Thursday, January 15, 2009
MD Chamber Urges Changes to Manufacturing Personal Property Tax Exemption Application Deadline
Earlier this afternoon, Maryland Chamber Vice President of Government Affairs Ron Wineholt urged members of the Senate Budget & Taxation Committee to support legislation to give manufacturers additional time to apply for and receive a personal property tax exemption on their machinery and equipment (SB 88).
Under current law machinery and equipment used in the manufacturing process is exempt from local property taxation in most counties and many municipalities. However, in order to receive the exemption the business must have an approved exemption on file with the Department of Assessments and Taxation or have applied for the exemption by September 1st of the tax year.
A new manufacturer that is unfamiliar with the September 1st requirement can easily miss that deadline. Although personal property returns are filed by June 15th (on extension), assessments of personal property may not be received until well after September 1st.
SB 88 would enable businesses to apply for a manufacturing exemption up to 6 months after receiving a personal property assessment notice and still receive the exemption for the current tax year. This provision is fair and comparable to the existing law for the time allowed to apply for a manufacturing exemption when personal property is transferred.
Similar legislation was passed by both houses of the legislature last year, but a conference committee was unable to reconcile the differences. The Maryland Chamber is optimistic the legislation will be enacted this year.
