Legislation (SB 561/HB 676) has been introduced that would authorize counties to specify the classes of property that are subject to real and personal property taxation and to vary the rates of taxation among the classes. Defeating this legislation is a priority for the Maryland Chamber.

State law has long established the classes of property subject to county property taxation and required that counties impose one rate of tax that is applicable to all real property.

“If counties are authorized to set their own classes of property taxation and to vary tax rates among those classes, they will use that authority to push additional tax burden toward business property and engage in further tax discrimination against businesses,” Maryland Chamber Vice President of Government Affairs Ron Wineholt said.

Significant real property tax burden is already shifted to businesses as a result of the real property homestead tax credit for residences and the business personal property tax rate that is 2.5 times the real property tax rate.

HB 676 will be heard by the House Ways & Means Committee on February 28. No Senate hearing has been scheduled yet. For more information, contact Ron Wineholt at rwineholt@mdchamber.org.