The law states that if a business expects to receive a property tax credit for the next taxable year beginning on July 1 when the
tax bill is actually issued, then the local Zone administrator must certify to the Department of Assessments and Taxation the eligibility of a
particular business by no later than the end of the preceding calendar year on December 31.
Example 1. ABC Corporation applies to the local Zone administrator on November 1, 1985. The administrator certifies ABC's eligibility
to the Department of Assessments and Taxation on December 30, 1985. ABC completes its capital improvements on May 1, 1986. ABC is eligible
for a property tax credit on the next July 1, 1986 tax bill when the first taxes will have been levied on the new improvements.
Example 2. XYZ Corporation applies to the local Zone administrator on January 31, 1986. The administrator certifies XYZ's eligibility to
the Department on February 1, 1986. XYZ also completes its capital improvements on May 1, 1986. XYZ Corporation will not be eligible for the
Enterprise Zone property tax credit on the next July 1, 1986 tax bill when taxes are first levied on the new improvements but must wait until
the following July 1, 1987 tax bill because certification of the eligibility came after December 31, 1985.
Example 3. NOP Corporation applies to the local Zone administrator on June 1, 1986. The administrator certifies NOP's eligibility to the
Department on July 1, 1986. NOP completes its capital improvements on October 1, 1986 and a one-half tax year bill for the new improvements is
issued to NOP on January 1, 1987. NOP will not be eligible for the tax credit on January 1, 1987 half-year levy but must wait to receive the
credit until the next full year's tax bill is issued on July 1, 1987.
Apart from the fact that a business must be certified by the end of the calendar year preceding the next taxable year on July 1, the granting of an
Enterprise Zone property tax credit also is affected by the timing of the completion of capital improvements and the assessment of these improvements.
Businesses which receive one-half year tax bills because the capital improvements are not assessed for the first time by the Department of Assessments
and Taxation until after July 1 must wait to receive the property tax credit until the following July 1 tax bill.
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