Riverdale Park officials warn House Bill 1243 could shave up to $100,000 from local revenues

Town staff told the Riverdale Park mayor and council at their Feb. 23 work session that draft legislation before the Prince George’s County delegation — House Bill 1243 — would exempt small manufacturers from municipal personal property tax and could reduce the town’s revenue by an estimated $60,000 to $100,000 if enacted. The town manager and finance staff said the immediate loss is modest relative to total projected revenue but warned of longer-term losses if future development along River Road brings firms that would qualify for the exemption.

The town manager said staff could not identify a definitive number of businesses that would qualify or a precise dollar figure, calling the estimates ‘‘best guesses’’ and noting an internal range: one staff estimate was about $60,000 while another reached roughly $76,000; council members asked staff to consider a high estimate of $100,000. Deputy Director Jones earlier presented the FY27 revenue forecast of $13.13 million and emphasized the town’s reliance on assessment-driven growth rather than rate increases.

Council members expressed concern about the bill’s timing and the process, describing it as a late-filed measure with limited outreach to municipalities and missing fiscal detail. Council member Briffa said the process felt ‘‘slightly skewed’’ and urged clearer fiscal notes and more communication from sponsors. The town manager said a public hearing is scheduled for March 3 in Annapolis, which the town plans to use to present concerns.

Staff framed the change as more than a small revenue loss: removing municipal discretion to tax certain business personal property is a precedent that shifts the balance of local decision-making. Staff noted a recent county-level exemption of the first $20,000 of business personal property value (a prior statewide change) had already reduced municipal revenue in the tens of thousands of dollars.

Council members asked about the mechanics and enforcement: how small‑manufacturer status would be verified, whether subsidiaries or multi‑entity corporate structures would be counted, and whether the change could unintentionally discourage hiring. Staff acknowledged uncertainty on enforcement and said questions about how employees are counted and who would enforce the exemption remain unresolved.

What’s next: staff and the mayor said they will engage the town’s state delegation ahead of the March 3 hearing and prepare additional fiscal analysis. The town will track the bill during the legislative session and may submit testimony to the committee hearing.