By Carlton Huntley, JD, LLM, Checkpoint News
Maryland Governor Wes Moore signed legislation that changes the eligibility criteria and procedures for terminating or extending a property tax credit for certain urban agricultural properties. (L. 2026, H359 (c. 769), effective 06/01/2026, and applicable to all taxable years beginning after 06/30/2026.)
Credit eligibility
“Urban agricultural property” means real property used for urban agricultural purposes that is not assessed as agricultural land under state law (i.e., previously, that is at least one-eighth of an acre and not more than five acres and located in a priority funding area).
“Urban agricultural purposes” have been clarified and expanded to include: (1) indoor and outdoor crop production activities, including the use of mulch or cover crops to ensure maximum productivity and minimize runoff and weed production; production of value-added agricultural products; beekeeping; raising livestock; composting; and hydroponics and other soilless or controlled-environment crop production methods; (2) environmental mitigation activities including pollinator habitat creation and maintenance; (3) produce stands used for the sale of produce raised on the premises (previously, only temporary produce stands used for the sale of produce raised on the premises); and (4) agricultural education and agritourism activities.
Terminating and extending tax credit
If the jurisdiction granting the tax credit determines that the tax credit is ineffective in promoting urban agricultural purposes, the jurisdiction granting a tax credit may terminate the tax credit if it provides the public notice of the termination of the credit at least one year in advance; and the opportunity for comment and appeal. Jurisdictions may prioritize renewals of the credit based on the specific priorities of the individual jurisdiction.
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