(a) Tax credit generally. There is a tax credit against County real property taxes for certain expenses of a taxpayer after September 21, 1979, for restoration and preservation of certain properties of historic, architectural, archaeological or cultural value.
*Cross reference—Historic preservation, ch. 24A.
(b) Qualifications for tax credit.
(1) To qualify for the tax credit, the taxpayer must show that:
(A) the property is an historic site or in an historic district on a County of municipal master plan or zoning map;
(B) the expenses are:
(i) for work under an approved County historic area work permit or municipal certificate of approval; or
(ii) for ordinary maintenance expenses, as defined in guidelines adopted under section 24A-6, over $1,000;
(C) the work is done by a licensed contractor; and
(D) the taxpayer has paid for the work.
(2) A taxpayer must not receive a tax credit for new construction, including:
(A) a new structure on an historic site or in an historic district, or
(B) a new addition constructed as part of, or next to, an existing structure of historic, architectural, or cultural value, regardless of the architectural compatibility of the addition.
(c) Use of tax credit.
(1) The tax credit is 25% of the taxpayer’s qualified expenses under paragraph (b).
(2) The tax credit applies to the next tax year after the year in which the work or any part is completed. Any unused tax credit may be carried forward to as many as 5 subsequent tax years. However, if the property is removed as an historic site or excluded from an historic district on the applicable County or municipal master plan or zoning map, any unused tax credit must lapse.
(d) Application for tax credit; appeals.
(1) Application.
(A) A taxpayer must file an application for a tax credit with the applicable County or municipal historic preservation commission on forms approved by the County Director of Finance.
(B) An application must include receipts and an oath or affirmation by the taxpayer that the receipts are for qualified expenses under paragraph (b).
(C) An application must be filed by the first day of April of the year before the tax year in which a tax credit is used.
(D) The applicable County or municipal historic preservation commission must transmit all applications to the County Director of Finance with a certificate that the property is an historic site or in an historic district on the applicable County or municipal master plan or zoning map.
(E) The County Director of Finance may require additional information and documentation from the taxpayer, and may reject all or part of the claimed expenses for lack of adequate documentation or if the claimed expenses do not qualify under paragraph (b). The Director must notify the taxpayer of the Director’s decision on the application.
(2) Appeal. Any taxpayer aggrieved by the decision of the County Director of Finance may appeal to the Maryland Tax Court.
An appeal must be filed within 30 days after the date of the notice from the County Director of Finance.
(e) Penalties.1
(1) A person must not knowingly file a false or fraudulent application to obtain a tax credit under this article. A violation of this section is class A violation.
(2) In addition, a taxpayer who violates this article must pay the County any taxes and interest offset by the tax credit, and the County’s fees and costs in any action to enforce this article.
(f) Regulations.2 The County Executive may adopt regulations under method (2) to administer this article. (1984 L.M.C., ch. 39, § 1; 1990 L.M.C., ch. 15, § 1, 2013 L.M.C., ch. 19, § 1; 2016 L.M.C., ch. 7, § 2.)