If you are an artist who works in the District, or if you are a property owner who renovates a building for artists or an arts and entertainment purpose, we want you to succeed. We provide, or help you find, the personalized supports that you need to set up business and to tell the world about it. Our designation as an Arts & Entertainment District may also allow you to use valuable tax incentives:
•Admissions and Amusement Tax Exemption: Any admission or amusement fees levied by an Arts & Entertainment Enterprise or a Qualifying Residing Artist are exempt from the Admissions and Amusement Tax. Businesses must qualify for the exemption and notify the Maryland’s Comptroller’s Office in order to be eligible. For A&A questions, call 1-800-638-2937 or email email@example.com with your business name, address and your nine-digit federal employer identification number (FEIN) or eight-digit Maryland central registration number (CR) in your message.
•Income Tax Subtraction Modification: A “qualified residing artist” who lives in Maryland and sells “artistic work” in any of the 25 A&E Districts throughout the State is eligible for the income tax subtraction modification on income derived from their in-district sales (for performing artists, this includes income derived from performances in a district; for all “qualified residing artists”, this includes internet sales originating in a district.) Tax Form 502AE, Subtraction for Income Derived within an Arts and Entertainment District, along with instructions of who may file and qualifying guidelines, may be found here.
•Property Tax Credit: A 10-year credit reduces the increase in the town property tax that occurs when the assessment increases after partial or complete renovation of a building. The credit is available for new construction or renovation of certain buildings that create live-work space for artists and/or space for arts and entertainment enterprises.