[Adopted 2-13-2012 by Ord. No. 12-O-01]
A.
In accordance with the provisions of the Tax Property Article of
the Annotated Code of Maryland, 9-252, there is hereby established
a one-hundred-percent City property tax credit for real property provided
that:
(1)
The property is owned by Habitat for Humanity with the intention
of relinquishing ownership in the near future;
(2)
The property is used for the purposes of development, rehabilitation
and transfer to a private owner; and
(3)
The property is not occupied by administrative or warehouse buildings
owned by Habitat for Humanity.
C.
The tax credit for each property shall continue until such time as
the real property is transferred from Habitat for Humanity to another
entity, but in no event for more than 3 years.
[Added 5-7-2018 by Ord. No. 18-O-09[1]]
A.
The purpose
of this section is to provide for a credit against City of Aberdeen
real property taxes to the owner of any renovated or rehabilitated
business property located within the City of Aberdeen where the property’s
assessed value increases as a result of the renovation or rehabilitation
of the property and subject to the owner of any qualifying business
real property making a minimum capital investment of $50,000.
[Amended 8-20-2018 by Ord. No. 18-O-23]
B.
BUSINESS REAL PROPERTY
RENOVATION
REHABILITATION
Unless
a contrary intention clearly appears, words used in the present tense
include the future, the singular includes the plural, the term “shall”
is always mandatory, and the term “may” is permissive.
For the purpose of this section, certain terms are defined as follows:
improved real property that is assessed for commercial use.
The change, strengthening, or addition of load-bearing elements,
or the refinishing, replacement, bracing, strengthening, upgrading,
or extensive repair of existing materials, elements, components, equipment
or fixtures, or all of these.
The process of returning real property to a state of utility,
through repair or alteration, which makes possible an efficient business
use.
C.
The Council
of the City of Aberdeen may grant a credit against City of Aberdeen
real property tax to the owner of any qualifying business real property
in the City of Aberdeen where an increase in the assessed value of
improved property has occurred as the direct result of the rehabilitation
or renovation of the property.
(1)
The
credit shall be a declining percentage on an annual basis and shall
not exceed five years.
(2)
It
shall be the sole responsibility of the property owner to apply for
the tax credit, on a form provided by the City Manager, and to provide
documentation satisfactory to the City Manager as to the qualifications
of the property for the credit.
(3)
The
application for tax credit will be reviewed by the City to determine
if the property qualifies for the tax credit, and the property owner(s)
will be notified of the City’s decision.
D.
The tax
credit shall be for a term of five full years of taxes, based upon
the rate of tax levied in year one , and shall be calculated as follows:
(1)
One
hundred percent credit in year one of the net difference in tax between
the tax calculated upon the last known full year assessed value of
the improvements, as evidenced by the last official assessment notice
issued prior to the renovation or rehabilitation of the improved property,
and the amount of tax calculated based upon value of the new full
year assessment of the improvements, as evidenced by the new official
assessment notice.
E.
Any property
tax credit granted pursuant to this section shall not include any
increase in taxes levied as a result of a tax rate increase by the
City of Aberdeen.
F.
The credit
shall be applicable only to those properties which have completed
renovation or rehabilitation on or before June 30, 2022.
[1]
Editor's Note: This ordinance provided that its provisions
would apply to taxes levied beginning 7-1-2019 and to subsequent tax
years on or after 7-1-2019.
