Grocery Store Personal Property Tax Credit
Baltimore now offers personal property tax credit to grocery stores locating or making significant renovations within targeted areas in the City. Lack of access to healthy food choices contributes to disparities in life expectancy, which can differ up to 18 years. In addition, quality supermarkets often serve as a catalyst for increased economic development in the community.
Details about the tax credit and qualifications are the following:
- A 10-year, 80 percent credit against property tax for supermarkets locating in or making significant improvements in targeted areas
- Personal property typically covers furniture, fixtures and equipment
- Must be located in the grocery store incentive area
- For newly constructed store, must have expended on new personal property an amount equal to or greater than $150,000 or $25 per square foot
- For newly renovated stores, have expended on new personal property an amount based on total floor space as follows:
- 20,000 square feet or less, at least $5 per square foot
- More than 20,000 square feet up to an including 45,000 square feet, at least $8 per square foot
- More than 45,000 square feet, at least $10 per square foot
- Must have at least 500 square feet dedicated to the sale of fruits and vegetables
- Must have at least 500 square feet dedicated to the sale of other perishable goods including meat, seafood and dairy products
How to Apply for the Tax Credit:
- Applicants need to pre-qualify for the credit based on the location by filling out and submitting this form. Please allow 30 days from the date of submission for processing.
- Once the pre-qualification is granted, the business can proceed with the construction or renovation of the grocery store. Once it is complete, the applicant must submit the initial application form which can be found here to request verification of the tax credit qualifications. This application must be received by October 1 in order to be considered for the credit in the tax year that begins January 1 of the next calendar year.
- Once a tax credit is granted, annual qualification is required for the ten-year period of the personal property tax credit. For continuing eligibility, this form must be submitted each year. The form must be received by November 30 of the year prior to the tax year for which continuing eligibility is sought. To read all the rules and regulation, please click here.
The Baltimore Food Policy Initiative is a collaborative effort of the BDC, the Baltimore City Health Department, the City’s Department of Planning and Johns Hopkins Center for a Livable Future.
To determine if a location is in a grocery store incentive area, please visit CityView and type in the address in the search box on the left hand side of the page. For more information, email firstname.lastname@example.org.