Energy Tax Relief Program
The agricultural industry consumes large quantities of energy, and the rising cost of fuel, propane, electricity, and the associated energy taxes threaten the economic viability of County agriculture. The Office of Agriculture administers the Fuel-Energy Tax Program for Certified Agricultural Producers, through which qualified agricultural producers pay the County's energy tax at a lower residential rather than industrial rate. Any producer with property encumbered by an AEP, MALPF or RLP farm preservation easement or enrolled with one or more specified County, state or federal programs or agencies is eligible for this reduced fuel-energy tax rate.
Information on the Certified Agricultural Producers Program
Frequently Asked Questions and Council Resolution Establishing Rates
Application for Certified Agricultural Producer Fuel-Energy Tax Program
Step by Step Instructions for how to determine the tax rate being charged and utilize this program.
Details about the Fuel Energy Tax for Agricultural Producers is found in Chapter 52 of the Montgomery County Code:
COMCOR 52.14.01 Fuel Energy Tax for Agricultural Producers
52.14.01.01 Purpose
These regulations establish procedures for identification and certification of agricultural producers within Montgomery County under Bill 34-03 and 52-14 of the Montgomery County Code.
52.14.01.02 Definitions
A. “Certified Agricultural Producer” means a ratepayer that is engaged in the business of agriculture in the production of an agricultural commodity in Montgomery County. An agricultural commodity means livestock, horses, poultry, field crops, including nursery stock, bulbs and flowers; and other agricultural products having a domestic or foreign market.
52.14.01.03 Applications for Certification as an Agricultural Producer
A. Agricultural producers will apply for certification as follows:
(1) The Department of Economic Development will mail out a one-page application to all of the owners of agriculturally assessed property (as defined in § 8-209 of the Tax-Property Article of the Annotated Code of Maryland) in the County to answer and then return.
(2) Any agricultural producer that does not own land in the County (for example, a tenant farmer) will also be given an opportunity to apply and return the application.
(3) The applicant will be asked to indicate from a list of items at least one agricultural program and/or service that pertains to their farm.
52.14.01.04 Eligibility Criteria for Certification as an Agricultural Producer
A. In order to qualify as a Certified Agricultural Producer, an applicant must be enrolled in at least one of the following Agricultural Programs and/or Services:
(1) Any producer with property encumbered by the following easement programs:
(a) Agriculture Easement Program (AEP); or
(b) Maryland Agricultural Land Preservation Foundation (MALPF); or
(c) Montgomery Rural Legacy Program (RLP); or
(d) Maryland Environmental Trust (MET); or
(e) Legacy Open Space (LOS).
(2) Any producer enrolled with the Montgomery Soil Conservation District.
(3) Any producer enrolled in the Maryland Nutrient Management Program.
(4) Any producer enrolled with the United States Department of Agriculture and Farm Service Agency.
(5) Any producer enrolled with the Cooperative Extension Service.
(6) Any producer enrolled as a member of the Montgomery County Farmers Market Association.
(7) Any producer approved as a Certified Organic grower by the Maryland Department of Agriculture.
(8) Any producer enrolled in a Forest Conservation Management Agreement.
52.14.01.05 Verification that Agricultural Producers Meet the Eligibility Criteria
A. The Department of Economic Development will verify to the Department of Finance that the applicant meets one of the eligibility criteria listed in Section 4, prior to approving the applicant’s Certification of Agricultural Producer.
B. The Department of Economic Development will keep all applications for each Certified Agricultural Producer and update the records bi-annually.
C. The Department of Economic Development will transmit a list of Certified Agricultural Producers to the Department of Finance and the Department of Finance will transmit this list of all Certified Agricultural Producers to all of the fuel/energy suppliers in Montgomery County.
D. In the event the Department of Economic Development cannot determine eligibility based upon enrollment in agricultural programs and services as outlined in 42.14.01.04, A.1. through A.7., the Department will determine eligibility based upon evidence of production provided by the applicant and verified by the agricultural agencies identified in 52.14.01.04. For example, a Schedule F (Profit and Loss from Farming) filed with the Internal Revenue Service (IRS) would serve as evidence of production.
(Administrative History: Reg. No. 33-03 (Method 2); Dept.: Finance.)
Editor’s note—2015 L.M.C., ch. 36, § 6, states, in part: Reference to the Department of Economic Development in COMCOR 52.14.01 (Fuel Energy Tax for Agricultural Producers) is a reference to the Department of Finance except that reference to the Department of Economic Development in Section 52.14.01.05.A (Verification that Agricultural Producers Meet the Eligibility Criteria) is a reference to the Office of Agriculture.
2015 L.M.C., ch. 36, § 8, also states, in part: All other provisions of this Act take effect 180 days after the Montgomery County Economic Development Corporation is designated under Section 30B-2.