Arts & Culture

Arts & Entertainment Districts


Maryland's Arts and Entertainment (A&E) Districts, unique destinations reflecting the traditions and evolving culture of their communities, help develop and promote community involvement, tourism, and revitalization through tax-related incentives that attract artists, arts organizations, and other creative enterprises. 
 
Garrett County is the home of two of those Districts - one located in the Town of Grantsville and the other located in the Town of Oakland - and artists interested in the A&E District Program are invited to contact Kathy Beachler at the Garrett County Arts Council, Inc. at (301) 334-6580.
 
Incentives available under the A&E District Program include:
 

Income Tax Subtraction Modification: 

 
"qualified residing artist" who lives in Maryland and sells "artistic work" in any of Maryland's A&E Districts may be eligible for a Maryland personal income tax subtraction modification on income derived from the sale, publication, or production their in-district sales (for performing artists, this includes income derived from performances in a district; for all "qualified residing artists", this includes internet, mail order, and catalog sales of artistic work originating in a district). Eligible artists should submit a form 502AE with their annual state tax filing to claim the modification.
 

Admission & Amusement Tax Exemption:

 
Admissions and amusement tax gross receipts from any admissions or amusement charge imposed by an "arts and entertainment enterprise" or a "qualifying residing artist" in an A&E District are exempt. Please visit the State Comptroller's Office website or contact the Comptrollers' Office for additional information.
 

Property Tax Credit: 

 
The owner of a manufacturing, commercial, or industrial property is eligible for a local property tax credit based on the difference between the pre- and post-renovation assessments of the property when it has been wholly or partially renovated for use by "qualified residing artists" or "arts and entertainment enterprises." 
 

DEFINITIONS:

 
“Artistic work” means an original and creative work that:
1. is created, written, composed, or executed; and
2. falls into one of the following categories
(i) a book or other writing;
(ii) a play or performance of a play;
(iii) a musical composition or the performance of a musical composition;
(iv) a painting or other picture;
(v) a sculpture;
(vi) traditional or fine crafts;
(vii) the creation of a film or the acting within a film;
(viii) the creation of a dance or the performance of a dance;
(ix) the creation of original jewelry, clothing, or design; or
(x) any other product generated as a result of a work listed in items (i) through (ix) of this paragraph.
 
“Arts and entertainment enterprise” means a for–profit or nonprofit entity dedicated to visual or performing arts.
 
“Qualifying residing artist” means an individual who:
1. owns or rents residential real property in the State;
2. conducts a business in any arts and entertainment district; and
3. derives income from the sale or performance within any arts and entertainment district of an artistic work that the individual wrote,
    composed, or executed, either alone or with others, in any arts and entertainment district.