(A) Explanation.
(1) The provisions of Md. Code §§ 4-701 et seq. authorize a political subdivision to apply to the Secretary to designate an Arts and Entertainment District within the political subdivision and, with the consent of a municipal corporation located within Garrett County, to make application for the designation of an Arts and Entertainment District within the boundaries of the municipal corporation.
(2) The designation of an Arts and Entertainment District by the Secretary provides benefits in the form of an income tax modification for qualified artists residing within the district, pursuant to the provisions of Md. Code, Tax-General Article, § 10-207(v); a property tax credit, pursuant to the provisions of Md. Code, Tax-Property Article, § 9-240; and an exemption from the Admissions and Amusement Tax, pursuant to the provisions of Md. Code, Tax-General Article, § 4-104. The county understands that the application for and the designation of an Arts and Entertainment District may affect its tax receipts, but believes that the designation of an Art and Entertainment District represents an action in the best interest of Garrett County, in furtherance of the development of resources associated with the economic development of Garrett County.
(B) Authorization for application; incentives.
(1) A county municipality is hereby authorized to make application to the Secretary for the designation of an Arts and Entertainment District within Garrett County, and to make application for the designation of a district within each consenting municipal corporation.
(2) In the event that the Secretary accepts the application by said municipality for the designation of an Arts and Entertainment District, the county shall provide incentives to eligible persons in the district, as follows:
(a) During the entire period approved by the Secretary, an exemption from the Admission and Amusement Tax gross receipts from any admissions or amusement charge made by an arts and entertainment enterprise or qualifying residing artists in the district, pursuant to Md. Code, Tax-General Article, § 4-104; and
(b) During the entire designation period approved by the Secretary, a real property tax credit further described in Md. Code, Tax-Property Article, § 9-240, against the Garrett County property tax imposed on the eligible assessment of an eligible building, which shall be equal to 50% of the tax resulting from the increase in assessment for eligible Arts and Entertainment District projects in the existing area and only for that portion of the property rehabilitated for a certified arts use. Said credit shall run for a period of 10 years.
(Res. 2015-5, passed 4-27-2015)