Urban Agricultural Tax Credit bill introduced before Montgomery County Council

For Immediate Release: Thursday, August 4, 2016

Urban Agricultural Tax Credit bill is introduced

before Montgomery Council

Approval of bill, sponsored by Councilmember Tom Hucker,

would allow owners of certain smaller properties in County

to get credit for maintaining at least 2 agricultural uses

 

ROCKVILLE, Md., August 3, 2016—Montgomery County Councilmember Tom Hucker on Aug. 2 introduced Bill 31-16 that would allow owners of certain properties in the County ranging in size from one-half acre to less than five acres to be granted an “Urban Agricultural Tax Credit” if they had two or more urban agricultural uses on the property. The credit would equal the property tax otherwise due on the property.

A public hearing on Bill 31-16 is tentatively scheduled for 1:30 p.m. on Tuesday, Sept. 20. Councilmember Hucker is the lead sponsor of the bill. Councilmember Marc Elrich is a co-sponsor.

Eligible properties would have to be located in a “priority funding area,” as defined in the Maryland State Finance and Procurement Code.

 

Properties of five acres or more devoted to agricultural uses are already eligible for tax credits. Two years ago, Baltimore City approved a tax credit similar to the one proposed in Bill 31-16.

 

Bill 31-16 defines an urban agricultural purpose as crop production activities, including:

• Crop production activities, including the use of mulch or cover crops to ensure maximum productivity and minimize runoff and weed production.
• Environmental mitigation activities, including stormwater abatement and groundwater protection.
• Community development activities, including recreational activities, food donations and food preparation and canning classes.
• Economic development activities, including employment and training opportunities and direct sales to restaurants and institutions.
• Temporary produce stands used for the sale of produce raised on the premises.

“Our urban farms are underappreciated gems that provide numerous public benefits,” said Councilmember Hucker. “They provide sustainable and healthy food options, create economic and educational opportunities and preserve green space. This bill provides new incentives—similar to those in Baltimore City and the District of Columbia—to ensure we retain these farms and support the growing urban agriculture movement in a time when there is sustained interest in growing food closer to home.” 

 

A property owner must conduct at least two urban agricultural purposes on the property. The term of the credit would be five years.

 

A property earning an Urban Agricultural Tax Credit must be solely used for urban agricultural uses, although an individual involved in crop production may reside on the property.

 

If at any time during the term of the credit or the renewal of the credit the property is no longer used for agricultural purposes, the credit granted to the property will be terminated. In addition, the owner of the property is liable for all property taxes that would have been due during that five-year term if the credit had not been granted.

 

# # # # Release ID: 16-242
Media Contact: Neil Greenberger 240-777-7939, Delphine Harriston 240-777-7931