As previously posted, HB 463, which would require counties and municipalities to establish a semiannual payment property tax schedule for all business property, passed out of the House and was awaiting action in the Senate. MACo opposed the bill, arguing that providing such a schedule for all business property lacks a compelling policy argument. A semiannual payment schedule exists for small business property, businesses with property taxes that don’t exceed $50,000. However, HB 463 would provide a semiannual payment schedule for the “biggest of the big” commercial property owners — with an average property value of $8.3 million. The modest tax deferral they receive from this doesn’t resolve any real issues like those facing homeowners or smaller businesses. Further, there are administrative costs associated with sending multiple tax notices, and some jurisdictions will lose interest revenue and face cash flow problems
The Senate Budget and Taxation Committee heard MACo’s concerns and amended the bill to apply to businesses with property taxes that do not exceed $100,000. The House must agree with this amendment to secure final passage.