(A) This Frederick County real property tax credit shall be known as the Frederick County revitalization area rehabilitated structures tax credit and is authorized by, and subject to, the provisions set forth in the Md. Code Ann., Tax Property Article § 9-236.
(B) To qualify for and remain eligible to participate in this Frederick County real property tax credit program, a structure must be located within a designated revitalization area; be actually improved, renovated or rehabilitated (collectively "rehabilitation") as intended by this program; and neither the structure nor the real property on which it is located may be receiving any other Frederick County tax credit.
(C) To further qualify for this revitalization area rehabilitated structures tax credit, a structure must meet the following requirements:
(1) The structure must be located in a designated revitalization area as provided for in § 1-8-304(M) below of this tax credit.
(2) The structure must be lawfully used, or have been used, for non-residential purposes prior to rehabilitation for commercial or industrial purposes.
(3) If a structure had previously been used for residential purposes, the permitted and actual use of the structure must have received a change of use approval from all relevant local authorities and the actual use of the structure must have changed lawfully to commercial or industrial use prior to the commencement of rehabilitation and application for this tax credit.
(4) Both single and multiple tenant structures are eligible to qualify for this tax credit, assuming all other eligibility requirements are met.
(5) Only rehabilitation of existing structures is eligible. New construction is not eligible.
(6) The structure (whether a single occupant building or a multiple tenant structure) must have been constructed no fewer than five years prior to rehabilitation of the structure and submission of an application by the property owner for this tax credit.
(7) Where a structure is being used, or has been used, for both residential and non-residential use, and the structure otherwise qualifies, this tax credit shall only be available for the rehabilitated non- residential portion of the structure.
(D) Qualifying structures shall be eligible for this revitalization area rehabilitated structures tax credit for 7 consecutive years after first qualifying for this property tax credit. The first tax year the tax credit shall become available for a qualifying structure shall be the first tax year in which its county property taxes would otherwise have increased due to the qualifying rehabilitation project (the "first tax year"). The last tax year this county property tax credit shall be available shall be the sixth tax year that follows the first tax year.
(E) The amount of this tax credit will be the following percentage of the lesser of either the increase in assessed value attributable to the rehabilitation or of the actual cost of the rehabilitation:
(1) 100% in the first, second and third qualifying taxable years.
(2) 80% in the fourth qualifying taxable year.
(3) 60% in the fifth qualifying taxable year.
(4) 40% in the sixth qualifying taxable year.
(5) 20% in the seventh qualifying taxable year.
(F) The amount of a tax credit granted under this program may not exceed the property tax increase attributable to the increase in the assessment of the structure over the assessment before the structure is rehabilitated. This property tax credit will be determined based upon the lesser of:
(1) The increase in the assessed value of the property attributable to the rehabilitation, over the assessed value before the property was rehabilitated; or
(2) The actual cost expended for the rehabilitation.
(G) Projects that begin rehabilitation construction more than 5 years after the geographical revitalization area in which they are located has been designated for inclusion in this tax credit program shall not be eligible for tax credits under this program. Qualifying structures that have been accepted into this tax credit program before such 5 year period expires shall continue to receive those tax credits as provided for above, assuming these structures otherwise remain eligible for this program.
(H) For purposes of this property tax credit program, "commercial" or "industrial" use shall mean general retail, business, automobile, and personal services; wholesaling, processing, manufacturing and solid waste operations; and similar commercial and industrial activities, all of which are lawfully engaged in, which are not deemed to be a home-occupation.
(I) This property tax credit shall be a credit only from the county real property tax imposed pursuant to Md. Code Ann., Tax-Property Article, § 6-202 and shall not be a credit from any special taxing district tax including, but not limited to tax for fire and rescue services, imposed pursuant to Maryland or Frederick County law.
(J) Property owners shall file annually (on or before April 30 of each calendar year) an application, signed under oath or affirmation, for this tax credit with the county treasurer; failure to do so shall mean that the otherwise qualifying property shall not be entitled to receive this tax credit for the following tax year (July 1 through June 30).
(K) In addition to terminating as provided elsewhere in this section, any tax credit granted under this provision shall also terminate:
(1) At the moment ownership of the qualifying structure or real property on which it sits is transferred or conveyed in any manner whatsoever, except that this provision shall not apply simply because the structure or real property is subject to a mortgage or deed of trust granted as part of a financing of the property;
(2) At the moment in which the qualifying structure is substantially destroyed;
(3) At the moment the qualifying structure or real property on which it sits ceases to be used in whole or part for commercial or industrial purposes; or
(4) At the end of the sixth tax year after the first tax year this property tax credit was granted.
(L) To the extent this tax credit terminates other than at the end of a tax year, the property owner shall repay, without demand, Frederick County the amount of the tax credit received for that tax year. Interest shall accrue from the moment the tax credit ends at the rate established for overdue property taxes. To the extent permitted by law, any unrepaid tax credit is a lien on the real property that had received the tax credit and may be collected in the same manner as unpaid property taxes may be collected under the Md. Code Ann., Tax-Property Article.
(M) This Frederick County revitalization area rehabilitated structures tax credit shall apply to the following designated revitalization areas as of the specified effective dates:
(1) Effective October 1, 2012, those areas located within the Town of Middletown zoned general commercial or town commercial as shown on the map attached to Ordinance 12-21-616 as Exhibit "A", a copy of which is on file with the Frederick County Treasurer, are hereby collectively designated as the Middletown revitalization area for purposes of this tax credit authorized under Md. Code Ann., Tax-Property Article § 9-236.
(Ord. 12-21-616, 9-13-2012; Ord. 14-23-678, 11-13-2014)