Newsletters
Maryland Property Exemption Raised From $2,500 to $20,000
The Maryland State Department of Assessments and Taxation (SDAT) announced this week that House Bill 268 — 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, according to an SDAT press release. It is also 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,” SDAT Director Michael Higgs said in the press release. “The department remains committed to playing a role in reducing taxes, supporting businesses, and changing Maryland for the better.”
As of June 1st, 2022, HB268 applies to tax years starting after June 30th, 2022 and includes annual filings submitted as early as January 2022. SDAT will automatically adjust assessments of filings that were submitted between January 1st, 2022, and June 30th, 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, according to the press release. Refund checks will be mailed out to filers who have already paid a late filing penalty billed on a return filing reporting less than $20,000.
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.
For more information please feel free to contact us at info@millermusmar.com or call us at 703-437-8877.
MillerMusmar CPAs is an established accounting firm with offices in Reston, Virginia, and Manassas, Virginia. We have a twenty-five-year history of providing top-quality auditing, tax, and accounting services to clients throughout the Washington Metropolitan area and internationally. By combining the expertise of a mid-sized firm with personal attention, we are both large and small enough to deliver a responsive service to our clients. For more information, please visit our website at www.MillerMusmar.com.