SDAT RAISES BUSINESS PERSONAL PROPERTY EXEMPTION FROM $2,500 TO $20,000
BALTIMORE, MD – The
Maryland State Department of Assessments and Taxation (SDAT) today announced that
HB268, which raises the exemption from personal property assessment for all Maryland businesses from $2,500 to $20,000, has taken effect. This legislation will save 14,217 businesses from paying taxes on $44.2 million in assessment, and is an extension of
HB90, which SDAT sponsored in 2018 and exempted 28,493 businesses from $10.8 million in assessment.
“Thanks to these legislative efforts, 42,000 of Maryland's smallest businesses will not have to pay taxes on $55 million in assessment," said SDAT Director Michael Higgs. “The department remains committed to playing a role in reducing taxes, supporting businesses and changing Maryland for the better."
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.