Arts & Entertainment District Property Tax Credit
Artists or arts and entertainment enterprises may receive a 10-year property tax credit for renovated buildings that provide live-work space for artists and/or space for arts and entertainment enterprises. The property tax credit is prorated to reflect the proportion of a rehabbed building and only applies to improvements made to the property. Property owners renovating live-work spaces in an A&E district can contact the MD State Department of Assessments and Taxation to determine the building’s eligibility. Within 90 days following receipt of a tax assessment, property owners must file a tax credit application with the City’s Department of Finance. Property owners must annually re-certify that the building is being used in compliance with the property tax credit.
Information & Application can be found here.
Artist Income Tax Subtraction Modification
Qualifying artists who own or rent residential real property in Baltimore City and who conduct business in the Bromo Tower Arts & Entertainment District, may be eligible for a Maryland personal income tax subtraction modification to eliminate state and local income tax on their income from the sale, publication, or production within the District of their artistic work that is written, composed, or executed within the District. This includes income derived from internet, mail order, and catalog sales of artistic work that is shipped from within the District to buyers in another location, if the qualifying artist created that artistic work within the District.
Maryland Form 502AE: “Subtraction For Income Derived Within An Arts and Entertainment District” can be found here.
Admission & Amusement Tax Exemption
Enterprises dedicated to visual or performing arts located within the Arts & Entertainment District are exempt from the collection of the State of Maryland’s Admissions and Amusement Tax. Businesses must qualify for the exemption through the City of Baltimore Department of Finance and notification must be provided to the State of Maryland’s Comptroller’s Office in order to be eligible. Review the Baltimore City exemption application process to learn more and complete the Admission and Amusement Tax Exemption Registration form to qualify for the exemption.
Information & application about the State exemption can be found here.