On February 4, Legislative Director Kevin Kinnally testified before the Ways and Means Committee in support of HB 296 – Personal Property Tax – Exemption for Low Assessments – Alteration.

This bill preserves tax relief for small businesses while allowing the State Department of Assessments and Taxation (SDAT) to collect basic eligibility information. As such, the bill ensures proper oversight without adding unnecessary burdens.

HB 296 addresses a flaw in the current system. In 2022, the General Assembly amended the law to exempt businesses with personal property valued under $20,000 from taxation, eliminating the requirement to file a return with SDAT. While well-intended, this restriction prevents SDAT from verifying eligibility, increasing the risk of misclassification and revenue discrepancies that impact local fiscal planning and essential public services.

From MACo Testimony: 

This bill maintains the exemption while restoring SDAT’s ability to collect basic information, ensuring that only qualified businesses benefit. Maintaining accurate tax records promotes fairness among businesses and helps counties effectively manage local revenue needs.

HB 296 was heard in the opposite chamber, the Budget and Taxation Committee, on March 27. MACo submitted written testimony in support of this bill.

More on MACo’s Advocacy:

• Follow MACo’s advocacy efforts during the 2025 legislative session on MACo’s Legislative Tracking Database
• Learn more about MACo’s 2025 Legislative Initiatives
• Read more General Assembly News on MACo’s Conduit Street blog