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 amount has not been adjusted since 2008, and if it were to be adjusted for inflation, it would be 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 new threshold of $325,000, with future adjustments tied to the local Consumer Price Index. This amendment is part of a broader effort to align the District's tax policies with those of other states that are reducing or eliminating personal property taxes, thereby enhancing the District's competitiveness for small businesses.