HARRY HUGHES, Governor

4163

not be greater than the applicable residential minimum zoning
size in effect at the time of transfer.

(2) (I) [Land] PARCELS OF LAND OF 20 ACRES OR MORE
which would be eligible for the agricultural use assessment under
the provisions of Section 19(b) of this article, on application
for that use by the grantee, if a declaration of intent to farm
is filed with the Department by the grantee prior to transfer.
The declaration of intent shall specify that the land will remain
in agricultural use for at least 5 full consecutive taxable
years. Failure to comply with the requirements set forth in the
declaration of intent will result in the land being subject to
the full rate of tax imposed by this section, without reduction
in the rate as provided for in subsection (b) of this section, on
the sale or transfer of the land. However, the rate reduction
provisions of subsection (b) of this section will apply to the
land if real property taxes have been paid on the basis of a
nonagricultural use assessment for 5 full consecutive taxable
years from the time when the requirements set forth in the
declaration of intent were violated. In that event, the rate
shall be reduced by one percentage point for each full
consecutive taxable year that real property taxes continue to be
paid on the basis of a nonagricultural use assessment, beginning
with the sixth year.

(II) PARCELS OF LAND OF LESS THAN 20 ACRES
WHICH WOULD BE ELIGIBLE FOR THE AGRICULTURAL USE ASSESSMENT UNDER
THE PROVISIONS OF § 19(B) OF THIS ARTICLE, ON APPLICATION FOR
THAT USE BY THE GRANTEE, IF A DECLARATION OF INTENT TO FARM IS
FILED WITH THE DEPARTMENT BY THE GRANTEE PRIOR TO TRANSFER. THE
DECLARATION OF INTENT SHALL SPECIFY THAT THE LAND WILL REMAIN IN
AGRICULTURAL USE FOR AT LEAST 5 FULL CONSECUTIVE TAXABLE YEARS
AND THAT THE NATURE OR TYPE OF AGRICULTURAL ACTIVITY WHEN
COMBINED WITH THE AMOUNT OF LAND IN AGRICULTURAL USE IS SUCH THAT
AN AVERAGE ANNUAL GROSS INCOME OF $2,500 WOULD REASONABLY BE
EXPECTED TO BE DERIVED FROM SUCH ACTIVE USE PURSUANT TO THE
PROVISIONS OF § 19(B) OF THIS ARTICLE. FAILURE TO COMPLY WITH
THE REQUIREMENTS SET FORTH IN THE DECLARATION OF INTENT OR
FAILURE TO QUALIFY FOR THE AGRICULTURAL USE ASSESSMENT IN
ACCORDANCE WITH THE PROVISIONS OF § 19(B) OF THIS ARTICLE DURING
THE 5-YEAR PERIOD COVERED BY THE DECLARATION OF INTENT WILL
RESULT IN THE IMPOSITION OF THE AMOUNT OF AGRICULTURAL TRANSFER
TAX THAT WOULD HAVE BEEN DUE AT THE TIME OF TRANSFER, PLUS
INTEREST AT THE RATE OF 12 PERCENT PER YEAR. THE AMOUNT OF TAX
AND INTEREST DUE SHALL BECOME A LIEN ON THE PROPERTY AND SHALL BE
DUE THE SAME TIME THE REAL PROPERTY TAXES ARE DUE IN ACCORDANCE
WITH THE PROVISIONS OF § 48 OF THIS ARTICLE OR UPON TRANSFER OF
ALL OR A' PORTION OF THE LAND PRIOR TO THE DATE REAL PROPERTY
TAXES ARE DUE.

(3)  Land or interests in land transferred to the
State of Maryland.