Budget & Taxes (Business Taxes)

HB 133 reduces Maryland's individual and corporate income tax rates, with key changes to capital gains taxation. It exempts the first $10,000 of net capital gains from tax for residents aged 65 or older and removes income tax on capital gains from primary home sales (under $1.5 million), retirement accounts, and certain agricultural or conservation land. The bill also repeals the sales tax on data, information technology services, and software publishing. These changes directly affect Maryland residents and businesses subject to state income and sales tax.

HB 90 allows Maryland counties and Baltimore City to create a special property tax rate for commercial and industrial properties - including mixed-use buildings - to fund transportation projects or school budgets. It requires counties to automatically exempt the residential portion of mixed-use properties from this special tax using public records, without requiring owner applications. The special rate must be in addition to the general tax rate, cannot exceed 12.5 cents per $100 assessed value total, and cannot apply to residential parts of qualifying buildings. This directly affects commercial/industrial property owners, particularly those with mixed-use properties, by modifying how their taxes are calculated for specific public funding purposes.

SB 224 allows counties and Baltimore City to create a special property tax rate for commercial and industrial properties, in addition to the general tax rate, to fund transportation projects or school budgets. The special rate cannot exceed 12.5 cents per $100 of assessed value and must automatically exempt the residential portion of mixed-use buildings from this tax. It also permits counties to grant tax credits to small businesses (under 20 employees) owning qualifying commercial property. This bill directly affects commercial/industrial property owners and mixed-use building residents, while ensuring residential portions remain tax-exempt under the special rate.