On January 29, Legislative Director Kevin Kinnally testified before the Budget and Taxation Committee in support of SB 344 – Property Tax Credit – Retail Service Station Conversions.
This bill enables local governments to enact a property tax credit for specified converted retail stations. It also requires the State to reimburse local governments for half of the foregone property tax revenue resulting from the credit.
Former retail service stations often face substantial redevelopment costs due to environmental remediation requirements, such as removing underground storage tanks. These costs create unique barriers to redevelopment, making such properties less attractive for investment. This bill addresses these challenges by offering a flexible tool for counties to incentivize the reuse of these properties for retail, residential, or mixed-use purposes, as specified.
MACo generally supports legislation that provides broad authority to enact tax incentives for revitalization and tax relief purposes and welcomes the opportunity to work with state policymakers to develop flexible and optional tools to create broad or targeted tax incentives. Counties prefer the approach offered by SB 344, as it provides local autonomy to determine the best way to provide these incentives rather than those that mandate reductions in local revenue sources.
SB 344’s cross-file, HB 341, was heard on February 4 in the House Ways and Means Committee. Kevin Kinnally testified in support of this bill.
SB 344 was heard in the opposite chamber, the Ways and Means Committee, on March 18. Kevin Kinnally submitted written testimony in support of this bill.
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