Introduced
by
To exempt businesses from paying personal property tax (property tax on capital equipment) on property valued less than $5,000 taxable value. This is approximately $10,000 in market value. "Approximate" because taxable value is capped by the rate of inflation, so equipment which may have appreciated by a larger amount will not be taxed at the full market value. The so-called “personal property tax” is assessed on the tools and capital equipment used by a business, and is levied in the same manner as regular real estate property taxes.
Referred to the Committee on Tax Policy
Reported without amendment
With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
Substitute offered
To replace the previous version of the bill with one that incorporates technical changes. This version was subsequently superceded by another substitute with substantive changes.
The substitute passed by voice vote
Substitute offered
by
To replace the previous version of the bill with one that only allows a business with gross receipts of $5 million or less to take the proposed exemption, and only allows the exemption for one of the firm's locations.
The substitute passed by voice vote
Amendment offered
by
To establish the exemption at $7,500 as measured by its state equalized value.
The amendment passed by voice vote
Amendment offered
by
To clarify that the tax exemption only applies if all of a firm’s personal property, including that of affiliates elsewhere in the state, is valued less than $7,500 as measured by its state equalized value.
Consideration postponed
Amendment offered
by
To allow local assessors to exempt businesses that have declared they have less than $7,500 in personal property (measured by SEV) from filing personal property statements for the next three years.
Consideration postponed
Amendment offered
by
To require the state to reimburse local governments and the school aid fund for any revenue they do not collect as a result of this exemption.
Consideration postponed
Passed in the House 59 to 46 (details)
To exempt a business from paying personal property tax (property tax on capital equipment) if all its business related property, including that of affiliates elsewhere in the state, is valued less than $7,500 as measured by its state equalized value, which is approximately half of the market value. The state would be required to reimburse local governments and the school aid fund for any revenue they do not collect as a result of this exemption. The so-called “personal property tax” is assessed on the tools and capital equipment used by a business, and is levied in the same manner as regular real estate property taxes.
Referred to the Committee on Finance
Reported without amendment
With the recommendation that the bill pass.
