Pursuant to Tax-Property Article, Section 9-105, properties used
for agricultural purposes and titled to a Limited Liability Company
or Limited Liability Partnership may be eligible for the Homestead
Tax Credit.
In order to qualify for the Homestead Tax Credit, the property
must have been owner-occupied prior to the transfer to the Limited
Liability Company or Limited Liability Partnership. This owner must
have transferred the property to a Limited Liability Company or
Limited Liability Partnership of which he or she is an active member.
If the Limited Liability Company or Limited Liability Partnership
was created through the conversion of a partnership, the owner must
have occupied the property prior to the transfer to the partnership
and must have continued to occupy the property on its transfer to
the Limited Liability Company or Limited Liability Partnership.
An active member of an Agricultural Limited Liability Company or
Limited Liability Partnership is a person who has or shares the
authority to manage, control, and operate the Limited Liability
Company or Limited Liability Partnership. An active member shares
the assets and earnings of the Limited Liability Company or Limited
Liability Partnership under an operating agreement.
If the property receives the Homestead Tax Credit, the active member
may not qualify for the Homestead Tax Credit for any other property.
Each Agricultural Limited Liability Company or Limited Liability
Partnership may only qualify for the Homestead Tax Credit for one
dwelling.
The Agricultural Limited Liability Company or Limited Liability
Partnership must file an application with the Department on or before
June 30th for the subsequent tax year. The application shall be
accompanied by a copy of the deed transferring the property to the
Agricultural Limited Liability Company or Limited Liability Partnership,
a copy of the Articles of Organization for the Limited Liability
Company or Limited Liability Partnership, and a copy of the operating
agreement of the Limited Liability Company or Limited Liability
Partnership.
If the application is accepted, the property shall have an owner-occupancy
code of “D” and a Commercial/Industrial Use Code of
“00030”.
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