Are You Paying too Much in Property Tax?

Reviewing Maryland Business Tangible Personal Property Tax Returns

Overview

In Maryland there is a tax on business owned personal property which is imposed and collected by the local governments. Local levels of government include the 23 counties, Baltimore City, and numerous municipalities and towns. In order 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.

Every business must file a personal property tax return every year by April 15, reporting personal property located in Maryland on January 1, the “date of finality.” This important date is used to determine ownership, location, value, and liability for tax purposes.

Marsu’s Review

Marsu will review the past three returns to determine if any refunds can be recovered by filing an amended return. To perform the review, Marsu will need the following:

1. Copy of last three returns filed with documentation of how assets were classified by category and year on each return.
2. Electronic listing of assets.

Marsu’s Compensation

Marsu will be paid a percentage of the refund received. If no refund is received, then no compensation is due and the company has received at no cost that their returns have been properly filed.

Manufacturing Application

Most jurisdictions in Maryland exempt from taxation personal property used in manufacturing. To obtain this exemption, a company must file a manufacturing application explaining the manufacturing process in detail. The application includes an itemized list of manufacturing equipment and exactly how each piece of equipment is used in the process. This application must be filed by September 1st to obtain the exemption for the current year’s return.

Marsu’s Compensation for Manufacturing Application

Marsu will be paid a percentage of the savings achieved from getting the manufacturing application approved. The savings will be calculated on the equipment approved in the application and the value they would have been assessed on in the current return.

Contact Information

If you should have any questions or desire a free consultation, then please contact Ken Dickard at 410-598-0955 or ken.dickard@comcast.net.