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1. Do I need to file a personal property return?

In contrast to real property, which is valued once every three years, personal property is valued every year for tax purposes. At the beginning of each calendar year, the Department of Assessments and Taxation mails a personal property return to all businesses on record. Even if the business does not receive this return, it is still responsible for obtaining and filing one on time. All corporations, limited liability companies (LLCs), limited liability partnerships (LLPs), and limited partnerships must file personal property returns with the Department of Assessments and Taxation whether they own property or not. Sole proprietorships and general partnerships must file. Not filing a return results in an estimated assessment and a possible delay in the issuance of a business license. If you are unsure whether you are required to file, please call the appropriate number listed below:
Corporations 410-767-1170
LLCs and LLPs 410-767-1170
Limited Partnerships 410-767-1170
Sole Proprietors, General Partnerships 410-767-4991

2. How far back can I request an abatement or adjustment on my business account?

Three years from the time the assessment was certified by the State Department of Assessments and Taxation. The County collects the taxes based on the assessment provided by them. Any adjustments or abatements would have to be requested through them.

3. If I am out of business, do I still have to pay the open tax bill?

Yes. It is the business’s responsibility to notify the State Department of Assessments and Taxation of the fact that they are no longer in business. The State Department of Assessments and Taxation will continue to assess the business with estimated assessments until they are made aware of the business closing in writing (they need the date of finality of when the business closed). It is the responsibility of the county to collect the taxes based on the assessment. Therefore, it is in the business’s best interest to contact the State Department of Assessments and Taxation and let them know of the closure of the business. If they have estimated assessments, they should attempt to get them abated by the State Department of Assessments and Taxation.

4. What is an estimated assessment?

If the business does not file a return with the State Department of Assessments and Taxation, the department will then estimate an assessment based on the type of business and the previous assessments. In some cases, the estimated assessment is double the previous year assessment.

5. What is the corporate/personal property assessment based on?

In Maryland, there is a tax on business owned personal property that is imposed and collected by the local governments. To foster the uniform and consistent administration of this tax, responsibility for the assessment of all personal property throughout Maryland rests with a single state agency, the Department of Assessments and Taxation. Personal property generally includes furniture, fixtures, office and industrial equipment, machinery, tools, supplies, inventory, and any other property not classified as real property.

6. What is the date of filing?

Businesses must file a return by April 15, reporting personal property located in Maryland on January 1 or the "date of finality." This is the date used to determine ownership, value, and liability for taxes due.

7. Where can I get further information on the filing and assessment of personal property?

Please visit the State Department of Assessment and Taxation.