The Maryland State Department of Assessment and Taxation (SDAT) has raised the personal property assessment exemption for all Maryland businesses. This legislation, HB268, went into effect on June 1, 2022, andraised the exemption from $2,500 to $20,000.
Chris Tracy, State & Local Tax Director at Clearview, said, “This is certainly a step in the right direction to help small business owners that are already overburdened with tax requirements.”
HB268 is effective for tax years starting after June 30, 2022, and includes filings submitted anytime during or after January 2022. The legislation will save over 14,000 small businesses from paying taxes on over $44 million in assessment.
For those businesses who already submitted before June 30, 2022, the SDAT will automatically adjust their filing assessments. For other businesses who were facing late filing penalties or already paid a penalty, the SDAT will either adjust their billing or mail a refund check.
In the future, businesses with total personal property costs under the exemption amount will no longer be required to submit a return for their personal property. Instead, starting in 2023, these filers will be able to self-attest on their Annual Report that their personal property falls within the exemption.
For more information about the new exemption and how it could affect your business, contact Chris Tracy.
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