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HB 168

Manufacturing Business Personal Property Tax - Exemption

2025 Regular Session Introduced by Lily Qi

HB 168 exempts manufacturing business personal property from Maryland state taxation, reducing manufacturer costs but potentially decreasing state revenue.

Hearing 2/18 at 1:00 p.m.
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Bill Summary · HB 168

Legislative bill overview

HB 168 proposes to exempt manufacturing business personal property from Maryland's personal property tax. The bill would eliminate state tax obligations on equipment, machinery, and other tangible assets used directly in manufacturing operations within the state.

Why is this important

Manufacturing personal property taxes represent a significant ongoing cost burden for industrial facilities, potentially affecting competitiveness and capital investment decisions. This exemption could influence where manufacturers choose to locate facilities and expand operations, with cascading effects on state revenue, job creation, and economic development in industrial sectors.

Potential points of contention

  • Revenue impact: Eliminating this tax stream reduces state and potentially local tax revenue without clearly identified offsets or replacement funding sources
  • Fairness and scope: Questions about whether exempting manufacturers creates inequitable treatment compared to other business sectors (retail, services, technology) that still pay personal property taxes
  • Implementation complexity: Determining what qualifies as "manufacturing" versus other industrial activities, and defining which personal property is directly used in manufacturing versus administrative functions

Compiled from official sources — confirm details with the bill’s official record.

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