FAQs About A&E Tax Incentives

Click on the “+” next to the question to reveal the answer. If you have additional questions please contact Kay MacIntosh at kay.chestertown@gmail.com

For Artists:

How does the income tax subtraction modification work?
How does one define a qualifying residing artist?
Will the income from the sales made by a qualifying residing artist in an A&E district outside of the one in which the artist creates, writes, composes or executes a work of art be counted toward the income tax subtraction modification?
Can a qualifying residing artist whose business is organized as a Limited Liability Company (LLC) take the income tax subtraction modification?
Are an artist's Internet sales counted for the purposes of the income tax subtraction modification?
For authors who write books, what constitutes a sale and how will it be verified?
What type of documentation is required for an artist to take advantage of the income-tax subtraction modification?

 

For Property Owners:

What percent property tax credit is available in Chestertown’s A&E district and how long will it last?
Will the property tax credits be granted to new buildings as opposed to buildings that are just renovated?
How about an addition onto a building?
What is the relationship between the number of years property tax credits may be granted and the designation term?
Is the property tax credit for real estate or personal property?
If residential space is donated in-kind, can it be considered rented?
How substantial must renovations to an A&E enterprise be for the A&E property tax credits to apply? (Example – there is a café that renovates space or adds space for a jazz band. How much of the café, space-wise, must be dedicated to jazz bands for the property tax credit to apply?)
How is the property tax credit determined?
How are renovations assessed?
What benefits apply to a gallery or non-profit in the A&E District?
Does the state reimburse the county and town for the loss of revenue caused by the property tax credits?

 

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