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Statutes Text

Article - Tax - Property




§9–103.1.

    (a)    (1)    In this section the following words have the meanings indicated.

        (2)    “Base year” means the taxable year immediately before the taxable year in which a property tax credit under this section is to be granted.

        (3)    (i)    “Base year value” means the value of the property used to determine the assessment on which the property tax on real property was imposed for the base year.

            (ii)    “Base year value” does not include any new real property that was first assessed in the base year.

        (4)    (i)    “Business entity” means a person who operates or conducts a trade or business.

            (ii)    “Business entity” includes a person who owns, operates, develops, constructs, or rehabilitates real property if the real property:

                1.    is intended for use primarily as single or multifamily residential property located in a Regional Institution Strategic Enterprise zone that is designated under Title 5, Subtitle 14 of the Economic Development Article; and

                2.    is partially devoted to a nonresidential use.

        (5)    (i)    “Eligible assessment” means the difference between the base year value and the actual value as determined by the Department for the applicable taxable year in which the tax credit under this section is to be granted.

            (ii)    For a business entity that is located on land or within improvements owned by the federal, State, county, or municipal government, “eligible assessment” means the difference between the base year value and the actual value reduced by the value of any property entitled to an exemption under Title 7 of this article as determined by the Department for the applicable taxable year in which the tax credit under this section is to be granted.

        (6)    “Qualified property” means real property that is:

            (i)    not used for residential purposes;

            (ii)    used in a trade or business by a business entity; and

            (iii)    located in a Regional Institution Strategic Enterprise zone that is designated under Title 5, Subtitle 14 of the Economic Development Article.

    (b)    The governing body of a county or of a municipal corporation shall grant a tax credit under this section against the property tax imposed on the eligible assessment of qualified property.

    (c)    (1)    Except as otherwise provided in this subsection, the appropriate governing body shall calculate the amount of the tax credit under this section equal to a percentage of the amount of property tax imposed on the eligible assessment of the qualified property as follows:

            (i)    at least 50% in the first taxable year following the calendar year in which the property initially becomes a qualified property; and

            (ii)    at least 10% in the second through fifth taxable years.

        (2)    The Department shall allocate the eligible assessment to the nonresidential part of the qualified property at the same percentage as the square footage of the nonresidential part is to the total square footage of the building.

        (3)    For purposes of calculating the amount of the credit allowed under this section, the amount of property tax imposed on the eligible assessment shall be calculated without reduction for any credits allowed under this title.

        (4)    (i)    For qualified property located in an enterprise zone designated under Title 5, Subtitle 7 of the Economic Development Article, the appropriate governing body shall calculate the amount of the tax credit under this section equal to 80% of the amount of property tax imposed on the eligible assessment of the qualified property for each of the 5 taxable years following the calendar year in which the property initially becomes a qualified property.

            (ii)    For qualified property located in a focus area designated under § 5–706 of the Economic Development Article, the appropriate governing body shall calculate the amount of the tax credit under this section equal to 100% of the amount of property tax imposed on the eligible assessment of the qualified property for each of the 5 taxable years following the calendar year in which the property initially becomes a qualified property.

            (iii)    1.    If a business entity is certified as consistent with the target strategy of the RISE zone and the qualified property is located in an enterprise zone or focus area, the amount of the required reimbursement under § 9–103(h) of this subtitle may only be for the amount required for the required property tax credits under § 9–103 of this subtitle.

                2.    The property tax credits required under subparagraphs (i) and (ii) of this paragraph do not alter the amount of funds required to be reimbursed under § 9–103(h) of this subtitle.

        (5)    The governing body of a county or municipal corporation may increase, by local law, the percentage under paragraph (1) of this subsection.

        (6)    (i)    If a RISE zone is renewed as provided under § 5–1404 of the Economic Development Article, the governing body of a county or municipal corporation shall calculate the amount of the tax credit under this section equal to at least 10% of the amount of property tax imposed on the eligible assessment of the qualified property for the sixth through tenth taxable years.

            (ii)    The governing body of a county or municipal corporation may increase, by local law, the percentage under subparagraph (i) of this paragraph.

    (d)    (1)    Except as provided in subsection (c)(6) of this section, a tax credit under this section is available to a qualified property for no more than 5 consecutive years beginning with the taxable year following the calendar year in which the real property initially becomes a qualified property.

        (2)    If the designation of a Regional Institution Strategic Enterprise zone expires, the tax credit under this section continues to be available to a qualified property.

        (3)    State property tax imposed on real property is not affected by this section.

    (e)    When a Regional Institution Strategic Enterprise zone is designated by the Secretary of Commerce, the Secretary shall certify to the State Department of Assessments and Taxation:

        (1)    the real properties in the zone that are qualified properties for each taxable year for which the property tax credit under this section is to be granted; and

        (2)    the date that the real properties became qualified properties.

    (f)    Before property tax bills are sent, the State Department of Assessments and Taxation shall submit to the Secretary of Commerce a list containing:

        (1)    the location of each qualified property;

        (2)    the amount of the base year value for each qualified property; and

        (3)    the amount of the eligible assessment for each qualified property.



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