SB 115
Department of Legislative Services
Maryland General Assembly
2020 Session
FISCAL AND POLICY NOTE
Third Reader
Senate Bill 115 (Chair, Budget and Taxation Committee)(By Request -
Departmental - Assessments and Taxation)
Budget and Taxation Ways and Means
Annual and Personal Property Reports - Submission
This departmental bill alters a reference to a specified personal property tax report. The
bill takes effect July 1, 2020.
Fiscal Summary
State Effect: The change is procedural in nature and does not directly affect governmental
finances.
Local Effect: None.
Small Business Effect: The Department of Assessments and Taxation (SDAT) has
determined that this bill has minimal or no impact on small business (attached). The
Department of Legislative Services concurs with this assessment.
Analysis
Current Law/Background: In Maryland, there is a tax on business-owned personal
property that is imposed and collected by local governments. Personal property generally
includes business property including furniture, fixtures, office and industrial equipment,
machinery, tools, supplies, inventory, and any other property not classified as real property.
To provide for uniform assessments, SDAT is responsible for assessing all personal
property. Each county or municipal government is responsible for issuing the tax bills and
collecting the tax. The tax year begins on July 1 and ends on June 30. The personal property
tax has been a local tax exclusively since 1984 when the State tax rate on personal property
was set at zero.
At the beginning of each calendar year, SDAT notifies business entities on record that a
personal property tax return must be filed by April 15. This tax return must include personal
property located in Maryland as of January 1, the date of finality. The “date of finality” is
the date used to determine ownership, location, value, and liability for tax purposes.
Beginning in 2017, all tax returns will be filed electronically. An annual report fee is
required to be paid to SDAT with the personal property tax return. The annual report fee is
for the privilege of maintaining the legal entity’s existence in the State. Exhibit 1 identifies
the amount of the report fee that each legal entity is required to pay.
Exhibit 1
Annual Reporting Fee Requirement
Business Entity Fee Business Entity Fee
Stock Corp $300 Domestic Statutory Trust $300
NonStock Corp 0 Foreign Statutory Trust 300
Foreign Insurance Corp 300 Real Estate Investment Trust 300
Foreign Interstate Corp 0 Certified Family Farm 100
Limited Liability Company 300 Sole Proprietorship 0
Limited Liability Partnership 300 General Partnership 0
Limited Partnership 300 Amended Return 0
The bill is intended to clarify the different filing requirements for business entities that
have and do not have personal property. Only businesses with personal property are
required to file a personal property report; however, all business entities in the State must
file an annual report with the appropriate fee.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): State Department of Assessments and Taxation; Department of
Legislative Services
SB 115/ Page 2
Fiscal Note History: First Reader - January 8, 2020
mr/hlb Third Reader - January 17, 2020
Analysis by: Michael Sanelli Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 115/ Page 3
 ANALYSIS OF ECONOMIC IMPACT ON SMALL BUSINESSES
TITLE OF BILL: Personal Property Reports – Annual Reports – Submission
BILL NUMBER: SB 115
PREPARED BY: Jason Davidson, 410-767-5754, Jason.davidson2@maryland.gov
PART A. ECONOMIC IMPACT RATING
This agency estimates that the proposed bill:
_X__ WILL HAVE MINIMAL OR NO ECONOMIC IMPACT ON MARYLAND SMALL
BUSINESS
OR
WILL HAVE MEANINGFUL ECONOMIC IMPACT ON MARYLAND SMALL
BUSINESSES
PART B. ECONOMIC IMPACT ANALYSIS
The proposed legislation will not have an economic impact.
SB 115/ Page 4


Statutes affected:
Text - First - Annual and Personal Property Reports - Submission: 11-101 Tax Property, 11-102 Tax Property
Text - Third - Annual and Personal Property Reports - Submission: 11-101 Tax Property, 11-102 Tax Property