Maryland Business Owners: Don’t Forget to File Your MD Personal Property Tax Returns

One of the challenges of owning and operating a small business is making sure that you stay on top of all the filing deadlines required to keep everything in good standing with the state where you registered your company. Otherwise, you run the risk of losing the legal authority to operate your business, and it will require time and money to make things right.

In the Old Line State, one deadline that business owners need to pay attention to is the deadline for filing Maryland personal property tax returns. Here’s what you need to know.

The Good News: A Streamlined Assessment Process

Other states have multiple local jurisdictions that handle the administration of personal property. But in Maryland, one single agency, the State Department of Assessments & Taxation (SDAT), handles everything other than real estate property, including office furniture, machinery and equipment, tools, inventory, and supplies.

This is an advantage to business owners who register their companies in Maryland, because there are fewer mailings to worry about. You simply need to file one return per legal entity, regardless of how many locations a given business has. The SDAT handles the assessment and valuation of all the property and returns their result to the county where your business resides.

Of course, just as you would in any other state, you need to properly inventory and note the devaluation of all your business property. The state of Maryland uses the information included on this form to assess the amount of state tax you need to pay.

The Bad News: A Strict Filing Deadline and a Fee to File

The deadline for submitting your personal property return to the Maryland State Department of Assessments & Taxation is April 15. Moreover, you have to pay a $300 fee to file this return, unless you have a specialized business that has a lower filing fee, such as a Family Farm. You can submit the forms online directly through the SDAT website.

You are allowed to request a 60-day extension if you need more time. You do so by completing an application online through the SDAT system. This extension request must be made by the April 15 filing deadline.

You can also appeal a Maryland state personal property tax decision within 45 days from the notice date.

If you fail to submit the return of extension request by the April 15 deadline, you risk having the State of Maryland cancel or forfeit your company. You will not be warned about this event; the state cancels your registration automatically if they don’t receive a personal property tax return by the deadline.

In order to avoid costly reactivation fees, and the chance that you could lose the right to do business in Maryland, it is therefore imperative to file the personal property return or extension request on time.

Questions about Your Maryland Business Taxes?

Lusk Law, LLC recognizes that each business is unique and has different challenges. We work closely with our clients to help them understand how legal issues impact their short-term interests and long-term objectives. Contact our Frederick County, Maryland, office today if you’ve run into problems with your state tax bill or need guidance with any aspect of state business law.

We are your advocates for life’s obstacles and opportunities.

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