Tax - Property (GTP) — Title 8. Valuation and Assessment

land that is actively devoted to farm or agricultural use, assessed under § 8-209 of this title;

marshland, assessed under § 8-210 of this title;

woodland, assessed under § 8-211 of this title;

land of a country club or golf course, assessed under §§ 8-212 through 8-217 of this title;

land that is used for a planned development, assessed under §§ 8-220 through 8-225 of this title;

rezoned real property that is used for residential purposes, assessed under §§ 8-226 through 8-228 of this title;

operating real property of a railroad;

operating real property of a public utility;

property valued under § 8-105(a)(3) of this subtitle;

conservation property, assessed under § 8-209.1 of this title; and

all other real property that is directed by this article to be assessed.

stock in business;

distilled spirits;

operating personal property of a railroad;

operating personal property of a public utility that is machinery or equipment used to generate electricity or steam for sale;

all other operating personal property of a public utility;

machinery and equipment, other than operating personal property of a public utility, that is used to generate:

all other personal property that is directed by this article to be assessed.

In this section the following words have the meanings indicated.

“New statewide value” means the phased in value of all real property subject to property tax on January 1 preceding any taxable year, excluding the phased in value of real property assessed for the 1st time during the calendar year beginning on that January 1.

“Phased in value” means for the 1st, 2nd, or 3rd year of a 3-year cycle:

“3-year cycle” means a continuous series of 3 calendar year periods beginning for each period with the 1st calendar year after the calendar year in which a physical inspection of real property is made under § 8-104(b) of this subtitle.

Except as provided in this subsection, the assessment of real property is its phased in value.

The assessment of the real property described in § 8-102(b) of this subtitle is its phased in use value.

The assessment of the operating real property described in § 8-108(c) of this subtitle is its value.

The assessment of the operating real property described in § 8-109(c) of this subtitle is its value.

the land; and

the improvements on the land.

Notwithstanding a revaluation under subsection (c) of this section, the Department or supervisor shall value all real property once in every 3–year cycle based on a review of the real property under § 2–203 of this article.

The date of finality for real property that is valued under this subsection is the January 1 immediately before the 1st taxable year to which the assessment based on the new value is applicable.

In any year of a 3–year cycle, real property shall be revalued if any of the factors listed below causes a change in the value of the real property:

When real property is revalued under this subsection, the Department or supervisor shall:

The Department or supervisor shall revalue real property under paragraph (1)(i), (ii), (iv), (v), and (vi) of this subsection on the semiannual date of finality. The revaluation shall be effective for the taxable year beginning on the semiannual date of finality, if the notice under this title is sent no later than 30 days after the semiannual date of finality.

The Department or supervisor shall revalue real property under paragraph (1)(iii) of this subsection on the date of finality, semiannual date of finality, or quarterly date of finality following the substantial completion of the improvements to land.

The local agency responsible for zoning shall provide the supervisor of assessments a list of each zoning classification change within 30 days of the approval of the change.

The list shall identify any zoning classification change initiated or requested by the owner of the property or anyone having an interest in the property.

Except for land that is actively devoted to farm or agricultural use, the supervisor:

For income producing single–family residential real property, the supervisor may value the property by using the same methods that are used for single–family residential real property that is owner–occupied.

The supervisor shall notify each owner of income producing real property to submit, under oath, on or before May 15 of each year, a current:

For income producing real property that has a value in excess of $5,000,000 as listed on the assessment roll, the supervisor shall designate properties for which the owner must provide income and expense information or be subject to a penalty under subsection (e) of this section for failure to provide the information.

For income producing real property that is designated under paragraph (2) of this subsection, the supervisor shall:

For income producing real property that has a value in excess of $5,000,000 as listed on the assessment roll that is designated under subsection (b)(2) of this section, if the income and expense statement required under subsection (b) of this section is not received by May 15, the Department shall notify the owner that the statement has not been received and that if the statement is still not received by June 15, the penalty specified in subsection (e) of this section will be assessed.

The Department shall send the notice required under paragraph (1) of this subsection to the owner by:

For property other than the property described in paragraph (1) of this subsection, upon request, an extension of up to 30 days may be granted by the supervisor for the filing required by subsection (b) of this section.

This subsection applies only to income producing real property that has a value in excess of $5,000,000 as listed on the assessment roll that is designated under subsection (b)(2) of this section.

If an owner of income producing real property fails to submit income and expense information as required by subsection (b) of this section, by June 15, the supervisor shall assess on the owner of the real property a penalty of $100 per day up to a maximum equal to 0.1% of the value of the property listed on the assessment roll.

The supervisor shall notify the collector of the county in which the property is located of assessment of a penalty.

The collector shall collect the penalty imposed under this subsection and shall remit the penalty to the State Comptroller.

The penalty imposed under this subsection may be waived by the supervisor for good cause.

If the penalty imposed under this subsection is a direct “pass-through” to a lessee, the lessee shall have a right to recover that amount from the owner.

the earning capacity of the operating unit; and

all other factors relevant to a determination of the value of the operating unit.

The value allocated to this State shall be divided into an operating real property value and an operating personal property value, as determined by the Department.

The assessment of operating real property is the value of operating real property less the assessment of operating real property, if any, that is exempt by law from property tax.

The assessment of operating personal property is the value of operating personal property, less the assessment of operating personal property, if any, that is exempt by law from property tax.

Operating land of a railroad is valued and assessed by the Department as part of the operating unit and is not valued and assessed by the supervisor.

Returns, notices, and appeals of operating property assessments shall be administered pursuant to the sections of this article governing personal property assessment.

If operating property is located permanently in more than 1 county or municipal corporation, the Department shall apportion the assessment of that operating property among the counties and municipal corporations where the operating property is located.

If operating property is not located permanently in a county or a municipal corporation, the Department shall apportion the assessment of that operating property among the counties and municipal corporations on the basis of the ratio of the all track mileage, excluding trackage rights, of the railroad operated in each county and any municipal corporation, to the total of all track mileage, excluding trackage rights, operated in this State.

the earning capacity of the operating unit; and

all other factors relevant to a determination of value of the operating unit.

From the value allocated to this State under subsection (b) of this section, the Department shall deduct:

Operating land of a public utility is valued and assessed by the Department as part of the operating unit and is not valued and assessed by the supervisor.

The provisions of this subsection are not intended to alter the law as codified in former Article 81 of the Code that was in effect as of January 31, 1986.

Returns, notices, and appeals of operating property assessments shall be administered pursuant to the sections of this article governing personal property assessments.

In determining whether to classify a company as a public utility, the Department shall consider and evaluate whether the company:

Notwithstanding a company’s failure to meet all of the criteria under paragraph (1) of this subsection, the Department may classify the company as a public utility if the Department determines that the company predominantly meets the criteria.

In this section the following words have the meanings indicated.

“Fair average value” means the average of the fair value of stock in business for the number of months of a year in which the stock in business was in existence.

“Fair value” means the lesser of the cost or the value of stock in business.

“Stock in business”:

In this section the following words have the meanings indicated.

“Distiller” includes:

“Fair value” means the lesser of:

Distilled spirits shall be valued at the fair value of the spirits on January 1 of the year in which the report is made.

The value of the same distilled spirits may not be reported more than 1 time in any period of 12 months.

the supports for the hoophouse are affixed to the land with cement or similar material; or

the hoophouse is placed on a cement or other foundation.

information required to be included in the report to be filed under § 11-101 of this article by April 15 following the date of finality; or

if a report is not filed or is incomplete, any available information that the Department has.

may not automatically eliminate a reduction in the assessment of the property that was granted by a property tax assessment appeal board or the Maryland Tax Court; and

may eliminate a reduction in the assessment of the property granted by a property tax assessment appeal board or the Maryland Tax Court if the specific reason for the reduction no longer applies.

maintain a readily available source of food and dairy products close to the metropolitan areas of the State;

encourage the preservation of open space as an amenity necessary for human welfare and happiness; and

prevent the forced conversion of open space land to more intensive uses because of the economic pressures caused by the assessment of the land at rates or levels incompatible with its practical use for farming.

be maintained at levels compatible with the continued use of the land for farming; and

not be affected adversely by neighboring land uses of a more intensive nature.

Except as provided in paragraph (4) of this subsection, the Department shall establish in regulations criteria to determine if land that appears to be actively used for farm or agricultural purposes:

The criteria shall include:

the Secretary of Agriculture;

officials of the State who are knowledgeable in agriculture;

representatives of the agricultural community;

officials of counties and municipal corporations; and

other persons as determined by the Director.

In this subsection the following words have the meanings indicated:

In determining if a parcel of land of less than 20 acres, or not zoned for agricultural use, is actively used, the Department may require the owner of the land to affirm, under oath, on a standard form provided by the Department that the farm or agricultural use of the land results in an average gross income of at least $2,500 from the parcel or the agricultural land unit.

The Department may require an owner who submits an affirmation under paragraph (2) of this subsection to verify the gross income from the land by providing:

An affirmation under paragraph (2) of this subsection shall be filed before July 1 of the taxable year.

If land that appears to be actively used does not yield an average gross income of $2,500, the Director shall waive the gross income requirement on finding that:

The Director may grant only the following additional waivers:

The gross income requirement of paragraph (2) of this subsection does not apply if the land is actively used as a family farm unit.

For purposes of qualifying for the agricultural use assessment under this section, the following real property is deemed to be a single contiguous parcel:

Subject to paragraph (2) of this subsection, the following land does not qualify to be assessed under this section:

No more than 2 parcels of less than 3 acres under the same ownership may qualify for the agricultural use assessment.

The Director may grant a waiver from the requirements of subsection (e) or (g) of this section if:

The Director may grant a waiver from the requirements of subsection (e) or (g) of this section if:

Any waiver granted under this subsection shall be in effect until:

The Department may adopt regulations to carry out the provisions of this subsection.

to the Maryland Agricultural Land Preservation Foundation;

to the Maryland Environmental Trust;

to a land trust as defined in § 3–2A–01 of the Natural Resources Article; or

under another public land conservation or preservation program.

In this section the following words have the meanings indicated.

“Agreement” means an agreement made under subsection (c) of this section.

“Program” means the forest conservation and management program.

encourage the preservation or development of land for productive woodland purposes;

increase the income of persons in the State from the sale of timber;

prevent flooding of land and the loss of the State’s soil;

provide wooded areas for the use and enjoyment of all individuals in the State; and

promote the welfare and assets of the State.

The owner of land that is subject to an agreement shall promptly notify:

The requirements applicable to an owner under paragraph (1) of this subsection shall apply to:

Except for an agreement made on or before July 1, 1984, an agreement shall be for at least 15 years.

Consecutive agreements shall be deemed a single agreement from the date of the original agreement.

the buyer assumes the obligation of the agreement;

the agreement is transferred to the buyer by the landowner or the landowner’s successors, heirs, or assigns; and

property tax on an assessment under subsection (i) of this section is not due.

Woodland shall be reassessed when:

If only part of the land subject to an agreement is conveyed or only part of the timber is harvested, the reassessment shall be only for the part of land conveyed or the part of land on which the timber is harvested.

Subject to the provisions of this subsection and any pertinent local laws, a woodland owner who has 50 or more contiguous acres subject to an agreement may subdivide the property and transfer to a child of the owner a building lot for the purposes of constructing a dwelling unit on the lot without liability for prior taxable years under subsection (j) of this section.

A building lot transferred under this subsection may not exceed:

A woodland owner may not transfer under this subsection more than one building lot for every 10 acres subject to the agreement or more than one building lot to each child of the owner.

A modification of an agreement under this subsection shall be recorded in each county where the building lot is located under §§ 3–102 and 3–103 of the Real Property Article. The woodland owner shall pay for recording the modification.

A modification of an agreement under this subsection is not subject to a penalty under subsection (l) of this section.

Land that is removed from an agreement by eminent domain or other involuntary proceeding is not subject to:

If only part of the land subject to an agreement is removed by eminent domain or other involuntary procedure the supervisor shall:

has at least 100 members, who pay dues averaging $50 or more annually for each member;

restricts use of its facilities primarily to members, families, and guests; and

is located on at least 50 acres of land, on which is maintained:

In this section the following words have the meanings indicated.

“Agreement” means an agreement made under subsection (b) of this section.

“Assessment rate index” means the percentage, if any, by which the amount of the State assessable base for the taxable year exceeds the average annual amount of the State assessable base in the immediately preceding assessment cycle.

“State assessable base” means the total assessable base, as determined by the Supervisor of Assessments, of all real property in the State subject to taxation.

If the land of a country club or golf course that meets the requirements of § 8–212 of this subtitle has a greater market value than its value when used as a country club or golf course, the land shall also be assessed on the basis of the greater value.

Except as provided under § 8–216 of this subtitle, the property tax payable by a country club or golf course under this section is based on the assessment of the land under paragraph (1) of this subsection.

If an assessment is made on the greater value under paragraph (2) of this subsection, the assessment records for the country club or golf course shall record the assessment under paragraphs (1) and (2) of this subsection.

Any assessment of the land of a country club or golf course under this section is effective on the date of finality next following the date of an agreement.

An agreement shall be for at least 10 consecutive years or for a longer period as determined by the country club or golf course and the Department.

An agreement may be extended, but only in increments of at least 5 years.

A person claiming to be aggrieved by discrimination prohibited by § 8-214 of this subtitle may file a sworn, written complaint with the Attorney General.

The Attorney General or the Attorney General’s designee shall investigate all written complaints.

The Attorney General may initiate an investigation of a suspected violation.

If there is reasonable cause for believing that a country club or golf course has practiced or is practicing discrimination in violation of § 8-214 of this subtitle, the Attorney General or the Attorney General’s designee shall hold a hearing to determine the existence of the alleged violation.

The Attorney General or the Attorney General’s designee may:

If a country club or golf course fails to comply with an order issued under subsection (c) of this section, the country club or golf course may not be assessed as a country club or golf course under § 8-213 of this subtitle until the Attorney General determines that the country club or golf course complies with the order.

A country club or golf course that has failed to comply with an order issued under subsection (c) of this section shall be assessed as if there were no agreement under § 8-213 of this subtitle. However, the country club or golf course is not liable for the unpaid taxes described in § 8-216 of this subtitle.

If a country club or golf course fails to provide information requested by the Attorney General to investigate a charge of discrimination, the Attorney General may request that the circuit court for the county in which the country club or golf course is located issue a subpoena for the information.

If the circuit court finds that the information sought relates to proof of discrimination by a country club or golf course, the court shall issue a subpoena for the information.

After a complaint has been filed, the Attorney General may bring an action to obtain a temporary injunction.

The action shall be brought in the circuit court for the county where the country club or golf course which is the subject of the alleged discrimination is located.

Except as provided in § 8–217 of this subtitle, a property tax is due, for the amount of the difference, if any, between the assessment of the land under § 8–213(c)(1) and (2) of this subtitle, when before the end of an agreement made under § 8–213 of this subtitle any land subject to the agreement:

The property tax shall be calculated at the tax rate applicable for each taxable year.

Except as provided in paragraph (2) of this subsection, a property tax is due for each taxable year beginning with the first taxable year in which the land was assessed under § 8–213(c)(1) or (2) of this subtitle and ending with the taxable year in which the property tax becomes due under subsection (a) of this section.

The period for which the property tax is due may not exceed 10 years.

Except as provided by § 8–217 of this subtitle, if during the 10–year period following the year in which an agreement made under § 8–213 of this subtitle is ended, the land subject to the agreement is conveyed to a new owner, a deferred property tax is due.

The deferred property tax is due for a 10–year period ending with the year in which the land subject to an agreement is conveyed. The amount of the deferred property tax is the difference, if any, between the assessment of the land under § 8–213(c)(1) and (2) of this subtitle.

In this section the following words have the meanings indicated.

“Easement” means an interest in land that:

“Natural open character” means an area of great natural scenic beauty, open space, natural conditions, or present use that:

obtain economic and environmental benefits;

relieve economic pressures that result from the assessment of planned development land at levels inconsistent with planned development;

aid the assembly of land for planned development land;

facilitate cooperation among landowners; and

permit holding of planned development land in an undeveloped status for orderly and staged improvement, particularly for the development of new communities.

permits development only under the plans listed in item (1) of this section;

requires a land use and comprehensive site development or subdivision plan, approved before development by the county or municipal corporation that has planning or zoning jurisdiction over the land, if those plans consider:

requires the owner of the land to pay for or provide the following public facilities that are usually paid for or provided by a county or municipal corporation or a unit of the county or municipal corporation under other zoning classifications:

Subject to paragraph (2) of this subsection, if the supervisor finds that the land meets the criteria of § 8–221 of this subtitle, the land shall be assessed at the rate equal to farm or agricultural land under § 8–209 of this subtitle.

In Howard County, for Howard County property tax purposes, a planned development land assessment is available for qualified land for no more than 20 consecutive years beginning with the taxable year following the calendar year in which the land initially qualifies under paragraph (1) of this subsection.

If a part of any land that meets the requirements of § 8–221 of this subtitle is subdivided by a recorded plat or is improved by the construction of permanent buildings, the assessment of that part under § 8–222 of this subtitle shall be terminated, and the part shall be assessed as provided under § 8–104 of this title.

The remaining part of the land described under paragraph (1) of this subsection may continue to be assessed under § 8–222 of this subtitle if the remainder meets all of the requirements of § 8–221 of this subtitle other than the 500–acre requirement.

If a part of any land that meets the requirements of § 8–221 of this subtitle is rezoned at the request of the owner to a zoning classification that does not meet the requirements of § 8–221 of this subtitle, the assessment of that part under § 8–222 of this subtitle shall be terminated and the part shall be assessed at the greater value determined under § 8–223 of this subtitle.

When a property is assessed under paragraph (1) of this subsection, a deferred property tax is due for the amount of the difference, if any, between the assessment of the land under § 8–222 of this subtitle and the assessment under § 8–223 of this subtitle for each year in which the assessment was determined under § 8–222 of this subtitle.

The total of the deferred property tax due may not exceed 4% of the assessment under § 8–223 of this subtitle in effect at the time of rezoning under paragraph (1) of this subsection.

The proceeds of the deferred property tax are collected and distributed as provided by Title 13 of this article.

In this section and §§ 8–227 and 8–228 of this subtitle the following words have the meanings indicated.

“Dwelling” means a house that is used as the principal residence of a homeowner and the lot or curtilage on which the house is erected.

“Homeowner” means an individual who:

“Legal interest” includes an interest in a dwelling:

“Rezoned real property” means a dwelling that:

For property to be assessed as rezoned real property under this section and §§ 8-226 and 8-228 of this subtitle:

For good cause the Department may accept an application after April 1 but on or before May 1 of the taxable year preceding the taxable year for which the use assessment is sought.

The county shall assist in the verification of the initiation of zoning changes that occurred prior to July 1, 1990.

Rezoned real property shall be assessed based upon its residential use and not upon a use allowed under a commercial or industrial zoning classification.

Rezoned real property shall be treated as residential real property for property assessment purposes, including the grant of property tax credits or other benefits provided under this article or local law.

eligibility requirements;

filing deadlines;

applicable limitations; and

contact information for application forms.

The penalty due is calculated based on the difference between the assessment of the property based on its residential use as rezoned real property and the assessment required under subsection (a) of this section multiplied by the sum of the State, county, and municipal tax rates for the current tax year.

The total penalty due is equal to the amount determined in paragraph (1) of this subsection multiplied by the number of years, not exceeding 3, for which the homeowner received a residential use assessment under this section and §§ 8-226 and 8-227 of this subtitle.

Annual interest at the rate of 12% shall apply to the penalty calculated under this subsection.

occupied by the owner; and

used as the principal place of residence of the owner.

flooding;

shifting land masses; or

unstable soils or soil fault conditions.

the building is used as a dwelling; and

the change to the building is required for the health or medical condition of the resident of the building.

a statement from a licensed physician showing sufficient evidence of medical necessity or a substantial physical inconvenience of the resident; and

annually an affirmation that the resident lives in the building.

criteria to determine what is sufficient evidence of a health or medical condition;

the form of the annual affirmation of residence; and

criteria to determine what changes are required for the health or medical condition.

is used or can be used for residential purposes; and

is permanently attached to land or connected to utility, water, or sewage facilities.

is unoccupied and for sale; or

is located temporarily in a rented space in a trailer park or mobile home court.

means an expenditure to replace original components of a building to maintain the physical character of the building in its current condition; and

includes:

constructed:

constructed in accordance with specifications published by the United States Office of Civil and Defense Mobilization for a shelter type or design approved by that office to provide protection from radiation fallout; and

located on land occupied for residential purposes by not more than 2 families.

A radiation fallout shelter that is not used for any other purpose may not be assessed to the owner of the property on which the shelter is located.

Any other structure used to provide protection from radiation fallout shall be assessed on the basis of the difference in the value of the improvements to the real property as actually constructed and the value if constructed of materials similar to the residence on the property.

notifies the supervisor; and

states that the condition affects the value of the real property; and

located on privately owned land;

used by the public; and

licensed under Title 5 of the Transportation Article.

an increase or decrease in an existing real property value;

a change in the classification of the real property;

establishment of an initial real property value;

a decision on an assessment appeal or a petition to change an existing real property value or classification; and

a revaluation or reclassification, if a valuation or classification has been appealed but not finally determined.

the amount of the current value;

the amount of the proposed value including a statement that the total amount of the proposed value is the value for purposes of appeal;

the amount of the proposed value that will be the basis for the assessment in each year of the 3–year cycle;

a statement:

a statement that valuation records are available as provided by § 14–201 of this article.

the amount of the current value;

the amount of the proposed or final value;

the amount of the proposed value that is the basis for the assessment in the applicable years of the 3–year cycle;

a statement:

a statement that valuation records are available as provided by § 14–201 of this article.

the property has been transferred for consideration to new ownership during the previous calendar year;

the zoning classification of the property changed during the current triennial cycle or the previous calendar year, whichever is earlier, resulting in an increased value of the property;

a substantial change occurred in the use or character of the property during the current triennial cycle or the previous calendar year, whichever is earlier;

extensive improvements have been made on the property during the current triennial cycle or the previous calendar year, whichever is earlier, as provided in § 8–104(c)(1)(iii) of this title;

due to an error in calculating or measuring improvements on the property the assessment for the previous taxable year was clearly erroneous; or

the assessment has been decreased.

The notice required by § 8–401 of this subtitle shall be served on the owner or other appropriate person:

Though not a condition precedent to the validity of the value in the notice, if the mailing or e–mail address of an owner not residing at the real property is known, the notice shall be sent to that address.

reflect a mutually convenient hearing schedule; and

provide for some Saturday and evening hearings as required.

appear in person or by an agent; and

present any evidence at or prior to the hearing concerning the real property.

Except as provided in paragraph (2) of this subsection, if an appeal is filed under § 8–404 of this subtitle or if a petition for review is filed, the supervisor shall give written notice of the final value or classification determined by the supervisor to the person who has appealed or filed a petition for review.

For a dwelling as defined in § 9–105 of this article, the supervisor shall give written notice no later than 60 days after the hearing under § 8–405 of this subtitle.

sending a copy of the notice by:

if the owner is a nonresident of the State, or unknown or cannot be found, delivering a copy of the notice to a person in possession of the personal property.

reflect a mutually convenient hearing schedule; and

provide for some Saturday and evening hearings as required.

appear in person or by an agent; and

present any evidence at or prior to the hearing to substantiate the value or classification claimed for the personal property.

is subject to assessment for property tax purposes; and

has not been assessed.

When escaped property is assessed it is placed on the assessment roll and tax roll and is subject to property tax for:

The county tax imposition for each county or municipal corporation tax imposition for each municipal corporation shall be deemed to have covered all property that was not assessed but which should have been assessed for the year that any county or municipal corporation tax was imposed.

the owner failed to report accurately the cost or other information as to the escaped property; and

the failure to report accurately caused the escaped property to be assessed at less than its value.

Notice of the assessment of escaped property under § 8-417(d) of this subtitle and the imposition of any penalty under § 14-705 of this article shall be given as provided by § 14-402 of this article.

The notice shall separately state:

In this subsection, “appropriate official” means:

Notwithstanding failure to file a protest of an assessment and after the date of finality for an assessment, the appropriate official may issue an order decreasing or abating an assessment:

The Department may audit any personal property assessment after the assessment is made.

If, as a result of the audit, the Department determines that the assessment is:

If action is taken under paragraph (2) of this subsection, the Department shall send a notice of assessment to the owner by:

The notice may be appealed as provided by Title 14, Subtitle 5 of this article.

the name and address of the owner;

a brief description of the property; and

the value and assessment of the property.