Property Tax - Agricultural Use Assessment - Community Solar Energy Generating Systems
Summary
SB 344 amends Maryland property tax law governing agricultural use assessment for land used by community solar energy generating systems. The bill extends the deadline for Public Service Commission approval of qualifying community solar projects from December 31, 2025 to December 31, 2030, allowing more projects to remain eligible for agricultural use assessment if they are placed in service after June 30, 2022 and meet the statute’s agrivoltaics requirements.
The bill also creates a formal preconstruction determination process at the State Department of Assessments and Taxation. On application, the Department must determine whether land proposed for a community solar project will be assessed as farm or agricultural use land, based on detailed submission requirements including parcel identification, site plans, an agrivoltaics plan, construction schedule, and proof of site control. A favorable determination can carry forward to the next taxable year once construction is complete and agricultural activity is underway, and the Department may rescind the determination if the project materially changes, required notices or applications are not filed, agricultural activity is not maintained, or the application contained inaccurate information. The Department is also authorized to charge an application fee to cover administrative costs.
Impact
SB 344 changes § 8-209(e) of the Tax-Property Article by expanding the eligibility window for community solar energy generating systems to qualify land for agricultural use assessment and by adding a new administrative process for preconstruction determinations. It affects landowners, solar developers, and the State Department of Assessments and Taxation by clarifying when land under community solar projects can continue to receive favorable agricultural tax treatment and by imposing new application, documentation, verification, and fee requirements. The bill is effective June 1, 2026 and applies to taxable years beginning after June 30, 2026.
Sentiment
The bill appears to have received generally favorable support, as reflected by passage in both chambers with substantial majorities. The vote totals suggest broad agreement on the policy goal of supporting community solar and agrivoltaics while preserving agricultural tax assessment treatment for qualifying land. No committee transcript was provided, so the available record shows support through final passage rather than detailed debate.
Contention
The main points of contention likely center on the balance between encouraging solar development and preventing misuse of agricultural tax preferences. The bill gives the Department authority to rescind favorable determinations if a project deviates from its application, fails to maintain agricultural activity, or includes inaccurate information, which suggests concern about compliance and enforcement. Another likely issue is administrative burden: developers must submit extensive preconstruction materials, and the Department may charge a fee to recover implementation costs. The extension of the PSC approval deadline to 2030 may also have been debated by those concerned about the scope and duration of the tax benefit.