Maryland Courses to Receive a Break on Property Taxes
Governor Glendening Signs SB571 Into Law

In early April, the Maryland Senate approved a tax break for country clubs and golf courses, touting the measure as a cost-effective way to protect the environment and preserve open-space. On May 16, 2002, Senate Bill 571 was signed into law by Governor Glendening providing significant and immediate savings for all golf facilities in the State of Maryland.

The bill faced opposition from some who questioned the wisdom of helping to "lower green fees" in a year when the budget is so tight the state has not fully funded Medicaid or mental health programs.

But supporters of the bill, sponsored by Sen. Patrick J. Hogan (D-Montgomery), say property assessments for the state's 135 taxpaying golf courses have risen rapidly in recent years-42 percent last year alone-putting pressure on owners to sell their streams and woodlands to developers. The legislation will save course owners $600,000 in year one, an average of $4,700 per course.

The savings will be realized due to the change in the land value that the State Department of Assessment and Taxation (SDAT) uses to calculate your assessment. Prior to the passing of the legislation, land for the golf course was often valued as high as $5,000 per acre. Under the new law, the land value will be set at $1,000 per acre. The savings add up quickly when talking about 250-300 acres that make up a golf course.

All country clubs and golf courses open to the public are eligible for this savings as long as they meet a few criteria: 1) they must be located on at least 50 acres, 2) they must have at least nine holes, and 3) they must not allow or practice discrimination based on race, color, creed, sex or national origin.

SDAT recently sent information concerning the bill to all courses in the state. It included a survey as well as an application to enter into the agreement. Applications and surveys must be received by September 30, 2002 in order for the provisions to take effect for the tax year beginning July 1, 2002.

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