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 qualifying residing artist may claim a subtraction for income derived from the sale, publication, production or performance of an artistic work within an arts and entertainment district, if the artist created that artistic work within any arts and entertainment district. The subtraction is only available to individuals. To qualify for the subtraction, you must be a qualifying residing artist. A qualifying residing artist means an individual who: Owns or rents residential real property in Maryland; Conducts a business in any arts and entertainment district; and, derives income from the sale, publication, production or performance within any arts and entertainment district of an artistic work that the individual created, wrote, composed or executed, either solely or with one or more other individuals, in any arts and entertainment district. Check out the section on Incentive Eligibility HERE to see if you qualify or review Tax Form 502AE, Subtraction for Income Derived within an Arts and Entertainment District which includes instructions and qualifying guidelines, which you may find 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.