(a) In this Section the following words have the meanings indicated.
Arts and Entertainment District, Arts and Entertainment Enterprise, and Qualifying Residing Artist are defined in Section 4-701 of Article 83A of the Maryland Code.
Base year means the taxable year immediately before the taxable year in which a property tax credit under this section is granted.
Base year value means the value of the property used to determine the assessment on which the property tax was imposed for the base year. Base year value does not include any property first assessed in the base year.
Eligible assessment means the difference between the base year value and the actual assessed value for the applicable taxable year in which the tax credit under this section is granted.
(b) The Director of Finance must allow a tax credit, as authorized by state law, to a taxpayer against the County property tax imposed on a manufacturing, commercial, or industrial building that:
(1) is located in an arts and entertainment district; and
(2) is wholly or partially constructed or renovated to be capable for use by a qualifying residing artist or an arts and entertainment enterprise.
(c) A tax credit granted under this Section applies for 10 years, as provided in subsection (d), for that portion of the building that is used by a qualifying residing artist or an arts and entertainment enterprise.
(d) The Director must calculate a tax credit allowed under this Section as follows:
(1) Except for properties allowed an Enterprise Zone Tax Credit, the amount of the tax credit under this Section is the following percentage of the amount of property tax imposed on the eligible assessment of the property entitled to the credit:
(A) 80% in each of the first 5 taxable years after the calendar year when the property initially is entitled to the credit;
(B) 70% in the 6th taxable year;
(C) 60% in the 7th taxable year;
(D) 50% in the 8th taxable year;
(E) 40% in the 9th taxable year; and
(F) 30% in the 10th taxable year.
(2) For properties allowed an Enterprise Zone Tax Credit, the amount of the tax credit under this Section is 20% of the amount of property tax imposed on the eligible assessment of the property entitled to the credit for each of the 10 taxable years after the calendar year when the property initially is entitled to the credit. The credit under this Section is in addition to the Enterprise Zone Tax Credit. (2002 L.M.C., ch. 1, § 2; 2008 L.M.C., ch. 26; 2016 L.M.C., ch. 7, § 2.)