Art—not only to improve the quality of life—but to stimulate economic enterprises were the primary themes of Lani Seikaly’s presentation on behalf of the Greater Chestertown Initiative to the town council on Monday, November 3. The Chestertown RiverArts president made a formal request to the Chestertown Town Council to apply for the Arts and Entertainment District designation for 2015. Applications may be made only through local government.
Maryland is one of the first states in the country to sponsor Arts and Entertainment Districts as a way to stimulate the economy. Seikaly states in her presentation that “Maryland’s A & E Districts help develop and promote community involvement, tourism and revitalization through tax-related incentives that attract artists, arts organizations and other creative enterprises.”
Seikaly’s Powerpoint presentation included 2013 Maryland Arts and Entertainment Districts Impact Analysis that underscored the dramatic benefits such a designation can make.
Currently there are seven A & E Districts on the Shore, each of them offering impressive economic impact figures.
Mayor Cerino and all members of the town council voiced approval for the application. The Mayor was quick to say that his greatest concern—and the greatest need—will be to fund a position, even part-time in the beginning, for someone to act as A & E Director. Bridging the various arts and governmental groups requires a single director rather than volunteer time by individuals already running businesses.
The following video contains excerpts from Seikaly’s presentation.
Here is the complete Powerpoint presentation.
Norton, Richard V. says
All artists in Chestertown, please get MD form 502AF and add your voices for the town to act.
I completely support the Designation of an ARTS district per this presentation and according to MD Law
I add the fact that there is a strong Maryland income tax benefit for artists who generate their work in such a designated area.
https://forms.marylandtaxes.com/11_forms/502AE.pdf
Quote from form 502AE
“Who May File
A qualifying residing artist may claim a subtraction for income
derived from the sale, publication, production or performance of an
artistic work within an arts and entertainment district, if the artist created
that artistic work within that arts and entertainment district.
The subtraction is only available to individuals. The subtraction
is available to a single-member limited liability company, whose sole
member is an individual, if the limited liability company is disregarded
as an entity separate and apart from its member for federal income tax
purposes and as such, the profit or loss of the limited liability company
is reflected on the income tax return filed by the member of the limited
liability company”
Thus in addition to other tax incentives alluded to by the presentation, There is a very direct benefit to the artist regardless of where they sell their art.
This is direct effect on artists income tax filings.
if an “artist created that artistic work within that arts and entertainment district.”
The Chestertown Arts District must include commercial and private residence studio space used by individual artists as it will remove an income tax burden from sale of their work!.
The primary purpose of the law was to promote studios for the artists and not particularly commercial space for urban renewal in Baltimore. .
ALL PERSONAL AND PUBLIC STUDIOS must be incorporated into the proposed district. Private studios, studio complexes and home studios as the law does not require that the art be produced somewhere other than a home.
The District might be ALL OF CHESTERTOWN for all the home based artists. This is not just a commercial benefit to the town but direst benefit to the artist. Cannon Street Studios at 312 Cannon Street provides opportunity for 7 artists to qualify for Tax deductions.
I totally support this activity since its inception many years ago, and am pleased to see this council supporting the endeavor.
The District will not decrease the Taxable Property inventory for Chestertown, contrary to non-profit organized and owned properties.
I would like to participate with my enthusiasm for this endeavor.
Richard V. Norton
Norton, Richard V. says
CORRECTION TO JUST SENT EMAIL
“regardless of where they sell their art.”
This is totally wrong on my part and must be deleted.
RVNorton