MACo: Remove Administrative Burden in Property Tax Collection

MACo Legislative Director Kevin Kinnally yesterday submitted testimony to the House Economic Matters Committee in support of HB 647 Corporations and Associations – Fees for Processing Articles of Dissolution, Certificates of Cancellation, and Other Documents – Repeal.

This bill repeals the state processing fee for filing articles of dissolution and certificates of cancellation.

From the MACo Testimony:

Under current law, business entities that file articles of dissolution and certificates of cancellation with SDAT must pay a $100 nonrefundable processing fee. Because SDAT has no enforcement mechanism, particularly with entities that are nearing a point of dissolution, many such entities simply avoid filing articles of dissolution and instead force the Department to commence a lengthy forfeiture process.

In the meantime, county governments may receive inaccurate assessment data, resulting in the issuance of property tax bills to entities that are no longer in business. As a result, county governments expend significant time and resources on fruitless and administratively burdensome attempts to collect delinquent property taxes.

Follow MACo’s advocacy efforts during the 2021 legislative session on MACo’s Legislative Tracking Database.

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