Wednesday, February 23, 2011
Bill Would Expand Home-Based Businesses Property Tax Exemption
Since fiscal year 2000, small, home-based businesses have enjoyed an exemption from local personal property taxation for property owners by an individual and used in connection with a business that is located at their principal residence.
Under the existing law, only sole proprietors can qualify for the exemption. Home-based small businesses that are organized as an S Corporation, LLC or other business entity type are currently denied the exemption.
The exemption was enacted to relieve the smallest of small business owners from the time burden of fully completing a state personal property tax return and the financial cost of paying taxes on de minimis values. Small businesses still pay the exorbitant $300 filing fee with the return, even if they have no taxable property.
Senator Delores G. Kelley (D-Dist. 10) introduced legislation to expand the exemption to include property owned by any business entity type. Maryland Chamber Vice President of Government Affairs outlined the Chamber’s support for the bill during a hearing earlier this month. “There is no public policy reason for distinguishing among these business entity types - granting the exemption to some while denying it to others for the same types and amounts of personal property,” he said.
For more information, contact Ron Wineholt at .(JavaScript must be enabled to view this email address).
