Agricultural Land Transfer Tax Surcharge

Effective July 1, 2008, a new 25 percent surcharge must be added to Maryland's agricultural land transfer tax which is imposed on qualifying land transfers by individuals and businesses, as a result of Senate Bill 662 (Chapter 610, Acts of Maryland).

Lots of two acres or less to be improved and transferred to a child or grandchild of the owner are exempt from the 25 percent surcharge.

The 25 percent surcharge must be reported separately on a new Report of Collection of Agricultural Land Tax - Woodland Program form and submitted to the Comptroller of Maryland on a monthly basis by the 10th day of the subsequent month, along with the remittance. The existing agricultural transfer tax will continue to be reported on the Report of Collection of Agricultural Transfer Tax form and submitted to the Comptroller according to the same schedule.

The completed forms and remittance must be mailed to:

Comptroller of Maryland
P.O. Box 828
Annapolis, MD 21404-0828

Revenues generated from the agricultural land transfer tax will continue to be distributed to Maryland's 23 counties and Baltimore City, but revenues from the 25 percent surcharge will be remitted to the State of Maryland to support state-administered rural land preservation efforts.

For more information on Maryland agricultural land preservation, see the Maryland Department of Agriculture and the Maryland Agricultural & Resource-Based Industry Development Corporation.