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Personal Property Tax Legislation Filed

by Randy Davis, Vice President, Specialty Property Services, March 2015

 

Small businesses in Virginia and Maryland may see positive changes coming concerning their personal property taxes. Legislation passed the Virginia Senate to streamline property tax filings. Meanwhile, a bill has been introduced in Maryland that would eliminate personal property taxes for many small businesses.

 

Virginia SB 1127

 

Senate Bill 1127 and the identical House Bill 2098 allow small business owners to estimate the cumulative value of all goods worth less than $250 for their personal property tax renditions.

 

Supporters say it will simplify filing procedures and not require businesses to calculate and itemize the value of every single calculator, bulletin board, pencil sharper, etc.

 

Maryland HB 480

 

Maryland Governor Larry Hogan is promoting House Bill 480, which would do away with personal property taxes for companies with less than $10,000 in personal property and would alleviate reporting requirements. Officials say more than 70,000 Maryland businesses would benefit from passage of this legislation.

 

If HB 480 becomes law, the state will reimburse counties and localities 100% of the tax that would have been collected in the first year, 75% in the second year, and 50% in the third year. The state would have no responsibility to replace the tax in the fourth year and thereafter. If approved, it will take effect June 30, 2015.