§ 6.04.230. Historic Preservation Tax Credit.

A.

Purpose. Subject to the provisions of this section, the Director of Finance may allow a tax credit on City real property taxes based upon the amount expended by a property owner for preservation, restoration and/or rehabilitation of any property having historic or architectural value and which the City Council designates a landmark pursuant to Chapter 21.56 of the City of Annapolis Historic District Zoning Ordinance. The Chief of Historic Preservation and Director of Finance shall promulgate rules and regulations to implement this section of the City Code.

B.

Qualified Expenses. The tax credit shall be applied to those expenses having to do with exterior features of a structure and all those interior improvements required for life/safety or hazard mitigation as determined to be qualified by the Chief of Historic Preservation.

C.

Tax Credit Defined. The tax credit shall be in an amount equal to:

1.

Ten percent of the property owner's expenses for qualified preservation, restoration and/or rehabilitation on residential properties;

2.

Twenty-five percent of qualified preservation, restoration and/or rehabilitation on income-producing properties to include life/safety and hazard mitigation;

3.

Residential properties may qualify for a twenty-five percent tax credit on qualified interior improvements required for life/safety or hazard mitigation;

4.

Twenty-five percent tax credit for qualified exterior restoration work when there is replacement of a non-historic feature or material with a historically appropriate feature or material on both residential and income-producing properties.

D.

Documentation. All expenses sought to be qualified shall be properly documented and attested to in an affidavit on the required form. The total estimate of eligible expenses must exceed five thousand dollars per application for tax credit consideration.

1.

A property owner seeking to qualify expenses for property tax credit purposes must either have already obtained a certificate of approval from the Historic Preservation Commission or concurrently submit an application for a certificate of approval with the tax credit application.

E.

Refund. If a property owner initiates an action that results in the loss of landmark status, as determined by the Chief of Historic Preservation, within five years after receiving a tax credit approval, then the property owner shall refund the entire amount of the tax credit to the City. If the loss of the landmark status is not due to a property owner's actions, then no refund is required.

F.

Project Approval. Once a property has been designated a landmark pursuant to Chapter 21.56 of the Annapolis City Code, the property owner may submit an application for the historic preservation tax credit to the Chief of Historic Preservation with the documentation and information required by the Chief of Historic Preservation.

1.

The Historic Preservation Commission may authorize the Chief of Historic Preservation to certify the historic tax credit application if it meets the criteria set forth in this section of the City Code, the Historic Preservation Commission Design Manual, and the Secretary of the Interior's Standards for Rehabilitation. The issuance of a Historic Preservation Commission Certificate of Approval for the qualified preservation, restoration or rehabilitation is required prior to preliminary certification of the historic tax credit. The property owner shall also concurrently submit any other necessary building and other permit applications to the Department of Planning and Zoning for adjudication of the application.

2.

All certified historic tax credit work shall commence within six months after the date of issuance of the associated certificate of approval.

G.

Application of Credit. Within two years of certification of the historic tax credit application, the property owner shall submit documentation, including photographs of the completed work and an affidavit, to the Chief of Historic Preservation for final certification of the historic tax credit expenses. Upon determination by the Chief of Historic Preservation that all applicable laws have been met in the preservation, restoration and/or rehabilitation of the approved property, and certification of qualified expenses, the Director of Finance may authorize the approved tax credit to be applied as a credit to the property owner's next real property tax bill.

1.

If the tax credit exceeds the amount of the real property tax bill, the balance may be carried forward for up to five years.

2.

The total amount of all historic tax credits that the Director of finance may approve shall not exceed one hundred fifty thousand dollars in any one fiscal year.

3.

The Director of Finance may not approve a tax credit that exceeds fifty thousand dollars for any certificate of approval.

H.

Extensions. Any extensions of deadlines imposed by this section of the City Code shall be submitted for review and adjudication by the Chief of Historic Preservation as authorized by the Historic Preservation Commission. Extensions may be allowed for good cause.

I.

Appeals. Any person aggrieved of a final decision pursuant to this section of the City Code may appeal to the Circuit Court of Anne Arundel County.

(Ord. O-26-04 § 1, 2004)

(Ord. No. O-34-13 Amended, § I, 10-28-2013; Ord. No. O-12-16 Amended, § I, 5-23-2016)