Advanced Technology Systems Property Tax Credit

If you are planning to renovate your property to meet state-of-the-art communication and utility standards for accommodating advanced computer and telecommunications equipment and you are located within the City of Salisbury’s Downtown Historic District, you may be eligible for Salisbury’s “Advanced Telecommunications Systems Property Tax Credit”. Your renovations must meet industry standards published by the Electrical Industry Association and Telecommunications Industry Association (EIA/TIA Building Standard 568) and be approved by the City of Salisbury’s Department of Information Services in advance. Such renovations can include, but are not limited to, accommodating for fiber optic cable, emergency electrical capacity, and emergency backup power. If approved, your yearly tax credit will be equal to the lesser of 10% of the cost of qualifying renovations (as determined by a licensed appraiser) or your taxes otherwise due. This tax credit will begin the first fiscal year after renovations are completed and approved. You will continue to receive this tax credit until, ten years have passed, you have applied for and received a property tax credit through an Enterprise Zone designation, or the property changes ownership, with some exceptions applying.

1. The property must be located within the City of Salisbury’s Downtown Historic District (see last page of this application for map). 2. The property may not receive a property tax credit through an Enterprise Zone designation, or other property tax credit under Section 9-103 or 9-103.1, Tax-Property Article of the Annotated Code of Maryland. 3. Eligible renovations are defined as renovations to a commercial or residential building that have been made to meet state-of-the-art communications and utility standards for accommodating advanced computer and telecommunications system, in accordance with the industry standards published by the Electrical Industry Association and Telecommunications Industry Association (EIA/TIA Building Standard 568).

1. Prepare a detailed description of your proposed renovation, a construction timeline, a list of hardware and equipment that will be installed and/or upgraded, and a diagram and/or schematic of the proposed renovation. 2. Before construction begins, bring the attached application and the aforementioned documents to the Director of Business Development. The application and plans will allow us to determine whether or not your property is eligible to receive this property tax credit. You will receive a letter acknowledging the receipt of your application. 3. If determined eligible, you will receive a letter confirming that your submitted plans meet the initial requirements for this tax credit. If not determined eligible, you will receive a letter with a brief explanation as to why your plans did not meet the eligibility requirements; you may reapply with plans that address these problems. 4. Upon completion of the renovation, you must hire a third-party appraiser, licensed by the Maryland Department of Labor, Licensing, and Regulation, to determine the value of the renovations and submit the appraisal report to the Director of Business Development. The cost of the appraisal is to be borne by the applicant. 5. The Department of Information Technology will review the appraisal report and confirm that the construction completed largely conforms with the plans submitted. If they do not, you will be requested to submit a written clarification explaining the discrepancy. 6. Upon final approval of your renovations, you will automatically see the tax credit reflected in your property taxes at the start of the next fiscal year. This property tax credit is for the property owner only, not the tenant. Reimbursement to the tenant must be negotiated with the property owner

If applicable