SMART GROWTH- ARTS & ENTERTAINMENT DISTRICTS (2001)

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> MCA's Testimony

Summary

With passage of Senate Bill 586, Smart Growth – Arts and Entertainment Districts in 2001, Maryland became the first state in the country to develop arts and entertainment district incentives on a statewide basis. The Bill aims to encourage the creation of hubs of cultural activity by offering tax breaks and state aid to artists and arts-related activity that occurs within a designated district. The Secretary of the Department of Business and Economic Development (DBED) has the authority to designate up to six districts each year within a county or municipal corporation "distinguished by physical and cultural resources which play a vital role in the life and development of the community." The Bill's tie to the state's Smart Growth/Priority funding programs connects the arts with broader state goals of neighborhood revitalization and economic development.

SB 586 offers artists and arts organizations (both for profit and nonprofit) the following incentives:

• Income tax subtraction for artistic work sold by “qualifying residing artists”
• Property tax credits for renovation of buildings that create space for artists and/or arts-related enterprises
• Exemption from the Admissions and Amusement tax levied by district artists and enterprises
• Access to financial assistance from the Maryland Economic Development Assistance Fund loan program

Resources

Read about the program in our 2002 Fall/Winter Newsletter, Coming Attraction: Maryland's Arts and Entertainment Districts

Applications are available on the Maryland State Arts Council Web site

For additional information, contact the Division of Tourism, Film and the Arts, (410) 767-6299

MCA's Testimony

(Heard on February 28, 2001by the Senate Budget and Taxation Committee)

Good afternoon. I am Carole Alexander, Co Chair of the Advocacy Committee of Maryland Citizens for the Arts. Maryland Citizens for the Arts is a statewide advocacy organization that serves as the voice for the artists and arts organizations in all the counties and Baltimore City and advocates for increased funding for the Maryland State Arts Council. I am pleased to speak on behalf of Bill 586.

As cities and states throughout the nation have discovered, areas where artists and arts organizations are clustered bring a vitality and identity to a community. By creating hubs of cultural activity, arts patrons are drawn to an area and create a demand for services such as parking, restaurants, and other neighborhood amenities. Most recently, Frederick, Cumberland, and Silver Spring have forged alliances with the arts as essential partners in revitalizing and spurring economic growth. This in turn provides support and encouragement for working artists.

Maryland Citizens for the Arts believes that the creation of tax incentives for artists that are actively engaged in the creation or execution of artistic work is a valuable way to support and sustain the arts in Maryland. Furthermore, the designation of Arts and
Entertainment Districts for artists to live, create, sell and/or perform is a proactive and constructive mechanism to foster cultural development and provide a boost to the growth and evolution of a community.

The arts play an integral role in the quality of life Maryland offers its citizens. Maryland Citizens for the Arts believes this Bill can have a lasting impact on both our State's economy and the arts statewide.

Thank you.