Maryland legislation · 2026 Regular Session
Maryland SB704: Maryland Estate Tax – Qualified Agricultural Property – Transfer to Limited Liability Company
Status: Signed into law, May 12, 2026
Authorizing, for purposes of determining the Maryland estate tax, a qualified recipient to transfer ownership of qualified agricultural property to a limited liability company; providing that qualified agricultural property transferred in accordance with the Act is not subject to estate tax recapture if the ownership of the company consists only of qualified recipients and the property is used for farming purposes for at least 10 years after the decedent's death; etc.
What the bill says
An act concerning Maryland Estate Tax - Qualified Agricultural Property - Transfer to Limited Liability Company FOR the purpose of authorizing, for purposes of determining the Maryland estate tax, a qualified recipient to transfer qualified agricultural property to a limited liability company; providing that qualified agricultural property transferred in accordance with this Act is not subject to estate tax recapture under certain circumstances; and generally relating to the Maryland estate tax…
From the enrolled text, May 19, 2026:
AN ACT concerning Maryland Estate Tax - Qualified Agricultural Property - Transfer to Limited Liability Company FOR the purpose of authorizing, for purposes of determining the Maryland estate tax, a qualified recipient to transfer qualified agricultural property to a limited liability company; providing that qualified agricultural property transferred in accordance with this Act is not subject to estate tax recapture under certain circumstances; and generally relating to the Maryland estate tax. BY repealing and reenacting, with amendments, Article - Tax - General Section 7-309(c) Annotated Code of Maryland (2022 Replacement Volume and 2025 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows: Article - Tax - General 7-309. (c) (1) (i) In this subsection the following words have the meanings indicated. (ii) "Farming purposes" has the meaning stated in § 2032A(e)(5) of the Internal Revenue Code. (iii) "Qualified agricultural property" means real or personal property that is used primarily for farming purposes. (iv) "Qualified recipient" means an individual who enters into an agreement to use qualified agricultural property for farming purposes after the decedent's death. (2) The Maryland estate tax shall be determined by excluding from the value of the gross estate up to $5,000,000 of the value of qualified agricultural property that passes from the decedent to or …