Maryland Senate Bill SB869

Maryland 2024 Regular Session

• Introduced: 2/2/24
• Refer: 2/2/24

Caption

Property Tax - Improvements on Agricultural Land - Assessment

Impact

The bill introduces a subclass for improvements on agricultural land and requires these improvements to be assessed at lower values under specific circumstances. For example, structures that support actively used farms will be assessed at 5% of their full cash value, while facilities for value-added agricultural activities will be assessed at 25%. This structured assessment approach is designed to promote agricultural activity while ensuring that property taxation remains manageable for farmers and agricultural enterprises.

Summary

Senate Bill 869 addresses the assessment of improvements made to agricultural land, aiming to clarify property owners' rights and streamline the process for property tax assessments. The bill mandates that owners of certain buildings constructed on agricultural land must inform the local assessment supervisor within 90 days of completion. This requirement ensures that local authorities are aware of new constructions that may impact tax assessments. The intent of this provision is to maintain transparency and ensure correct tax calculations based on property improvements.

Contention

While SB869 primarily aims to benefit agricultural landowners by lowering property tax burdens, some points of contention may arise regarding how these assessments could affect local government revenues. Opponents might argue that the lower tax rates on agricultural improvements could lead to reduced funding for local services. Furthermore, the requirement for owners to notify authorities of completed constructions could be seen as an additional bureaucratic obligation, potentially raising concerns about compliance and the burden on property owners.