Bill to Remove Administrative Burden in Property Tax Collection Moving in Senate

A bill to repeal the state processing fee for filing articles of dissolution and certificates of cancellation has passed the House of Delegates and looks to be on track to advance from the Senate Judicial Proceedings Committee.

MACo supports HB 647 Corporations and Associations – Fees for Processing Articles of Dissolution, Certificates of Cancellation, and Other Documents – Repeal., as county governments expend significant time and resources on fruitless and administratively burdensome attempts to collect delinquent property taxes from businesses that may no longer exist.

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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