Calvert County - Property Tax Credit - Tobacco Barns
Summary
HB1095 authorizes the governing body of Calvert County to create a property tax credit for certain real property that was formerly used solely as a tobacco barn. The credit may apply only to property that is either located on land subject to a tobacco buyout agreement or on land that qualifies for an agricultural use assessment and is used in connection with an activity recognized by the Maryland Department of Agriculture as an approved agricultural activity.
The bill gives Calvert County discretion to set the amount of the credit, its duration, and any other administrative provisions needed to implement it. It does not itself create a mandatory statewide tax credit; rather, it adds a local option to the Maryland Tax-Property Article for Calvert County only. The act takes effect June 1, 2026, and applies to taxable years beginning after June 30, 2026.
Impact
The bill amends Section 9-306 of the Tax-Property Article to add a new local property tax credit authorization for Calvert County. Its practical effect is to allow the county to reduce county property tax liability on qualifying former tobacco barn properties, potentially encouraging reuse or preservation of these structures in agricultural settings. The measure affects county taxpayers, property owners with former tobacco barns, and county tax administrators, but it does not alter state tax rates or create a statewide program.
Sentiment
The bill appears to have been broadly supported and noncontroversial. It passed the House 122-1 and the Senate 44-0, and it was approved by the Governor as Chapter 147. The overwhelming vote margins suggest general agreement with giving Calvert County flexibility to provide targeted tax relief for properties tied to agricultural transition and tobacco buyout land.
Contention
No committee debate or transcript material was provided, and the voting record shows little visible opposition. The only notable point of potential contention is the policy choice to limit the credit to Calvert County and to narrowly define eligible property, which may reflect a balance between local economic support and restricting the tax benefit to former tobacco barn properties connected to agricultural use or tobacco buyout agreements. The lone House dissent indicates at least one legislator may have had reservations, but the record does not identify the reason.