(a) Definitions. In this Section:
Gross income means the revenue received from the sale of products grown or raised on the property, including the fair market value of food products grown or raised on the property donated to an organization registered as a charitable organization with the Maryland Secretary of State.
Urban agricultural property means real property in a residential zone that is:
(1) at least one-half of an acre and not more than 3 acres;
(2) located within 1000 feet of or in a Metro Station Policy Area, as defined in the most recent Growth and Infrastructure Policy adopted under Section 33A-15, including the:
(A) Bethesda Central Business District;
(B) Friendship Heights;
(C) Glenmont;
(D) Grosvenor;
(E) Rockville Town Center;
(F) Shady Grove;
(G) Silver Spring Central Business District;
(H) Twinbrook;
(I) Wheaton Central Business District; and
(J) White Flint; and
(3) used for urban agricultural purposes.
Urban agricultural purposes means
(1) the cultivation of fruits, vegetables, flowers, and ornamental plants;
(2) the limited keeping and raising of fowl or bees; or
(3) the practice of aquaculture.
(b) Credit required. The Director of Finance must allow each eligible taxpayer a credit against County real property taxes due in each tax year in which the taxpayer is eligible for the credit.
(c) Eligibility. A property owner is eligible for the tax credit each year:
(1) the urban agricultural property is used solely for urban agricultural purposes, except an individual may also reside on the property;
(2) the property owner has more than $5000 in gross income from the sale of products grown or raised on the urban agricultural property; and
(3) the property owner files a timely application for the credit with proof of eligibility.
(d) Amount of credit. The credit must equal 80% of the County property tax otherwise due on the property.
(e) Application. In order to receive the credit, a property owner must apply for the credit with the Office of Agriculture on or before April 1 of the tax year before the first tax year the tax credit is sought on a form containing the information required by the Office of Agriculture. A property owner must apply to continue the credit on or before April 1 of the tax year before each subsequent tax year. The Director of Finance must determine taxpayer eligibility for the credit based upon the recommendation from the Office of Agriculture.
(f) Term of credit.
(1) The term of the credit is 5 tax years, unless renewed.
(2) A taxpayer may apply to renew the credit no later than 90 days before the expiration of the credit for another 5 tax years.
(g) Continuous agricultural use required. If, at any time during the term of the credit or the renewal of the credit, the property is no longer used for agricultural purposes:
(1) the credit granted to the property must be terminated; and
(2) the owner of the property is liable for all property taxes that would have been due if the credit had not been granted for any year that the property was not used for agricultural purposes.
(h) Contiguous lots. A property owner may combine 2 or more contiguous subdivision lots under common ownership into one property to satisfy the minimum lot size for an urban agricultural property in subsection (a).
(i) Appeal. The Director must take all actions necessary to apply the credit to each eligible taxpayer who applies for the credit and is certified as eligible by the Office of Agriculture. A taxpayer may appeal a final decision by the Director denying or terminating the credit to the Maryland Tax Court within 30 days after receiving a notice of denial or termination from the Director. (2017 L.M.C., ch. 5, §1; 2017 L.M.C., ch. 12, §1; 2021 L.M.C., ch. 3, §1.)
Editor’s note—2017 L.M.C., ch. 5, § 2, states: Evaluation. The Director must submit a report to the Executive and the Council on or before January 1, 2020 evaluating the effectiveness of the tax credit in promoting urban agricultural purposes.
2017 L.M.C., ch. 5, § 3, states: Transition. Notwithstanding subsection (e), the deadline to apply for the credit for the tax year beginning on July 1, 2017 must be extended to September 1, 2017.