House advances small-business tax cut, exempts first $10,000 of business personal property

Representative Brandon Newton, sponsor of House Bill 5006, told the House the bill “will exempt the first $10,000 of net depreciated value from business personal property taxes.” The exemption, Newton said, is aimed at small, locally owned businesses that he said often pay more to process the tax than they collect.

Newton said the exemption applies per business unit and described the measure as targeted relief rather than a broad break for large employers. “So if you own a small business, you know about this tax,” he said, listing examples of taxable items such as computers and furniture. He added that the bill’s eligibility uses a dual test — businesses qualify if they have fewer than 100 employees OR less than $10 million in revenue — intended to capture seasonal and small-scale firms.

Members asked practical questions on implementation. Representative McCravey asked whether a business with offices in multiple cities would get the exemption in each jurisdiction; Newton replied, “it’s per business unit,” and noted the exemption would be claimed through the Department of Revenue form the businesses already fill out. Lawmakers also pressed staff for fiscal detail; Newton cited the fiscal-impact materials attached to the bill and said the bill covers businesses that represent 97% of filers but only about 6.3% of the statewide business personal property asset base, arguing the effect on large tax bases would be limited.

The House adopted amendment number 1 to the bill on the floor, then gave House Bill 5006 second reading by a roll-call tally recorded by the clerk as 103 yes, 0 no. The amendment and second reading move the bill forward to the next steps of the legislative calendar, where sponsors and members said they expect further committee and budget work to reconcile municipal and county impacts.