Delegate Lily Qi urges exemption of municipal business personal property tax for manufacturers in HB 168

Delegate Lily Qi, Delegate (sponsor) told the House Ways and Means Committee on Feb. 18 that House Bill 168 would exempt business personal property (BPP) tax for manufacturing equipment and inventory for businesses located inside municipalities.

Nut graf: Qi said the measure aims to remove a municipal-level tax burden that she said is applied unevenly across Maryland towns, and to encourage small and medium manufacturers to expand or locate without uncertainty created by differing municipal BPP rates.

Qi told the committee the state does not levy BPP at the state level and most counties exempt it, but “at the municipal level, many, approximately 2 out of 3, still collect a business personal property tax.” She said rates vary across municipalities and that variability complicates decisions about expansion and relocation for capital‑intensive manufacturers. Qi added, “Manufacturing, as we all know, is a strategic industry in Maryland, accounting for 62% of our state's exports … and $27,000,000,000 of Maryland's GDP.”

Qi said an amendment provided to the committee clarifies that the bill’s small‑ and medium‑enterprise (SME) definition covers businesses with fewer than 50 employees. She also noted the bill is sponsor‑only this session but has attracted written support from business groups including chambers of commerce in Baltimore and Montgomery counties and from industry trade groups.

Committee members asked no questions following Qi’s presentation. The hearing transcript shows no formal motion or committee vote during the hearing; the bill remained before the committee for further consideration.

Ending: Qi characterized the proposal as a step toward “level[ing] the playing field for these small businesses” and said she was prepared to answer questions and work with stakeholders on the amendment language.

Sources: Committee hearing transcript, Feb. 18, 2025 (presentation by Delegate Lily Qi).