Today, February 18, Andrea Mansfield, MACo’s Legislative Director, testified in opposition to HB259, Personal Property Tax- Maximum Rate- Small Business, before the House Ways and Means Committee.
This bill would mandate a five-year cap on the county personal property tax rate imposed on many small businesses. The mandated cap would limit county taxing authority affecting county revenues and arbitrarily set a tax rate that would apply only to certain types of businesses.
As stated in MACo’s written testimony:
The total assessed value of personal property is $23.2 billion, which generates $585 million in county revenues. While it’s difficult to determine the revenue loss associated with HB 259, State fiscal constraints and economic realities make it difficult for counties to absorb additional losses, especially while counties face increasing pressure to satisfy State-mandated education funding requirements. MACo would prefer approaches that give counties flexibility in setting tax rates and managing their bottom line.
For more on MACo’s 2015 legislation, visit the Legislative Database.