STATE OF MARYLAND DEPARTMENT OF ASSESSMENTS AND TAXATION PERSONAL PROPERTY DIVISION 301 West Preston Street, Room 801 Baltimore, Maryland 21201-2395 www.dat.state.md.us
PRSRT-STD U.S. POSTAGE PAID STATE OF MARYLAND DEPT. OF ASSESSMENTS AND TAXATION
STATE OF MARYLAND
DEPARTMENT OF ASSESSMENTS AND TAXATION PERSONAL PROPERTY DIVISION
PERSONAL PROPERTY RETURN OF
DOMESTIC & FOREIGN · CORPORATIONS · LIMITED LIABILITY COMPANIES · LIMITED LIABILITY PARTNERSHIPS · LIMITED PARTNERSHIPS · BUSINESS TRUSTS · REAL ESTATE INVESTMENT TRUSTS IMPORTANT TAX DOCUMENT
AT 3 - 0 1 B
Visit our Department's website for automated extension requests, recent announcements, forms, brochures and other information at:
Important phone numbers: Forms: Personal Property information: Charter information: Toll free (within Maryland): 410-767-1180 410-767-1170 410-767-1330 888-246-5941
Search the Department's database for personal property and charter information on all business entities.
Use the address below for: G originally filed 2009 personal property returns. G originally filed prior year returns. State of Maryland Department of Assessments & Taxation Personal Property Division PO Box 17052 Baltimore MD 21297-1052
Use the address below for: G US Postal Service Certified Mail. G all overnight delivery service mail. G amended returns, correspondence, appeals, applications, etc. G late filing penalty payments. State of Maryland Department of Assessments & Taxation Personal Property Division 301 W Preston St Baltimore MD 21201-2395
Do not send Certified Mail to this PO Box. See box at right.
RULES FOR 2009 PERSONAL PROPERTY EXTENSIONS
An extension allows a business to f ile a personal property return on or before June 15, 2009 without incurring a late f iling penalty. The two options for requesting an extension are via the Internet or by paper document. 1) Internet extension requests via the Department's website are available from February 2, 2009 through April 15, 2009 and are free of charge. This option offers accurate Department ID# look-up, verif ication of previously submitted extensions, printed conf irmation lists and conf irmation numbers, and recall lists by last year's conf irmation number. Please visit our website at www.dat.state.md.us and click on "Filing Extension" underneath "What's New" any time on or after February 2, 2009. 2) Extension requests submitted via paper documents must be postmarked or received by SDAT on or before March 16, 2009 and require a $20 non-refundable processing fee for each entity. If using this method, businesses should use the Department's extension request Form AT3-71 to help ensure that complete and accurate information is submitted. It is available on our website and through our forms request phone line (410-767-1180). Businesses and preparers must retain copies of all request forms and cancelled checks used to pay for paper extensions in the event of a discrepancy between the entity's and the Department's records. 3) Extension requests via fax or telephone are no longer available.
THIS BOOKLET CONTAINS:
· PERSONAL PROPERTY RETURN · COMBINATION FORM 4A (BALANCE SHEET), 4B (DEPRECIATION SCHEDULE), 4C (DISPOSAL AND TRANSFER RECONCILIATION) · GENERAL AND SPECIFIC INSTRUCTIONS · RETURN ENVELOPE
STATE OF MARYLAND DEPARTMENT OF ASSESSMENTS AND TAXATION PERSONAL PROPERTY DIVISION 301 West Preston Street, Room 801 Baltimore, Maryland 21201-2395 www.dat.state.md.us (410) 767-1170 · (888) 246-5941 within Maryland Type of Business Domestic Stock Corporation Foreign Stock Corporation
Personal Property Return As of January 1, 20 09 Due April 15, 2 009
Filing Fee $300 $300 -0-0$300 -0$100 Type of Business Domestic Limited Liability Company Foreign Limited Liability Company Domestic Limited Partnership Foreign Limited Partnership Domestic Limited Liability Partnership Foreign Limited Liability Partnership Business Trust Real Estate Investment Trust ID # Prefix (W) (Z) (M) (P) (A) (E) (B) (D) Filing Fee $300 $300 $300 $300 $300 $300 $300 $300
Form 1 Page 1 of 4
Date Received by Department
ID # Prefix (D) (F)
Domestic Non-Stock Corporation (D) Foreign Non-Stock Corporation (F) Foreign Insurance Corporation (F) Foreign Interstate Corporation (F) SDAT Certified Family Farm (A,D,M,W)
Type or Print Department ID Number Here
Make Address Corrections Here
Name of Business Mailing Address Check here if this is a change of address
ID # PREFIX
DEPARTMENT ID NUMBER ID# PREFIX DATE OF INCORPORATION OR FORMATION
FEDERAL EMPLOYER IDENTIFICATION NUMBER
STATE OF INCORPORATION OR FORMATION
FEDERAL PRINCIPAL BUSINESS CODE
TRADING AS NAME
Check here if you use a preparer and do not want personal property forms mailed to you next year.
DETACH TOGETHER PAGES 1-4 AT PERFORATION INCLUDE DEPARTMENT ID NUMBER ON CHECK
SECTION I PLEASE STAPLE CHECK HERE A. Is any business conducted in Maryland? ___________ Date began: ____________________________
(Yes or No)
B. Nature of business conducted in Maryland:________________________________________________ C. Does the business own, lease or use personal property located in Maryland? ______________ If No, skip SECTION II.
(Yes or No)
ONLY CORPORATIONS COMPLETE ITEM D D. Names and addresses of officers and names of directors (type or print): OFFICERS
Names President_____________________________________________ Vice-President ________________________________________ Secretary ____________________________________________ Treasurer_____________________________________________ Names ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ Addresses ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ Names ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________
BUSINESS TANGIBLE PERSONAL PROPERTY LOCATED IN MARYLAND
EACH QUESTION MUST BE ANSWERED--SEE INSTRUCTIONS ROUND CENTS TO THE NEAREST WHOLE DOLLAR SECTION II
A. IMPORTANT: Show exact location of all personal property owned and used in the State of Maryland, including county, town, and street address (PO Boxes are not acceptable). This assures proper distribution of assessments. If property is located in two or more jurisdictions, provide breakdown by locations by completing additional copies of Section II for each location. (County)
(Address, Number and Street) (Zip Code)
Page 2 of 4
Check here if this location has changed from the 2008 return. Is the property located inside the limits of an incorporated town? ________________
(Yes or No)
Note: If all of the personal property of this business is located entirely in the following exempt counties: Frederick, Garrett, Kent, Queen Anne's, or Talbot, you may be eligible to skip the remainder of Section II. Refer to Specific Instructions, Section II, A for more information.
Furniture, fixtures, tools, machinery and equipment not used for manufacturing or research and development. State the original cost of the property by year of acquisition and category of property as described in the Depreciation Rate Chart on page 4. Include all fully depreciated property and property expensed under IRS rules. Columns B through G require an explanation of the type of property being reported. Use the lines provided below. If additional space is needed, provide a supplemental schedule. Failure to explain the type of property will result in the property being treated as Category A property (see instructions for example). Refer to the 2009 Depreciation Rate Chart on page 4 for computer equipment rates for categories B and D. ORIGINAL COST BY YEAR OF ACQUISITION
SPECIAL DEPRECIATION RATES (SEE PAGE 4)
2008 2007 2006 2005 2004 2003 2002 2001 and prior
TOTAL COST COLUMNS A-G
DESCRIBE B through G PROPERTY HERE:
Commercial Inventory. Furnish an average of 12 monthly inventory values taken in Maryland during 2008 at cost or market value of merchandise and stock in trade. Include products manufactured by the business and held for retail sale and inventory held on consignment. (Do not include raw materials or supplies used in manufacturing.) Note: LIFO prohibited in computing inventory value.
Average Commercial Inventory $
Furnish from the latest Maryland Income Tax return: Opening Inventory - date _____________________ amount $ _________________________
Closing Inventory - date ______________________ amount $ _________________________ Note: Businesses that need a Trader's License must report commercial inventory here.
Supplies. Furnish the average cost of consumable items not held for sale (e.g., contractor's supplies, office supplies, etc.).
Average Cost $
Manufacturing/Research and Development (R&D) Inventory. Furnish an average of 12 monthly inventory values taken in Maryland during 2008 at cost or market value of raw materials, supplies, goods in process and finished products used in and resulting from manufacturing/R&D by the business. (Do not include manufactured products held for retail sale.)
Average Manufacturing/R&D Inventory $
Furnish from the latest Maryland Income Tax return: Opening Inventory - date _____________________ amount $ _________________________ Closing Inventory - date ______________________ amount $ _________________________
Tools, machinery and equipment used for manufacturing or research and development: State the original cost of the property by year of acquisition. Include all fully depreciated property and property expensed under IRS rules. If this business is engaged in manufacturing / R&D, and is claiming such an exemption for the first time, a manufacturing / R&D exemption application must be submitted on or before September 1, 2009 before an exemption can be granted. Contact the Department or visit www.dat.state.md.us for an application. If the property is located in a taxable jurisdiction, a detailed schedule by depreciation category should be included to take advantage of higher depreciation allowances. ORIGINAL COST BY YEAR OF ACQUISITION 2008 2007 2006 2005 2004 2003 2002 2001 and prior
Page 3 of 4
Vehicles with Interchangeable Registration (dealer, recycler, finance company, special mobile equipment, and transporter plates) and unregistered vehicles should be reported here. See specific instructions. ORIGINAL COST BY YEAR OF ACQUISITION 2008 2007 2006 2005 and prior
Non-farming livestock $ __________________________ $______________________________
(Book Value) (Market Value)
Other personal property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Cost File separate schedule giving a description of property, original cost and the date of acquisition. Property owned by others and used or held by the business as lessee or otherwise . . . Total Cost File separate schedule showing names and addresses of owners, lease number, description of property, installation date and separate cost in each case.
Property owned by the business but used or held by others as lessee or otherwise. . . . Total Cost $ File separate schedule showing names and addresses of lessees, lease number, description of property, installation date and original cost by year of acquisition for each location. Schedule should group leases by county where the property is located. Manufacturer lessors should submit the retail selling price of the property not the manufacturing cost. This Section must be completed.
A. Total Gross Sales, or amount of business transacted during 2008 in Maryland: $ ________________________________________ If the business has sales in Maryland and does not report any personal property, explain how the business is conducted without personal property. If the business is using the personal property of another business, provide the name and address of that business. ________________________________________________________________________________________________________ ________________________________________________________________________________________________________ B. If the business operates on a fiscal year, state beginning and ending dates: ____________________________________________ C. If this is the business' first Maryland personal property return, state whether or not it succeeds an established business and give name: _______________________________________________________________________________________________ D. Does the business own any fully depreciated and/or expensed personal property located in Maryland? If yes, is that property reported on this return? yes no yes no
yes no E. Does the submitted balance sheet or depreciation schedule reflect personal property located outside of Maryland? If yes, reconcile it with this return. yes no If yes, complete F. Has the business disposed of assets or transferred assets in or out of Maryland during 2008? Form 4C (Disposal and Transfer Reconciliation). · PLEASE READ "IMPORTANT REMINDERS" ON PAGE 4 BEFORE SIGNING · I declare under the penalties of perjury, pursuant to Tax-Property Article 1-201 of the Annotated Code of Maryland, that this return, including any accompanying schedules and statements, has been examined by me and to the best of my knowledge and belief is a true, correct and complete return.
NAME OF FIRM, OTHER THAN TAXPAYER, PREPARING THIS RETURN
PRINT OR TYPE NAME OF CORPORATE OFFICER OR PRINCIPAL OF OTHER ENTITY TITLE
SIGNATURE OF PREPARER DATE
SIGNATURE OF CORPORATE OFFICER OR PRINCIPAL DATE
( ) _______________________________________
PREPARER'S PHONE NUMBER E-MAIL ADDRESS
( ) __________________________________________________
BUSINESS PHONE NUMBER E-MAIL ADDRESS
See top of page 4 for correct mailing address
Use the address below for: · originally filed 2009 personal property returns. · originally filed prior year returns. State of Maryland Department of Assessments & Taxation Personal Property Division PO Box 17052 Baltimore, Maryland 21297-1052 · Do not send Certified Mail to this PO Box. See box at right. Use the address below for: · US Postal Service Certified Mail. · all overnight delivery service mail. · amended returns, correspondence, appeals, applications, etc. · late filing penalty payments. State of Maryland Department of Assessments & Taxation Personal Property Division 301 W Preston St Baltimore, Maryland 21201-2395
Page 4 of 4
IMPORTANT REMINDERS · Rules for 2009 personal property extensions: Internet extension requests are due by April 15, 2009 and are free of charge. Paper extension requests are due on or before March 16, 2009 and require a $20 processing fee for each entity. · The annual report filing fee is $300 for most legal entities. Be sure to enclose the correct fee with the Form 1. · Manufacturing/R&D application deadline is September 1, 2009. A manufacturing exemption cannot be granted unless a timely application is filed. Once filed, no additional applications are required in subsequent years. · Entities requesting a revised assessment due to other missed exemptions (vehicles, software, charitable organizations, etc.) must file that request within three years of the April 15th date the return was originally due. · Do not prepay late filing penalties or pay personal property taxes to this Department. · Business entities that require a Trader's License must report commercial inventory on line item
· This return must be accompanied by Form 4A (Balance Sheet) or latest available balance sheet, and Form 4B (Depreciation Schedule), unless the business does not own any personal property in Maryland. All information on pages 2 and 3 of this report and supporting schedules are held confidential by the Department and are not available for public inspection. Page 1 is public record (Tax-Property Article 2-212). · If you discontinued business prior to January 1, 2009, notify the Department immediately, stating to whom and the date all personal property was sold. If the business is sold on or after January 1, 2009 and before July 1, 2009, submit statement of sale, including value of personal property, date of sale, name and address of the buyer on or before October 1, 2009. · File the pre-addressed return to ensure proper posting to your account. · This return must be signed by an officer or principal of the business. · Make check for filing fee payable to Department of Assessments and Taxation. Place the Department lD number on the check. · Place the Department ID number on page 1 if the pre-addressed return is not used. LATE FILING PENALTY DO NOT PAY PENALTIES AT TIME OF FILING RETURN · A business which files an annual return postmarked after the due date of April 15, 2009 will receive an initial penalty of 1/10 of one percent of the county assessment, plus interest at the rate of two percent of the initial penalty amount for each 30 days or part thereof that the return is late. · Businesses which fail to file this report will receive estimated assessments which will be twice the estimated value of the personal property owned. STANDARD DEPRECIATION RATE Category A: 10% per annum* All property not specifically listed below. DEPRECIATION RATE CHART FOR 2009 RETURNS Category D: 30% per annum** Data processing equipment, canned software. Category E: 33 1/3% per annum* Blinds, carpets, drapes, shades. The following applies to equipment rental companies only: rental stereo and radio equipment, rental televisions, rental video cassette recorders and rental DVDs and video tapes. Category F: 50% per annum* Pinball machines, rental tuxedos, rental uniforms, video games. Category G: 5% per annum* Boats, ships, vessels, (over 100 feet). Long-lived assets Property determined by the Department to have an expected life in excess of 10 years at the time of acquisition shall be depreciated at an annual rate as determined by the Department. * Subject to a minimum assessment of 25% of the original cost. ** Subject to a minimum assessment of 10% of the original cost.
SPECIAL DEPRECIATION RATES (The rates below apply only to the items specifically listed. Use Category A for other assets.) Category B: 20% per annum* Mainframe computers originally costing $500,000 or more. Category C: 20% per annum* Autos (unlicensed), bowling alley equipment, brain scanners, carwash equipment, contractor's heavy equipment (tractors, bulldozers), fax machines, hotel, motel, hospital and nursing home furniture and fixtures (room and lobby), MRI equipment, mobile telephones, model home furnishings, music boxes, outdoor Christmas decorations, outdoor theatre equipment, photocopy equipment, radio and T.V. transmitting equipment, rental pagers, rental soda fountain equipment, self-service laundry equipment, stevedore equipment, theatre seats, trucks (unlicensed), vending machines, x-ray equipment. DATE OF ASSESSMENT NOTIFICATION
OFFICE USE ONLY
STATE OF MARYLAND DEPARTMENT OF ASSESSMENTS AND TAXATION PERSONAL PROPERTY DIVISION FORM 4A
Name of Business __________________________________________________________________________ Department ID Number
Beginning of Period
month day year month
End of Period
CURRENT ASSETS 1. Cash 2. Marketable Securities 3. Accounts Receivable 4. Inventory 5. Other Current Assets PROPERTY, PLANT AND EQUIPMENT 6. Land 7. Buildings 8. Leasehold Improvements 9. Equipment 10. SUBTOTAL Property, Plant and Equipment 11. Accumulated Depreciation 12. Net Property, Plant and Equipment INTANGIBLE AND OTHER ASSETS 13. Intangible 14. Other (provide schedule) 15. TOTAL ASSETS
LIABILITIES AND EQUITY
CURRENT LIABILITIES 16. Accounts Payable 17. Other Current Liabilities LONG TERM LIABILITIES AND EQUITY 18. Mortgage, Notes, Bonds Payable 19. Other Long Term Liabilities 20. Capital Stock 21. Paid in or Capital Surplus 22. Retained Earnings 23. Other 24. TOTAL LIABILITIES AND EQUITY
*Omit TOTAL columns when all assets are located in Maryland.
Maryland Form 4B
PROPERTY IN MARYLAND AS OF _____________________________
TOTAL COST DEPRECIATION THIS YEAR ACCUMULATED DEPRECIATION
Form 4B & 4C
1. Land 2. Building 3. Leasehold Improvements 4. Transportation Equipment
5. Transportation Equipment
(Not Registered and Interchangeable Registrations)
6. Furniture & Fixtures 7. Machinery & Equipment 8. Other (Specify) 9. Totals:B 10. Expensed Property
(Not Reported on Depreciation Schedule)C
11. Exempt Personal PropertyD
(Included in line 9 above and not reported on the return.)
EXEMPTION CLAIMED Type of Organization Type of Property I Charitable I Religious I Vehicles (Registered) I Vessels (under 100 ft.) I Educational I Veterans I Aircraft I Farming Implements (Farmers Only) I Other ___________________________________________ I Other _______________________________________
A. Vehicles with Interchangeable Registrations (dealer, recycler, finance company, special mobile equipment, and transporter plates) are to be reported on line 5. B. Total line must equal Line 10 on the Balance Sheet Form 4A. C. Include all expensed property located in Maryland not reported on the Depreciation Schedule Form 4B. D. If exempt property is owned check the appropriate boxes under line 11. Exempt organizations need to provide written justification for the claimed exemption with the return. Organizations required to file IRS Form 990 should also submit a copy of the latest available filing. Maryland Form 4C
DISPOSAL AND TRANSFER RECONCILIATION
BALANCE 1/1/2008 TRANSFERS IN DURING 2008 2008 ACQUISITIONS TRANSFERS OUT & DISPOSALS* BALANCE 1/1/2009
1. Furniture, Fixtures, Tools Machinery and Equipment 2. Motor Vehicles 3. Manufacturing/R&D Equip. 4. Leased Property 5. Totals
This section must be completed by those businesses which transferred or disposed of personal property located in Maryland during 2008. Property "Transferred In" from locations outside Maryland, property acquired and property "Disposed Of" or "Transferred Out" during 2008 must be reported above and reconciled with the totals from last year's return. *If transfers out and disposals made during 2008 are more than $200,000 or greater than 50% of the total property reported as of 1/1/2008, complete the information below.
Date of transfer: Location where transferred? City: Manner of disposal? (sale, junked, donation, etc.) State: Name of buyer? (For Sales Only)
Date of disposal:
Instructions for 2 009 Form 1 Personal Property Return
General Information and Requirements
1) WHO MUST FILE A RETURN
A Maryland personal property return (Form 1) must be filed by all businesses that are incorporated, qualified or registered to do business in the State of Maryland as of January 1, 2009. This includes corporations, limited liability partnerships (LLP), limited liability companies (LLC), limited partnerships (LP), business trusts, and real estate investment trusts (REIT). This return is required even if the business owns no property in the State or has not conducted any business activity during the year. A business which fails to file this return will receive an estimated assessment which will be twice the estimated value of the personal property owned. In addition, failure to file will result in forfeiture of the charter of a domestic corporation or forfeiture of the right to do business in the State of a foreign corporation, LLC, LLP, LP, business trust, or REIT. A domestic corporation is organized and exists under the laws of the State of Maryland. A foreign corporation is one incorporated outside the State of Maryland and qualified or registered to do business in the State. A limited liability partnership is an entity that has filed a certificate of limited liability partnership. A limited liability company is an entity that has filed Articles of Organization. A limited partnership is an entity that has filed a certificate of limited partnership. A business trust is an entity that has filed a certificate of trust. A real estate investment trust is an entity that has filed a declaration of trust. Churches that are incorporated need only complete page 1 and the signature section on page 3.
State of Maryland · Department of Assessments and Taxation · Personal Property Division · 301 West Preston Street, Room 801 · Baltimore, Maryland 21201-2395
Extension requests submitted via paper documents must be post-marked or received by SDAT on or before March 16, 2009 and require a $20 non-refundable processing fee for each entity. If using this method, businesses should use the Department's extension request Form AT3-71 to help ensure that complete and accurate information is submitted. Approved extensions will be recorded by the Department but will not be returned. Retain a copy of the extension request for your records. The Department ID Number must be provided to ensure proper recording of any extension request. Requests with incomplete or missing Department ID numbers will not be recorded. Do not list the business' Federal Employer Identification Number (EIN) on this form. No additional extension to file will be allowed. Extensions approved by the Internal Revenue Service or Maryland Comptroller of the Treasury for income tax returns will not be accepted.
4) NAME CHANGES
Name changes must be made by amending the business' organizing document with the Department's Charter Division.
5) MAILING ADDRESS CHANGES
Make necessary address corrections in the address area and check the address correction box on page 1 of the return.
6) FORMS/PRE-ADDRESSED RETURNS
To ensure proper posting to your account, please file the pre-addressed return. The pre-addressed return contains your Department ID number. Please use this number in all communications with the Department. This number should also appear on all checks accompanying the return.
2) WHEN AND WHERE TO FILE
At the beginning of each year, the Department mails a personal property return to all active businesses on record. If the business does not receive a return, it is still responsible for obtaining and filing a return on time. The due date for filing is April 15, 2009. Originally filed 2009 returns are to be sent to the: State of Maryland Department of Assessments and Taxation Personal Property Division PO Box 17052 Baltimore, Maryland 21297-1052 For all other mail, including Certified Mail, see mailing instructions on page 4 of Form 1.
7) ANNUAL REPORT FILING FEES
The filing fee for the privilege of maintaining a legal entity's existence in Maryland is $300 for most legal entities. This fee is due even if the entity does not own property in the State or did not conduct any business during 2008. Checks should be made payable to the Department of Assessments and Taxation. Corporations not authorized to issue stock, churches and foreign interstate corporations are not required to pay a filing fee. Refer to the chart below for the proper filing fee:
Type of Business ID # Prefix Filing Fee Amount Domestic Stock Corporation (D) $300 Foreign Stock Corporation (F) $300 Domestic Non-Stock Corporation (D) $ 0 Foreign Non-Stock Corporation (F) $ 0 Foreign Insurance Corporation (F) $300 Foreign Interstate Corporation (F) $ 0 Domestic Limited Liability Company (W) $300 Foreign Limited Liability Company (Z) $300 Domestic Limited Partnership (M) $300 Foreign Limited Partnership (P) $300 Domestic Limited Liability Partnership (A) $300 Foreign Limited Liability Partnership (E) $300 Business Trust (B) $300 Real Estate Investment Trust (D) $300 SDAT Certified Family Farm (A,D,M,W) $100 Amended Returns for any of the above $ 0
3) EXTENSION OF TIME TO FILE
The Department may grant a 2 month extension to file the return. To request an internet extension go to: www.dat.state.md.us and click on: 1) Businesses, 2) Personal Property Information and Forms, and 3) Filing Extension. This option is free of charge and offers Department ID look-up, extension verification, confirmation numbers and recall lists by last year's confirmation number. Always print and keep a copy of the confirmation number. The Department will automatically accept it as evidence of a valid approved extension in case there is ever a problem. When you file for an extension via our website, do NOT also submit a paper extension request. This system is available 24 hours a day, 7 days a week beginning February 2, 2009 through April 15, 2009. Please file early to avoid possible delays due to the heavy usage of this system which occurs in the last week prior to April 15th.
The filing fee amount is also printed in the address area on the pre-addressed return.
10% rate of depreciation per annum to the reported property. Exceptions to the 10% rate can be found on the Depreciation Rate Chart on page four (4). Normally, property will not be depreciated below 25% of the original cost. All questions must be answered in full unless the business does not own, lease, or use personal property and answers Section I question C no. If the reporting taxpayer does not own the class of property covered by any question, the word "none" or the figure "0" should be written in the appropriate blank space. Estimated assessments may be issued when questions remain 8) LATE FILING PENALTIES unanswered or the answers are incomplete or evasive. Real A business which files an annual return postmarked after property is not to be reported on the return. the due date of April 15, 2009 will receive an initial penalty of 1/10 of one percent of the county assessment, plus 11) EXEMPTIONS interest at the rate of two percent of the initial penalty Property tax exemptions provided by statute shall be amount for each thirty (30) days or part thereof that the strictly construed. Before an exemption can be obtained the return is late. If returns are filed late, do not prepay taxpayer must show affirmatively that the exemption is penalties. They will be assessed at a later date. clearly allowed. Businesses may file amended returns to correct 9) PERIOD COVERED reporting errors or claim missed exemptions (except for All returns shall cover the calendar year regardless of any missed manufacturing exemptions) within three years of the fiscal year. All information required in this return shall be April 15 th date that the return was originally due. given as of January 1, 2009 except line items and For manufacturing exemption requests, an application which refer to the twelve calendar months of 2008. This must be submitted on or before September 1, 2009 in order return must be accompanied by Form 4A and 4B (Balance to qualify for the current tax year. No manufacturing Sheet and Depreciation Schedule) provided with the return exemption can be granted unless a timely application is unless the business does not own any personal property in filed. Once filed, no additional manufacturing applications Maryland. A substitute Balance Sheet, including Schedule L are required in subsequent years. from IRS Form 1120, may be used, however Form 4B All personal property owned by certain organizations, (Depreciation Schedule) must be completed. Information including religious groups, government, non-profit supplied on the second, third and fourth pages and educational institutions, non-profit charitable organizations, enclosures are not open to public inspection. If the Balance non-profit hospitals, cemetery and mausoleum companies, Sheet reflects property outside the State of Maryland, please and certain other organizations or groups which meet reconcile with the property reported on the return. certain "strict use" criteria is exempt. These are referred to as exempt organizations and are fully exempt throughout 10) WHAT MUST BE REPORTED Maryland from any assessment and taxation. To obtain this Generally all tangible personal property owned, leased, type of exemption, an organization must submit written consigned or used by the business and located within the information detailing its operation. If the organization is State of Maryland on January 1, 2009 must be reported. required to file an IRS Form 990 it should be included with Property not in use must still be reported. All fully depreciated and expensed personal property must also be the written information. It should be noted that because the laws differ, organizations granted exempt status by the reported. Personal property includes but is not limited to Internal Revenue Service are not necessarily exempt from office and plant furniture, machinery, equipment, tools, personal property taxation in Maryland. furnishings, trade fixtures, inventory, and all other property In addition, State law requires that certain types of not considered part of the real estate. personal property be fully exempt throughout Maryland Personal property in this State (other than operating from any assessment and taxation. These include aircraft, property of railroads and public utilities) falls into two farming implements, residential (non-business) property, subclasses: most registered vehicles, boats not more than 100 feet in Stock in business or inventory is goods held by a length, customized computer software, intangible personal taxpayer for sale and goods placed on consignment to property (e.g., stocks, bonds, patents, goodwill, trademarks, another for sale in the expectation of a quick turnover. etc.). Stock in business does not include goods manufactured by Businesses owning exempt personal property described in the taxpayer but held by the taxpayer for purposes other the paragraph above should report the total cost of that than sale or goods manufactured by the taxpayer but placed in possession and control of another as in the case property on form 4B (Depreciation Schedule), line 11. Do not of leased property. Stock in business is assessed at cost or report this type of property on the Form 1. Full or partial exemptions may apply depending on the market value whichever is lower. LIFO method of valuation location of the property for: manufacturing/R&D machinery is prohibited. and equipment, manufacturing/R&D inventory and All other personal property includes all personal commercial inventory. Visit the Department's website for a property other than inventory and is assessed at full cash complete listing of these exemptions. value. Taxpayers shall report such property which has been The law specifically includes the following activities as acquired by purchase at cost in the year of acquisition. part of the manufacturing process: (1) the identification, Taxpayers shall report such property which has been design or genetic engineering of biological materials for acquired other than by purchase (including property research or manufacture; and (2) the design, development manufactured by the taxpayer) at what the property would or creation of computer software for sale, lease or license. have sold for in the year of acquisition. To assess "all other personal property" the Department generally applies a
The 2006 General Assembly passed legislation reducing the filing fee to $100 for entities that qualify as a "Family Farm". In order for an entity to qualify as an SDAT Certified "Family Farm", it must be a domestic entity, declare in a charter provision to be a "Family Farm" and meet certain specific requirements found in §1-209 of the Corporations and Associations Article. Entities can qualify at the time of formation or via a charter amendment for an existing domestic entity. Please refer to the Businesses section of the Department's website for more specific information.
Round cents to the nearest whole dollar. Fifty cents and above should be rounded to the next highest dollar.
13) AUDIT OF RETURN
All personal property assessments, and any information, and figures reported on the personal property return, accompanying schedules and related documents are subject to audit. As a result of such audits, the Department may issue corrected assessments.
14) TRANSFER OF PROPERTY
If a business transfers, sells, or disposes of all personal property on or after January 1, 2009 and before July 1, 2009, it must notify the Department in writing on or before October 1, 2009. The notification must contain an itemized description of the property involved, the date and manner of transfer and name(s) and address of the new owner(s) of the property, the consideration received, and a copy of the sales agreement (if available). Upon proper notification and compliance with Section 10-402 of the Tax Property Article, the assessment shall be transferred to the new owner(s).
of Dissolution (Domestic Corporations), an Application for Termination (Foreign Corporations), a Certificate of Cancellation (LLC) or a Withdrawal Notice (LLP, LP) with the Department's Charter Division, a return or letter of explanation detailing the date the business ceased operations and what happened to the property must be filed. Failure to provide this information will result in an estimated assessment being made against the business. Businesses that have not filed Articles of Dissolution, an Application for Termination, a Certificate of Cancellation or a Withdrawal Notice are legally active until they do so or until their charters are forfeited (Domestic Corporations) or their authority to do business is forfeited (Foreign Corporations, LLCs, LLPs, LPs, business trusts, and REITs).
16) AMENDED RETURNS
Amended returns can be filed to correct reporting errors or claim a missed exemption (except for missed manufacturing exemptions) within three years of the April 15th date that the return was originally due. Amended returns must be accompanied by information explaining why the amended return is being filed and reconciling the differences with the original return. 15) OUT OF BUSINESS Write the word "AMENDED" across the top of page 1 of If a business discontinues operations or goes "out of the return. Do not send another $300 filing fee with an business" prior to January 1, 2009 and has not filed Articles amended return.
INFORMATION AND ASSISTANCE
PERSONAL PROPERTY DIVISION Internet Site ..................................................................www.dat.state.md.us Form preparation and assessment procedures: Corporations, LLCs, LLPs, LPs, Business Trusts, REITs ......(410) 767-1170 Fax ..........................................................................................(410) 333-5512 Extensions by Internet ...................................................www.dat.state.md.us E-mail Address .....................................................email@example.com Toll Free within Maryland ........................................................(888) 246-5941 MRS (Maryland Relay Service for speech and hearing impaired) ..1-800-735-2258 TT/VOICE CHARTER DIVISION Internet Site ............................................................................................................www.dat.state.md.us Charter Information ........................................................................................................(410) 767-1330 Incorporation, Qualification, Revivals & Dissolutions .................................................(410) 767-1350 Additional Forms .............................................................................................................(410) 767-1180 Fax ...................................................................................................................................(410) 333-7097 E-mail Address ........................................................................................firstname.lastname@example.org Toll Free within Maryland ................................................................................................(888) 246-5941 MRS (Maryland Relay Service for speech and hearing impaired) .......1-800-735-2258 TT/VOICE
Specific Instructions - 2 009 Form 1
Check the type of business entity and include the required filing fee. Complete the legal name of the business entity, mailing address, Department ID #, federal employer ID #, date and state of incorporation/formation, federal principal business code, and trading as name (if different than legal name of business).
A. Exact Location. Since local tax rates and exemptions differ in each county and in each incorporated town, the location of tangible personal property, including the street address, must be clearly indicated. Post Office Box numbers are not acceptable. If property is located in an incorporated town, supply the name of the town. An incorporated town has its own government and defined municipal boundaries. Inventory is deemed permanently located where the business is conducted. If property is located in two or more jurisdictions supply a breakdown by locations by completing additional copies of Section II for each location. Businesses not needing a trader's license and located entirely in the exempt jurisdictions listed below may skip Section II, line items through and Forms 4A, 4B, and 4C.
Frederick and Garrett Counties The business must not be located within any town. Kent County The business must not be located within a town except the exempt towns of Chestertown, Galena or Millington. Queen Anne's County The business must not be located within a town except the exempt towns of Centreville or Millington. Talbot County The business must not be located within a town except the exempt town of Oxford.
A. Answer yes if the business operates in Maryland. Provide the date business activity began. B. Provide a brief explanation of business activity in Maryland (e.g. restaurant, legal service, construction, etc.). C. Answer yes if the business owns, leases, or uses personal property relating to any business activity (including non-profit operations). Answer no if the business does not own, lease or use personal property in the state and skip Section II. Question D refers to corporations only. D. List the names and addresses of the current officers and the names of the current directors.
EXEMPT COUNTIES AND INCORPORATED TOWNS prohibited in computing values. If there are multiple locations
If you meet the above location requirements, but need a trader's license, you should complete Section II, Part A and line item Commercial Inventory only, and then skip to Section III. of inventory in Maryland they must be reported by each location. Business entities that need a Trader's License must report commercial inventory. Rental equipment including but not limited to video tapes, stereos, televisions, tools, appliances and furniture is not considered commercial inventory. These assets must be reported in Section II line item . Leased property and off rent equipment are not considered commercial inventory and should be reported under Section II line item and respectively.
Furniture, fixtures, tools, machinery and equipment not used for manufacturing or research and development. Includes but is not limited to office furniture, fixtures and equipment, factory equipment and machinery, shelves, signs, counters, etc. (Report non-exempt vehicles on Line Item ). This form allows detailed reporting of property which falls under the different rates of depreciation. All property is to be reported under Category A unless specifically listed in another category. Refer to the Depreciation Rate Chart on page 5 to determine where property owned by the business should be reported (see sample below). Property reported in columns B through G requires a detailed description (e.g., Column C - Vending Machines, Copiers, etc.). Failure to provide the required detail will result in the reported property being assessed at 10% rate of depreciation. This property shall be reported at original cost in the year of acquisition without deduction of depreciation, investment credit or trade-in of previously owned property. Include all fully depreciated personal property and property expensed under IRS rules.
Supplies. Supplies are consumable items not held for sale (e.g., contractor's supplies, office supplies, etc.). Report the average cost.
Manufacturing/R&D Inventory is raw materials, supplies, goods in process and finished products used in and resulting from manufacturing/R&D by the business. Include manufactured products sold at retail by the manufacturer under line item , commercial inventory. An average of twelve (12) monthly inventories should be reported including two (2) physical inventories. Book inventories may be used for months when physical inventories were not taken. Values are to be reported at cost or market value. The LIFO method is prohibited in computing values. If there are multiple locations of inventory in Maryland they must be reported by each location.
Property reported on this line item should be placed under the proper depreciation rate column by the year of acquisition. An example of the correct method of filling out this section is provided for reference. Property reported in categories B through G require an explanation on the lines provided below the box. If additional space is needed to show the necessary detail, attach a supplemental schedule.
Tools, machinery and equipment used for manufacturing or research and development. Answer this question in detail even though such property may by law or resolution be exempt. Reporting property on this line item is not a substitute for a manufacturing application. If exemption is claimed for the first time, a manufacturing/research & development exemption application must be submitted on or before September 1, 2009 before the exemption can ORIGINAL COST BY YEAR OF ACQUISITION be granted. Contact the Department or visit our web site at SPECIAL DEPRECIATION RATES (SEE PAGE 4) TOTAL www.dat.state.md.us to obtain an application. This property A B C D E F G COST shall be reported at original cost in the year of acquisition 2008 1,150 12,600 13,750 without deduction of depreciation, investment credit or 2007 3,104 8,400 11,504 trade-in of previously owned property. Include all fully depreciated personal property and property expensed 2006 1,500 5,261 6,761 under IRS rules. 2005 For manufacturing the primary test for exemption requires 2004 2,500 2,500 substantially transforming, or a substantial step in the 2003 9,127 500 9,627 process of substantially transforming tangible personal property into a new and different article by use of labor or 2002 machinery. The term manufacturing does not include 2001 and prior products mainly intellectual, artistic or clerical in nature, services, public utility services, or property used primarily in TOTAL COST COLUMNS A-G 44,142 administration, management, sales, storage, shipping, DESCRIBE B THROUGH G PROPERTY HERE: Category C - 2003 receiving or any other non-manufacturing activity. Vending Machine; Category C - 2004 Copier $2,000, Fax $500; Category D - 2006 Research and development means basic and applied Personal Computer; Category E - 2008, 2007 Rental DVDs and Video Tapes research in the sciences and engineering, and the design, development and governmentally required pre-market testing of prototypes, products, and processes. Research LINE ITEM and development activities are exempt whether or not the Commercial Inventory is merchandise and stock in company has a product for sale. trade available for sale. This includes manufactured products The following activities do not constitute research and sold at retail by the manufacturer. An average of twelve (12) development: market research; research in social sciences, monthly inventories should be reported including two (2) physical inventories. Book inventories may be used for months psychology, or other nontechnical activities; routine product testing; service activities; sales; or research and when physical inventories were not taken. Values are to be development of a public utility. reported at cost or market value. The LIFO method is
Vehicles. Itemize motor vehicles with Interchangeable Registrations and vehicles that are unregistered. Interchangeable Registrations include: dealer plates (Class 1A, 1B, 1C); recycler plates (Class 2); finance company plates (Class 3); special mobile equipment plates (Class 4); and transporter plates (Class 5). This property shall be reported at original cost in the year of acquisition without deduction of depreciation, investment credit or trade-in of previously owned property. Include all fully depreciated personal property and property expensed under IRS rules. Vehicles registered in Maryland and classified in one of the following are exempt: Passenger cars (Class A); For hire vehicles (Class B); Funeral or ambulance vehicles (Class C); Motorcycles (Class D); Single unit, Dump, Tow, and Farm Trucks (Class E); Truck tractors (Class F); Trailers and Semitrailers (Class G); School vehicles (Class H); Passenger buses (Class I and P); Vanpool (Class J); Farm vehicles (Class K); Historic vehicles (Class L); Multipurpose vehicles (Class M); Street rods (Class N); Limousine vehicles (Class Q); Low speed vehicles (Class R). Vehicles registered outside Maryland may be exempt. Exempt vehicles include those registered in another taxing jurisdiction and of a classification described in Title 13, Subtitle 9, Part II of the Maryland Transportation Article (Class A-R listed above). Exempt vehicles should be included on form 4B, line 11.
as well as transfers from the Maryland location of the reporting business to out of state locations. If the business has sales in Maryland and does not report any personal property, explain how the business is conducted without personal property. If a business shares the property of another business that reports the personal property, supply the name and address of that business. B. List the beginning and ending fiscal year periods. C. If the business had an interest in the established business, (e.g., a sole proprietor that chooses to incorporate), the property must be reported at the original cost and original date of acquisition including all fully depreciated and expensed personal property. Provide the name of the business. D. All fully depreciated and expensed personal property must be reported on this return. E. If the submitted Balance Sheet or Depreciation Schedule contains property outside the State of Maryland, reconcile it with this return. F. If the business has disposed of assets or transferred assets in or out of the State during 2008, complete Form 4C (Disposal and Transfer Reconciliation).
SIGNATURE AND DATE
The return must be signed by an officer of the corporation or principal of other entity. This signature must be an original not a copy. The date should reflect the date the return was signed by the officer or principal and sent to the Department. Please include requested phone number and e-mail address to assist us in resolving potential discrepancies.
Non-farming livestock. Report book value and market value.
Other tangible personal property. Include other tangible personal property not reported elsewhere on this return. Report total cost on the return and supply a separate schedule giving a description, the cost and the date of acquisition of the property (e.g. artwork, antiques, linen, china, silverware, etc.).
DEPRECIATION RATE CHART FOR 2009 RETURNS
STANDARD DEPRECIATION RATE Category A: 10% per annum* All property not specifically listed below. SPECIAL DEPRECIATION RATES (The rates below apply only to the items specifically listed. Use Category A for other assets.) Category B: 20% per annum* Mainframe computers originally costing $500,000 or more. Category C: 20% per annum* Autos (unlicensed), bowling alley equipment, brain scanners, carwash equipment, contractor's heavy equipment (tractors, bulldozers), fax machines, hotel, motel, hospital and nursing home furniture and fixtures (room and lobby), MRI equipment, mobile telephones, model home furnishings, music boxes, outdoor Christmas decorations, outdoor theatre equipment, photocopy equipment, radio and T.V. transmitting equipment, rental pagers, rental soda fountain equipment, self-service laundry equipment, stevedore equipment, theatre seats, trucks (unlicensed), vending machines, x-ray equipment. Category D: 30% per annum** Data processing equipment, canned software. Category E: 331/3% per annum* Blinds, carpets, drapes, shades. The following applies to equipment rental companies only: rental stereo and radio equipment, rental televisions, rental video cassette recorders and rental DVDs and video tapes. Category F: 50% per annum* Pinball machines, rental tuxedos, rental uniforms, video games. Category G: 5% per annum* Boats, ships, vessels, (over 100 feet). Long-lived assets Property determined by the Department to have an expected life in excess of 10 years at the time of acquisition shall be depreciated at an annual rate as determined by the Department. * Subject to a minimum assessment of 25% of the original cost. ** Subject to a minimum assessment of 10% of the original cost.
Property owned by others and used or held by the business. All property that is not owned by the business but is held by the business as lessee, on consignment, or otherwise must be reported. A separate schedule showing the names and addresses of the owners, lease numbers, description of property, location of property, installation date and separate cost of assets must be supplied. If costs are not known, supply the terms of the lease including lease payment and number of months.
Property owned by business and used or held by others. All property that is owned by the business but is held by others as consignee, lessee or otherwise must be reported. A separate schedule showing the names and addresses of lessees, lease numbers, description of property, installation date and original cost by year of acquisition for each location must be supplied. Schedule should group leases by county where the property is located. Manufacturer lessors shall report property which has been acquired other than by purchase at the retail selling price in the year the property was manufactured (including property manufactured by a business for its own use) not at the cost of manufacture. All leased property must be reported, including manufacturing equipment, and property leased to tax exempt organizations. Property in this category should be reported on Line Item not on Line Item .
A. Total gross sales must include sales in Maryland and sales by the Maryland location to out of state purchasers
THE FOLLOWING IS A LIST OF COUNTIES AND INCORPORATED TOWNS IN MARYLAND. IF A BUSINESS OWNS PERSONAL PROPERTY IN ANY OF THESE LOCATIONS, THE LOCATIONS SHOULD BE LISTED IN SECTION II A OF FORM 1.
ALLEGANY Barton Cumberland Frostburg Lonaconing Luke Midland Westernport ANNE ARUNDEL Annapolis Highland Beach BALTIMORE CITY BALTIMORE No incorporated cities or towns CALVERT Chesapeake Beach North Beach CAROLINE Denton Federalsburg Goldsboro Greensboro Henderson Hillsboro Marydel Preston Ridgely Templeville CARROLL Hampstead Manchester Mount Airy New Windsor Sykesville Taneytown Union Bridge Westminster
CECIL Cecilton Charlestown Chesapeake City Elkton North East Perryville Port Deposit Rising Sun CHARLES Indian Head La Plata Port Tobacco DORCHESTER Brookview Cambridge Church Creek East New Market Eldorado Galestown Hurlock Secretary Vienna FREDERICK Brunswick Burkittsville Emmitsburg Frederick Middletown Mount Airy Myersville New Market Rosemont Thurmont Walkersville Woodsboro GARRETT Accident Deer Park Friendsville Grantsville Kitzmiller Loch Lynn Heights Mountain Lake Park Oakland
HARFORD Aberdeen Bel Air Havre de Grace HOWARD No incorporated cities or towns KENT Betterton Chestertown Galena Millington Rock Hall MONTGOMERY Barnesville Brookeville Chevy Chase Sec. 3 Chevy Chase Sec. 5 Chevy Chase View Chevy Chase Village Gaithersburg Garrett Park Glen Echo Kensington Laytonsville Martin's Additions North Chevy Chase Poolesville Rockville Somerset Takoma Park Town of Chevy Chase Washington Grove
PRINCE GEORGE'S Berwyn Heights Bladensburg Bowie Brentwood Capitol Heights Cheverly College Park Colmar Manor Cottage City District Heights Eagle Harbor Edmonston Fairmount Heights Forest Heights Glenarden Greenbelt Hyattsville Landover Hills Laurel Morningside Mount Rainier New Carrollton North Brentwood Riverdale Park Seat Pleasant University Park Upper Marlboro QUEEN ANNE'S Barclay Centreville Church Hill Millington Queen Anne Queenstown Sudlersville Templeville ST. MARY'S Leonardtown SOMERSET Crisfield Princess Anne
TALBOT Easton Oxford Queen Anne St. Michaels Trappe WASHINGTON Boonsboro Clear Spring Funkstown Hagerstown Hancock Keedysville Sharpsburg Smithsburg Williamsport WICOMICO Delmar Fruitland Hebron Mardela Springs Pittsville Salisbury Sharptown Willards WORCESTER Berlin Ocean City Pocomoke City Snow Hill