On January 31, 2024, MACo Legislative Director Kevin Kinnally testified before the Senate Budget and Taxation Committee in support of SB 369- Property Tax Exemption- Rental Income- Reporting Requirement. This bill requires property owners with property tax exemptions to report any rental income attributable to the property.
This bill would promote taxpayer equity by ensuring that tax-exempt treatment of specified real property is based on its actual use rather than its nominal ownership.
From MACo Testimony:
Current law exempts certain types of real property from taxation, such as charitable, benevolent, educational, churches, veterans' organizations, fire companies, historical societies, and museums. The State Department of Assessments and Taxation (SDAT) may grant a partial exemption if the owner of an exempt property self-attests that a portion of the property does not qualify for the exemption. However, because current law does not require self-attestation, many properties are receiving exemptions for which they do not qualify.
In an effort to resolve this inequity, SB 369 requires the owner of specified tax-exempt real property to report specified rental income attributable to the property. In addition, the report must be submitted within 30 days after the execution of the lease agreement in a form and manner required by SDAT and include a copy of the lease agreement.
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