[Adopted 8-24-1999 by Bill No. 737]
[Amended 8-12-2014 by Bill No. 1288]
In this article, the following terms have the meanings indicated:
COMMERCIAL OR INDUSTRIAL BUSINESS
Light manufacturing, distribution facilities, office users, technology-based businesses, research and development, and other enterprises engaged in an activity identified by the Talbot County Office of Economic Development as a target for Talbot County's business attraction and retention efforts, excluding retail stores, retail food outlets, and motels.
FULL-TIME POSITION
Permanent employment of not less than 35 hours per week, or 1,750 hours per annum, that is reasonably expected to exist indefinitely.
SUBSTANTIAL INVESTMENT
Undertaking or completing new construction, or improving an existing facility which, when completed: increases the fair market value of the real estate by at least $1,000,000, including the value of the land; and is occupied by a commercial or industrial enterprise which creates a minimum of 15 new full-time positions with salaries equal to or greater than twice the federal minimum wage, within 12 months of completion of construction.
[Amended 7-24-2001 by Bill No. 837; 8-12-2014 by Bill No. 1288]
A. 
In accordance with Md. Code Ann., Tax-Property Art., § 9-322(c)(1), and this article, the Talbot County Council may grant a property tax credit against the tax on real property owned or occupied by a commercial or industrial business that qualifies under this article.
[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]
B. 
The Finance Office shall administer the credit.
[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]
C. 
Real Property Investment Tax Credit Reserve. The Council shall annually establish a real property investment tax credit reserve in the general fund. In any budget year, the total amount of real property investment tax credits shall not exceed the amount of the real property investment tax credit reserve.
A commercial or industrial business is eligible to apply for a tax credit under this article if it:
A. 
Makes a substantial investment in Talbot County;
B. 
Is currently or will be doing business in Talbot County; and
C. 
Enters into an agreement with Talbot County under § 172-27 of this article.
A. 
Subject to Subsection C of this section, and except as provided in § 172-28 of this article, the tax credit under this article shall be granted annually for a term not to exceed 10 years beginning with the first tax year in which the real property tax would increase as a result of an increase in assessment due to new construction or an improvement to an existing facility.
B. 
As part of the procedure under § 172-26 of this article, the County Council shall establish the tax credit in an amount expressed as a percent of the additional County tax imposed on real property that is a result of an increase in assessment due to the new construction or improvement.
C. 
Notwithstanding any other provision of this article, the tax credit under this article may not exceed the amount of County property tax imposed on the property that is a result of an increase in assessment due to the new construction or improvement.
A. 
The Office of Economic Development and the Finance Office shall develop an application form and establish procedures to administer the tax credit under this article.
[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]
B. 
A business may apply for the credit to the Economic Development Office. For tax years beginning July 1, 1999, and thereafter, applications for the credit shall be submitted no later than October 1 prior to the first tax year for which the credit is being requested.
C. 
The Economic Development Office and the County Manager shall evaluate the application under criteria established by the office and shall recommend to the County Council that the application be denied or approved, subject to any terms and conditions as required under the criteria.
D. 
If an application is approved it shall be forwarded to the Director of Finance. The Director of Finance shall forward the approved application to the Supervisor of the Department of Assessments and Taxation in Talbot County, who shall determine what portion of the increase in assessed value is due to the new construction or improvement.
E. 
After the determination by the Department of Assessments and Taxation, the Finance Office shall grant the Talbot County real property tax credit under this article beginning with the first tax year in which the real property tax would increase as a result of an increase in assessment due to the new construction or improvement.
[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]
A. 
The recipient of a tax credit under this article who is the owner of the real property subject to the credit shall enter into a contract with the County which specifies reporting requirements and conditions under which the credit may be suspended or revoked.
B. 
The recipient of a tax credit under this article who is the lessee of the real property subject to the credit and the lessor of the property shall enter into a contract with the County. A contract under this section shall specify:
(1) 
The reporting requirements and conditions under which the credit may be suspended or revoked; and
(2) 
That the amount of the tax credit granted under this article shall pass through to the commercial or industrial business that conducts the activity that qualifies for the credit; and
(3) 
That the term of the tax credit may not exceed the term of the lease and may not, in any event, exceed 10 years.
If it is determined to be in the best interest of the County, the governing body of the County may approve a credit for an individual business that is of a different amount or duration than is specified under § 172-25 of this article. This article is subject to abrogation six months from its effective date.
A. 
The Economic Development Office shall report annually to the County Manager and the County Council concerning the implementation of the tax credit under this article.
B. 
The report under this section shall:
(1) 
Be submitted no later than October 1 of each year; and
(2) 
Include, for each recipient of a credit under this article during the previous fiscal year:
(a) 
The name of the recipient; and
(b) 
The number of jobs created as a result of the activity that qualified the recipient for the credit and the salary for each such job; and
(c) 
The amount of the credit granted.
[Amended 8-12-2014 by Bill No. 1288]
The tax credit may be suspended or revoked if the recipient fails to meet the definition of "substantial improvement," fails to meet the minimum requirements for full-time positions or fails to perform any other covenant, term, promise, or representation in the agreement entered into pursuant to § 172-27.