Tuesday, January 22, 2013

ANNE ARUNDEL COUNTY COMMUNITY REVITALIZATION TAX CREDIT TO BENEFIT NEW CONSTRUCTION AND COMMERCIAL IMPROVEMENT PROJECTS

Tax credit can assist business owners and owners of vacant, blighted properties

Annapolis, MD – (January 22, 2013) – More business and property owners undertaking the new construction or improvement of commercial property in Anne Arundel County may soon be able to apply for the county’s Community Revitalization Tax Credit. The current benefit provides a property tax credit for up to five years equal to the incremental increase in real property tax assessment for improvements of at least $100,000 of assessed value to existing buildings located on commercially or industrially zoned property in the county’s 16 designated revitalization districts.  Legislation, which the county council approved on January 7, expands the definition of qualified properties to the new construction or improvement of commercial properties and multifamily rental housing development with ten or more units.

“This tax credit can be a catalyst to spur on private investment in our commercial districts,” said Anne Arundel County Executive John Leopold. “It is also a great tool to decrease vacancies, help diminish blight and enhance the county’s commercial corridors, especially those in long established communities in north county.”

The approved legislation also expanded the definition of a qualified improvement to include new construction and the rehabilitation of a property after the demolition of pre-existing improvements.

In addition, property owners can receive a revitalization credit for an additional five years if the improvement project is funded by at least $10 million of private funds.

The legislation also extended the amount of time a property owner has to apply for the credit, from 45 to 120 days following the issuance of the notice of assessment by the Maryland State Department of Assessments and Taxation.

The new tax credit provisions go into effect 45 days after the county executive signs the ordinance into law.

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