Scholars at the University of Maryland recently did a study on Maryland’s Smart Growth laws and reported that in many ways, they have not been effective. One reason cited to the fact that not enough incentives are offered to developers and builders for building downtown.
One incentive that has been effective is the Maryland Historic Tax Credit. Unfortunately, without action from the Maryland General Assembly, the program will expire next year.
While legislation was introduced last year, it failed to pass before the end of session. One of the main points of contention was how much funding any one jurisdiction should be allowed to receive (75% being the magic threshold). I think we should spread the tax credits across the state focusing on areas where there is an urge to “control growth” (i.e. the Eastern Shore) and downtown areas that are in the process of revitalizing (i.e. – Cambridge, Frederick, Takoma Park, Denton, Berlin and other Main Street Maryland towns). Unfortunately these areas might not have enough political clout in an election year to argue for an equal share.
More importantly, I think the program is too effective to let lapse and this will definitely be an issue of interest in the 2010 Legislative Session.
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I think that tax cuts are great and it usually does encourage growth, but I would agree with Mr.O’Donnell. If high crime and high property taxes are an issue than the tax cuts are a non factor. However they shouldn’t be allowed to expire, but better yet try to solve the crime issue and reduce property taxes. Have a payroll tax cut for small business to help encourage new business, and establish business also.
Two obvious reasons come to mind why developers won’t build downtown: Nobody will buy the property because of 1) horrible crime and 2) high property taxes.
Thanks for this, Jeannie. The Historic Tax Credit has made a big difference for two important projects in Cambridge in recent years. It boosts smart growth in places where infrastructure is in place. That helps keep taxes low while promoting jobs and growth while keeping environmental damage associated with sprawl to a minimum. Again, thanks so much for supporting this.