Real Estate Property Tax Credits

Real Estate Property Tax Credits

County Treasurer Todd Hershey brought this report on the annual list of property tax write-off, Payment in Lieu of Taxes and Enterprise Zone credits to the Board. Write-offs are allowed under Maryland law if the local jurisdiction has taken deed to the property, if the claim for taxes has been barred by the statute of limitations or is otherwise uncollectable, if an administrative determination that the taxes are uncollectable has been made, or if a Payment in Lieu of Taxes exists. Exemptions also apply to Special County credits, Enterprise Zones, certain tax-exempt civic organizations, and some housing projects.
Hershey presented the state OC-034 form for Board approval, and said all credits are issued in accordance with the Laws of Maryland. The form is titled "Authorization to Write-Off Uncollectible Taxes" and is submitted annually to the State Department of Assessments & Taxation in accordance with state law. Hershey told the Board that the approval is a four-step process beginning with the Assessment Office review, the Enterprise Zone Administrator within the Economic Development Commission office reviews the document, then a County Budget and Finance Department review, then the request goes back to the Treasurer's Office for final review and submission to the County Commissioners for approval.
A payment in-lieu-of tax includes parcels owned by the Washington County Commissioners and leased to various entities. The Treasurer's office issues "Payment in-lieu-of taxes" invoice to the lessee equal to the total real property tax. The Fiscal Impact this year is $62,189.22, Hershey said. Ruritan Clubs and Civic Organizations do not qualify for real property tax exempt status from the State Department of Assessments and Taxation. A request is made annually for relief from the county portion of the real property tax.
These organizations sign an annual commitment to maintain their properties for community activities. Fiscal Impact for this category is $20,062.86. New Job Credit amounts to $28,907.74, and the total for the Airport Enterprise Zone Credit 24,971.17. Special County Credits total $2,070.24, while the Hancock Enterprise Zone (EZ) totals $1,212.31. The Interstate 81 EZ Credit amounts to $708,044.62, and the County EZ Credits total $179,989.95. The report was accepted by unanimous vote and will be sent to the state