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:
March
15,2017
Effective:
June
14,2017
Sunset Date:
~No!:2n.5e,--:_---=-:-.::::--
Ch.
Laws of lVIont. Co.
2017
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Councihnember Hucker
Co-Sponsor: Councihnember Eirich
AN
ACT to:
(1)
(2)
(3)
(4)
establish an urban agricultural
tax
credit against real property tax;
define 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-lID
Boldface
Underlining
[Single boldface brackets]
DoubleJJnderlining
[[Double boldface brackets]]
*
*
*
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
1
Sec. 1. Section 52-11D is added as follows:
52-11D. Urban Agricultural Tax Credit.
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Definitions.
In
this Section:
Gros§ income
means the revenue received from the sale of
pro~
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.
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Urban agricultural property
means real property in a residential zone that
IS:
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ill
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at least one-half of an acre and not more than
located within 1000 feet of or in
~
[[~])
1
acres;
[[priority funding area, as
defmed in Md. State Finance and Procurement Code §5-7B-02]]
Metro Station Policy Area, as defined in the most recent
Subdivision Staging Policy adopted under Section 33A-15,
including
the~
(A:l
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Bethesda Central Business District;
Friendship Heights;
Glenmont;
Grosvenor:
Rockville Town Center:
Shady Grove:
Silver Spring Central Business District
Twinbrook:
Wheaton Central Business District: and
White Flint: and
ml
(Q
(D)
£E)
(E)
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(ill
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LID
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ill
used for urban agricultural purposes.
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BILL No.
31-16
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Urban agricultural purposes
means
ill
the cultivation of fruits. vegetables. flowers. and ornamental
plants;
!2J
£l}
the limited keeping and raising of fowl or 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
abatement and groundwater protection;
ill
community
development
activities,
including
recreational
activities, food donations, and food preparation and canning
classes;
ill
economIC development activities, including employment and
training opportunities, and direct sales to restaurants and
institutions; and
ill
(hl
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
~
credit against County real property taxes due in each tax year
in which the taxpayer is eligible for the credit.
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(£1
Eligibility.
[[An eligible taxpayer must conduct at least
2.
urban
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agricultural purposes on urban agricultural property.]] A property owner
is
eligjbl~
for the
tax
credit each year:
ill
[[The]] the urban agricultural property [[must be]]
is
used solely
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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(2l
the property owner has more than $5000 in gross income from the
sale ofproducts grown or raised on the urban agri£yltural property;
and
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@
the property owner files a timely application for the credit with
proof of eligibility.
Amount qfcredit.
The credit must equal 80% of the County property
tax
otherwise due on the property.
W
Application.
In
order to receive the credit. a [[An property owner must
rumlY
for the credit with the Office of Agriculture
[[ill
least 90 days]]
QU
or before April } of the tax year [[the beginning ofl] before the first tax
year the
tax
credit is sought on
~
form containing the information required
by the [[Director]} Office of Agriculture. A property owner must
mmlY
to continue the credit [[at least 90 days]] on or before [[the]]
APril}
of
the tax year before [[beginning ill]] each subsequent
tax
year.
The
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Director of Finance must determine taxpayer eligibility for the credit
based upon the recommendation from the Office of Agriculture.
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Term qfcredit.
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(g)
The term ofthe credit is
2
~
years, unless renewed.
A taxpayer may
.rumlY
to renew the credit no
later than 90 days
before the expiration ofthe credit for another
.2.
tax
years.
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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 ofthe property is liable for all property taxes that would
have been due [[during that 5-year term]] ifthe 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
p1Jll?oses.
(h)
Contiguous lots.
A property oWrter may combine 2 or more contiguous
§Ubdivision lots under common ownership into one property to satisfy the
minimum lot size for an urban agricultural property ilLSllbsection (a),
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Appeal.
The Director must take all actions necessary to
mmlY
the credit
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to each eligible taxpayer who applies for the credit and is certified as
eligible by the Office of Agriculture. A taxpayer may appeal
£!
fmal
decision
Qy
the Director denying or terminating the credit to the Maryland
Tax Court within 30 days after receiving
!!
notice of denial 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.
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. 201].
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BILL
No.
31-16
Date
Approved:
7
This is a correct copy ofCouncil action.
Date
Linda M. Lauer, Clerk ofthe Council
Date
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