Governor Hogan Announces Tax Relief For Small Businesses
House Bill 480 – Reducing Tax Burden For More Than 70,000 Maryland Businesses
ANNAPOLIS, MD – In remarks this morning before members of the National Federation of Independent Business (NFIB), Governor Larry Hogan reaffirmed his commitment to making Maryland a business friendly state and announced House Bill 480, Small Business Personal Property Tax Relief Act of 2015. Once signed into law, this legislation will eliminate the personal property income tax for businesses that have less than $10,000 in personal property.
“This is a burdensome tax that clearly discourages the creation of new businesses and drives existing businesses out of state,” said Governor Hogan. “This is a first, but important, step in recognizing the critical role small businesses play in creating jobs and growing our state’s economy.”
HB 480 (cross-filed with SB 590) has 57 sponsors and bipartisan support from both chambers. Under current law, all Maryland businesses are required to pay taxes on the value of personal property such as inventory, office furniture, fixtures, equipment, and plant machinery. This legislation reflects the governor’s promise to change the way Maryland is viewed by the business community and begin the process of reducing the unnecessary tax burden that has grown over the past decade.
“The Personal Property Tax creates a disincentive for businesses to invest in capital and equipment required for their day to day operations,” said NFIB Maryland State Director Jessica Cooper. “Today’s legislation is a step in the right direction to providing tax relief for Maryland employers. Every time the cost to do business in our great state goes down, entrepreneurs reinvest their dollars into their businesses and improve our economy.”
“The Maryland Chamber of Commerce is committed to creating an environment where small businesses can grow and prosper. We strongly support this important effort, believing Maryland must reduce the tax burden small businesses are facing,” said Brien Poffenberger, President of the Maryland Chamber of Commerce. “We are excited about this and other efforts that Governor Hogan is championing as part of his commitment to make Maryland more business friendly.”
More than 70,000, or one-half of all Maryland’s businesses, would benefit from passage of this legislation.