Officials propose end to arts district tax credit

Commissioner John ‘‘Lennie” Thompson Jr. (R) has proposed repealing the tax credits mostly because no one has applied to use them yet.

But the leader of a downtown Frederick arts group says the county may not have done enough to advertise the tax credits to the general public.

Commissioners will soon take the issue to public hearing; a date has not been set.

‘‘I believe that artists and entertainers should pay property taxes at the same rates and proportions as other taxpayers,” Thompson said at a Feb. 7 meeting. ‘‘I believe in across-the-board tax cuts, rather than going interest group by interest group.”

Thompson has for nine years pushed for broad property tax cuts rather than individual tax breaks.

Under the program, only the rehabilitated portion of a property in the district — including 7th Street north, South Street and East and Bentz streets — is subject to the tax credit for seven years.

In four years, no one has applied for the credit.

‘‘You have a government program doing nothing,” Thompson said. ‘‘... You get rid of programs that don’t apply anymore. There is no interest in this.”

News that no one has applied for the tax credit came as a surprise to some in the arts community.

‘‘I’m disappointed no one has used it,” said Shuan Butcher, executive director of the Frederick Arts Council. ‘‘I have seen business entities putting in arts-related businesses. This could have been an opportunity.”

Butcher said that before commissioners do away with the tax credit, an advertising campaign should be conducted to educate artists and entertainers on the program’s benefits.

‘‘Obviously there will be more opportunity if they are aware,” he said.

Meanwhile, commissioners Charles A. Jenkins (R) and David P. Gray (R) voted alongside Thompson to move the proposal forward.

‘‘Why give it specifically to an artist [rather] than to anybody else?” Jenkins said. ‘‘It seems very targeted. That does it for me as far as this particular ordinance. I’m not agreeing to it.”

Board President Jan H. Gardner (D) and Commissioner Kai J. Hagen (D) argued that the tax credit should stay in place.

‘‘You’re really just encouraging the reuse and rehabilitation of the building,” said Gardner, who questioned Thompson’s motives.

‘‘I think there is great value in encouraging redevelopment ... I wouldn’t repeal it, because I think it’s got merit. I voted for this [in 2004]. ... Let’s give it time to work. It’s like we’re looking to create problems. It certainly is not a drain on county coffers, because it hasn’t been used.”

Thompson said he was looking out for the average taxpayer.

‘‘Somebody has to speak up for the ordinary person out there who doesn’t have a board of directors,” he said.

Gardner took exception to the comment.

‘‘I represent the ordinary citizen out there ... and this benefits the ordinary citizen,” she said. ‘‘[You’re not] the only person who represents the taxpayer out there.”