[Adopted 8-9-2007 by Bill No. 8-07, effective 9-24-2007 (Ch. 182, Art. IX, of the 1984 Code)]
A.
ELIGIBLE IMPROVEMENTS
Definitions. In this article, the following terms shall have the
meanings indicated:
Significant improvements to or restoration or rehabilitation
of properties located within the Virginia Avenue Area for Targeted
Revitalization (VAATR) District of the City of Cumberland, as said
District is established from time to time by ordinance of the City
of Cumberland.
B.
Declaration of public interest. The County Commissioners declare
that it is in the general public interest to foster and encourage
revitalization activities through improvement, restoration, and rehabilitation,
and new construction of properties so as to:
(1)
Preserve and protect the heritage of the City of Cumberland as represented
by its remaining buildings and structures;
(2)
Stimulate the positive aspects of revitalization, such as economic
development and employment opportunities; and
(3)
Implement and effect planning activities aimed at preserving structures,
sites, and districts.
C.
Legislative intent. It is the intent of the County Commissioners
that the taxation of significant improvements to and restoration and
rehabilitation, and new construction of properties be maintained for
a period of 10 years at taxation levels not greater than those in
place before the eligible improvements if approved as part of the
local government plan for revitalization as authorized by § 9-302(g)
of the Tax Property Article of the Annotated Code of Maryland.
D.
Tax credit. There shall be allowed a tax credit upon properties located
in the VAATR District, which credit shall be the difference between
the property taxes that, but for the tax credit, would be payable
after the completion of eligible improvements, and the property tax
that would be payable if the eligible improvements were not made.
E.
Eligibility requirements. The property tax credit provided for in
this article shall:
(1)
Be subject to eligibility requirements no less stringent than those
applicable to credits authorized under § 9-302 of the Tax
Property Article of the Annotated Code of Maryland;
(2)
Be for a period that does not exceed 10 years for each property.
The specific period of the property tax credit shall be the same for
both commercial and residential and the costs of eligible improvements
as compared to the value of the property if the eligible improvement
had not been made as set forth below:
|
Improvement Cost as Percentage of Market
|
Available Tax Exempt Status of Commercial/Residential
Improvements
(years)
| |
|---|---|---|
|
10%
|
1
| |
|
20%
|
2
| |
|
30%
|
2
| |
|
40%
|
3
| |
|
50%
|
3
| |
|
60%
|
4
| |
|
70%
|
4
| |
|
80%
|
5
| |
|
90%
|
6
| |
|
100%
|
7
| |
|
200%
|
8
| |
|
300%
|
9
| |
|
400%
|
9
| |
|
500%
|
10
|
(3)
The amount of the tax credit granted may not exceed the amount of
the initial valuation of the rehabilitation to the property or the
new construction and the resulting phase-in of the valuation.
F.
Qualification. In order to qualify for the tax credit provided for
herein, the property owner must invest a minimum of $5,000 in improvement
costs to the interior and exterior of the property, must submit construction
plans for the improvements or renovations to the appropriate department
of the City of Cumberland and must obtain the appropriate permits
from the City of Cumberland.
G.
Refund of tax credit.
(1)
If for any reason a property granted a tax credit pursuant to this
article ceases to be located within the VAATR District, the owner
may be required to refund such credit.
(2)
Should any property cease to be located within the VAATR District
through no action of the owner, there shall be no refund of the tax
credit required.
(3)
Should the property owner initiate any action that results in the
property ceasing to be located within the VAATR District, the property
owner shall be required to refund all tax credits received to date.
H.
Certification of eligible properties by the City of Cumberland. The
City of Cumberland shall provide certification to the Finance Office
of the County as to those properties meeting the eligibility requirements
for the VAATR District. The County shall grant a tax credit to those
properties so certified and meeting the requirements of this article.
