FY 26 Approved Operating Budget

COUNTY AG PRESERVATION FUND SUMMARY

ORIGIN & PURPOSE :

The Maryland General Assembly enacted House Bill No . 1481 , e ff ective July 1 , 1992 , authorizing the Harford County Councill 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 , e ff ective 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 , e ff ective 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 , e ff ective 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 fi ber 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 . Easement purchases may be settled in a lump sum payment , or may be handled through an Installment Purchase Agreement ( IPA ) between the County and the seller . The agreement sets payment terms , including the fi xed interest rate on which the landowner will receive annual payments . An IPA may be up to 30 years in length with interest and a small portion of the principal being paid annually . At the end of the term , the landowner will receive a lump sum payment constituting the remainder of the principal . This fi nal payment is made with the proceeds of a stripped - coupon U . S . Treasury obligation purchased at settlement and held by the County until maturity .

The funding included in the annual budget appropriation represents anticipated expenses for new easement purchases , required annual payments of IPAs , scheduled balloon payments on IPAs , and other

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