Bill > H2618

This bill aims to reduce the conversion of farmland out of agricultural use following the death of a farmland owner by reducing the tax burden on the heir(s) and encouraging them to maintain the property in agricultural use. The key provisions include: 1) Defining "agricultural use" to include uses that meet the definitions of agricultural use, horticultural uses, or forestland with a forest management plan; 2) Allowing an estate that is approved by the Commissioner of Agriculture to exempt up to $5 million of real property that has been in agricultural use for the two years preceding the time of death or 3 of the 5 years preceding the time of death, provided there have been no incompatible uses; 3) Requiring the recording of a lien on the property to ensure the land remains in agricultural use, and imposing an assessment if the land is sold or converted to a non-agricultural use within 10 years of the owner's death, with the assessment amount gradually decreasing over time; and 4) Allowing property restricted by an agricultural preservation restriction to be deemed as meeting the non-development covenant requirement.

Budget and Finance

https://malegislature.gov/Bills/190/H2618