§ 11-2-201. PROPERTY TAX CREDIT FOR HISTORIC RESTORATIONS AND REHABILITATIONS.

(a)

Definitions.

(1)

In this section the following words have the meanings indicated.

(2)

"Base value" means the full cash value of the property used by the State Department of Assessments and Taxation to determine the assessment on which the county property tax on real property was imposed before the substantial completion and first assessment of the eligible rehabilitation work for commercial properties.

(3)

"Commercial property" means office, retail, industrial, residential condominiums, and income producing residentially used property that is a historic resource.

(4)

"Commission" means the County Landmarks Preservation Commission.

(5)

"Historic resource" means a property that is:

(i)

A contributing property located in a national register historic district or in a historic district enacted by the County Council; or

(ii)

Individually listed on the National Register of Historic Places or included on the county final landmarks list.

(6)

"Eligible assessment" means the difference between the base value and the full cash value as determined by the State Department of Assessments and Taxation for the applicable taxable period in which the tax credit under this section is granted.

(7)

(i)

"Eligible rehabilitation work" means the rehabilitation of a historic resource which returns the structure to a state of utility through repair or alteration that allows for the efficient use of the structure while preserving those portions and features of the structure and its site and environment that are historically, architecturally, or culturally significant.

(ii)

"Eligible rehabilitation work" does not include new additions constructed as part of, or adjacent to an existing historic resource.

(8)

"Eligible rehabilitation work for commercial properties" means all exterior and interior rehabilitation work.

(9)

(i)

"Eligible rehabilitation work for residential properties" includes:

1.

Exterior rehabilitation, including roofs, windows, stone and brick work, wood siding or shingles, and lead paint removal; or

2.

Interior rehabilitation, including structural fortification, lead paint removal, and heating, air-conditioning, electrical, and plumbing work.

(ii)

"Eligible rehabilitation work for residential properties" does not include alterations that are primarily remodeling projects such as the replacement of a functional kitchen or bathroom.

(b)

Residential.

(1)

There is a tax credit against county real property taxes for expenses of a taxpayer for eligible rehabilitation work for residential properties.

(2)

The tax credit is 20% of the expenses for eligible rehabilitation work for residential properties if the expenses exceed $1,000.

(3)

The tax credit applies to the next tax year after the year in which the work or any part is completed.

(4)

Any unused tax credit:

(i)

May be carried forward to as many as 10 subsequent tax years; and

(ii)

Is fully transferrable to a new owner for the remaining life of the credit.

(c)

Commercial.

(1)

There is a tax credit against county real property taxes for expenses of a taxpayer for eligible rehabilitation work for commercial properties.

(2)

The tax credit granted under this section shall equal 100% of the amount of property tax imposed on the eligible assessment of a property granted a tax credit under this section.

(3)

The tax credit granted under this section shall:

(i)

Continue for a total of 10 tax years; and

(ii)

Be fully transferrable to a new owner for the remaining life of the credit.

(4)

Except as provided in paragraph (2) of this subsection, the property tax credit granted under this subsection may not exceed the amount of the taxes assessed for the eligible rehabilitation work for commercial properties.

(d)

When credit begins.

(1)

The tax credit provided under subsection (b) of this section shall begin with the tax year beginning on July 1 following the substantial completion and assessment of the eligible rehabilitation work for residential properties.

(2)

The tax credit provided under subsection (c) of this section shall begin, as applicable:

(i)

On July 1 following the substantial completion and assessment of the eligible rehabilitation work for commercial properties; or

(ii)

With the first assessment under § 11-2-306, § 11-2-307, or § 11-2-308 of this title following the substantial completion and assessment of the improvements, as applicable, for eligible rehabilitation work for commercial properties.

(e)

Termination. A property tax credit granted under this section shall terminate if:

(1)

During the credit period, the Commission certifies to the Director of Budget and Finance that the property has been altered so that it no longer complies with the rehabilitation standards by which the property obtained eligibility; or

(2)

The owner of the property successfully removes the property from the final landmarks list in accordance with § 32-7-304 of the code.

(f)

Application.

(1)

The property tax application process for a tax credit under this section is a three-part process.

(2)

Part I Application - certificate of eligibility.

(i)

The taxpayer shall make a Part I Application to the Department of Planning to establish whether the historic resource is eligible for a tax credit under this section.

(ii)

The Department of Planning shall make a determination whether the historic resource is eligible to apply for a tax credit under this section.

(3)

Part II Application - certificate of appropriateness.

(i)

If the Department of Planning determines that the historic resource is eligible to apply for a tax credit, the taxpayer shall submit a Part II Application to the Commission with a detailed description of the proposed rehabilitation work.

(ii)

The Commission shall determine whether the proposed improvements:

1.

Qualify as eligible rehabilitation work for residential or commercial properties, as applicable; and

2.

Are in conformance with the Secretary of the Interior's standards for rehabilitation.

(iii)

Upon a finding that the proposed improvements qualify under subparagraph (ii) of this paragraph, the Commission shall issue a certificate of appropriateness to the taxpayer.

(4)

Part III Application - certification of completed rehabilitation work.

(i)

After completion of the eligible rehabilitation work, the taxpayer shall submit a Part III Application under affidavit to the Director of Budget and Finance.

(ii)

1.

The Director shall forward a copy of the application to the Building Engineer and the Department of Planning.

2.

The Department of Planning shall verify that the completed eligible rehabilitation work:

A.

Received a building permit in accordance with Article 35, Title 2 of the Code; and

B.

Is in conformance with the detailed description of the proposed rehabilitation work approved by the commission under paragraph (3) of this subsection.

(5)

(i)

The Department of Planning shall complete its review within 30 days after receiving the Part III Application.

(ii)

If the Department of Planning determines that the eligible rehabilitation work was completed in accordance with the requirements of paragraph (4)(ii) of this subsection, the Department shall certify its determination to the Director of Budget and Finance.

(iii)

1.

If the Department of Planning determines that the eligible rehabilitation work was not completed in accordance with the requirements of paragraph (4)(ii) of this subsection, the Department shall certify its determination to the Commission.

2.

At its next meeting after receiving the certification under this subparagraph, the Commission shall review the determination of the Department of Planning and may affirm or reverse the determination of the Department of Planning.

3.

The Department of Planning is bound by the decision of the Commission and shall certify the decision of the Commission to the Director of Budget and Finance within 5 days after the Commission makes its decision.

(iv)

Within 30 days after receiving the certification from the Department of Planning as provided under subparagraph (ii) or subparagraph (iii) of this paragraph, the Director of Budget and Finance shall:

1.

Grant or deny the application for a tax credit under this section;

2.

Notify the applicant of the decision at the address in the application; and

3.

In the case of a denial, state the reasons for the denial.

(v)

The Director of Budget and Finance is bound by a certification of the Department of Planning.

(vi)

If the Director of Budget and Finance does not grant or deny the application within 30 days after receiving the certification of the Department of Planning, the application is deemed approved.

(g)

Appeal. A taxpayer whose application for a tax credit under this section is denied may appeal the denial as provided in § 11-2-204 of this subtitle.

(h)

Regulations. After consultation with the Director of Budget and Finance, the Commission and the Department of Planning may adopt regulations to carry out the provisions of this section.

(1988 Code, § 33-43) (Bill No. 129-97, § 1, 1-3-1998; Bill No. 33-03, § 2, 7-1-2004; Bill No. 59-05, § 1, 7-28-2005; Bill No. 151-05, § 2, 1-30-2006; Bill No. 25-06, § 1, 5-5-2006; Bill No. 55-11, §§ 1, 2, 10-16-2011)

Editor's note:
  Section 3 of Bill No. 129-97, effective Jan. 3, 1998, states that "the tax credit provided herein shall no longer be available after the expiration of ten (10) years following the effective date of this Act. Properties shall be eligible for the Property Tax Credit under this Act if an application therefor has been filed with the Baltimore County Office of Finance, in accordance with the provisions of this Act, within ten (10) years following the effective date of this Act."
  Section 3 of Bill No. 151-05, effective Jan. 30, 2006, states that "the property tax credit, authorized under this Act shall apply to eligible rehabilitation work to an historic resource that received a certificate of appropriateness in accordance with Article 32, Title 7 of the Baltimore County Code, 2003 on or after January 30, 2006."