Leonardtown celebrated its Arts and Entertainment District Designation on First Friday, September 6, 2013, becoming the first Arts & Entertainment District in Southern Maryland.

The State of Maryland is proud to be among the first states in the country to sponsor Arts and Entertainment Districts as a way to stimulate the economy and improve quality of life. 

Nationally, Arts & Entertainment Districts can be found in cities and towns of all sizes. Each one uniquely reflects a local mission, history, and cultural development. 

Downtown Leonardtown is now one of these specially designated Arts & Entertainment districts. A full list of Maryland A&E districts is available here.

The Arts & Entertainment district designation makes available incentives to promote arts activity and investment within specified geographic areas.

The benefits currently offered to these districts include:

• Property Tax Incentives

  • 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."

    The amount and duration of the tax credit, as well as the application process, is determined by the local government. Click here to find district manager contacts via the Maryland Arts Directory to inquire about the incentives available in a particular district.

• Artist Income Tax Subtraction Modification

  • A "qualified residing artist" who lives in Maryland and sells "artistic work" in any of the 29 A&E Districts throughout the State is eligible for the income tax subtraction modification on income derived from their in-district sales (for performing artists, this includes income derived from performances in a district; for all "qualified residing artists", this includes internet sales originating in a district.)

    Eligible artists should submit a Form 502AE with their annual state tax filing to claim the modification. Click here to access Form 502AE. On the website, hover over "Forms," and choose 502AE on the drop down menu under "Individual Tax Forms."

• Admissions & Amusement Tax Exemption

  • Local governments may exempt from the 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.

    Click here to visit the State Comptroller's Office website to learn more about the Admissions and Amusement tax or to contact the office for additional information.