FY 23 Approved Budget Book

AGRICULTURAL PRESERVATION - COUNTY

ORIGIN/PURPOSE: The Maryland General Assembly enacted House Bill No. 1481, effective July 1, 1992, authorizing the Harford County Council to impose a Transfer Tax. Subsequently the County Council enacted Bill No. 93-3 to add new Article IV, Transfer Tax, to Chapter 123, Finance and Taxation, of the Harford County Code which imposes a 1% Transfer Tax on any instruments of writing that convey title to, or a leasehold interest in, real property, effective July 1,1993. The proceeds are to be distributed:

50% to the County's Agricultural Land Preservation Program 50% to fund school site acquisition, school construction, or school debt service

With the approval of a majority of voters, an amendment to Section 524, Indebtedness, of Article V, Budget and Finance, of the Harford County Charter, effective December 3, 1992, was enacted, allowing the County to enter into installment contracts to purchase easements for agricultural land preservation purposes. These purchases are to be primarily funded with a Transfer Tax. In addition, the County Council, via Bill No. 93-2, enacted that new Article II, Agricultural Land Preservation Program, be added to Chapter 60, Agriculture, of the Harford County Code, effective April 6, 1993, establishing the Harford County Agricultural Land Preservation Program (HALPP) to preserve productive agricultural land and woodland which provides for the continued production of food and fiber for the citizens of the County. The program is administered by the Department of Planning and Zoning and the Harford County Agricultural Advisory Board.

The Harford County Agricultural Land Preservation Program allows land owners to preserve productive farmland for future generations through the use of conservation easements; in addition the land owner receives payment for selling their development rights and/or a tax credit.

All easement purchases are handled through an Installment Purchase Agreement (IPA) between the County and the seller. The agreement includes the total amount of money that the County has agreed to pay, and sets the terms of that agreement, including the fixed interest rate on which the landowner will receive annual payments. IPAs are generally for 20 years with interest and a small portion of the principal being paid annually. At the end of the term of the IPA, the landowner will receive a final balloon payment constituting the remainder of the principal. This final principal payment is made with the proceeds of a stripped-coupon U.S. Treasury obligation purchased at settlement and held by the County until maturity.

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