The Personal Property Tax Simplification Amendment Act of 2025 aims to increase the personal property tax exemption for businesses in the District of Columbia from $225,000 to $325,000. Additionally, the bill proposes to eliminate the requirement for businesses with property valued below this threshold to file the personal property tax return form (FP-31). This change is intended to reduce administrative burdens, particularly for smaller businesses that often have little to no taxable property. The current exemption level, established in 2008, would be adjusted to reflect inflation, which would set the exemption at approximately $324,000 today.

The legislation also outlines the tax rate for personal property, maintaining it at $3.40 per $100 of taxable value for amounts exceeding the new exemption threshold. For tax years beginning on July 1, 2026, the tax will be based on the increased threshold of $325,000, with future adjustments tied to the local Consumer Price Index. This amendment is part of a broader effort to align D.C. with national trends in reducing personal property taxes, thereby enhancing the District's appeal to small businesses and promoting economic growth.