Aberdeen Proposes Property Tax Break to Compete with Rates Offered under EUL
- May 15, 2011
The Aberdeen City Council is considering an ordinance that would offer building owners a five-year property tax break as a way to compete for tenants with office space developed at Aberdeen Proving Ground under the enhanced use leasing (EUL) program.
The developer of the Government and Technology Enterprise, a 416-acre development at the proving ground, does not pay property taxes under an agreement with Harford County, Md., reported The Record. Instead, St. John Properties makes a payment in lieu of taxes, or PILOT, to the county. The money Harford County receives under the PILOT is much less than it would have collected in property taxes, according to the story.
Office buildings with more than 50,000 square feet of space and a LEED energy efficiency certification would pay only 25 percent of the property tax rate for the first three years, 50 percent for the fourth year, and 75 percent for the fifth, under the proposed city ordinance.