O'Malley testifies on farm estate tax proposal
Gov. Martin O'Malley on Wednesday urged legislative support for a plan to reduce the tax burden on Marylanders who inherit family farms, testifying before the Senate committee weighing the bill.
"Throughout our state's history, our family farmers have always been an important part of what makes Maryland strong," O'Malley told the Senate's Budget and Taxation Committee, according to prepared remarks. "With this legislation we can help make sure they will continue to make our state stronger in the future."
The Democratic governor has unexpectedly become an advocate for the farm estate tax bill -- a plan being pushed by two freshmen Frederick County lawmakers, Democratic Sen. Ronald Young and Del. Kathy Afzali.
Afzalia said she won the governor over by cornering him at a recent dinner for farmers, pulling the proposal from her purse and calling it "the greenest bill in the state legislature." O'Malley had planned to testify at the House committee hearing last week, but his aides said scheduling conflicts kept him away.
The proposal would exempt farm heirs from taxes on the first $5 million in estate value and reduce the rate on higher amounts to 5 percent (it's now 16 percent). The heir would be required to continue using the land for agricultural purposes for at least 10 years.
Lawmakers say that in addition to helping farmers, who often are land-rich but cash-poor, the plan helps the environment because farmers would be less likely to sell their valuable land to developers.
Categories: 2011 legislative session, Martin O'Malley
Comments
Why can't farmers just add a name onto the property title as a co-owner? When the farmer dies, the co-owner gets the property tax free.
Or incorparate the farm into a trust or company with shares divided to probable heirs. So long as the "company" holds the land, no inheritance taxes will be required.
If it's a "long lost relative" they likely will not be farmers anyway and will look to make a quick profit via sale anyway.
Seems like farmers are not ingenious enough to play the system. With a little legal help and understanding of tax codes, they could probably avoid the tax. And then stop asking for special laws for them, as if they are more valuable than the plumber, bricklayer or retail merchant down the street.
Posted by: Billy C | March 9, 2011 10:54 PM