Property Tax Challenge Information

Description

St. Mary’s County seeks to stimulate and incentivize investment in commercial real property. The Property Tax Challenge supports renovations, rehabilitation, and upgrades of commercial real property. Commercial property owners in challenged areas who invest at least 10% of the property’s assessed value at a minimum of $25,000 are eligible for this program. Those who qualify will not see an increase in their County property taxes for either a seven- or ten-year period.

To Qualify

Applicants must be:

  • A commercial property owner.
  • Located in a designated or challenged area.

    The Lexington Park Development District is a targeted area for revitalization in the County; however, projects from the Charlotte Hall Town Center and the Town of Leonardtown’s Downtown area will be considered.

  • In alignment with the Lexington Park Development District Master Plan and the St. Mary’s County Comprehensive Zoning Ordinance.

Minimum Investment to Receive Incentive

  • At least 10% of the assessed value of the property.
  • At least $25,000.

Eligible Improvements

  • Exterior improvements to a building façade.
  • Exterior painting and cleaning.
  • Structural improvements to a building façade.
  • Structure-mounted signage, canopies, shutters, and awnings.
  • Screening of utility, trash, or storage enclosures.
  • Enhanced exterior building lighting.
  • Replacement or enhancement of streetscape amenities such as walkways, landscaping, bike racks, and lighting.
  • Sidewalks.
  • New construction that enhances the building or property.

The Tax Incentive Breakdown

Assessment as Percentage of Assessed Valuation Number of Years Property Tax Held Constant*
10%–15% 7
16% or More 10

What Does “Property Tax Will Be Held Constant” Mean?

If the tax rate, assessed valuation, or a combination of the two increase during the incentive period, the property owner will not be subject to those increases. In the year following the incentive period, the property owner will pay property taxes based on the current rate and assessed value.

Additional Information

  • Total value of assessment reduction may not exceed 25% of the property’s assessed valuation at the time of the award.
  • Eligible investments must be a one-time investment that occurs within a 12-month period.

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