Request a demo

Get the latest posts from CrowdReason delivered straight to your inbox.

Maryland Business Personal Property Tax: A Guide

Posted by Lisa English on Aug 7, 2018 5:00:16 PM

Maryland Business Personal Property Tax: A Guide

When it comes to Maryland business personal property tax, consistency is key. Unlike other states, which have multiple local jurisdictions handling personal property administration matters, the assessment of all personal property in the Old Line State lies within the purview of a single state agency: the Department of Assessments & Taxation (SDAT). The reasoning behind this strategy? To “foster the uniform and consistent administration” of business personal property tax, which includes everything from furniture and office equipment to machinery, tools, and any other property not classified as real property.

For Maryland businesses, that means fewer mailings compared to other states. Instead of filing separate returns for every location you have (as you would in other states), you simply file one return per legal entity doing business in the state of Maryland that represents all your state locations. The SDAT assesses the value of the personal property and sends it to the county (or counties) where your business is located. But even though the mailings are less, most everything else about the preparation stage stays the same—including having to keep track of all your assets in every location, and depreciating them properly.

And while this is the most unique characteristic of Maryland business personal property tax, keep reading to learn about other things you need to know before filing your Maryland business personal property return.

For tax return filing:


  • There’s a filing fee. Maryland businesses must pay a fee to file their returns, which is a rarity in business personal property tax. (And they must file a return in order to do business.) The annual filing fee is $300. It’s the only state that charges a filing fee.
  • You can request an extension. Businesses may request a 60-day extension by completing an application online by April 15.
  • You can file online. Returns can be filed online through Maryland Business Express, SDAT’s newly created digital platform that helps business owners start, grow, and manage their companies.

For notices & appeals:


  • Notices come from the state. All notices for personal property and real estate come from SDAT, and are mailed at various times beginning in June of the current year.
  • You have 45 days from the notice date to file an appeal. For personal property, you file the appeal back to the state; real estate appeals are filed to the local county.

Don’t have time to file an appeal this year? Get back the time you need to lower your tax bills with TotalPropertyTax (TPT) software. Book a demo today to see it in action.

For property tax bills:


  • Personal property bill due dates vary. Returns are completed one company at a time, so mailing dates for notices are staggered. That means bill due dates may vary. However, a general rule of thumb is that personal property tax bills are due by September 30 and must be paid in full. Real estate bills have the same due date, but some jurisdictions allow two-installment payments—the first by September 30 and the second by December 31. (Other jurisdictions expect payment in full by 9/30.)


This chart highlights key dates related to the state of Maryland personal property returns:

Key Dates

Explanations

1/1 Lien date

Businesses must report all assets on the books as of this date, in the current year.

4/15 Return deadline

Late returns are subject to penalty; non-filing could result in loss of business license. Extensions may be requested before 4/15.

6/15 Return extended deadline

Returns that have been granted an extension are due by this date.

6/1 Start date for issuing of tax bills

Notices are mailed at various times beginning in June.

Dec. through Feb., Real estate notices are mailed

 

Notice date +45 days is appeal due date

 

9/30 Bill due date

Personal property & real estate bill due dates vary, but in general are due by 9/30. For real estate bills, some jurisdictions offer to pay in 2 installments, with half due 9/30 and 12/31.

Looking for a better way to manage your company’s Maryland business personal property tax?


Visit our website to learn more about TotalPropertyTax (TPT) software. It helps you handle and process information throughout the entire tax cycle, reducing the time you spend gathering and tracking mailing addresses, depreciation tables, and deadlines. It also helps track return due dates. For example, if you’re filing an extension request for your Maryland business personal property taxes, the software will automatically update the due date when your extension is approved.

Businesses that use TPT spend less time managing data and more time identifying assessment reduction opportunities to lower their tax bills. Interested in seeing a demo? Schedule one today and we’ll give you a customized tour of the software to show you how much simpler tax management can be.

Request: CrowdReason Demo

Topics: Maryland business personal property tax