Town of Sykesville, MD Historic Tax Credits

In compliance with the standards employed by the Commission under § 93-9 of Chapter 93, Historic Districts;

After the owner receives initial approval of an application for a certificate of eligibility;

In conformance with the application for which initial approval was given.

Eligible work includes:

The repair or replacement of exterior features of the structure;

Work that is necessary to maintain the physical integrity of the structure with regard to safety, durability, or weatherproofing;

Maintenance of the exterior of the structure;

(4)

The construction of an architecturally compatible new principal structure in an Historic District.

Eligible work does not include:

New construction, except an architecturally compatible new structure in an Historic District;

Interior finish that is not necessary to maintain the structural integrity of the building; or

Landscape maintenance or new landscape plantings.

QUALIFIED EXPENSES

The amount of money paid by the owner of an eligible property to a licensed contractor for eligible work, or for materials used to do eligible work. In order to be eligible for a tax credit under this article, qualified expenses must be $5,000 or greater.

§ 150-4 Establishment of historic tax credit programs for qualified expenses.

Establishment of ten-percent and five-percent credit. In accordance with § 9-204 of the Tax-Property Article, Annotated Code of Maryland, there is a Town of Sykesville property tax credit in the amount of 10% of the qualified expenses used for the restoration and preservation of an eligible property and a Town of Sykesville property tax credit of 5% for the construction of an architecturally compatible new structure in an Historic District.

Establishment of historic tax credit program for increase in assessed value. In accordance with § 9-204.1 of the Tax-Property Article, Annotated Code of Maryland, there is a Town of Sykesville property tax credit in an amount equal to the difference between:

The Town of Sykesville real property tax that, but for the tax credit, would be payable on the assessed value of an eligible property after the completion of eligible work; and

The Town of Sykesville real property tax that would be payable on the assessed value of the eligible property if the eligible work was not done.

§ 150-5 Procedures.

The owner of an eligible property may apply to the Commission for a historic tax credit for qualified expenses. The application shall be in the form and accompanied by additional information that the Commission requires.

The Commission shall give initial approval of a certificate of eligibility:

If it determines the property to be an eligible property;

If it determines that the proposed work is eligible work; and

If the eligible property is within a Historic District, any required certificate of approval under § 93-15 of Chapter 93, Historic Districts, has been issued for the work.

Upon completion of the work, the owner shall submit to the Commission all documentation evidencing that the work was done in accordance with the initial approval of the certificate of eligibility and shall document (i.e., submit paid receipts signed by contractors) all qualified expenses. The applicant shall submit any other documentation required by the Commission within 30 days from the date requested by the Commission.

The Commission shall review the application, the initial approval, and the documentation, and shall make a recommendation to the Mayor and Town Council.

All tax credits shall be granted by the Mayor and Town Council. Upon review of the application and the documentation required under this section, including the recommendation of the Commission, and in order to determine whether to give final approval of the certificate of eligibility, the Mayor and Town Council shall consider:

What work is eligible work;

The dollar amount of qualified expenses for the work;

Whether the amount is fair and reasonable, or what amount is fair and reasonable in the judgment of the Commission.

The Mayor and Town Council shall approve or disapprove the tax credit. The dollar amount of qualified expenses and the amount of the tax credit shall be entered on the certificate of eligibility.

An owner who has completed eligible work prior to the effective date of this article may make a single submission to the Commission describing the eligible work accomplished and the eligible expense thereof. The Commission may recommend, and the Mayor and Town Council may approve, a tax credit if they determine that a tax credit would have been approved had the ordinance been in effect. Only work completed in fiscal year 1999 prior to the effective date of this article shall be eligible.

An owner who is denied all or part of a tax credit by the Mayor and Town Council may appeal the denial to the Circuit Court for Carroll County.

After final approval by the Mayor and Town Council, the certificate of eligibility shall be forwarded to the Carroll County Department of Finance, for the ten-percent or five-percent tax credit pursuant to § 150-4A, and to the Department of Assessments, for the limitation on assessment established pursuant to § 150-4B.

Assessments.

The Department of Finance and the Department of Assessments shall implement the tax credits for the tax year immediately following the year in which the certificate of eligibility is received.

If the amount of the tax credit under this article exceeds the amount of the Town of Sykesville real property tax, any unused portion of the ten-percent or five-percent tax credit established by § 150-4A of this article shall be carried forward for up to five tax years;

The Department of Assessments shall determine what portion, if any, of the increase in the assessment is due to the eligible work and shall notify the Department of Finance which shall implement a tax credit for Town taxes pursuant to § 150-4B of this article for that portion. The credit shall remain in effect for a total of ten years.

§ 150-6 Certificate runs with property.

A certificate of eligibility runs with the property, and change in ownership does not result in the lapse of a tax credit.

§ 150-7 Applicability outside Historic District.

For property not located in an official local Historic District, the certificate of eligibility establishes tax credit eligibility.

Work not done in accordance with initial approval of a certificate of eligibility does not qualify for a historic tax credit. The lack of eligibility for the historic tax credit does not mean that the property is otherwise subject to the Historic District controls established by Chapter 93, Historic Districts.

§ 150-8 Alteration or damage.

Alteration. If eligible work is altered without the prior approval of the Commission:

The Commission shall notify the Department of Finance; and

The tax credit under this section shall lapse beginning with the tax year immediately following the year in which notification is received by the Department of Finance.

Damage.

A tax credit granted under this section shall lapse if any eligible work is damaged due to fire, weather or other natural causes. Where the damage is only partial, the Commission shall determine the extent of the lapse.