Bill > HB1337

This bill modifies Maryland's real property law to allow business and farm owners to receive compensation for lost profits when their property is condemned or taken by the government, under specific conditions. Currently, property owners are only entitled to the fair market value of their land, but this bill expands potential damages. To qualify for additional compensation, the owner must prove: (1) the exact amount of profit loss; (2) the loss is directly caused by the property taking; (3) the loss cannot be reasonably prevented by relocating the business or adopting prudent preservation steps; (4) the loss is not already included in relocation payments; and (5) the damages are not duplicative of other compensation. The bill defines "business" and "farm operation" broadly, covering activities like selling goods or services, manufacturing, and agricultural production. Any awarded damages must be calculated using generally accepted accounting principles applied consistently. The provisions will take effect on October 1, 2025, providing clarity and potential financial relief for property owners whose businesses are impacted by government land acquisition.

Business and Industry, Transportation and Infrastructure

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1337?ys=2025RS