EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0657* SENATE BILL 657 N1 5lr2610 CF 5lr2370 By: Senators Ready, Gile, Salling, and Simonaire Introduced and read first time: January 25, 2025 Assigned to: Judicial Proceedings A BILL ENTITLED AN ACT concerning 1 Eminent Domain – Just Compensation – Fees and Costs 2 FOR the purpose of establishing that damages to be awarded for the taking of land in a 3 condemnation proceeding include, in addition to the fair market value of the land 4 taken, any legal, expert, or other fees or costs of the action incurred by a defendant; 5 and generally relating to eminent domain. 6 BY repealing and reenacting, with amendments, 7 Article – Real Property 8 Section 12–104 9 Annotated Code of Maryland 10 (2023 Replacement Volume and 2024 Supplement) 11 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12 That the Laws of Maryland read as follows: 13 Article – Real Property 14 12–104. 15 (a) The damages to be awarded for the taking of land [is its] ARE: 16 (1) THE fair market value OF THE LAND; AND 17 (2) ANY LEGAL, EXPERT, OR OTHER FEES OR COSTS OF THE 18 CONDEMNATION PROCEED ING INCURRED BY THE DEFENDANT . 19 (b) The damages to be awarded where land, or any part of it, is taken is the fair 20 market value of the part taken, but not less than the actual value of the part taken plus 21 any severance or resulting damages to the remaining land by reason of the taking and of 22 2 SENATE BILL 657 future use by the plaintiff of the part taken. The severance or resulting damages shall be 1 diminished to the extent of the value of the special (particular) benefits to the remainder 2 arising from the plaintiff’s future use of the part taken. 3 (c) For the purpose of determining the extent of the taking and the valuation of 4 the tenant’s interest in a condemnation proceeding, no improvement or installation which 5 otherwise would be deemed part of the land shall be deemed personal property so as to be 6 excluded from the taking solely because of the private right of a tenant, as against the 7 owner of any other interest in the land sought to be condemned, to remove the improvement 8 or installation, unless the tenant exercises his right to remove it prior to the date when his 9 answer is due, or states in his answer his election to exercise this right. 10 (d) The damages to be awarded for the taking of a structure, such as a church or 11 place of religious worship, held in fee simple, or under a lease renewable forever, by or for 12 the benefit of a religious body and regularly used by the religious body, are the cost of 13 reproducing or replacing the improvements, adjusted for physical and functional 14 depreciation, to which shall be added the fair market value of the land. 15 (e) (1) The damages to be awarded for the taking of all land owned and 16 designated by a public body as park land, open space, or recreation area is the fair market 17 value as of the valuation date, of other land substantially similar in size and character and 18 of comparable quality for park, open space, or recreational purposes for the community 19 which made use of the land to be taken. No damages may be awarded unless other land is 20 acquired for park, open space, or recreational purposes. No awarded damages may be less 21 than the fair market value of the land to be taken. 22 (2) The damages to be awarded for the taking of part of the park land, open 23 space, or recreation area is the fair market value of the part taken, but not less than the 24 actual value of the replacement land as defined in paragraph (1) of this subsection plus any 25 severance or resulting damages to the remaining land by reason of the taking and of the 26 future use by the plaintiff of the part taken. The severance or resulting damages are to be 27 diminished to the extent of the value of the special (particular) benefits to the remainder 28 arising from the plaintiff’s future use of the land taken. 29 (3) Where the land, or any part of it, taken pursuant to this subsection 30 contains improvements, the damages to be awarded, in addition to that provided for in 31 paragraphs (1) and (2) of this subsection, shall include the reasonable cost as of the 32 valuation date of providing new improvements of substantially the same size, comparable 33 character, and for the same purpose as those taken. 34 (f) The damages to be awarded for the taking of land or an interest in land over 35 which an easement in gross or other right to restrict its use has been granted pursuant to 36 § 2–504 of the Agriculture Article shall be as provided for in this subsection and § 2–515 of 37 the Agriculture Article: 38 (1) The damages to be awarded for the taking of an entire tract is its fair 39 market value after deducting the lesser of (a) the value of the easement granted, or (b) the 40 SENATE BILL 657 3 excess of the aggregate amount of the property taxes that would have been due on the 1 property if the easement had not been granted above the aggregate amount of property 2 taxes actually paid on the property since the easement was granted. 3 (2) The damages to be awarded where part of a tract of land is taken is the 4 fair market value of the part taken less the deduction computed as described in paragraph 5 (1) of this subsection, but not less than the actual value of the part taken less the deduction 6 computed as described in paragraph (1) of this subsection, plus any severance or resulting 7 damages to the remaining land by reason of the taking and of future use by the plaintiff of 8 the part taken. 9 (g) If any easement in gross or other right to restrict use of land or any interest 10 in land has been donated to the Maryland Historical Trust or the Maryland Environmental 11 Trust, damages shall be awarded in any condemnation proceedings under this title to the 12 fee owner and leasehold owner, as their interests may appear, and shall be the fair market 13 value of the land or interest in it, computed as though the easement or other right did not 14 exist. 15 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 16 October 1, 2025. 17