Property Tax Credit - Urban Agricultural Property - Alterations

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0359*

HOUSE BILL 359
Q1 6lr0780
HB 907/25 – W&M CF 6lr0868
By: Delegates Roberson, J. Long, Taylor, and Woods Woods, Wims, and Young
Introduced and read first time: January 19, 2026
Assigned to: Ways and Means
Committee Report: Favorable with amendments
House action: Adopted
Read second time: February 24, 2026

CHAPTER ______

AN ACT concerning 1

Property Tax Credit – Urban Agricultural Property – Alterations 2

FOR the purpose of altering eligibility for a tax credit against the county or municipal 3
corporation property tax imposed on certain urban agricultural property; requiring 4
a county or municipal corporation that grants the tax credit to provide certain notice 5
and opportunity to be heard to the public before the county or municipal corporation 6
may exercise its authority to terminate the credit; and generally relating to a 7
property tax credit for urban agricultural property. 8

BY repealing and reenacting, with amendments, 9
Article – Tax – Property 10
Section 9–253 11
Annotated Code of Maryland 12
(2019 Replacement Volume and 2025 Supplement) 13

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15

Article – Tax – Property 16

9–253. 17

(a) (1) In this section the following words have the meanings indicated. 18

(2) “Urban agricultural property” means real property that is: 19
2 HOUSE BILL 359

(i) [at least one–eighth of an acre and not more than 5 acres; 1

(ii) located in a priority funding area, as defined in § 5–7B–02 of the 2
State Finance and Procurement Article ] NOT ASSESSED AS AGRI CULTURAL LAND 3
UNDER § 8–209 OF THIS ARTICLE; and 4

[(iii)] (II) used for urban agricultural purposes. 5

(3) “Urban agricultural purposes” means: 6

(i) INDOOR AND OUTDOOR crop production activities, including 7
the use of mulch or cover crops to ensure maximum productivity and minimize runoff and 8
weed production , PRODUCTION OF VALUE –ADDED AGRICULTURAL P RODUCTS, 9
BEEKEEPING, RAISING LIVESTOCK, AND COMPOSTING, AND HYDROPONICS AND 10
OTHER SOILLESS OR CONTROLLED–ENVIRONMENT CROP PRODUCTION METHODS; 11

(ii) environmental mitigation activities, including stormwater 12
abatement, POLLINATOR HABITAT C REATION AND MAINTENA NCE, and groundwater 13
protection; 14

(iii) community development activities, including recreational 15
activities, food donations, and food preparation and canning classes; 16

(iv) economic development activities, including employment and 17
training opportunities, and direct sales to restaurants and institutions; [and] 18

(v) [temporary] produce stands used for the sale of produce raised 19
on the premises; AND 20

(VI) AGRICULTURAL EDUCATI ON AND AGRITOURISM 21
ACTIVITIES. 22

(b) The Mayor and City Council of Baltimore C ity or the governing body of a 23
county or of a municipal corporation may grant, by law, a tax credit against the county or 24
municipal corporation property tax imposed on urban agricultural property. 25

(c) (1) Except as provided in paragraph (2) of this subsection, a tax credit 26
under this section shall be granted for 5 years. 27

(2) (i) If the Mayor and City Council of Baltimore City or the governing 28
body of a county or of a municipal corporation grants a tax credit under this section, the 29
jurisdiction granting a tax credit shall evaluate the effectiveness of the credit after 3 years. 30

HOUSE BILL 359 3

(ii) If the jurisdiction granting the tax credit determines that the tax 1
credit is ineffective in promoting urban agricultural purposes, the jurisdiction granting a 2
tax credit may terminate the tax credit IF THE JURISDICTION PROVIDES THE PUBLIC: 3

1. NOTICE OF THE TERMIN ATION OF THE CREDIT AT 4
LEAST 1 YEAR IN ADVANCE; AND 5

2. THE OPPORTUNITY FOR COMMENT AND APPEAL. 6

(iii) The jurisdiction granting a tax credit und er this section may 7
extend the tax credit for an additional 5 years. 8

(IV) JURISDICTIONS MAY PRI ORITIZE RENEWALS OF THE 9
CREDIT BASED ON THE SPECIFIC PRIORITIES OF THE INDIVIDUAL JURISDICTION. 10

(d) The Mayor and City Council of Baltimore City or the gov erning body of a 11
county or of a municipal corporation may provide, by law, for: 12

(1) the amount of the tax credit under this section; 13

(2) additional eligibility criteria for the tax credit under this section; 14

(3) regulations and procedures for the application and uniform processing 15
of requests for the tax credit; and 16

(4) any other provision necessary to carry out the credit under this section. 17

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 18
1, 2026, and shall be applicable to all taxable years beginning after June 30, 2026. 19

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.