Property Tax Credit - Urban Agricultural Property - Alterations, the official text

WES MOORE, Governor                                       Ch. 769

Chapter 769

                   (House Bill 359)

AN ACT concerning

        Property Tax Credit – Urban Agricultural Property – Alterations

FOR the purpose of altering eligibility for a tax credit against the county or municipal
         corporation property tax imposed on certain urban agricultural property; requiring
         a county or municipal corporation that grants the tax credit to provide certain notice
         and opportunity to be heard to the public before the county or municipal corporation
         may exercise its authority to terminate the credit; and generally relating to a
         property tax credit for urban agricultural property.

BY repealing and reenacting, with amendments,
         Article – Tax – Property
         Section 9–253
         Annotated Code of Maryland
         (2019 Replacement Volume and 2025 Supplement)

         SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:

                   Article – Tax – Property

9–253.

(a) (1) In this section the following words have the meanings indicated.

             (2) “Urban agricultural property” means real property that is:

             (i) [at least one–eighth of an acre and not more than 5 acres;

                           (ii) located in a priority funding area, as defined in § 5–7B–02 of the
State Finance and Procurement Article] NOT ASSESSED AS AGRICULTURAL LAND
UNDER § 8–209 OF THIS ARTICLE; and

             [(iii)] (II) used for urban agricultural purposes.

             (3) “Urban agricultural purposes” means:

                           (i) INDOOR AND OUTDOOR crop production activities, including
the use of mulch or cover crops to ensure maximum productivity and minimize runoff and
weed production, PRODUCTION OF VALUE–ADDED AGRICULTURAL PRODUCTS,

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Ch. 769      2026 LAWS OF MARYLAND

BEEKEEPING, RAISING LIVESTOCK, AND COMPOSTING, AND HYDROPONICS AND
OTHER SOILLESS OR CONTROLLED–ENVIRONMENT CROP PRODUCTION METHODS;

                           (ii) environmental mitigation activities, including stormwater
abatement, POLLINATOR HABITAT CREATION AND MAINTENANCE, and groundwater
protection;

                           (iii) community development activities, including recreational
activities, food donations, and food preparation and canning classes;

                           (iv) economic development activities, including employment and
training opportunities, and direct sales to restaurants and institutions; [and]

                         (v) [temporary] produce stands used for the sale of produce raised
on the premises; AND

             (VI) AGRICULTURAL EDUCATION AND AGRITOURISM

ACTIVITIES.

         (b) The Mayor and City Council of Baltimore City or the governing body of a
county or of a municipal corporation may grant, by law, a tax credit against the county or
municipal corporation property tax imposed on urban agricultural property.

         (c) (1) Except as provided in paragraph (2) of this subsection, a tax credit
under this section shall be granted for 5 years.

                  (2) (i) If the Mayor and City Council of Baltimore City or the governing
body of a county or of a municipal corporation grants a tax credit under this section, the
jurisdiction granting a tax credit shall evaluate the effectiveness of the credit after 3 years.

                           (ii) If the jurisdiction granting the tax credit determines that the tax
credit is ineffective in promoting urban agricultural purposes, the jurisdiction granting a
tax credit may terminate the tax credit IF THE JURISDICTION PROVIDES THE PUBLIC:

                                 1. NOTICE OF THE TERMINATION OF THE CREDIT AT
LEAST 1 YEAR IN ADVANCE; AND

             2. THE OPPORTUNITY FOR COMMENT AND APPEAL.

                           (iii) The jurisdiction granting a tax credit under this section may
extend the tax credit for an additional 5 years.

                         (IV) JURISDICTIONS MAY PRIORITIZE RENEWALS OF THE
CREDIT BASED ON THE SPECIFIC PRIORITIES OF THE INDIVIDUAL JURISDICTION.

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WES MOORE, Governor  Ch. 769

         (d) The Mayor and City Council of Baltimore City or the governing body of a
county or of a municipal corporation may provide, by law, for:

                  (1) the amount of the tax credit under this section;

                  (2) additional eligibility criteria for the tax credit under this section;

                  (3) regulations and procedures for the application and uniform processing
of requests for the tax credit; and

                  (4) any other provision necessary to carry out the credit under this section.

         SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June
1, 2026, and shall be applicable to all taxable years beginning after June 30, 2026.

Approved by the Governor, May 26, 2026.

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