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ARTS & ENTERTAINMENT DISTRICTS

ARTS & ENTERTAINMENT DISTRICTS. TAX Incentives. MARYLAND A&E PROGRAM. Administered by MSAC Legislated in 2001 20 Districts to date 10 Year Designation. MSAC A&E PROGRAM. Districts Span the State Geographically Rural, Suburban and Metropolitan Environments

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ARTS & ENTERTAINMENT DISTRICTS

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  1. ARTS & ENTERTAINMENT DISTRICTS TAX Incentives

  2. MARYLAND A&E PROGRAM • Administered by MSAC • Legislated in 2001 • 20 Districts to date • 10 Year Designation

  3. MSAC A&E PROGRAM • Districts Span the State Geographically • Rural, Suburban and Metropolitan Environments • Majority under 100 acres - largest almost 300 acres

  4. Maryland A&E Districts

  5. A&E PROGRAM GOAL The goal is to develop, promote and support healthy vibrant creative clusters in communities throughout Maryland: • Create accessible, unique arts destinations • Supply opportunities for dynamic and participatory arts experiences • Encourage community involvement and neighborhood revitalization • Give artists the opportunity to live, work and create an economically prosperous future

  6. A&E TAX INCENTIVES: Encourage creation of areas where artists can live, work, create and prosper. Rejuvenate and animate public and private spaces to shape the physical and social character of a town or neighborhood based on arts and culture. Spur economic and community revitalization through cultural vitality.

  7. A&E TAX INCENTIVES 1. Real Property Tax Credit 2. Income Tax Subtraction Modification 3. Admissions and Amusement Tax Abatement

  8. Real Property Tax Credit • New Construction (whole or in part) or renovations to certain buildings located in the District • Create live-work space for artists/or space for A&E Enterprises • A&E Enterprise is one that is dedicated to the Visual or Performing Arts

  9. Real Property Tax Credit Governing body of the county or municipality determines Years of eligibility - up to 10 years Amount of credit - up to 100% usually on a descending basis

  10. Real Property Tax Credit Building must be zoned: Commercial Manufacturing Industrial

  11. Real Property Tax Credit • Building Permit • Certified eligibility by A&E District or local government • Contact both State and Local Department of Assessment and Taxation

  12. Income Tax Subtraction for Artists • Qualifying residing artists pay no state or local tax on qualifying income • Maryland Tax Form 502AE

  13. Income Tax Subtraction for Artists • Qualifying residing must: • Own or rent real property within the county or Baltimore City where the A&E District is located

  14. Income Tax Subtraction for Artists • Qualifying residing must: • Derive income from the sale or performance of an original creative work within the A&E District – • That the artist created, wrote, composed or executed within the district

  15. Income Tax Subtraction for Artists • Does not apply to: • The creation or execution of industry oriented or industry related production such as a commercial or advertising copy. • Services such as tailoring, clothing alteration, or jewelry repair.

  16. Income Tax Subtraction for Artists • Does not apply to: • The creation or execution of industry oriented or industry related production such as a commercial or advertising copy. • Services such as tailoring, clothing alteration, or jewelry repair.

  17. Admissions and Amusements TaxAbatement • Levied on gross receipts from admissions. • Imposed by Maryland’s counties and municipalities and is collected by the State. • Rate of tax varies up to 10 %.

  18. Admissions and Amusements TaxAbatement Arts &Entertainment Enterprises (those dedicated to the visual or performing arts) located in an A&E District and qualified residing artists are exempted from payment of the Admission and Amusement Tax.

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