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HARRY HUGHES, Governor 2391
Columbia, Montgomery Village, Churchill (Montgomery County), St.
Charles, St. Mary's and Windwood in Anne Arundel County clearly
demonstrate the advantages to the public of planned, orderly and
staged development. I strongly believe that both of these land
use strategies serve to improve the quality of life in Maryland.
As a former legislator and as Governor, I have supported these
programs. That support will continue.
Three separate provisions of Article 81 are pertinent to
consideration of Senate Bill 778. They are: (1) Section 19(b),
the agricultural use assessment; (2) Section 19(f), the planned
development lands special assessment; and (3) Section 278F, the
Agricultural Transfer Tax.
Section 19(b) of Article 81 provides, in substantive part,
that lands actively devoted to agricultural use shall be assessed
at levels compatible with the continued use of such land for
farming. The practical effect of this Section is to provide that
farmland in Maryland is assessed based on its value in use rather
than upon its potential value for development. Under these
provisions, farmland is currently valued for assessment purposes
at a maximum of $400 per acre while the fair market value of the
same land in the more urban areas can exceed $20,000 or $30,000.
Section 19(f) provides, in substantive part, that lands held
tor planned development which meet special criteria of size,
zoning and governmentally approved plans are eligible to receive
a special assessment that is equal to or at the same rate as the
agricultural use assessment. In other words, lands meeting the
special criteria are valued for assessment purposes at a maximum
of $400 per acre. It should be noted that this value is
determined without regard to the present actual use of the land
and does not depend on the fair market value of the land for
development.
Section 278F provides for the imposition of an Agricultural
Transfer Tax upon the sale of land receiving the agricultural use
assessment provided by Section 19(b). If the purchaser of the
farmland refuses to sign a Declaration of Intent promising to
maintain the land in its agricultural use, the Agricultural
Transfer Tax is imposed at a rate ranging from 3%, to 5% of the
consideration paid for the land.
Senate Bill 778 amends Section 19(f) and Section 278F and
provides that upon the sale of land receiving the planned
development special assessment, the Agricultural Transfer Tax
will be imposed in the same manner and to the same extent as it
is imposed on the sale of agricultural land receiving the
agricultural use assessment. The funds collected would be
targeted for State and county agricultural land preservation
programs. Thus, with certain exceptions, land that currently
receives the planned development special assessment will be
subject to the Agricultural Transfer Tax when it is sold should
the provisions of this bill become law.
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