# Maryland SB 0704: Maryland Estate Tax – Qualified Agricultural Property – Transfer to Limited Liability Company Maryland SB 0704, Maryland Estate Tax – Qualified Agricultural Property – Transfer to Limited Liability Company, is a 2026 Regular Session Senate bill sponsored by Johnny Mautz (Republican); status signed, last action 2026-05-12 (Approved by the Governor - Chapter 551); PRIA reads it as touching household money (as of 2026-10-11). - Canonical: https://policyrisk.com/state-bill/MD-SB0704-2026RS - As of: 2026-10-11 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Maryland SB 0704 - State: Maryland - Session: 2026 Regular Session - Title: Maryland Estate Tax – Qualified Agricultural Property – Transfer to Limited Liability Company - Status: signed - Chamber: Senate - Introduced: 2026-02-06 - Last action: 2026-05-12, Approved by the Governor - Chapter 551 - Sponsor: Johnny Mautz (Republican) - Cosponsors: 0 - Subjects: Taxes - Miscellaneous, Agriculture -see also- Agritourism; Cannabis Prd; Farm; etc., Death -see also- Homicide; Murder; Wrongful Death, Estate Tax, Farmers and Farming -see also- Agriculture; Farmland, Farmland, Limited Liability Companies, Personal Property, Real Property, Time - Touches household money: yes - Roll calls: 2 (176 yes, 0 no in all) - Economic provisions PRIA read: 3 ## Summary No summary available. ## Bill overview: provisions PRIA read - Lower estate tax for farm heirs: benefit, high. Effective July 1, 2027. It applies to decedents dying after June 30, 2027. Up to $5,000,000 of qualified farm property that passes to a qualified recipient is excluded from the Maryland estate. If the farm value is over $5,000,000, Maryland estate tax is capped at two parts: 16% of the taxable esta… - Definitions and rules for farm tax break: benefit, low. The law defines key terms for this farm estate tax break. Farming purposes follows the federal definition in Internal Revenue Code 2032A(e)(5). Qualified agricultural property means real or personal property used mainly for farming. A qualified recipient is an individual who agrees to use the prope… - Farm heirs must keep land farming: mixed, medium. Effective July 1, 2027, for decedents dying after June 30, 2027. If the farm stops being used for farming within 10 years after death, the state recaptures the tax break. The recapture equals the extra Maryland estate tax that would have been due at death without the farm exclusion and special cap.… ## Sponsors and cosponsors - Sponsor: Johnny Mautz (Republican), Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2026-04-13 | House | Third Reading Passed | pass | 134 | 0 | 6 | | 2026-03-20 | Senate | Third Reading Passed | pass | 42 | 0 | 1 | ## Actions (15) - 2026-05-12: Approved by the Governor - Chapter 551 - 2026-04-13: Returned Passed (Senate) - 2026-04-13: Third Reading Passed (134-0) (House) - 2026-04-11: Favorable Adopted Second Reading Passed (House) - 2026-04-11: Favorable Report by Ways and Means (House) - 2026-03-25: Hearing 4/02 at 1:00 p.m. (House) - 2026-03-21: Referred Ways and Means (House) - 2026-03-20: Third Reading Passed (42-0) (Senate) - 2026-03-19: Second Reading Passed with Amendments (Senate) - 2026-03-19: Favorable with Amendments {283425/1 Adopted (Senate) - 2026-03-18: Motion Special Order until Later Today (Senator King) Adopted (Senate) - 2026-03-18: Favorable with Amendments {283425/1 (Senate) - 2026-03-18: Favorable with Amendments Report by Budget and Taxation (Senate) - 2026-02-13: Hearing 3/04 at 1:00 p.m. (Senate) - 2026-02-06: First Reading Budget and Taxation (Senate) ## Bill text - Enacted, 2026-05-12: [PDF](https://mgaleg.maryland.gov/2026RS/Chapters_noln/CH_551_sb0704t.pdf) - Third Reading, 2026-03-19: [PDF](https://mgaleg.maryland.gov/2026RS/bills/sb/sb0704t.pdf) - First Reading, 2026-02-06: [PDF](https://mgaleg.maryland.gov/2026RS/bills/sb/sb0704f.pdf) ## Related bills - SB 0496: Maryland Medical Assistance Program - Coverage for the Treatment of Obesity - Authorization (became law) - SB 0366: Motor Vehicles - Intelligent Speed Assistance System Pilot Program - Establishment (became law) - SB 0244: Code Revision - Health - Maryland Medical Assistance Program (became law) - SB 0148: Income Tax - Credit for 9-1-1 Specialist Retirement Income (Supporting Our 9-1-1 Specialists Act) (became law) - SB 0016: Child Support - Earnings Withholdings Limits (became law) - HB 0529: Code Revision - Health - Maryland Medical Assistance Program (became law) ## Sources - [Enacted (PDF)](https://mgaleg.maryland.gov/2026RS/Chapters_noln/CH_551_sb0704t.pdf) - [Third Reading (PDF)](https://mgaleg.maryland.gov/2026RS/bills/sb/sb0704t.pdf) - [First Reading (PDF)](https://mgaleg.maryland.gov/2026RS/bills/sb/sb0704f.pdf) ## Related - [SB 0496: Maryland Medical Assistance Program - Coverage for the Treatment of Obesity - A…](https://policyrisk.com/state-bill/MD-SB0496-2026RS) - [SB 0366: Motor Vehicles - Intelligent Speed Assistance System Pilot Program - Establishm…](https://policyrisk.com/state-bill/MD-SB0366-2026RS) - [SB 0244: Code Revision - Health - Maryland Medical Assistance Program](https://policyrisk.com/state-bill/MD-SB0244-2026RS) - [SB 0148: Income Tax - Credit for 9-1-1 Specialist Retirement Income (Supporting Our 9-1-…](https://policyrisk.com/state-bill/MD-SB0148-2026RS) - [SB 0016: Child Support - Earnings Withholdings Limits](https://policyrisk.com/state-bill/MD-SB0016-2026RS) - [HB 0529: Code Revision - Health - Maryland Medical Assistance Program](https://policyrisk.com/state-bill/MD-HB0529-2026RS) - [Maryland bills](https://policyrisk.com/states/maryland/bills) - [Maryland state hub](https://policyrisk.com/states/maryland) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/MD-SB0704-2026RS (as of 2026-10-11).