§ 10-14. Arts and entertainment districts.
(a) Definitions.
(1) In general.
In this section, the following terms have the meanings indicated.
(2) Arts and entertainment district.
"Arts and entertainment district" has the meaning stated in State Economic Development Article, § 4-701.
(3) Arts and entertainment enterprise.
"Arts and entertainment enterprise" has the meaning stated in State Economic Development Article, § 4-701.
(4) Director.
"Director" means the Director of Finance or designee.
(5) Eligible assessment.
"Eligible assessment" means the phased-in value, as applied by the State Department of Assessments and Taxation in the 1st, 2nd, or 3rd year in a 3-year cycle under State Tax-Property Article § 8-103, attributable to the qualifying renovations, as determined by the State Department of Assessments and Taxation.
(6) Qualifying renovations.
"Qualifying renovations" means renovations that are made:
(1) to a manufacturing, commercial, or industrial building located in a State-designated arts and entertainment district; and
(2) for use by a qualifying residing artist or an arts and entertainment enterprise.
(7) Qualifying residing artist.
"Qualifying residing artist" has the meaning stated in State Economic Development Article, § 4-701.
(b) Credit granted.
(1) In accordance with State Tax-Property Article § 9-240, a real property tax credit is granted against the City property tax imposed on a manufacturing, commercial, or industrial building that:
(i) is located in a State-designated arts and entertainment district; and
(ii) is wholly or partially renovated for use by a qualifying residing artist or an arts and entertainment enterprise.
(2) The credit is prorated to reflect the proportion of the building used by a qualifying residing artist or an arts and entertainment enterprise.
(c) Term of credit.
A tax credit may be taken under this section for up to 10 years, as provided in subsection (d) of this section, subject to compliance with the continuing eligibility requirements of subsection (j) of this section.
(d) Amount of credit.
(1) Except for properties eligible for a Maryland Enterprise Zone Tax Credit, the amount of the credit granted under this section is the amount of property tax imposed on the eligible assessment of the property, multiplied by:
(i) 80% for the first 5 taxable years;
(ii) 70% for the 6th taxable year;
(iii) 60% for the 7th taxable year;
(iv) 50% for the 8th taxable year;
(v) 40% for the 9th taxable year;
(vi) 30% for the 10th taxable year; and
(vii) 0% for each subsequent taxable year.
(2) For properties eligible for a Maryland Enterprise Zone Tax Credit, the amount of the credit granted under this section is the amount of property tax imposed on the eligible assessment of the property, multiplied by:
(i) 20% for the first 5 taxable years;
(ii) 30% for the 6th taxable year;
(iii) 40% for the 7th taxable year;
(iv) 50% for the 8th taxable year;
(v) 60% for the 9th taxable year;
(vi) 70% for the 10th taxable year; and
(vii) 0% for each subsequent taxable year.
(e) First year of credit.
The credit period begins after the first reassessment of the property by the State after the completion of qualifying renovations. The credit will first be applied to the tax bill generated after the State has issued a revised assessment notice, on a part- or full-year basis.
(f) Deadline for qualification.
Improvements made before July 1, 2002, do not qualify for a tax credit under this section.
(g) Credit transferability.
The tax credit granted by this section may be transferred to a purchaser of the property for the remaining term of the credit, subject to compliance with the continuing eligibility requirements of subsection (j) of this section.
(h) Application for credit.
The property owner must apply to the Director for a tax credit under this section within 90 days of receipt of an assessment notice reflecting the eligible assessment.
(i) No tax subsidy duplication allowed.
The credit granted under this section does not apply to any property for which any other tax subsidy from the City, other than a Maryland Enterprise Zone Tax Credit, is being received or has been applied for, whether in the form of a tax credit, payment in lieu of taxes, or otherwise.
(j) Continuing eligibility requirements.
The use of the credit in any year is conditioned on:
(1) the property's compliance with all City housing, building, health, fire, and other applicable code requirements;
(2) the taxpayer's remaining current on all payments due to the City;
(3) the continued use of the property or eligible portion of the property by a qualifying residing artist or an arts and entertainment enterprise; and
(4) the taxpayer's providing to the Director an annual certification of that continued use.
(k) Administration.
The Director may:
(1) subject to Title 4 {"Administrative Procedure Act – Regulations"} of the City General Provisions Article, adopt rules and regulations to implement the provisions of this section;
(2) settle disputed claims that may arise in connection with the credit authorized by this section; and
(3) delegate powers, duties, or functions in connection with the administration of the credit authorized by this section to any employee of the City.