Your restoration or rehabilitation plans must be reviewed and approved by CHAP before you begin any work on your building, if you wish to receive the tax credit. Rehabilitation must follow CHAP's Historic Preservation Guidelines. Upon completion of the work, CHAP sends the approved application to the State Department of Taxation. The State Department of Taxation will advise Baltimore City's Department of Collections regarding the amount of tax credit and a new bill will be sent to you, the property owner. Examples of Tax Savings Substantial improvement of a property does not necessarily result in a property value increase for tax purposes.
All examples are for illustration purposes.
Actual circumstances of assessments may vary from the example. An owner of a two-story building, who runs a business on the ground floor and resides on the top floor, decides to undertake substantial improvements. A rehabilitated kitchen and dining room benefits the entire family, but may also increase the property taxes. The assessment increase brings with it higher property taxes.