New legislation in Baltimore County creates “revitalization tax credits” for both commercially zoned properties and multi-family rental housing.
Bill 91-97 establishes a property tax credit against increased real property taxes that are a result of improvements to a commercially zoned property located within a Commercial Revitalization District.
In order to qualify, the improvement must have a full cash value of at least $50,000, as reflected in the assessments of the State Department of Assessments and Taxation.
The amount of credit is 100% of the increased real property taxes for five years. This amount is a significant increase from the amount originally proposed. As introduced, a $50,000 improvement resulted in a total abatement, over five years, of $1,713, but as amended by Councilman Vince Gardina, a $50,000 improvement now results in a tax abatement of $2,855.
While the tax credit for commercially zoned properties reauthorizes the 1991 program that sunset earlier this year, the tax credit for multi-family rental housing is a first for the County.
To encourage the redevelopment or renovation of existing multi-family housing tax credit, authorized by Bill 99-97 is available for improvements that may include common area and security improvements, as well as renovation of housing units that reduces or maintains existing density.
The property must also be located within a Community Conservation area.
The residential tax credit is also for 100% of the increased real property taxes for five years. This abatement will allow the marketplace to drive renovation by reducing cash flow obligations.
