A new law raising the exemption for personal property assessment for all Maryland businesses from $2,500 to $20,000 took effect on June 1 and is effective for tax years starting after June 30, 2022. This legislation will save 14,217 businesses from paying taxes on $44.2 million in assessments, according to the Maryland State Department of Assessments and Taxation (SDAT).
MACo supported HB 268, as it will deliver meaningful tax relief for small and home-based businesses amidst pandemic-driven economic uncertainty. As the focus shifts to restoring our state and local economies in a manner that is safe, equitable, and prosperous for all, counties are eager and committed partners in promoting economic growth and creating opportunity.
Strengthening Maryland’s small businesses contributes directly to the growth of local, state, and national economies. This in turn creates jobs, contributes to enhancing quality of life, and expands the local tax base – enabling counties to better provide core services for Maryland families and businesses.
According to SDAT:
HB268 took effect on June 1, 2022, and is effective for tax years starting after June 30, 2022, and includes annual filings submitted as early as January 2022. SDAT will automatically adjust assessments of filings that were submitted between January 1, 2022, and June 30, 2022 so that reported business personal property less than $20,000 is not assessed.
Late filing penalties previously billed on 2022 business personal property returns reporting less than $20,000 have been abated and filers who have already paid a late filing penalty billed on a return filing reporting less than $20,000 are being mailed a refund check for the penalty paid.
Beginning in 2023, filers with a total original cost of personal property less than $20,000 will also be able to self-attest on their Annual Report that their personal property falls within the exemption range and will no longer be required to submit a return detailing their personal property.