Bill > HB296

This bill modifies the personal property tax exemption for businesses with low-value assets by altering existing Maryland tax law. Currently, personal property owned by an individual and used in a home-based business is exempt from property tax if the total original cost of the property is less than $20,000. The bill repeals a provision that previously prohibited the State Department of Assessments and Taxation from collecting information or requiring tax returns from individuals claiming this exemption. Specifically, the legislation removes the restriction on information gathering, allowing the department to potentially collect data or request tax returns from individuals with low-value business personal property. The bill will take effect on June 1, 2025, and will apply to all taxable years beginning after June 30, 2025, which means businesses can expect these changes to impact their tax reporting requirements starting in the 2026 tax year.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0296?ys=2025RS