Maryland 2025 Regular Session

Maryland Senate Bill SB661 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0661
6	6
7	7	SENATE BILL 661
8	8	N1, M4, C5 5lr1404
9	9	CF HB 81
10	10	By: Senators Ready, Bailey, Carozza, Corderman, Folden, Gallion, Hershey,
11	11	James, Jennings, McKay, and Salling
12	12	Introduced and read first time: January 25, 2025
13	13	Assigned to: Judicial Proceedings
14	14
15	15	A BILL ENTITLED
16	16
17	17	AN ACT concerning 1
18	18
19	19	Real Property – Condemnation – Compensation for Farm and Agricultural 2
20	20	Property 3
21	21	(Protect Maryland Farm Lands Act) 4
22	22
23	23	FOR the purpose of requiring the fair market value of certain agricultural property taken 5
24	24	in a condemnation proceeding to be valued at a certain percentage of the highest 6
25	25	appraisal value of the property; providing for the retroactive application of this Act; 7
26	26	and generally relating to the fair market value of agricultural property in 8
27	27	condemnation proceedings. 9
28	28
29	29	BY repealing and reenacting, with amendments, 10
30	30	Article – Real Property 11
31	31	Section 12–105 12
32	32	Annotated Code of Maryland 13
33	33	(2023 Replacement Volume and 2024 Supplement) 14
34	34
35	35	BY repealing and reenacting, without amendments, 15
36	36	Article – Tax – Property 16
37	37	Section 8–209 17
38	38	Annotated Code of Maryland 18
39	39	(2019 Replacement Volume and 2024 Supplement) 19
40	40
41	41	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
42	42	That the Laws of Maryland read as follows: 21
43	43
44	44	Article – Real Property 22
45	45
46	46	12–105. 23
47	47	2 SENATE BILL 661
48	48
49	49
50	50	(a) In this section, the phrase “the effective date of legislative authority for the 1
51	51	acquisition of the property” means, with respect to a condemnor vested with continuing 2
52	52	power of condemnation, the date of specific administrative determination to acquire the 3
53	53	property. 4
54	54
55	55	(b) (1) (I) [The] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , 5
56	56	THE fair market value of property in a condemnation proceeding is the price as of the 6
57	57	valuation date for the highest and best use of the property which a vendor, willing but not 7
58	58	obligated to sell, would accept for the property, and which a purchaser, willing but not 8
59	59	obligated to buy, would pay, excluding any increment in value proximately caused by the 9
60	60	public project for which the property condemned is needed. [In addition, fair] 10
61	61
62	62	(II) FAIR market value includes any amount by which the price 11
63	63	reflects a diminution in value occurring between the effective date of legislative authority 12
64	64	for the acquisition of the property and the date of actual taking if the trier of facts finds 13
65	65	that the diminution in value was proximately caused by the public project for which the 14
66	66	property condemned is needed, or by announcements or acts of the plaintiff or its officials 15
67	67	concerning the public project, and was beyond the reasonable control of the property owner. 16
68	68
69	69	(2) (I) THIS PARAGRAPH APPLIE S ONLY TO PROPERTY T HAT IS 17
70	70	ACTIVELY USED FOR FA RM OR AGRICULTURAL P URPOSES AS DETERMINE D BY THE 18
71	71	STATE DEPARTMENT OF ASSESSMENTS AND TAXATION UNDER § 8–209 OF THE 19
72	72	TAX – PROPERTY ARTICLE, INCLUDING PROPERTY A CQUIRED BY CONDEMNAT ION 20
73	73	FOR THE CONSTRUCTION OR MAINTENANCE OF A TRA NSMISSION LINE UNDER §§ 21
74	74	7–207 AND 7–208 OF THE PUBLIC UTILITIES ARTICLE. 22
75	75
76	76	(II) THE FAIR MARKET VALUE OF PROPERTY ACTIVELY USED 23
77	77	FOR FARM OR AGRICULT URAL PURPOSES IN A C ONDEMNATION PROCEEDI NG SHALL 24
78	78	BE 350% OF THE HIGHEST APPRAISAL VAL UE OF THE PROPERTY . 25
79	79
80	80	(c) The defendant property owner may elect to present as evidence in a 26
81	81	condemnation proceeding, the assessed value of the property, as determined by the 27
82	82	Department of Assessments and Taxation, if the assessed value is greater than the 28
83	83	appraised value placed on the property by the condemning authority. 29
84	84
85	85	(d) (1) [If] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 30
86	86	SUBSECTION, IF property is ever acquired by the exercise of the power of eminent domain, 31
87	87	the fair market value of the property is not affected by the property having been qualified 32
88	88	for a tax credit under § 9–208 of the Tax – Property Article. [However, if] 33
89	89
90	90	(2) IF the grantee of an easement purchased the easement for monetary 34
91	91	consideration other than, or in addition to, the tax credit under § 9–208 of the 35
92	92	Tax – Property Article, then the condemnation award shall be reduced by an amount equal 36
93	93	to the additional consideration. 37
94	94	SENATE BILL 661 3
95	95
96	96
97	97	Article – Tax – Property 1
98	98
99	99	8–209. 2
100	100
101	101	(a) The General Assembly declares that it is in the general public interest of the 3
102	102	State to foster and encourage farming activities to: 4
103	103
104	104	(1) maintain a readily available source of food and dairy products close to 5
105	105	the metropolitan areas of the State; 6
106	106
107	107	(2) encourage the preservation of open space as an amenity necessary for 7
108	108	human welfare and happiness; and 8
109	109
110	110	(3) prevent the forced conversion of open space land to more intensive uses 9
111	111	because of the economic pressures caused by the assessment of the land at rates or levels 10
112	112	incompatible with its practical use for farming. 11
113	113
114	114	(b) It is the intention of the General Assembly that the assessment of farmland: 12
115	115
116	116	(1) be maintained at levels compatible with the continued use of the land 13
117	117	for farming; and 14
118	118
119	119	(2) not be affected adversely by neighboring land uses of a more intensive 15
120	120	nature. 16
121	121
122	122	(c) Land that is actively used for farm or agricultural use shall be valued on the 17
123	123	basis of that use and may not be valued as if subdivided. 18
124	124
125	125	(d) Land that is valued under subsection (c) of this section shall be assessed on 19
126	126	the basis of its use value. 20
127	127
128	128	(e) (1) (i) In this subsection the following words have the meanings 21
129	129	indicated. 22
130	130
131	131	(ii) “Agrivoltaics” has the meaning stated in § 7–237 of this article. 23
132	132
133	133	(iii) “Community solar energy generating system” has the meaning 24
134	134	stated in § 7–306.2 of the Public Utilities Article. 25
135	135
136	136	(2) Except as provided in paragraph (4) of this subsection, the Department 26
137	137	shall establish in regulations criteria to determine if land that appears to be actively used 27
138	138	for farm or agricultural purposes: 28
139	139
140	140	(i) is actually used for farm or agricultural purposes; and 29
141	141
142	142	(ii) qualifies for assessment under this section. 30
143	143	4 SENATE BILL 661
144	144
145	145
146	146	(3) The criteria shall include: 1
147	147
148	148	(i) the zoning of the land; 2
149	149
150	150	(ii) the present and past use of the land including land under the Soil 3
151	151	Bank Program of the United States; 4
152	152
153	153	(iii) the productivity of the land, including timberlands and 5
154	154	reforested lands; and 6
155	155
156	156	(iv) the gross income that is derived from the agricultural activity. 7
157	157
158	158	(4) (i) This paragraph applies through the life cycle of a community 8
159	159	solar energy generating system that: 9
160	160
161	161	1. is placed in service after June 30, 2022; and 10
162	162
163	163	2. has been approved on or before December 31, 2025, as a 11
164	164	community solar energy generating system by the Public Service Commission under § 12
165	165	7–306.2 of the Public Utilities Article. 13
166	166
167	167	(ii) The Department shall assess and qualify land that is used by a 14
168	168	community solar energy generating system for agrivoltaics as land that is actively used for 15
169	169	farm or agricultural purposes. 16
170	170
171	171	(f) In administering this section, periodically, the Director shall consult with: 17
172	172
173	173	(1) the Secretary of Agriculture; 18
174	174
175	175	(2) officials of the State who are knowledgeable in agriculture; 19
176	176
177	177	(3) representatives of the agricultural community; 20
178	178
179	179	(4) officials of counties and municipal corporations; and 21
180	180
181	181	(5) other persons as determined by the Director. 22
182	182
183	183	(g) (1) In this subsection the following words have the meanings indicated: 23
184	184
185	185	(i) “actively used” means land that is actually and primarily used 24
186	186	for a continuing farm or agricultural use; 25
187	187
188	188	(ii) “agricultural land unit” means the combination of not more than 26
189	189	3 parcels of land when the parcels are: 27
190	190
191	191	1. located in the same county; and 28
192	192	SENATE BILL 661 5
193	193
194	194
195	195	2. under the same ownership; 1
196	196
197	197	(iii) “average gross income” means the average of the 2 highest years 2
198	198	of gross income during a 3–year period; 3
199	199
200	200	(iv) “family farm unit” means not more than 1 parcel of land of less 4
201	201	than 20 acres for each immediate family member for land that is: 5
202	202
203	203	1. contiguous to land receiving the farm or agricultural use 6
204	204	assessment; and 7
205	205
206	206	2. owned by a member or members of the immediate family 8
207	207	of the owner of the farm or agricultural use land; and 9
208	208
209	209	(v) “gross income” means the actual income that is received in a 10
210	210	calendar year that results directly from the farm or agricultural use of the land. 11
211	211
212	212	(2) In determining if a parcel of land of less than 20 acres, or not zoned for 12
213	213	agricultural use, is actively used, the Department may require the owner of the land to 13
214	214	affirm, under oath, on a standard form provided by the Department that the farm or 14
215	215	agricultural use of the land results in an average gross income of at least $2,500 from the 15
216	216	parcel or the agricultural land unit. 16
217	217
218	218	(3) The Department may require an owner who submits an affirmation 17
219	219	under paragraph (2) of this subsection to verify the gross income from the land by providing: 18
220	220
221	221	(i) copies of sales receipts or invoices; 19
222	222
223	223	(ii) lease agreements; or 20
224	224
225	225	(iii) other documents required by the Department. 21
226	226
227	227	(4) An affirmation under paragraph (2) of this subsection shall be filed 22
228	228	before July 1 of the taxable year. 23
229	229
230	230	(5) If land that appears to be actively used does not yield an average gross 24
231	231	income of $2,500, the Director shall waive the gross income requirement on finding that: 25
232	232
233	233	(i) the land is leased and the nature of the farm or agricultural use 26
234	234	of the land when related to the amount of the land in farm or agricultural use reasonably 27
235	235	would be expected to yield an average gross income of at least $2,500; 28
236	236
237	237	(ii) the nature of the farm or agricultural use of the land and the 29
238	238	amount of the land in farm or agricultural use reasonably would be expected to yield an 30
239	239	average gross income of at least $2,500 from the agricultural products, if sold, that are 31
240	240	derived from the use of the land; 32
241	241	6 SENATE BILL 661
242	242
243	243
244	244	(iii) a drought or other natural cause has adversely affected the 1
245	245	income–producing capability of the land during a 3–year period; or 2
246	246
247	247	(iv) for a newly established farm or agricultural use, the nature of 3
248	248	the use and the amount of the land in farm or agricultural use reasonably would be expected 4
249	249	to yield an average gross income of at least $2,500 if the use had existed for a 3–year period. 5
250	250
251	251	(6) The Director may grant only the following additional waivers: 6
252	252
253	253	(i) under paragraph (5)(iii) of this subsection, for 1 additional 7
254	254	consecutive 3–year period; and 8
255	255
256	256	(ii) under paragraph (5)(iv) of this subsection, for 1 additional 9
257	257	consecutive 3–year period. 10
258	258
259	259	(7) The gross income requirement of paragraph (2) of this subsection does 11
260	260	not apply if the land is actively used as a family farm unit. 12
261	261
262	262	(8) For purposes of qualifying for the agricultural use assessment under 13
263	263	this section, the following real property is deemed to be a single contiguous parcel: 14
264	264
265	265	(i) parcels that are created or separated by roads, easements, or 15
266	266	other rights–of–way; and 16
267	267
268	268	(ii) land relating to a right–of–way that reverts back to its owner’s 17
269	269	use for purposes of farming. 18
270	270
271	271	(h) (1) Subject to paragraph (2) of this subsection, the following land does not 19
272	272	qualify to be assessed under this section: 20
273	273
274	274	(i) land rezoned to a more intensive use than the use that 21
275	275	immediately preceded the rezoning, if a person with an ownership interest in the land has 22
276	276	applied for or requested the rezoning; 23
277	277
278	278	(ii) land used as a homesite, which means the area of land that is 24
279	279	reasonably related to a dwelling; 25
280	280
281	281	(iii) parcels of land of less than 3 acres that are under the same 26
282	282	ownership excluding the homesite unless: 27
283	283
284	284	1. the land is owned by an owner of adjoining land that is 28
285	285	receiving the farm or agricultural use assessment and is actively used; 29
286	286
287	287	2. the owner receives at least 51% of the owner’s gross 30
288	288	income from the active use; or 31
289	289
290	290	3. the parcels are part of a family farm unit; 32 SENATE BILL 661 7
291	291
292	292
293	293
294	294	(iv) if part of a subdivision plat, parcels of land of less than 10 acres 1
295	295	that are owned by an owner of 5 other parcels of land of less than 10 acres each that are 2
296	296	located in the same county and that are receiving the farm or agricultural use assessment; 3
297	297
298	298	(v) parcels of woodland of less than 5 acres excluding the homesite; 4
299	299	or 5
300	300
301	301	(vi) land that fails to meet the gross income requirement of 6
302	302	subsection (g) of this section. 7
303	303
304	304	(2) No more than 2 parcels of less than 3 acres under the same ownership 8
305	305	may qualify for the agricultural use assessment. 9
306	306
307	307	(i) (1) (i) In this subsection the following words have the meanings 10
308	308	indicated. 11
309	309
310	310	(ii) “Surviving spouse” means the surviving spouse of the property 12
311	311	owner who applied for the waiver under this subsection if the surviving spouse has not 13
312	312	remarried and had a legal interest in the property at the time of the application for the 14
313	313	waiver. 15
314	314
315	315	(iii) “3–year cycle” has the meaning stated in § 8–103 of this title. 16
316	316
317	317	(2) The Director may grant a waiver from the requirements of subsection 17
318	318	(e) or (g) of this section if: 18
319	319
320	320	(i) the property owner is at least 70 years of age; 19
321	321
322	322	(ii) the property owner applies to the Department for a waiver of the 20
323	323	requirements of either subsection (e) or (g) of this section; 21
324	324
325	325	(iii) the land has not changed ownership during the two previous 22
326	326	3–year cycles; and 23
327	327
328	328	(iv) the land has been assessed for at least the two previous 3–year 24
329	329	cycles on the basis of farm or agricultural use under the law or regulations of the 25
330	330	Department that were in effect as of the date of the application. 26
331	331
332	332	(3) The Director may grant a waiver from the requirements of subsection 27
333	333	(e) or (g) of this section if: 28
334	334
335	335	(i) the property owner becomes disabled and is unable to continue 29
336	336	the farm or agricultural use of the land; 30
337	337
338	338	(ii) the property owner applies to the Department for a waiver of the 31
339	339	requirements of either subsection (e) or (g) of this section; 32 8 SENATE BILL 661
340	340
341	341
342	342
343	343	(iii) the property owner engaged in farm or agricultural use activities 1
344	344	on the land prior to the disability; and 2
345	345
346	346	(iv) the land has been assessed for at least the two previous 3–year 3
347	347	cycles on the basis of farm or agricultural use under the law or regulations of the 4
348	348	Department that were in effect as of the date of the application. 5
349	349
350	350	(4) Any waiver granted under this subsection shall be in effect until: 6
351	351
352	352	(i) the transfer of the property; or 7
353	353
354	354	(ii) the later of the death of the property owner who received the 8
355	355	waiver or the death of the surviving spouse. 9
356	356
357	357	(5) The Department may adopt regulations to carry out the provisions of 10
358	358	this subsection. 11
359	359
360	360	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 12
361	361	apply retroactively and shall be applied to and interpreted to affect any condemnation 13
362	362	proceeding initiated on or after January 1, 2024. 14
363	363
364	364	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 15
365	365	October 1, 2025. 16
366	366