Budget & Taxes (Small Business)

HB 840 would allow Baltimore City and local Maryland counties or municipalities to create a property tax credit for commercial buildings rented to small businesses. This credit applies only to buildings located in designated Arts and Entertainment Districts (under Title 4, Subtitle 7 of the Economic Development Article) or Main Street Maryland Communities (designated by the Department of Housing and Community Development). Local governments would set the credit amount, duration, eligibility rules, and application process. The bill takes effect June 1, 2026, for tax years beginning after June 30, 2026.

SB 767 would allow Baltimore City and Maryland counties or municipalities to create a property tax credit for commercial buildings rented at fair market value to small businesses located in two specific zones: Arts and Entertainment Districts (under Title 4, Subtitle 7 of the Economic Development Article) or designated Main Street Maryland communities. Local governments would set the credit amount, duration, eligibility rules, and application process through their own ordinances. The credit applies to property taxes on qualifying buildings and takes effect for tax years beginning after June 30, 2026. This bill directly affects small businesses renting commercial space in these designated areas and the local governments managing property tax policy.

HB 294 modifies Maryland's personal property tax law to simplify exemptions for small businesses. It repeals restrictions that previously prevented the State Department of Assessments and Taxation from collecting information or requiring tax returns from businesses owning business personal property valued under $20,000 total (excluding vehicles). This change directly affects small business owners with low-value equipment, removing administrative burdens by eliminating the need to submit tax returns or provide property details if they qualify for the exemption. The law takes effect June 1, 2026, for taxable years beginning after June 30, 2026.

SB 137 modifies Maryland's personal property tax exemption rules for small business owners. It removes restrictions that previously prevented the State Department of Assessments and Taxation from collecting information or requiring tax returns from individuals or businesses owning personal property (excluding exempt vehicles) with a total original cost under $20,000. If a taxpayer attests that their property meets this threshold, the department cannot demand tax returns or additional information. The bill applies to all taxable years beginning after June 30, 2026, and takes effect June 1, 2026. This change streamlines tax collection for low-value business property without altering the exemption threshold itself.