HARRY HUGHES, Governor

2779

Article - Tax - Property
13-305.

(a)  An instrument of writing is not subject to the
agricultural land transfer tax, if property tax on the land has
been paid for 5 full consecutive taxable years before the
transfer on the basis of an assessment other than the farm or
agricultural use assessment under § 8-209 of this article.

(b)  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.

(c) (1) Except as provided in paragraph (2) of this
subsection, an instrument of writing that transfers title to 20
acres or more of 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 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) If there is a failure to comply with a
declaration of intent filed under paragraph (1) of this
subsection, the agricultural land transfer tax is due at the rate
determined under § 13-303(a) and (b) of this subtitle on the
instrument of writing that subsequently transfers title to the
agricultural land:

(i) without the reduction that is authorized
under § 13-303(c) of this subtitle; or

(ii) if property tax was paid on the basis of
an assessment other than the farm or agricultural use assessment
under § 8-209 of this article, for 5 full consecutive taxable
years from the date of failure to comply with a declaration of
intent, beginning with the 6th year the rate shall be reduced by
1 percentage point for each full consecutive taxable year that
property tax on real property continues to be paid on the basis
of a nonagricultural use assessment.

(d)  (1) An instrument of writing that transfers title to
less than 20 acres of agricultural land that is eligible for farm
or agricultural use assessment under § 8-209 of this article is