(A) This property tax credit shall be a credit only against the Frederick County real property tax imposed pursuant to Maryland Annotated Code Tax-Property Article Section 6-202 and shall not be a credit against any special taxing district tax including, but not limited to, tax for fire and rescue services imposed pursuant to Maryland or Frederick County law.
(B) Business Entities and Affiliates shall file annually on or before April 30 of each calendar year an affidavit, signed under oath or affirmation subject to penalties for perjury, with the Director certifying that the business entity continues to operate in the new or expanded premises in Frederick County, that the additional new jobs remain filled with full time employees and that the real property otherwise continues to qualify for this tax credit; failure to do so shall mean that the otherwise qualifying real property shall not be entitled to receive this tax credit for the following tax year (July 1 through June 30).
(C) In addition to terminating as may be provided elsewhere in this article, any tax credit granted under this provision shall terminate:
(1) If ownership of the new or expanded premises is transferred or conveyed in any manner whatsoever, except that this provision shall not apply simply because the new or expanded premises is subject to a mortgage or deed of trust granted as part of a financing of the premises or if the transfer or conveyance is between a parent business entity and its wholly owned subsidiary business entity or between two or more subsidiary business entities wholly owned by the same parent business entity or between a business entity and an affiliate;
(2) When the new or expanded premises is substantially destroyed;
(3) At the end of the sixth tax year after the new or expanded premises was first eligible for this tax credit;
(4) When the qualifying business entity's increased total workforce or new and expanded premises are reduced below their number or size when qualifying for this tax credit; or
(5) Whenever the qualifying business entity is no longer in compliance with the terms of this tax credit.
(D) 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 date the tax credit terminates 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 Annotated Code of Maryland, Tax-Property Article.
(E) In the event a business entity qualifies for this small business tax credit as well as for a second real property tax credit available from Frederick County and applications are timely filed for both credits, the qualifying business may elect which credit to receive, but may not receive both credits. Properties participating in a tax financing or payment in lieu of taxes program are not eligible for a small business real property tax credit.
(F) The business entity seeking this credit must apply for this tax credit with the Director on or before October 1 of the tax year for which the real property is first eligible for this tax credit and must thereafter reapply annually at the same time as filing the required annual certification of continued compliance.
(G) This small business tax credit program shall terminate on December 31, 2026.
(Bill No. 16-18, 2-21-2017)