The Maryland State Department of Assessments and Taxation (SDAT) made business owners very happy as House Bill 268 (HB268) has officially taken effect. This legislation increases the exemption amount of personal property eligible to be taxed. The exemption has gone from $2,500 to $20,000 for businesses, and from $10,000 to $20,000 for at-home businesses.
As an extension of legislation HB90, which exempts from personal property valuation and taxation if the total cost of the personal property was less than $2,500, this new legislation is said to save $44.2 million in taxes for 14,217 Maryland businesses by increasing the exemption limit to $20,000.
As the legislation went into effect on June 1, tax years beginning after June 30, 2022 will be impacted. Any annual filing submitted between January 1 and June 30, 2022 will be included, and SDAT will be adjusting assessments so that reported business personal property valued under $20,000 is not assessed.
If you were penalized for filing your 2022 business personal property return late, these filings have been made null. If you happen to have already paid the penalty fee, you will receive a refund check.
Beginning in 2023, businesses with a total original cost of personal property less than $20,000 can 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 listing their personal property.
To learn more about the bill, review the official house document here. If you have any questions, feel free to contact us here or call 800.899.4623.