HARRY HUGHES, Governor                               3257

(1)  LAND TRANSFERRED FOR THE RESIDENTIAL USE OF
THE OWNERS OR THE IMMEDIATE FAMILY OF THE OWNERS OF THE
LAND. THE AMOUNT OF LAND NOT SUBJECT TO THE TAX UNDER THIS
PARAGRAPH MAY NOT BE GREATER THAN THE APPLICABLE RESIDENTIAL
MINIMUM ZONING SIZE IN EFFECT AT THE TIME OF TRANSFER.

(2)  LAND 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
NON-AGRICULTURAL 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 NON-AGRICULTURAL USE
ASSESSMENT, BEGINNING WITH THE SIXTH YEAR.

(G) THE TAX IMPOSED BY THIS SECTION SHALL BE PAID TO
AND COLLECTED BY THE TAX COLLECTING AUTHORITIES OF THE
VARIOUS SUBDIVISIONS BEFORE THE WRITTEN INSTRUMENTS
CONVEYING TITLE ARE RECORDED AMONG THE LAND RECORDS.

(H) TWO-THIRDS OF THE MONEY COLLECTED BY THE TAX
COLLECTING AUTHORITIES OF THE VARIOUS SUBDIVISIONS, AND IN
MONTGOMERY COUNTY ONE-THIRD OF THE MONEY COLLECTED AS LONG
AS THAT COUNTY CONTINUES TO IMPOSE A TRANSFER TAX
SUBSTANTIALLY SIMILAR TO THAT IMPOSED BY MONTGOMERY COUNTY
CODE SECTION 52-21(D) (1979), SHALL BE HELD IN A SPECIAL
ACCOUNT AND PAID OVER TO THE COMPTROLLER OF THE TREASURY AS
THE COMPTROLLER SPECIFIES. THE COMPTROLLER SHALL PLACE ALL
PROCEEDS IN THE MARYLAND AGRICULTURAL PRESERVATION FUND TO
BE USED FOR THE PURPOSES STATED IN § 2-505 OF THE
AGRICULTURAL ARTICLE.

(I) ONE-THIRD OF THE MONEY COLLECTED BY THE TAX
COLLECTING AUTHORITIES, AND IN MONTGOMERY COUNTY TWO-THIRDS
OF THE MONEY COLLECTED AS LONG AS THAT COUNTY CONTINUES TO
IMPOSE A TRANSFER TAX SUBSTANTIALLY SIMILAR TO THAT IMPOSED
BY MONTGOMERY COUNTY CODE SECTION 52-21(D) (1979), SHALL BE
HELD IN A SPECIAL ACCOUNT BY THE SUBDIVISION AND SHALL BE
USED FOR AN APPROVED AGRICULTURAL LAND PRESERVATION PROGRAM,
INCLUDING BOND ANNUITY FUNDS OR MATCHING FUNDS. THE FUNDS
PLACED IN THE SPECIAL ACCOUNT BY THE SUBDIVISIONS MAY BE
RETAINED BY THEM FOR A PERIOD OF 3 YEARS. IF, AFTER 3