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, must be:
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.
Minimum Investment to receive incentive:
Eligible Improvements include:
The Tax Incentive Break Down
|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.