Bill No.
31-16
Concerning: Taxation
Urban
Agricultural Tax Credit - Established
Revised: March
7, 2017
Draft No.
_7_
Introduced:
August
2, 2016
Enacted:
March
7, 2017
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: _N'-"o=n=e_---c::_ _ _-'--
Ch. _ _ Laws of Mont. Co. _ __
I
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Councilmember Hucker
Co-Sponsor: Councilmember EIrich
AN
ACT to:
(1)
(2)
(3)
(4)
establish an urban agricultural
tax
credit against real property
tax;
defme an urban agricultural property and an urban agricultural purpose;
establish eligibility for an urban agricultural
tax
credit; and
generally amend the law governing urban agricultural
tax
credits.
By adding
Montgomery County Code
Chapter 52, Taxation
Section 52-110
Boldface
Underlining
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Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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BILL No. 31-16
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Sec. I. Section 52-lID is added as follows:
52-lID.
Urban Agricultural Tax Credit.
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Definitions.
In
this Section:
Gross irzcome
means the revenue received from the sale of products
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grown or raised on the property, including the fair market value of food
products grown Qr raised on the property
donate~an
organization
registered as a charitable organization with the Maryland Secretary of
State.
Urban agricultural property
means real property in a residential
wne
that
IS:
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at least one-half of an acre and not more than
[[~]]
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acres;
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located within 1000 feet of or in
~
[[priority funding area,
as
defined in Md. State Finance and Procurement Code §5-7B-02]]
1ktm
Station Policy Area, as defined in the most recent
Subdivision Staging Policy adopted under Section 33A-15,
including the:
(A)
Bethesda Central Business District;
Friendship Heights:
Glenmont:
Grosvenor:
Rockville Town Center;
Shady Grove;
Silver Spring Central Business District:
Twinbrook;
Wheaton CentraLBusiness District: and
White Flint: and
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au
LO
(D)
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tEl
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used for urban agricultural purposes.
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BILL
No.
31-16
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Urban agricultural purposes
means
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the cultivation of
plants:
fruit~,
vegetables. flowers. and ornamental
the limited keeping and raising of fowlpr bees; or
the practice of aguaculture.
[[~
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crop production activities, including the use of mulch or cover
crops to ensure maximum productivity and minimize runoff and
weed production;
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environmental
mitigation
activities,
including
stormwater
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abatement and groundwater protection;
community
development
activities,
including
recreational
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activities, food donations, and food preparation and canning
classes;
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economIC development activities, including employment and
training opportunities, and direct sales to restaurants and
institutions; and
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(Q)
temporary produce stands used for the sale of produce raised on
the premises. ]]
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Credit required
The Director of Finance must allow each eligible
taxpayer
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credit against County real property taxes due in each tax year
in which the taxpayer is eligible for the credit.
(£)
Eligibility.
[[An
eligible taxpayer must conduct at least
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.f
urban
agricultural purposes on urban agricUltural property.]] A property owner
is eligible for the tax credit each year:
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[[The]]
~
urban agricultural property [[must be]]
used solely
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for urban agricultural purposes, except an individual [[engaged in
crop production on the property]] may also reside on the property;
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BILL
No. 31-16
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the property owner has more
than~OOO
in gross incgme from the
sale ofproducts grown or raised on the urban agricultural property;
and
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the property owner files a timely application for the credit with
proof of eligibility.
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Amount Qjcredit.
The credit must equal 80% of the County property tax
otherwise due on the property.
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Application.
In order to receive the cr(!dit. a [[A]] property owner must
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for the credit with the Office of Agriculture H:mleast 90 days]] on
or before April
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of the tax year [[the beginning
01]]
before the first tax
year the tax credit is sought on
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form containing the information required
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the [l]2irector)) Office of Agriculture. A property owner must
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to continue the credit [[at least 90 days)) on or before [[the]] April 1 of
the tax year before [[beginning
01]]
each subsequent tax year.
Th~
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Director of Finance must determine taxpayer eligibility for the credit
based upon the recommendation from theOffice of Agriculture.
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Term Qjcredit.
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(g)
The term of the credit is
2.
tax years, unless renewed.
A taxpayer may
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to renew the
credit no later than 90 days
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before the expiration of the credit for another
.2.
tax years.
Continuous agricultural use required
It
at any time during the term of
the credit or the renewal of the credit, the property is no longer used for
agricultural purposes:
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the credit granted to the property must be terminated; and
the owner of the property is liable for all property taxes that would
have been due [[during that 5-year term]] if the credit had not been
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BILL
No. 31-16
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granted for any year that the property was not used for agricultural
purposes.
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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).
Appeal.
The Director must take all actions necessary to
ill2J21y
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
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final
decision
b:
the Director denying or terminating the credit to the Maryland
Tax Court within 30 days after receiving
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notice ofdenial or termination
from the Director.
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Sec. 2. 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.
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Sec. 3. 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.
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BILL
No.
31-16
Date
Approved:
Isiah Leggett, County Executive
Date
This is a correct copy ofCouncil action.
Linda M. Lauer, Clerk of the Council
Date
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