AGRICULTURE SECRETARY TESTIFIES IN SUPPORT OF ESTATE TAX REFORM BILL

Annapolis, MD (March 3, 2011) – Agriculture Secretary Buddy Hance testified today to support estate tax reform legislation that would protect the generational transfer of farmland. The bill (HB721) was discussed before the House Ways and Means Committee in Annapolis.

“No Marylander should be forced to sell a farm that has been in their family for generations because they cannot afford the tax bill,” said Governor O’Malley.  “This important legislation protects our heritage and strengthens our agricultural economy to keep Maryland smart, green and growing.”

The bill would raise the exemption for agricultural properties (land, machinery and livestock) from the calculation of the estate value up to $5 million – the same level allowed for federal taxes. The state currently has that level capped at $1 million. The bill would also reduce the Maryland estate tax rate to 5 percent for qualified agricultural property values over $5 million, down from the current 16 percent.

“This legislation aims to make it easier for farmers to pass down farmland through generations by decreasing the estate tax burden on the owner’s death,” said Agriculture Secretary Buddy Hance.  “When our farm businesses are sustainable, the next generation will see farming as a viable career opportunity, and Maryland will preserve its open space and locally-grown food industry.”