[Adopted 4-7-1992 by Ord. No. 177]
A manufacturer's tax credit is hereby established
for Federalsburg, Maryland (a corporate municipality), as authorized
by the Tax-Property Article of the Annotated Code of Maryland, for
the purpose of promoting expansion and development, and improving
the local economy.
Manufacturing, fabricating and assembling facilities
are eligible to receive the tax credit. Eligible applicants who fully
meet and comply with the criteria and conditions referred to and set
forth in this article shall be granted a mandatory tax credit.
The tax credit shall be equal to 100% of the
real property tax attributable to the increased assessable value of
facility expansion or new construction for a period of five consecutive
years, contingent upon annual recertification.
Notwithstanding any other provisions of this
article, the credit shall be granted only if all the following conditions
are met:
A.
The assessed value of the expansion or new construction
shall be greater than $50,000.
B.
The applicant by reason of said expansion or new construction,
creates at least 15 additional full-time positions and hires at least
15 additional full-time employees to work at the facility location
where the expansion or new construction has taken place, as described
in the application for credit. In the event an applicant relocates
an existing business from one place in Federalsburg, Maryland (within
the corporate municipal limits) to another place in Federalsburg,
Maryland (within the corporate municipal limits), relocated employees
cannot be counted as additional employees, even if the nature of manufacture
changes.
C.
The 15 additional employees shall each receive at
least the current federal mandatory minimum wage, to be substantiated
by the amount of annual aggregate payroll for these employees.
D.
The employer shall have in place a basic employee
benefit plan including medical insurance, provision for leave, and
pension for all full-time employees.
In the alternative, an applicant may seek approval
of a tax credit which shall be equal to 100% of the equipment tax
levied and collected by the Mayor and Council of Federalsburg on all
local businesses and corporations within the municipal limits. That
credit shall be for a period of five consecutive years contingent
upon annual recertification and shall be subject to all requirements
and eligibility standards in the same fashion as the real property
tax credit. No applicant may be approved for both credits.
A.
An applicant must elect which tax credit as applied
for in his application for said credit and then must file the application
with the Mayor and Council, said application being filed by the owner
of the property or the owner's authorized representative. An applicant
must, within one year of placement of the expanded or newly constructed
facility on the Mayor and Council's tax roll, meet the requirements
of this article for the granting of a credit and file the necessary
application with the Mayor and Council. The Mayor and Council shall
expeditiously approve or deny filed applications, and approval shall
constitute granting of the credit. Applicants may apply for either
the real estate tax credit or the personal property tax credit but
may not apply for both and once application is filed shall be eligible
only for approval on the five-year basis for the credit applied for.
No applicant may change from year to year during the certification
time the designation as to which credit is being sought and shall
be eligible from date of application only for the chosen tax. It is
the intention of the Mayor Council, by passage of this article, to
offer the one-time choice as to a credit only on the terms and conditions
as contained herein. An application will not be considered filed until
all requested information has been supplied.
B.
All applications shall be on a form supplied by the
Mayor and Council. The information furnished on the application shall
be given under oath and shall include a statement that, to the best
knowledge, information and belief of the applicant, the requirements
of this article will continue to be met throughout the period for
which credit is sought.
C.
The application for a credit on leased property shall
be executed by the lessor and by the lessee and shall be accompanied
by an affidavit acceptable to the Mayor and Council that the lessee,
pursuant to the terms of the lease, is liable for the Federalsburg
municipal taxes, either real property taxes or personal property taxes
as the application may require.
The five-year tax credit eligibility period
shall be effective upon placement of the expanded or newly constructed
property on the Mayor and Council's tax roll and upon verification
that the requirements for receiving the credit have been met. Taxes
already paid shall not be refunded. Under no circumstances shall tax
credits be extended or renewed beyond five years for the same expansion
or new construction.
The tax credit recipient must, during the life
of the credit, annually certify in writing that the requirements for
the grant of the credit continue to be met. The certification must
be received by the Mayor and Council between May 1 and October 1 each
year. In the absence of such certification, the credit will immediately
cease. Any tax interest or penalty charges due as a result of application
denial may be determined by the Mayor and Council to be the liability
of the applicant.
The credits granted hereunder shall be transferable
with a change of ownership to another manufacturer, who shall immediately
become responsible for compliance with the requirements of this article.
The Mayor and Council reserves the right to
deny or postpone approval of an application if the applicant, or lessee
in the case of leased property, is in default on payment of any Town
taxes or tax penalties, or county or State of Maryland taxes or tax
penalties which the Mayor and Council receive a portion.
A.
This credit, as chosen by the applicant in the alternative,
shall be the only Mayor and Council of Federalsburg tax credits available
to applicants whose expanded or newly constructed property is first
placed on the Mayor and Council's tax roll on or after July 1, 1992.
