(a) Definitions.
Scenic easement shall, for the purpose of this article, be defined to mean a recorded easement creating, imposing or continuing an incorporeal right upon a corporeal right wherein a servitude is placed upon land in private ownership which establishes perpetual control in the grantee to maintain scenic views, natural condition, open spaces, green area, animal refuges or natural habitat or flora and fauna. Such easement shall be created by conveyance and acceptance thereof, under lawful authority in the grantee, to the United States, the state, the county, the Maryland-National Capital Park and Planning Commission or any agency or instrumentality of the aforesaid governmental units established by law.
Editor’s note—The above section is quoted in Abington Center Associates Limited Partnership v. Baltimore County, 115 Md.App. 580, 694 A.2d 165 (1997).
(b) Tax credit generally. A tax credit is hereby permitted to the owner of any land which is certified by the grantee of a scenic easement to be an “open space” or “open area” as defined by subsection (b), section 5-1201, of the Natural Resources article of the Annotated Code of Maryland, 1957 and which is subject to a scenic easement, as defined herein, created by the owner or his predecessors in title in accordance with the basic requirements and standards set forth herein. Such tax credit shall be computed by the director of finance of the county as a percentage of the taxes levied by the county council upon the value of land assessment, exclusive of any improvements thereon, which levy is made to appropriate the general funds of the county.
(c) Basic requirements. To qualify for a tax credit, the following basic requirements must be met:
(1) The property subject to the easement shall not be used for any professional or commercial activities, except such as can be and are in fact conducted from a residential dwelling without alteration of the dwelling; provided, that tracts of land containing in excess of fifty (50) acres may be used for privately owned country clubs, commercial golf courses and golf driving ranges. Agricultural activities, other than timbering, shall be permitted on property subject to such easement.
(2) No advertising signs or billboards shall be displayed or placed upon the land, with the exception of professional name plates and signs larger than two (2) square feet advertising home occupations or products or the sale or lease of the lands.
(3) No mining or industrial activity shall be conducted on the lands.
(4) No tree larger than six (6) inches in diameter and thirty (30) feet in height shall be cut down without the written permission of the grantee or its authorized representative; except, that clearing such land for site improvement, road construction or removing trees for the purpose of protecting utility lines and to eliminate a hazard to persons or property may be exercised without prior permission if no more than ten (10) percent of such trees are to be cut on any acre.
(5) No dump of ashes, trash or any unsightly offensive material shall be placed upon the land; except, that in eroding areas of a drainage system where surface water runoff is destroying the natural ground cover, suitable heavy fill may be so placed as to control and prevent further erosion upon the approval of the grantee, provided such fill is covered by arable soil or humus.
(6) The land shall not be used as a site for any major public utility installations such as electric generating plants, electric power transmission lines, gas generating plants, gas storage tanks, microwave relay stations or telephone exchanges, except as may be approved by the grantee. Nothing in this subsection shall, however, be deemed to prevent the construction or maintenance on, over or under the lands of facilities usual to a residential neighborhood, such as telephone and electric lines, water mains, sewer mains and gas mains, pipes or conduits and necessary related equipment, together with such removal of trees as shall be required for such construction and maintenance.
(d) Standards and categories of credits. If the easement meets the basic requirements set forth above and meets the standards set forth in one of the following two (2) categories, then such property may qualify for the appropriate tax credit:
(1) Underdeveloped land within designated parks or conservation areas.
(A) Amount of Credit. Land subject to an easement meeting the basic requirements, together with the standards set forth in this subsection, may be entitled to a tax credit of up to one hundred (100) percent.
(B) Standards.
(i) Location: The property may be of any size but must be within the boundaries of a park or conservation area as designated on a duly adopted master plan of the Maryland-National Capital Park and Planning Commission.
(ii) Use: Within the boundaries of the scenic easement, no improvement shall be erected or continued other than noncommercial recreational facilities consistent with the preservation of the property in an open and natural state.
(2) Land subject to purchase option.
(A) Amount of Credit. Land subject to an easement meeting the basic requirements, together with the standards set forth in this subsection, may be entitled to a tax credit of up to one hundred (100) percent.
(B) Standards.
(i) Location: The land must be located within park boundaries as designated on a duly adopted master plan of The Maryland- National Capital Park and Planning Commission.
(ii) Use: Such land shall have been made the subject of an option agreement whereby the owner agrees to sell or convey the subject property to any local, county, state or federal government or the Maryland-National Capital Park and Planning Commission in fee simple within a fixed period of time, not exceeding twenty (20) years, at a price less than or equivalent to the fair market value at the time of the execution of the option. Such option agreement shall contain such provisions as may be deemed necessary by the grantee to preserve the land in a natural state or condition.
(e) Determination and duration of tax credit. The tax credit must be allowed as of the taxable year “date of finality” or “semi-annual date of finality,” as defined in Section 1-101 of the Tax-Property Article of the Maryland Code if the Council notifies the Director of Finance that the property, by reason of a conveyance, assignment, deed, or other instrument recorded among the land records of the County, is affected and servient to a scenic easement which:
(1) is irrevocable by its own terms;
(2) creates a perpetual servitude on the land described; and
meets the basic requirements, together with the standards of one of the categories in paragraph (d).
The tax credit authorized under this Article remains in effect for all later tax levies made by the Council.
(f) Valuation, assessment, and condemnation. The valuation and assessment of all property which is entitled to the credit herein allowed shall be made and accomplished in all respects as other real property subject to taxation in the county. In the event such property is even acquired by the exercise of the power of eminent domain, the fair market value of such property shall not be affected by its having been qualified for a tax credit; provided, that if the grantee of the easement purchased the same for a monetary consideration other than or in addition to the tax credit, then in such case the condemnation award shall be reduced by an amount equal to the additional consideration.
(g) Application for tax credit.
(1) The owner of such real property or his duly authorized agent must on or before 60 days before the annual date of finality or semi-annual date of finality, whichever may be applicable, file with the County Council a claim for such tax credit in such form as may be required by the Council. Any application must include a description of the property on which the scenic easement is to be granted and must be signed by all owners, holders of encumbrances, and other parties in interest. The County Council must determine whether the property conforms to and meets the basic requirements and standards of one of the categories provided in paragraph (d). If it does, the applicant must then submit a scenic easement deed and a certificate of title prepared by a member of the bar of the court of appeals of Maryland showing the effect of such easement on the land described therein. Any easement must not be preceded by any prior interest to secure a debt or otherwise which would affect the priority of the easement.
(2) If deemed necessary by the Council, a survey by a registered land surveyor or professional engineer may be required. If required, the survey must show the land described, the location of the improvements thereon, the area of land subject to the easement, and a site location sketch showing its relation to the geographical features which relate to its scenic and open space value. The expense of this survey and the title certificate may be assumed by the grantee or the County Council in its discretion, if a request is made therefor in the original application. The County Council must either accept the scenic easement and grant the tax credit or reject the application and deny the credit. If the Council accepts the easement, the tax credit becomes effective upon recordation of the deed in the land records of the County. The County Council must issue an appropriate notice to be delivered by the landowner to the Director of Finance.
(h) Interpretation. This Article is intended to comply with the intent and purpose of Section 9-208 of the Tax-Property Article of the Maryland Code, and any inconsistency with that Section should be resolved in favor of that Section. If a Court of competent jurisdiction declares any part of this Article legally ineffectual, then the Council intends that the entire Article becomes ineffective. In any event, any tax credit granted under this Article must not be recovered unless that credit was procured by fraud, misrepresentation, or intentional mistake. (Ord. No. 6-193, §§ 1–8; 2010 L.M.C., ch. 49, § 1; 2016 L.M.C., ch. 7, § 2.)
State law reference—Tax credit authorized, Ann. Code of Md., art. 81, § 12E.