Property Tax - Agricultural Use Assessment - Community Solar Energy Generating Systems

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.
*sb0344*

SENATE BILL 344
Q1 6lr0862
CF HB 734
By: Senator King Senators King and Hester
Introduced and read first time: January 23, 2026
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 3, 2026

CHAPTER ______

AN ACT concerning 1

Property Tax – Agricultural Use Assessment – Community Solar Energy 2
Generating Systems 3

FOR the purpose of altering the date by which certain community solar energy generating 4
systems must be approved by the Public Service Commission in order for land that 5
is used by the community solar energy generating systems to qualify for the 6
agricultural use assessment; requiring the State Department of Assessments and 7
Taxation to issue a certain preconstruction determination under certain 8
circumstances; authorizing the Department to rescind a preconstruction 9
determination under certain circumstances; authorizing the Department to charge a 10
certain application fee; and generally relating to the agricultural use assessment. 11

BY repealing and reenacting, with amendments, 12
Article – Tax – Property 13
Section 8–209(e) 14
Annotated Code of Maryland 15
(2019 Replacement Volume and 2025 Supplement) 16

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18

Article – Tax – Property 19

8–209. 20

2 SENATE BILL 344

(e) (1) (i) In this subsection the following words have the meanings 1
indicated. 2

(ii) “Agrivoltaics” has the meaning stated in § 7–237 of this article. 3

(iii) “Community solar energy generating system” has the meaning 4
stated in § 7–306.2 of the Public Utilities Article. 5

(2) Except as provided in paragraph (4) of this subsection, the Department 6
shall establish in regulations criteria to determine if land that appears to be actively used 7
for farm or agricultural purposes: 8

(i) is actually used for farm or agricultural purposes; and 9

(ii) qualifies for assessment under this section. 10

(3) The criteria shall include: 11

(i) the zoning of the land; 12

(ii) the present and past use of the land including land under the Soil 13
Bank Program of the United States; 14

(iii) the productivity of the land, including timberl ands and 15
reforested lands; and 16

(iv) the gross income that is derived from the agricultural activity. 17

(4) (i) This paragraph applies through the life cycle of a community 18
solar energy generating system that: 19

1. is placed in service after June 30, 2022; and 20

2. has been approved on or before December 31, [2025] 2030, 21
as a community solar energy generating system by the Public Service Commission under § 22
7–306.2 of the Public Utilities Article. 23

(ii) 1. The Department shall assess and qualify land that is used 24
by a community solar energy generating system for agrivoltaics as land that is actively 25
used for farm or agricultural purposes. 26

2. A. ON APPLICATION , THE DEPARTMENT SHALL 27
ISSUE A PRECONSTRUCT ION DETERMINATION IN ACCORDANCE WITH PARA GRAPH 28
(5) OF THIS SUBSECTION. 29

SENATE BILL 344 3

B. A FAVORABLE PRECONSTRU CTION DETERMINATION 1
QUALIFIES THE LAND AS ACTIVELY USED FOR FARM OR AGRICULTURAL PURPOSES 2
UNDER SUBSUBPARAGRAPH 1 OF THIS SUBPARAGRAPH. 3

(5) (I) ON APPLICATION , THE DEPARTMENT SHALL ISSU E A 4
PRECONSTRUCTION DETERMINATION INDICATING WHETHER THE LAND SUBJECT TO 5
THE REQUEST WILL BE ASSESSED AS FARM OR AGRICULTURAL USE LAN D UNDER 6
THIS SECTION. 7

(II) AN APPLICATION FOR A PRECONSTRUCTION 8
DETERMINATION UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL INCLUDE: 9

1. IDENTIFICATION OF THE PARCEL OR PARCELS; 10

2. THE ANTICIPATED EFFE CTIVE TAX YEAR FOR W HEN 11
CONSTRUCTION WILL BE COMPLETE AND THE ANT ICIPATED AGRICULTURA L 12
ACTIVITY; 13

3. A SITE PLAN SHOWING THE PROPOSED SOLAR LAYOUT 14
AND THE ACREAGE TO REMAIN IN AGRICULTURAL ACTIVITY; 15

4. AN AGRIVOLTAICS PLAN THAT INCLUDES: 16

A. THE ANTICIPATED AGRI CULTURAL ACTIVITY TO BE 17
CONDUCTED DURING OPERATION OF THE COMMUNITY SOLAR ENERGY GENERATING 18
SYSTEM; 19

B. ACCESS AND FEATURES NECESSARY TO CONDUCT THE 20
ANTICIPATED AGRICULTURAL ACTIVITY; AND 21

C. HOW THE DESIGN OF THE COMMUNITY SOLAR ENERGY 22
GENERATING SYSTEM WI LL ALLOW FOR THE ANT ICIPATED AGRICULTURA L 23
ACTIVITY; 24

5. AN ESTIMATED CONSTRU CTION SCHEDULE AND T HE 25
PROPOSED IN–SERVICE DATE; 26

6. EVIDENCE OF SITE CONTROL, INCLUDING: 27

A. AN EXECUTED LAND LEA SE OR PURCHASE 28
AGREEMENT BETWEEN THE LAND OWNER AND SOLAR OPERATOR; 29

B. AN EXECUTED OPTION T O LEASE OR PURCHASE 30
BETWEEN THE LAND OWNER AND SOLAR OPERATOR; OR 31
4 SENATE BILL 344

C. A DEED INDICATING THE SOLAR OPERATOR OWNS THE 1
LAND; AND 2

7. ANY OTHER INFORMATIO N REQUIRED BY THE 3
DEPARTMENT THAT IS RE ASONABLY NECESSARY T O DETERMINE WHETHER THE 4
LAND QUALIFIES FOR A FARM OR AGRICULTURAL USE ASSESSMENT UNDER 5
PARAGRAPH (4) OF THIS SUBSECTION. 6

(III) 1. WITHIN 90 DAYS AFTER RECEIVING A COMPLETED 7
APPLICATION FOR A PR ECONSTRUCTION DETERM INATION, THE DEPARTMENT 8
SHALL REVIEW THE APPLICATION AND: 9

A. ISSUE A FAVORABLE PR ECONSTRUCTION 10
DETERMINATION; 11

B. ISSUE AN UNFAVORABLE PRECONSTRUCTION 12
DETERMINATION; OR 13

C. NOTIFY THE APPLICANT THAT ADDITIONAL 14
INFORMATION IS REQUIRED TO COMPLETE REVIEW. 15

2. THE DEPARTMENT MAY RESCIN D A 16
PRECONSTRUCTION DETERMINATION IF: 17

A. THE COMMUNITY SOLAR ENERGY GENERATING 18
SYSTEM, AS CONSTRUCTED OR OP ERATED, MATERIALLY DIFFERS F ROM THE 19
DESCRIPTION PROVIDED IN THE APPLICATION; 20

B. THE SOLAR OPERATOR H AS FAILED TO NOTIFY THE 21
DEPARTMENT OF THE COMPLETED CONSTRUCTION AND SUBMIT AN AGRICULTURAL 22
USE APPLICATION; 23

C. AGRICULTURAL ACTIVITY IS NOT BEING MAINTAINED 24
IN ACCORDANCE WITH THIS SECTION; OR 25

D. THE APPLICANT PROVID ED INACCURATE 26
INFORMATION IN THE APPLICATION. 27

(IV) A FAVORABLE PRECONSTRU CTION DETERMINATION 28
ISSUED BY THE DEPARTMENT QUALIFIES THE LAND FOR A FARM OR AGRICULTURAL 29
USE ASSESSMENT UNDER PARAGRAPH (4) OF THIS SUBSECTION F OR THE 30
IMMEDIATELY SUCCEEDING TAXABLE YEAR IF: 31

SENATE BILL 344 5

1. THE SOLAR OPERATOR P ROVIDES WRITTEN NOTI CE 1
TO THE DEPARTMENT THAT THE P ROJECT’S CONSTRUCTION IS CO MPLETED AND 2
AGRICULTURAL USE ACTIVITY IS BEING CONDUCTED; 3

2. AN APPLICATION FOR A FARM OR AGRICULTURAL USE 4
ASSESSMENT IS SUBMITTED TO THE DEPARTMENT THAT INCLUDES THE REQUIRED 5
INFORMATION; AND 6

3. THE SOLAR OPERATOR P ROVIDES ACCESS TO TH E 7
SOLAR FACILITY FOR T HE DEPARTMENT TO VERIFY THE AGRICULTURAL USE 8
ACTIVITY IS BEING CONDUCTED IN ACCORDANCE WITH THIS SECTION. 9

(V) THE DEPARTMENT MAY CHARGE AN APPLICATION FEE I N 10
AN AMOUNT NECESSARY TO RECOVER THE DEPARTMENT’S COSTS TO ADMINISTE R 11
AND IMPLEMENT THE REQUIREMENTS OF THIS PARAGRAPH. 12

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 13
1, 2026, and shall be applicable to all taxable years beginning after June 30, 2026. 14

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