On January 20, MACo Legislative Director Kevin Kinnally submitted written testimony before the Ways and Means Committee in support of HB 161 – Property Tax Credit – Retail Service Station Conversions.
The bill authorizes local governments to grant a property tax credit against the county or municipal property tax when a property converts from a retail service station to another retail use, a residential use, or a mixed retail and residential use, as specified. The bill also authorizes the State to reimburse local governments for half of the foregone property tax revenue resulting from the enactment of the credit.
Former retail service stations often face significant redevelopment barriers due to environmental remediation requirements, including the removal of underground storage tanks and the cleanup of associated contamination.
These added costs discourage reinvestment and limit reuse opportunities. HB 161 addresses these challenges by giving counties a flexible option to incentivize redevelopment for retail, residential, or mixed-use purposes.
MACo generally supports legislation that provides broad local authority to enact tax incentives for revitalization and tax relief and welcomes the opportunity to work with state policymakers to develop flexible, optional tools that allow counties to address local needs.
Counties favor the approach offered by HB 161 because it preserves local discretion to determine whether and how to offer tax incentives, rather than mandating reductions in local revenue sources.
HB 161’s cross-file, SB 58, was heard on January 21 in the Senate Budget and Taxation Committee. Kevin Kinnally testified in support of this bill.
SB 58 was heard in the opposite chamber, the Ways and Means Committee, on March 24. MACo submitted written testimony in support of this bill.
HB 161 was heard in the opposite chamber, the Budget and Taxation Committee, on March 31. MACo submitted written testimony in support of this bill.
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