HB 17
Department of Legislative Services
Maryland General Assembly
2020 Session
FISCAL AND POLICY NOTE
Third Reader
House Bill 17 (Delegate Arentz)
Environment and Transportation Education, Health, and Environmental Affairs
Maryland Agricultural Land Preservation Foundation - Valuation of Easement
This bill allows the Maryland Agricultural Land Preservation Foundation (MALPF) to use
an appraised fair market value (for the determination of the value of an easement) for up
to two years after the date on which MALPF was first requested in writing to purchase the
easement. The bill takes effect July 1, 2020.
Fiscal Summary
State Effect: The bill does not materially affect State finances, as discussed below.
Local Effect: None.
Small Business Effect: Minimal.
Analysis
Current Law: Subject to certain exceptions, the maximum value of any easement to be
purchased by MALPF is the lower of (1) the asking price and (2) the difference between
the fair market value of the land and the agricultural value of the land. The value of the
easement is determined at the time MALPF is requested in writing to purchase the
easement. The fair market value is determined by the Department of General Services
(DGS) based on one or more appraisals by the State appraisers, and appraisals, if any, of
the landowner.
Background: MALPF indicates that in each easement application cycle, all applications
for MALPF easements are reviewed by MALPF staff, then provided to DGS to procure
two appraisals for each applicant, to determine the fair market value of the property. In any
easement application cycle, there may not be sufficient funding to extend offers to all
applicants, and those who do not receive offers may reapply the next cycle. Under current
law, new appraisals are required in each new application cycle for all applications; the bill
would allow for a fair market value determination to be valid for the next cycle.
State Expenditures: The bill is expected to reduce expenditures for appraisals under
MALPF’s capital appropriation due to fewer appraisals being needed for easement
purchases, which allows for that funding to be applied instead to easement purchases,
having no net effect on MALPF expenditures.
MALPF pays approximately $800 per appraisal ($1,600 per property, for 2 appraisals). For
contextual purposes, in the current fiscal 2020 application cycle, MALPF received
186 applications that were accepted and submitted to DGS for appraisal. Approximately
50 of these were “repeat” applications. Based on the data from the fiscal 2020 application
cycle, and assuming an appraisal cost of $1,600 per property, if the bill’s provisions had
been in effect, $80,000 could have been applied to easement purchases instead of appraisal
costs.
MALPF’s operations and easement purchases are funded with special funds from the
Maryland Agricultural Land Preservation Fund, which is supported by revenues from the
State transfer tax.
Additional Information
Prior Introductions: HB 1008 of 2019 passed the House and received a hearing in the
Senate Education, Health, and Environmental Affairs Committee, but no further action was
taken.
Designated Cross File: SB 244 (Senators Gallion and Bailey) - Education, Health, and
Environmental Affairs.
Information Source(s): Maryland Department of Agriculture; Department of General
Services; Property Tax Assessment Appeals Board; State Department of Assessments and
Taxation; Department of Legislative Services
Fiscal Note History: First Reader - January 23, 2020
mr/lgc Third Reader - February 21, 2020
Analysis by: Amberly Holcomb Direct Inquiries to:
(410) 946-5510
HB 17/ Page 2
 (301) 970-5510
HB 17/ Page 3


Statutes affected:
Text - First - Maryland Agricultural Land Preservation Foundation - Valuation of Easement: 2-511 Agriculture
Text - Third - Maryland Agricultural Land Preservation Foundation - Valuation of Easement: 2-511 Agriculture