Pursuant to Tax-Property Article, Section 9-105, properties used for agricultural purposes and titled to a Limited Liability Company or Limited Liability Partnership may be eligible for the Homestead Tax Credit.

In order to qualify for the Homestead Tax Credit, the property must have been owner-occupied prior to the transfer to the Limited Liability Company or Limited Liability Partnership. This owner must have transferred the property to a Limited Liability Company or Limited Liability Partnership of which he or she is an active member. If the Limited Liability Company or Limited Liability Partnership was created through the conversion of a partnership, the owner must have occupied the property prior to the transfer to the partnership and must have continued to occupy the property on its transfer to the Limited Liability Company or Limited Liability Partnership.

An active member of an Agricultural Limited Liability Company or Limited Liability Partnership is a person who has or shares the authority to manage, control, and operate the Limited Liability Company or Limited Liability Partnership. An active member shares the assets and earnings of the Limited Liability Company or Limited Liability Partnership under an operating agreement.

If the property receives the Homestead Tax Credit, the active member may not qualify for the Homestead Tax Credit for any other property. Each Agricultural Limited Liability Company or Limited Liability Partnership may only qualify for the Homestead Tax Credit for one dwelling.

The Agricultural Limited Liability Company or Limited Liability Partnership must file an application with the Department on or before June 30th for the subsequent tax year. The application shall be accompanied by a copy of the deed transferring the property to the Agricultural Limited Liability Company or Limited Liability Partnership, a copy of the Articles of Organization for the Limited Liability Company or Limited Liability Partnership, and a copy of the operating agreement of the Limited Liability Company or Limited Liability Partnership.

If the application is accepted, the property shall have an owner-occupancy code of “D” and a Commercial/Industrial Use Code of “00030”.


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