[Adopted 9-23-2004 by Ord. No. 2003-35]
A.
In this section, the following words have the meanings
indicated. "Arts and entertainment district," "arts and entertainment
enterprise," and "qualifying artist" are defined in § 4-701
of Article 83A of the Maryland Code.
B.
The Director of Finance shall allow a tax credit,
as authorized by state law, to a taxpayer against the City property
tax imposed on a manufacturing, commercial, or industrial building
that:
C.
A tax credit granted under this section applies for
10 years, as authorized by state law, as long as the building is used
by a qualifying residing artist or an arts and entertainment enterprise.
D.
The Director shall allow a tax credit equal to 50%
of the tax resulting from the increase in assessment generated as
a result of the renovations to create housing for a qualified residing
artist or the commercial space for an arts and entertainment enterprise.
The tax credit shall apply only to that portion of the building occupied
by the qualifying residing artist or arts and entertainment enterprise.
E.
The arts and entertainment district property tax credit
shall not be granted for properties utilizing the enterprise zone
property tax credit.
[Added 7-25-2006 by Ord. No. O-06-18]
A.
Tax credit is hereby allowed equal to the municipal property tax
increase attributable to the increase in the assessment of the real
property over the assessment before the real property was rehabilitated
in accordance with the provisions of this section. But the credit
shall in no event exceed the amount of the cost of the qualifying
improvements.
B.
The credit shall commence on July 1 of the tax year following the
completion of the rehabilitation project and shall run with the real
estate for a period of five consecutive years. Eligibility for the
tax credit is conditioned upon the property owner submitting to the
Department of Planning an annual self-certification application to
ensure continued compliance with the program's eligibility requirements.
C.
In order to receive such tax credit, the rehabilitation must meet
the following eligibility requirements:
(1)
The building must be located in Hagerstown's Community Legacy
Area.
(2)
The exterior of the building and all core systems must be brought
up to code.
(3)
If alley access is available, the property owner is encouraged to
create off-street parking in the rear yard for use by the building's
occupants. (The City's Project Park Inside Program provides grants
for such activities.)
(4)
If practical, ground-floor bathrooms should be made handicapped accessible.
(5)
For rental property, written rental agreements must be put in place
which identify unacceptable habitation standards for the tenants (i.e.,
drug dealing, other illegal activities, addition of unauthorized tenants,
destruction of property, etc.).
(6)
No additional residential units shall be added to existing residential
property; however residential units may be created through adaptive
reuse of nonresidential space if zoning permits such activity.
[Amended 10-23-2007 by Ord. No. O-07-21]
(7)
For single-family residences, the property owner must spend at least
25% of the pre-rehabilitation assessed value of the property on the
improvements.
(8)
For multifamily residences, the property owner must spend at least
$20,000 per unit for the total number of units in the building on
the improvements.
(9)
The property owner must not be delinquent on taxes for the property.
(10)
The Engineering Department may by regulation further define
eligibility requirement not inconsistent with the foregoing.
D.
Eligibility for the tax credit is subject to the following application
requirements:
(1)
The application must be filed with the Department of Planning by
the owner of the building prior to the commencement of any rehabilitation
work.
(2)
An on-site inspection must be conducted by the Engineering Department
prior to the commencement of any rehabilitation work and immediately
following such work. The final inspection will determine compliance
with the program's eligibility requirements.
(3)
No tax credit will be granted if access to the entire property is
denied to the Engineering Department for inspection.
(4)
All appropriate building permits must be obtained prior to commencement
of any work.
[Added 7-25-2006 by Ord. No. O-06-19]
A.
Tax credit is hereby allowed equal to the municipal property tax
increase attributable to the increase in the assessment of the real
property over the assessment before the real property was converted
from a multifamily to a single-family residence in accordance with
the provisions of this section. But the credit shall in no event exceed
the amount of the cost of the qualifying improvements.
B.
The credit shall commence on July 1 of the tax year following the
completion of the rehabilitation project and shall run with the real
estate for a period of five consecutive years. Eligibility for the
tax credit is conditioned upon the property owner submitting to the
Department of Planning an annual self-certification application to
ensure continued compliance with the program's eligibility requirements.
C.
In order to receive such tax credit, the rehabilitation must meet
the following eligibility requirements:
(1)
The building must be located in Hagerstown's Community Legacy
Area.
(2)
The exterior of the building and all core systems must be brought
up to code.
(3)
The conversion must eliminate apartments of record.
(4)
If practical, ground-floor bathrooms should be made handicapped accessible.
(5)
Extra kitchens and fire escapes must be removed, public spaces (i.e.,
entrance and stair halls) must be brought back to original configuration.
(6)
Extra utility service elements must be disconnected and meters removed.
(7)
Property owner must spend at least 25% of the pre-conversion assessed
value of the property on the improvements.
(8)
The property must remain owner-occupied for at least five years following
the conversion project.
(9)
The owner must not be delinquent on property taxes for the property.
(10)
The Engineering Department may by regulation further define
eligibility requirement not inconsistent with the foregoing.
D.
Eligibility for the tax credit is subject to the following application
requirements:
(1)
The application must be filed with the Department of Planning by
the owner of the building prior to the commencement of any rehabilitation
work.
(2)
An on-site inspection must be conducted by the Engineering Department
prior to the commencement of any conversion work and immediately following
such work. The final inspection will determine compliance with the
program's eligibility requirements.
(3)
No tax credit will be granted if access to the entire property is
denied to the Engineering Department for inspection.
(4)
All appropriate building permits must be obtained prior to commencement
of any work.
[Added 3-31-2009 by Ord. No. O-09-02]
A.
HIGH-PERFORMANCE BUILDING
LEED GREEN BUILDING RATING SYSTEM
In this section, the following terms have the meanings indicated:
A building that achieves at least a silver rating according
to the U.S. Green Building Council's LEED (Leadership in Energy
and Environmental Design) green building rating system as adopted
by the Maryland Green Building Council.
The Leadership in Energy and Environment Design rating system
of the U.S. Green Building Council, as may be adopted and amended.
B.
In accordance with § 9-242 of the Tax-Property Article
of the Annotated Code of Maryland, the Director of Finance shall allow
a tax credit to the taxpayer against the City property tax imposed
on a high-performance building.
C.
A tax credit granted under this section applies for three years.
D.
A tax credit for a qualifying project commences on July 1 of the
tax year following completion of the construction project to achieve
high-performance building status.
F.
A property tax credit granted under this section shall terminate
if during the credit period, the Director of Finance finds that the
property has been altered so that it no longer complies with the LEED
rating system, version and level that was the basis for granting the
credit at the time the credit was granted.
G.
A property owner may not receive more than one City property tax
credit per building.
H.
A tax credit granted under this section runs with the property and
a change in ownership does not result in a lapse of the tax credit.
I.
The Director of Finance may adopt guidelines, regulations, or procedures
to administer this section.
