Bill > HB168

This bill creates a new property tax exemption for small and medium-sized manufacturing enterprises in Maryland. Specifically, the bill defines "manufacturing" comprehensively, including activities like sawmill operations, mineral extraction, research and development, genetic engineering, and computer software creation. Under the new provision, all personal property (including manufacturing inventory) owned by small or medium-sized manufacturing businesses will be fully exempt from property tax, including special taxing district property taxes. The bill refines existing tax code definitions and provides clarity on what qualifies as manufacturing and what does not, excluding activities primarily focused on services, intellectual or artistic work, and public utilities. The tax exemption is designed to support smaller manufacturing businesses by reducing their tax burden, and will take effect on June 1, 2025, applying to all taxable years beginning after June 30, 2025. This change aims to potentially incentivize manufacturing businesses and provide financial relief to smaller enterprises in the state.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0168?ys=2025RS