of intent filed under paragraph (1) of this subsection or a failure to qualify for the farm or agricultural use assessment under § 8-209 of this article during the time that a declaration of intent is in effect, the agricultural land transfer tax, plus penalty, is due on the land subject to the declaration of intent.
(5) The tax and penalty due under this subsection are a lien on the agricultural land that was transferred. The tax and penalty are due on the earlier date of:
(i) the date on which property tax on the agricultural land is due under § 10-102 of this article; or
(ii) the date of the next transfer of any part of the agricultural land.
(6) For the purpose of paragraph (4) of this subsection, the supervisor shall calculate the amount of the agricultural land transfer tax due by:
(i) determining the fair market value of the land subject to the tax as of the most recent July 1 and providing the property owner with a notice of that value, which the property owner may appeal as provided by § 8-404 of this article;
(ii) multiplying the fair market value of the land subject to the tax by the rate of the tax under § 13-303 of this subtitle; and
(iii) adding to the tax calculated under subparagraph (ii) of this paragraph a penalty in the amount of 10% of the tax due.
Notification for failure to comply with declaration of intent or failure to continue with agricultural use
(d) The owner of real property which is subject to the agricultural use assessment must notify the Department when there is:
(1) a failure to comply with a declaration of intent; or
(2) failure to continue the property in agricultural use.
Procedures upon notification
(e) If there is a failure to comply with a declaration of intent filed under subsection (b) or subsection (c) of this section, the supervisor in determining the fair market value of the land subject to the violation shall:
(1) identify the size and location of the land by:
(i) making a physical inspection of the property;
(ii) considering pertinent governmental records such as building permits, zoning maps, and regulations;
(iii) considering information provided by the property owner; and
(iv) determining that in the case of the building of a dwelling for the residential use of the owner, the size of the building site is 1 acre unless more land is actually used; and
(2) appraise the land utilizing generally accepted appraisal approaches including consideration of the sales of comparable land.
Subdivision of parcel unavailable
(f) For the purposes of subsections (c) and (e) of this section, if under current governmental land use regulations the parcel cannot be further subdivided into 2 or more parcels, the supervisor shall:
(1) appraise the entire parcel; and
(2) apportion the amount of the total market value of the parcel to that part of the parcel subject to the tax in accordance with generally accepted appraisal approaches including consideration of prevailing homesite land values in that area.
Additional exemptions
(g) In addition to the exemptions otherwise provided by this section, the agricultural land transfer tax does not apply to an instrument of writing described in § 13-207(a) of this title.
Transfers of agricultural land that was previously transferred
(h) The agricultural land transfer tax does not apply to an instrument of writing that transfers title to agricultural land that was previously transferred by an instrument of writing that was subject to the agricultural land transfer tax.
Credits
Added by Acts 1985, c. 8, § 2, eff. Feb. 1, 1986. Amended by Acts 1985, c. 566, § 3; Acts 1986, c. 171; Acts 1986, c. 682; Acts 1987, c. 11, § 1; Acts 1988, c. 114; Acts 1988, c. 552; Acts 2001, c. 29, § 6, eff. April 10, 2001; Acts 2019, c. 566, § 1, eff. July 1, 2019; Acts 2019, c. 567, § 1, eff. July 1, 2019; Acts 2021, c. 609, § 1, eff. June 1, 2021.
Current through legislation effective through June 1, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
