Dorchester County, MD Partial Tax Abatement for Rehabilitation of Structures

Eligibility for tax abatement. The property owner of a rehabilitated structure is eligible for a partial real property tax abatement under the following conditions:

(1)

The property owner must invest a minimum of 50% of the most recent pre-rehabilitation assessed value of the property, as determined by the State Department of Assessments and Taxation, in the rehabilitation of the structure;

(2)

The structure shall not be expanded by more than 20% of its existing footprint;

(3)

The property owner must be the applicant for the tax abatement;

(4)

The property must be current on all County property taxes owed and not be otherwise indebted to the County; and

(5)

The property must be in full compliance with all County building, fire, zoning, and development-related ordinances.

Unimproved parcels. Unimproved parcels of real property are not eligible for an abatement under this article.

Application requirements.

(1)

The application for the abatement shall be made on a form prescribed by the County and submitted to the Director of Finance.

(2)

The application must be submitted within 12 months of the date the notice of increase in assessment resulting from the rehabilitation of the structure is issued.

(3)

The Director of Finance may request any additional information from the applicant which, in his or her judgment, is necessary to make a preliminary determination as to the eligibility of the property for the tax abatement.

Approval and effective date.

(1)

Upon the Director of Finance's confirmation that the criteria of this article have been satisfied, the County Council shall approve the abatement, which shall take effect on July 1 of the fiscal year following the application date.

(2)

In the Director of Finance's discretion, the abatement may be reflected in the property owner's tax bill or may be remitted to the owner as a separate check by the County.

Duration and amount of abatement; transferability.

(1)

The maximum real property tax abatement on the increased assessment of the rehabilitated structure shall be as follows:

(a)

Year 1: 100% of net County taxes on the original qualifying increase;

(b)

Year 2: 80% of net County taxes on the original qualifying increase;

(c)

Year 3: 60% of net County taxes on the original qualifying increase;

(d)

Year 4: 40% of net County taxes on the original qualifying increase;

(e)

Year 5: 20% of net County taxes on the original qualifying increase;

(f)

Year 6: Abatement expired. Full taxes are due and payable.

(2)

The abatement is nonrenewable and nontransferable to a subsequent owner of the property except for a change of owner due to death or inheritance.

Revocation. The failure to adhere to all the criteria of this article for the duration of the tax abatement may, in the County Council's sole discretion, upon recommendation from the Director of Finance, result in the immediate and permanent revocation of the tax abatement.