Title:
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An Act concerning the Prince George’s County Arts and Entertainment District - Real Property Tax Credit for the purpose of approving a real property tax credit for qualifying residing artists and for arts and entertainment enterprises; and generally relating to a real property tax credit.
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Title
An Act concerning the Prince George’s County Arts and Entertainment District - Real Property Tax Credit for the purpose of approving a real property tax credit for qualifying residing artists and for arts and entertainment enterprises; and generally relating to a real property tax credit.
Background
This bill approves a real property tax credit for qualifying residing artists and for arts and entertainment enterprises. Pursuant to the Economic Development Article of the Annotated Code of Maryland, Sections 4-701 through 4-707, Prince George’s County and four municipal corporations approved of the establishment of the Prince George’s County Arts and Entertainment District; namely, the County and Hyattsville, Mount Rainier, Brentwood, and North Brentwood.
Pursuant to Section 9-240 of the Tax-Property Article of the Annotated Code of Maryland, the governing body of a county or municipal corporation may grant, by law, a property tax credit against the county or municipal corporation property tax imposed on a manufacturing, commercial, or industrial building that: (1) is located in an arts and entertainment district; and (2) is wholly or partially constructed or renovated to be capable for use by a qualifying residing artist or an arts and entertainment enterprise. A property tax credit granted under this Section may not be granted for more than 10 years. A property tax credit granted under this Section is based on the incremental increase in real property value due to the construction and/or renovation of real property dedicated for use by a qualifying residing artist or an arts and
entertainment enterprise.
The real property tax credit is based on a declining rate of 100% in taxable years one and two, 80% in taxable years three and four, 60% in taxable years five and six, 40% in taxable years seven and eight and 20% in taxable years nine and ten. A property tax credit granted under this Section may not be granted for more than 10 years.