Exemptions to the Agricultural Transfer Tax are provided for in Tax-Property Article § 13-305, but some are referenced as being the same as exemptions to general transfer taxes provided for in § 13-207(a). Those exemptions are enumerated as follows:

1. Transfer to government or public agency:
2. Transfer between relatives in limited situations (see below)
3. Transfer between spouses;
4. Supplemental instrument;
5. Previously recorded instrument;
6. Judgements;
7. Order of satisfaction;
8. Participation agreement;
9. Transfer of corporate property between related corporations;
10. Corporate or partnership conveyance:
11. Land installment contracts;
12. Options to purchase real property:
13. Deed for prior contract of sale;
14. Leases of seven years or less;
15. Mergers;
16. Consolidations;
17. Cooperative housing corporations
18. Land that has transferred and has been subjected to the payment of Agricultural Transfer Tax after July 1, 2019 (the date of revision to the law became effective)

Please review the specific language of each of the above exemptions before deciding to grant an exemption.  For example, the exemption for transfers between relatives only applies in certain limited situations; not all transfers between relatives are exempt. See Tax-Property Article § 12-108(c).

One specific situation is defined in § 13-305(a), that offers an additional exemption to the Agricultural Transfer Tax, where the land is being transferred for the residential use of the owner or an immediate family member, and is not greater than the minimum residential zoning size in effect at the time of transfer. The term “immediate family” includes spouse, son, daughter, father, mother, sister, brother, grandmother, grandfather, son-in-law, daughter-in-law, father-in-law, mother-in-Law, and grandchildren.

Foreclosures are not exempt from agricultural transfer tax. There is no exemption from agricultural transfer tax on a foreclosure for a deed of trust or a mortgage or a deed in lieu of foreclosure.  Therefore, the agricultural transfer tax is imposed because in all three instances, either legal and/or equitable title is transferred from the borrower to the lender. The agricultural transfer tax will be due and payable on the amount of consideration for the property in the deed in lieu of foreclosure unless the Supervisor determines that the consideration is not reflective of the market.

The following are other situations where it has been determined that the Agricultural Transfer Tax should not be imposed:

1. Gifts and inheritances are examples of “No consideration” transfers that are not subject to the transfer tax.
2. Transfers of land from an exempt organization where the land was not subject to a taxable, agricultural use assessment during the five years prior to transfer are not subject to the transfer tax.
3. Transfers of land for right-of-way purposes to electric cooperatives. See Chapter 179, Laws of Maryland of 1976.
4. Transfers of land as a result of confirmed bankruptcy plan are not subject to the transfer tax. See Title 11 of The United States Code § 1146(c).
5. Land subject to a conservation easement as defined in Tax Property Article 8-209.1 is exempt from the agricultural transfer tax. If the parcel size is greater than the acreage which is encompassed by the conservation easement, only the land encompassed by the easement is exempt. The remaining acreage is subject to the agricultural transfer tax.

Whenever The Agricultural Transfer Tax is not imposed but the agricultural use value is removed, the account must be tracked per procedure 019-075-021.  The Agricultural Transfer Tax remains in effect according to the schedule located within that procedure. When a Declaration of Intent exists and a violation occurs, follow procedure 019-075-025.