Baltimore County introduces property tax credit for small businesses with 15 employees or fewer

House Bill 23, introduced in Maryland on March 10, 2025, aims to provide a significant boost to small businesses and mixed-use property owners by establishing a property tax credit for those affected by special rates imposed by local governments. This legislation is particularly focused on businesses employing 15 or fewer employees, a demographic often overlooked in economic support measures.

The bill mandates that counties must accept applications for this tax credit from mixed-use property owners who do not automatically qualify for existing credits. Furthermore, it requires local governments to notify property owners about the credit, detailing how to apply and the benefits available. This proactive approach is designed to ensure that small businesses are aware of the financial relief options available to them, potentially easing the burden of property taxes during challenging economic times.

Debate surrounding House Bill 23 has highlighted concerns about its fiscal implications. Critics argue that while the intention to support small businesses is commendable, the long-term impact on local revenue could be detrimental, especially for counties already facing budget constraints. Proponents, however, emphasize the importance of fostering a supportive environment for small businesses, which are vital to local economies and job creation.

The bill's passage could have far-reaching economic implications, particularly in urban areas like Baltimore, where small businesses often struggle against rising operational costs. By alleviating some of the tax burdens, House Bill 23 could encourage entrepreneurship and stimulate local economies, potentially leading to job growth and increased community investment.

As the bill moves through the legislative process, stakeholders are closely monitoring its progress, with many advocating for amendments that could enhance its effectiveness. The outcome of House Bill 23 could set a precedent for how Maryland supports its small business sector in the future, making it a critical piece of legislation to watch in the coming months.