Chapter 01. Administration

The agricultural land transfer tax (tax) rates are as follows:

Reduction in Tax. Except as provided in Tax-Property Article, §13–305(b)(2) or (c)(4), Annotated Code of Maryland, the agricultural land transfer tax is reduced by:

In addition to the agricultural land transfer tax imposed under this subtitle, certain counties may impose county agricultural land transfer tax.

In addition to the agricultural land transfer tax, a surcharge in an amount equal to 25 percent of the tax is imposed on an instrument of writing that transfers title to agricultural land, except for an instrument of writing that transfers property of 2 acres or less to be improved to a child or grandchild of the owner.

Under Tax-Property Article, §13-304, Annotated Code of Maryland, the supervisor is required to deduct from the consideration payable for the instrument of writing the “total value”, as defined in Tax-Property Article, §13-301(d), Annotated Code of Maryland, of any improvement on the property before applying the applicable tax rate and surcharge. For this purpose, the supervisor shall deduct only the total value of any structure or other item that is separately assessed on the property's assessment worksheet. For example, a 5-acre parcel transfers for a consideration of $250,000. It is improved with an outbuilding that has a separately itemized value of $175,000 on the property's assessment worksheet. The parcel is also improved with certain site improvements — a driveway, a well, a septic system, and sidewalks — which are all included in the $50,000 land value portion on the assessment worksheet, but are not set out on the worksheet with a separate value for each item. The tax and surcharge are calculated as follows:

Under Tax-Property Article, §13-304, Annotated Code of Maryland, the supervisor is required to deduct from the consideration payable for the instrument of writing the “total value”, as defined in Tax-Property Article, §13-301(d), Annotated Code of Maryland, of any land not subject to the tax and surcharge before applying the applicable tax rate and surcharge. For example, a 10-acre parcel transfers for a consideration of $500,000. One acre of that parcel is a homesite assessed at $100,000 that is not subject to the tax and surcharge. The tax and surcharge are calculated as follows:

Both §§A and B of this regulation may apply in the same transaction. For example, a 10-acre parcel transfers for a consideration of $500,000. It is improved with a dwelling that has a separately itemized value of $175,000 on the property's assessment worksheet. The parcel is also improved with certain site improvements — a driveway, a well, a septic system, and sidewalks — which are all included in the land value portion on the assessment worksheet, but are not set out on the worksheet with a separate value for each item. It also includes a 1-acre homesite assessed at $100,000 that is not subject to the tax and surcharge. The tax and surcharge are calculated as follows:

The supervisor shall calculate the tax and surcharge, and the body of the written instrument conveying title shall be stamped or electronically noted with the local tax collecting authority’s verification of the amount of tax and surcharge, if any, due. The local tax collecting authority shall collect the tax and surcharge before the supervisor processes the instrument.

The agricultural land transfer tax and surcharge do not apply to an instrument of writing that transfers title to agricultural land that was previously transferred by an instrument of writing that was subject to the agricultural land transfer tax.

Discontinuing or failing to maintain an agricultural activity on the land;

Constructing nonagricultural improvements or nonagricultural site improvements on the land;

Transferring part of the land so that the remaining land no longer qualifies for agricultural use assessment;

Developing a residential building site on the land;

Subdividing the land so that it no longer qualifies for agricultural use assessment; and

Rezoning the land under Tax-Property Article, §8-209(h), Annotated Code of Maryland.

General Rule. Except as provided in §B of this regulation, a person appeals the imposition of the tax by first paying the tax. The person then files a written request for refund with the supervisor for the county where the tax was paid. After the person is afforded an opportunity to be heard, the supervisor notifies the person in writing of the supervisor's determination regarding the refund request, which the person may appeal to the Maryland Tax Court under Tax-Property Article, §14-512(d), Annotated Code of Maryland. A final order of the Tax Court may be appealed to the circuit court under Tax-General Article, §13-532, Annotated Code of Maryland.

Declaration of Intent Violation.