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SB 344

Property Tax - Agricultural Use Assessment - Community Solar Energy Generating Systems

2026 Regular Session Introduced by Katie Hester and 1 co-sponsor

SB 344 allows Maryland agricultural properties hosting community solar systems to retain preferential farm tax assessment rates instead of commercial rates, reducing taxes but potentially reducing local government revenue.

Approved by the Governor - Chapter 46
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Bill Summary · SB 344

Legislative bill overview

SB 344 modifies Maryland's property tax assessment framework to classify community solar energy generating systems under agricultural use assessment provisions. The bill allows agricultural properties hosting community solar installations to maintain preferential tax assessment rates typically reserved for active farming operations, rather than being reclassified at commercial or industrial rates.

Why is this important

Agricultural land in Maryland faces significant development pressure, and property tax assessments can force farmers to sell when valuations spike. This bill attempts to balance renewable energy expansion with farmland preservation by making it financially viable for farmers to lease land for solar projects without triggering punitive tax increases. It directly affects the economics of transitioning agricultural areas toward clean energy generation.

Potential points of contention

  • Revenue impact: Local jurisdictions may lose significant property tax revenue if agricultural assessments are substantially lower than commercial assessments for the same solar installations, potentially shifting tax burden to residential and other commercial properties
  • Definition and abuse concerns: The bill's language defining what qualifies as "agricultural use" with solar systems could be exploited—developers might claim agricultural status for non-farming solar projects to gain preferential assessment treatment
  • Market fairness: Non-agricultural solar developers face higher tax burdens, potentially creating competitive disadvantages and raising questions about equitable tax treatment across the solar industry

Compiled from official sources — confirm details with the bill’s official record.

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