(A) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
AFFILIATE. The same meaning as defined under Md. Code, Tax-Property Article, § 9-230 as amended.
BASE REAL PROPERTY TAX ASSESSMENT. The full value assessment assigned to the property in question by the SDAT prior to the construction of the new or expanded premises.
BUSINESS ENTITY. The same meaning as defined under Md. Code, Tax-Property Article, § 9-230 as amended.
COMPTROLLER. The County Comptroller, or Appointed Tax Collector, or designee.
JOB CREATION TAX CREDIT. The credit granted under this section to a qualified business entity against the county property tax imposed on the new or expanded premises and the personal property located on those premises.
NEW OR EXPANDED PREMISES. The same meaning as defined under Md. Code, Tax-Property Article, § 9-230 as amended.
NEW PERMANENT FULL-TIME POSITION. The same meaning as defined under Md. Code, Tax-Property Article, § 9-230 as amended.
NOTIFICATION DATE. The same meaning as defined under Md. Code, Tax-Property Article, § 9-230 as amended.
TAXABLE YEAR. July 1 to June 30, both inclusive, for which the county computes, imposes, and collects property tax.
(2004 Code, § 209-45)
(B) Eligibility for tax credit.
(1) The Comptroller must allow a job creation tax credit against the county property tax imposed on real property owned or leased by a business entity or its affiliate and on personal property owned by that business entity or its affiliate if the business entity qualifies for the credit under this section.
(2) In order to qualify for a job creation tax credit, a business entity must:
(a) Construct, or expand by at least 5,000 square feet, premises in the county on which it conducts business by buying, building, or leasing new premises;
(b) Employ at least 25 persons in new, permanent full-time positions located in the new or expanded premises in the county within the first 24-month period after it occupies the new or expanded premises, provided that 50% of the new, permanent full-time positions must pay at least 125% of the applicable average weekly wage per county worker as that amount is determined by the Maryland Department of Labor, Licensing and Regulation, or succeeding agency;
(c) Be located in a priority funding area as designated in Md. Code, State Finance and Procurement Article, Title 5, Subtitle 7B; and
(d) After meeting the requirements of this section and in order to continue to receive a job creation tax credit each year as allowed, the business entity must maintain at least 25 persons in permanent full-time positions located in the new or expanded premises approved for the tax credit for a period of three years after each year that a tax credit is allowed and at least 50% of the permanent full-time positions must continue to pay at least 125% of the applicable average weekly wage per county worker as that amount is determined and adjusted each year by the Maryland Department of Labor, Licensing and Regulation, or succeeding agency.
(3) A business entity does not qualify for a job creation tax credit if:
(a) The business entity has moved the operations which are located on new or expanded premises from another county (including Baltimore City) in this state; or
(b) The new or expanded premises has otherwise been granted a tax credit or exemption under this section for the taxable year in which a tax credit or exemption is claimed.
(4) To qualify for a credit against property tax imposed on personal property, a business entity must certify that the personal property is located on premises that qualify for a job creation tax credit under this section.
(2004 Code, § 209-46)
(C) Amount of tax credit; pass-through to lessees.
(1) The job creation tax credit amount that a taxpayer may claim against county real property taxes and business personal property taxes is equal to the following percentage of the property tax imposed on the increase in the base real property tax assessment of the new or expanded premises, and on the increase in the personal property tax assessment on personal property owned by the business entity, respectively:
(a) During the first and second taxable years in which a credit is allowed, 52%;
(b) During the third and fourth taxable years in which a credit is allowed, 39%; and
(c) During the fifth and sixth taxable years in which a credit is allowed, 26%.
(2) After the sixth taxable year, a business entity shall no longer be eligible for a job creation tax credit under the prior certification and the Comptroller shall not allow further credit. In order to receive a new credit after the sixth taxable year, a business entity must reapply for the job creation tax credit and must meet anew all requirements then existing by creating additional jobs and additional new or expanded premises.
(3) If, at any time during the six years that a business entity may claim a job creation tax credit, the business entity fails to satisfy any applicable requirements under this section to qualify for the tax credit, the business entity’s eligibility for a tax credit hereunder shall cease, and the Comptroller shall not allow further credit under the prior certification. In order to requalify and restart a new six-year credit period, the business entity must reapply for the job creation tax credit and must meet anew all requirements then existing by creating additional jobs and additional new or expanded premises.
(4) A business entity may not apply for a job creation tax credit if it owes delinquent taxes to the county, including but not limited to recaptured taxes under this section.
(5) Irrespective of lease terms to the contrary, a lessor of real property that is eligible for property tax credits under this section must reduce the amount of taxes for which an eligible business entity is contractually liable under a lease or rental agreement by the amount of any tax credit allowed for the real property under this section.
(2004 Code, § 209-47)
(D) Recapture of tax credit.
(1) For each year that a business entity receives a job creation tax credit, the business shall be required to continue to satisfy all applicable requirements during the three subsequent taxable years, for a maximum period of qualification of nine years. This requirement of continued qualification shall further require that the business entity report to the Comptroller for a period of nine years. If at any time during the nine-year reporting period a business entity does not satisfy all applicable requirements, then the business entity shall not receive the tax credit for the taxable year that the failure occurs and shall repay the tax credit provided during the three previous taxable years. The tax credit shall be due and owing to the county upon notice from the Comptroller to the business entity that the credit must be repaid.
(2) Interest and penalty shall accrue on any repayable tax credit at the rate established for overdue property taxes, beginning 30 days after the notice from the Comptroller.
(3) The repayable tax credit is a lien on real and personal property owned by the business entity in the same manner as unpaid real property taxes under state and county law.
(2004 Code, § 209-48)
(E) Administration of tax credit.
(1) A business entity must declare in writing its intent to apply for a job creation tax credit on a form furnished by the Comptroller and must state when and how it expects to qualify for the credit.
(2) When a business entity believes it can meet all eligibility requirements for the tax credit, it may apply for certification from the Comptroller, and must provide sufficient information to show that all requirements under this section and applicable state law have been met.
(3) The Comptroller shall:
(a) Determine the eligibility of the business entity for the tax credit;
(b) Require submission of reports by the business entity each year that a tax credit is sought and during the three taxable years after any year when the tax credit was granted to verify that the business entity continues to satisfy all applicable requirements under this section and state law and such reporting will result in a maximum of nine continuous years of reporting; and
(c) On or before October 1 of each year, notify the SDAT, the Maryland Comptroller, and the Maryland Department of Business and Economic Development that a business entity has been approved for a tax credit, including the amount of each credit granted for the year and whether the business entity is in compliance with the requirements for the tax credit.
(4) Any person who knowingly submits a false or fraudulent application, or withholds information, to obtain a tax credit must repay the county for all amounts credited and all accrued interest and penalties that would apply to those amounts as delinquent taxes and, in addition, is subject to all fines and other penalties as may be provided by law. Any person who violates this section is liable for all court costs and expenses of the county in any civil action brought by the county against the violator. The county may enforce this section by voiding the credit, reinstating the tax liability, and collecting the outstanding taxes as regular taxes due and owing the county.
(5) The county may adopt regulations to administer this section.
(2004 Code, § 209-49)
(Ord. 2011-01, passed 4-28-2011) Penalty, see § 33.99