Maryland Assessment Procedure Manual
|Subject:||Agricultural Transfer Tax|
|Topic:||Declaration of Intent Violation|
Violations of Declarations of Intent to remain in agricultural use shall
be treated in the following respective manner.
1. The act of discontinuing the agricultural activity, building non-agricultural improvements, or subdividing the land, so that it would no longer qualify for agricultural assessment (See Tax-Property Article §8-209) during the first five full taxable years after the signing of the Declaration of Intent, will require the Agricultural Transfer Tax, surcharge and penalty to be due on the portion of the land violated.
a) The sale of land in agricultural use under the Declaration of Intent is not a violation of the Declaration of Intent. However, the Agricultural Transfer Tax and surcharge is triggered if the new owner does not sign a Declaration of Intent or qualify for agricultural use at time of purchase.
b) When an owner sells only a portion of land under the Declaration of Intent and the remaining portion they own would no longer qualify for agricultural use assessment after the sale of that portion, the remaining portion would be in violation and the Agricultural Transfer Tax, surcharge and penalty will be due.
2. Upon violation of the Declaration of Intent, the ownership shall be sent a notice in the form of the violation letter. This is to notify the ownership of the imposition of the Agricultural Transfer Tax, surcharge and penalty and total amount due (Refer Attachment 1).
The violation letter is to include a copy of the signed Declaration of Intent and penalty computation sheet (Attachment 2). The letter provides instructions for appealing the imposition of Agricultural Transfer Tax, surcharge and penalty. This letter also explains that an additional notice of valuation will be sent and is considered a separate appeal. When the imposition of Agricultural Transfer Tax is appealed refer to Procedure 019-075-035).
3. An Out of Cycle Notice of value change is to be sent from the valuation database in conjunction with the mailing of the Violation letter. This notice serves as the notification of value change resulting from the agricultural use removal and market value used in the computation of the Agricultural Transfer Tax that is reflected in the computation sheet. For an appeal of the valuation of land used in the calculation of Ag Transfer Tax refer to Procedure 019-075-035.
4.The Agricultural Transfer Tax, surcharge and penalty shall be computed pursuant to the Tax-Property Article §13-305(b)(3). The Supervisor shall prepare the applicable Agricultural Transfer Tax, surcharge and penalty using the penalty computation sheet and include it with the violation letter to the ownership. (Refer to Attachment 2)
a) The 10% penalty is not to be calculated against the 25% surcharge.
5. The Supervisor of Assessments shall notify the County Tax Collector the amount of Agricultural Transfer Tax, surcharge and penalty due and so that the County Tax Collector may bill the ownership.
Attachments: 1, 2