HB 356
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader
House Bill 356 (Delegate Qi)
Economic Matters Judicial Proceedings
Corporations and Associations – Filing Fee Study
This bill requires the State Department of Assessments and Taxation (SDAT), by
January 1, 2022, to (1) review the filing fees and associated requirements of neighboring
states that are equivalent or substantially similar to filing fees in Maryland and (2) report
recommendations to the General Assembly that would make Maryland more competitive
with neighboring states, including whether to establish less frequent filing requirements,
decrease fees, or establish a sliding fee scale.
Fiscal Summary
State Effect: None. SDAT can handle the bill’s reporting requirements with existing
budgeted resources.
Local Effect: None.
Small Business Effect: None.
Analysis
Current Law: 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. For reports filed in calendar 2020,
the filing deadline was extended to July 15, 2020, due to the COVID-19 pandemic. 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. Since 2017, all tax returns have been 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
Additional Information
Prior Introductions: HB 204 of 2020 received a favorable with amendments report from
the House Economic Matters Committee and passed the House. The bill was referred to
the Senate Budget and Taxation Committee, but no further action was taken.
Designated Cross File: None.
Information Source(s): State Department of Assessments and Taxation; Department of
Legislative Services
HB 356/ Page 2
Fiscal Note History: First Reader - January 18, 2021
rh/hlb Third Reader - February 16, 2021
Analysis by: Michael Sanelli Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 356/ Page 3