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                               INSTRUCTIONS FOR 2023 

                               FORM 1,  ANNUAL REPORT  

                                                         & 

              BUSINESS PERSONAL PROPERTY RETURN  

 An Annual Report must be filed by all business entities formed, qualified or registered 
                                                                      st
 to do business in the State of Maryland, as of January 1 . 
                                                                                                                                          
                         Maryland State Department of Assessments and Taxation, Business Services Division 
               Business Personal Property Division, 301 West Preston Street Room 801, Baltimore Maryland 21201   - 1052                  
 
    WHO MUST FILE THE ANNUAL             REPORT 
     
    The Annual Report   is a required filing for   all business   entities, regardless   of whether the business   owns property, 
    generates income or has conducted business activity           in Maryland during the preceding year. This      includes the following 
    entity types, both Domestic and Foreign: 
        o   Stock, Tax Exempt Non-Stock, Non-Stock, Religious, Close, Benefit and Professional                Corporations, 
        o   Limited Liability Companies   & BenefitLLCs,          
        o   Limited Liability Partnerships, Limited Partnerships   & Limited Liability      LimitedPartnerships,    
        o   Statutory (Business Trusts), Real     Estate Investment        Trusts 
 
    Failure to file the Annual Report may result in forfeiture of the entity’s right to conduct business       in the State of 
    Maryland. 
 
    WHEN TO FILE 
 
    The deadline to file is April 15th. Should April 15th fall on a weekend,      the due date is the Monday immediately            following. 
    Annual Reports that are postmarked by close of business            (COB)  on  the Monday   following will be considered timely.  April 
    15, 2023 is a Saturday, so the due date is     Monday,       April 17, 2023. 
 
    You may request a 60 day      extension of the filing deadline,   at no cost, by visiting the Personal Property Extension site at 
    http://pprextensions.dat.maryland.gov/ Extension requests must            be made on or before April 15th. 
    Increased use of this site is anticipated as the       April 15th deadline approaches, so SDAT suggests        you apply for an 
    extension as soon as the site opens in December. Paper             extensions are no longer accepted by       the department. 
 
    HOW & WHERE TO FILE 
 
    The Department strongly encourages you to file online through the Maryland Business Expressfiling portal, 
    located here: https://egov.maryland.gov/BusinessExpress  .Annual Report filings submitted online are marked 
    received and automatically posted to the filing business’s Business Express page upon filing with the Department. 
     
    Annual Reports not filed online should be     submitted by mail. Be sure to sign the hard copy Annual Report           and 
    include a check   ormoney order for  the full amount   of   any required  filing fee. Send the completed package to:        
     
    Maryland Dept.   ofAssessments and       Taxation -     Annual Report 
    PO Box 17052 
    Baltimore, Maryland 21297-1052 
     
       If you do not wish to file online or mail your      Annual Report   to the address   listed below, filings may   be submitted in the 
    SDAT drop box located in the lobby   of the 301 Building of the Baltimore         State Center  complex.   The address   is 301 W. 
    Preston Street, Baltimore, Maryland 21201. 
 
    All other correspondence, such as    Amended Annual Reports,   or certified/return receipts,        should be sent     to: 
    Maryland Dept.   of Assessments and Taxation Business Services Unit 
    301 W. Preston Street, Room 808 
    Baltimore, Maryland 21201-2395 
 
          Form 1 Instructions                                                                                      Page    1 of 16

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  REMINDER: To ensure proper filing,             include your SDAT Department   ID on your report,  where requested, and on all 
  communications with SDAT. Annual Reports filed without               a Department   ID may not be accepted, causing delays 
  and possible late fees. 

  INFORMATION and ASSISTANCE 

  General information: 

  Customer Service Contact Center   410-767-1330 

  Email: sdat.cscc@maryland.gov 

  PERSONAL PROPERTY UNIT         410-767-1170 
  For valuation and assessment information 
  E-mail Address: SDAT.PersProp@Maryland.gov 
 
  Online Extensions: http://pprextensions.dat.maryland.gov/  
   
  Charter Information: 410-767-1330 Incorporations, Qualifications, Revivals   & Dissolutions:  
  E-mail Address: SDAT.CharterHelp@Maryland.gov 
 
  Department Website: https://dat.maryland.gov Toll Free within Maryland: 1-888-246-5941 
  Maryland Relay Service (MRS): 1-800-735-2258 TT/VOICE (MRS               for speech and hearing   impairment) 

  FILING FEES 
 
  The filing fee for most business entities   is $300. The fee must accompany the Annual Report         for the report to be 
  accepted by SDAT. Failure to include the filing fee may result in SDAT not accepting the report,        which may result 
  in the business falling into a Not       in Good Standing status and eventual forfeiture. 
          
                                    TYPE OF BUSINESS              ID#      FILING 
                                                                  PREFIX   FEE 
                           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 
                           Domestic Statutory Trust                 B      $300 
  
                           Foreign Statutory Trust                  S      $300 
  
                           Real Estate Investment Trust             D      $300 
                           SDAT Certified Family Farm             A,D,M.W  $100 
                           Amended Returns                        ALL      $0 
  
  The filing fee must be paid regardless   of whether the business owns property in Maryland, generates         any   income in 
  Maryland or conducts any business           in Maryland. Checks and money     orders   should be made payable to “SDAT”      and 
  include the SDAT Department   ID to ensure credit to the proper account. 
   
      Form 1 Instructions                                                                                     Page    2 of 16

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 Corporations not authorized to issue capital stock are not required to pay a filing fee. 
  
 The filing fee for SDAT Certified Family Farms   is $100 beginning the year following its election to become                  a 
 Family Farm. 
 
 LATE FILING PENALTIES 
 
    If the business files   its Annual Report after the deadline,   itmay be subject to late filing penalties. The penalties 
 cannot be prepaid and can only be calculated after the           Personal Property  Tax Return is filed.   If the business   is 
 assessed any late filing penalties,   it will be notified by   mail after the assessment   is complete.      The following 
 minimum and maximum initial         (base) penalty amounts apply: 
 
       Days Late            Minimum              Maximum 
       01-15                    $30              $500  
       16-30                    $40              $500  
       31 or more               $50              $500 
 
    A business    which files   theForm   1after the April 17th due date (June 15th for those with approved extensions),              will 
 receive an initial penalty   of 1/10 of one percent   of the county assessment,   or the base penalty,       whichever   is 
 greater. Interest will accrue at the rate of 2%   of the initial penalty  amount for each thirty     (30)    day period,   or part 
 thereof, that theForm   1is late. 
 
 WHAT ADDRESS TO USE 
 
 For the purpose of   the Annual Report and Personal Property         Tax Return,    provide the business’      mailing address       in 
 Section   Iof the Form   1. 
  
 The business’ mailing address may also be changed when submitting the Annual Report.                  Insert   the new    mailing      
 address in the address fields in Section I      and check the box    to indicate that   this   is “a change of mailing address.” 
    A business’   mailing address    may   be any   US  Post Office recognized address,      including non-Maryland addresses, 
 addresses in foreign countries and post         office boxes. 
 
 PERIOD COVERED BY ANNUAL REPORT                     AND PERSONAL        PROPERTY TAX RETURN 
 
 All reports cover the calendar year regardless   of the business’ fiscal       year. All information required to be reported 
 shall be as   of January 1 of  the filing year, also known as the date of finality, except for       items   which specifically      ask 
 for information from   prior years. 
  
COMPLETING THE ANNUAL            REPORT 

 To start your Annual Report     (Form 1      ), check  the appropriate box      for the business     type at the top   of the form   and 
 note the associated filing fee for your business       type. 
 There is a new indicator box regarding the MarylandSaves             retirement savings program.   A business’         enrollment    in 
 the MarylandSaves program   or earning of an approved exemption status through MarylandSaves                        will result in the 
 waiver   ofthe current year’s  Annual  Report   filing fee. If   you have qualified for a waiver of   your 2023     Form 1 filing 
 fee, please check the box to assist SDAT staff with the processing of           your 2023 Annual     Report.   MarylandSaves 
 has communicated a list     of all businesses that     have earned the fee waiver for     the 2023 Annual Report          and  SDAT 
 staff will use the answer on the Annual     Report form to confirm with the MarylandSaves approval list that              no fee is 
 required. 
 Please note that the determination of   all fee waivers     originates with MarylandSaves and NOT            the State 
 Department   ofAssessments and      Taxation.    The deadline to qualify through MarylandSaves for a                   waiver of 
 your 2023 Annual Report filing fee was December   1, 2022. 
    If you have any questions    regarding the   waiver    approval   process   or successfully    earning the fee waiver       for 2024, 
 please use the contact information for     MarylandSaves found here: https://www.marylandsaves.com  . 
    A fee waiver  granted by MarylandSaves          does   not automatically rollover to the next     filing year.   If a business    has 
 successfully earned a fee waiver for 2023,      please continue      to check  with MarylandSaves to determine next steps 
 required for ensuring inclusion on the approved fee waiver list for 2024. 
 Please note that the waiver   of the fee does not exempt an entity        from completing the Form   1, receiving an 
 assessment,   orlate filing penalty.   
  
       Form 1 Instructions                                                                                           Page    3 of 16

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SECTION I
All business entities must complete this section. If any item does not apply, please respond with “N/A.”
Provide the full, legal name of the business entity, including any tails or endings such as Inc. orLLC. ( Required )
Provide the complete mailing address for the business. If this is a new or changed mailing address, check the
box to the left.
You cannot change thePrincipal Office or Resident Agent address using this method. Please consult website
for instructions.
Provide the SDAT Department ID. If you do not know your Department ID, you can look it up on Maryland Business
Express: (https://egov.maryland.gov/BusinessExpress/EntitySearch.) The ID number is necessary to ensure proper
credit to your account.
Provide the entity’s FEIN (federal tax identification number obtained from the IRS).
Provide the business entity’s Federal Principal Business Code (obtained from the IRS).
Provide the nature of business.
Provide the trading-as-name (DBA) that the business uses, if any.
Provide an email address to receive important reminders from SDAT.
SECTION II
Only complete this section if the business entity is a corporation (domestic or foreign). If the business entity is not a
Provide the names and mailing addresses of all corporate officers. All domestic corporations must have a
President, Secretary and Treasurer. Attach additional pages if necessary.
Provide the names ofcorporateall directors. All Maryland corporations (except Close corporations) must have at
least one director. Religious corporations should list the names of all Trustees here. Attach additional pages if
necessary.

SECTION III –Completion Required Pursuant to MD Code, Tax Property Article § 11-101

In line with recent changes to Section 11-101 of the Tax-Property Article, certain entities must now complete Corporatea
Diversity Addendum when filing an Annual Report. The Corporate Diversity Addendum contains questions that require
the filing business to report certain diversity data specified by the Maryland Department of Commerce and the Office of
Small, Minority, and Women Business Affairs.
When completing the 2023 SDAT Annual Report, based on statute, each business will be required to answer a few
filtering questions inSection III to determine if the business must also complete the Corporate Diversity Addendum.
Failure to answer the questions accurately or failure to meet certain criteria therein may prohibit the business from
qualification for a state benefit, such as a tax incentive, state government contract, or grant, worth more than $1 million .
For more information, refer toCOMAR 24.01.07 and 2021’s HB1210 . Please be aware, the information you include in
this section may be shared with other Maryland State agencies.
If the filing business is required to complete and submit a Corporate Diversity Addendum, the separate form may be
found on the Department Assessmentsof and Taxation’s forms page, located here:
https://dat.maryland.gov/Pages/sdatforms.aspx .

A completed Corporate Diversity Addendum should be included with the submission of the Annual Report to DoSDAT.
not submit the Corporate Diversity Addendum separately from the Annual Report to which it is being attached.
The separate filing of the Annual Report and the Corporate Diversity Addendum may result in the delayed filing of your
Annual Report.

Form 1 Instructions Page 4 of 16

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For questions specific to other Maryland state agencies that issue state benefits that are subject to the review of
answers provided within the Corporate Diversity Addendum, please utilize the following contact information:

• Office ofSmall, Minority & Women Business Affairs: info.gomdsmallbiz@maryland.gov

• Maryland Department Commerce:of taxincentives.commerce@maryland.gov

• Maryland Department ofGeneral Services: central.procurement@maryland.gov

• Office of the Comptroller of Maryland: taxhelp@marylandtaxes.gov
Due to the passage of Chapter 513 during the 2019 General Assembly Session a new request for data has been
included on the 2020 Form 1.The Total number of Directors, Total number of Female Directors only applies to tax
exempt, domestic non-stock corporations with an operating budget exceeding $5,000,000; or domestic stock
corporations with total sales exceeding $5,000,000. If one of the former applies to the corporation, this questions
must be completed unless at least 75% of the corporation’s shareholders are family members. This question is
required by law, Tax-Property Article §11-101corporation, skip this section and proceed toSection IV .
Section IV - All business entities must complete this section. Pursuant to MD Code, Tax Property Article § 7-245
If the answer to all question A “Yesis ,” the Business Personal Property Return portion of the Form 1 must be
completed and filed with this Annual Report.
If the business entity owns, leases or uses any property other than real estate, intellectual property or vehicles
registered with the MVA, and that property is located in the State of Maryland. The term “Personal Property”
specifically includes property owned by the business, leased by the business or used by business, even if that
property isowned by another business or individual. “Personal property” includes computers, phones, cell phones,
furniture, draperies, inventory, equipment, tools, machines, books, artwork, supplies and fixtures.
Only check “No” if the company does not use, lease from others, or own any property that is located in the State
of Maryland. If you answeredyes, and the entity leases personal property from others, the Business
Personal Property Tax Return will have to be completed.
If you answeredNo“ ”, the business is not required to file a Business Personal Property Tax Return pursuant to MD
Code, Tax Property Article §7-245.

Answer question B ifall property was disposed of, sold or transferred prior to January 1, 2023
If the answer to question B is “Yes,” please complete form SD-1. Do not complete the Business Personal
Property Return.
If the personal property your entity ownsis exempt (religious groups, charitable or educational organizations), you
will not have to complete the Business Personal Property Tax Return Portion. You may wish to complete the Form
SD1. Note: The Business Personal Property Tax Return will have to be completed if the entity leases
personal property from others.

SECTION V
This isthe signature part of the form and all business entities must complete this section.
If you are mailing the form, original signatures are required. Photocopies, confirmed signatures, faxes, scans or any
type of signature other than an original, ink signature are not acceptable. This form is signed under oath and subject
to the penalties perjury.of
Please review itcarefully for accuracy before you sign and submit it!
This item must be completed by all business entities.
If this item is left blank, the Annual Report will be considered incomplete andwill not be accepted. Print the name of
the person signing on behalf ofthe business. The date should be the date the form is signed. Include a phone
number and email address so that we can contact you to resolve any potential discrepancies or errors quickly.
Only complete the next signature line if you are preparing the return for or on behalf of the business entity, and
are not a constituent of the business. This item generally applies to accountants, tax preparers and attorneys.

Form 1 Instructions Page 5 of 16

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ABOUT THE BUSINESS PERSONAL PROPERTY TAX RETURN

WHAT MUST BE REPORTED
Generally, alltangible personal property owned, leased, consigned or used by the business, and located within the
State of Maryland on January 1 must be reported. Property not in use must still be reported. All fully depreciated
and expensed personal property must also be reported.
Personal property includes, but is not limited to, office and plant furniture, machinery, equipment, tools,
furnishings, trade fixtures, inventory, and all other property not considered part of the real estate.
Personal property in this State (other than operating property of Railroads and public Utilities) falls into two
subclasses:
I. Stock in business or inventory is goods held by a taxpayer for sale, and goods placed on consignment to
another for sale, in the expectation of a quick turnover. Stock in business does not include goods manufactured
by the taxpayer but held by the taxpayer for purposes other than sale, or goods manufactured by the taxpayer
but placed in possession and control of another as in the case of leased property.
Stock in business is assessed at cost or market value, whichever is lower. LIFOmethod of valuation is
prohibited.

II. All other personal property includes all personal property, other than inventory, and is reported at full
cash value.
Taxpayers shall report such property which has been acquired by purchase at cost in the year of acquisition.
Taxpayers shall report such property which has been acquired other than by purchase (including property
manufactured by the taxpayer) at fair market value. To assess “all other personal property” the Department
generally applies a 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 six (6).
Normally, property will not be depreciated below 25% of the original cost.
Estimated assessments may be issued when questions remain unanswered or the answers are incomplete or
evasive. Real property is not to be reported on the return.

REPORTING ORIGINAL COST OF PERSONAL PROPERTY
Round amounts to the nearest whole dollar. Fifty cents and above should be rounded to the next highest dollar.

COMPLETING THE BUSINESS PERSONAL PROPERTY TAX RETURN

SECTION V – ALL BUSINESS ENTITIES COMPLETE

At the top of the Business Personal Property Tax Return, copy the complete legal name of the business and the
Department ID from the first page in the spaces provided.
This isrequired to ensure that the correct account is credited.

Questions Athrough G must be completed by any business entity that responded “Yes” to question B in Section IV .
Provide the correct mailing address. Be sure it is the same address you provided on the Form 1, Annual Report.
Provide a current email address so that you can receive important assessment updates from the Department.

Indicate whether ornot business is conducted in Maryland. Provide the date business began in Maryland.
Provide a short description of the activity of the business (i.e., “restaurant” or“construction,” etc.)
If the business operates on a fiscal year provide the start and end date. If it operates on a calendar year, you may
leave this item blank.
Provide the total gross sales generated from business transacted in the State of Maryland for the calendar year
preceding the date of finality.
If the business does not own, lease, or use any tangible personal property in Maryland, but has generated any
amount ofgross sales, please provide an explanation of how the business operates in Maryland without any
tangible personal property. If the business is using the personal property of another business entity, provide the
name, Department ID, and address of that business.

Use theREMARKS section to provide any additional applicable information.

Form 1 Instructions Page 6 of 16

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 SECTION   VI 
 
 SPECIAL INSTRUCTIONS FOR ITEMS 1-10 
 
 Location Information 
 Exact Location 
 Since local tax rates and exemptions differ in each county and in each incorporated town,              the physical   location of 
 the tangible business personal property within Maryland as   of January            1st must be clearly indicated by the 
 business. 
 Post Office Box numbers are not              acceptable.   Ifproperty   is located in an incorporated town, supply the name of 
 the town. An incorporated town has   its own government and defined municipal                boundaries. Please see the attached 
 current list   of counties and incorporated towns within each county.         Inventory   is deemed permanently  located where 
 the business   isconducted. Although         some jurisdictions may   exempt  inventory   from an assessment, entities   that    
 require a Trader's License should report commercial inventory in Question 2. 
 Multiple Physical Locations 
    If property   is located in two   or more locations,  please supply     a breakdown per   location by completing copies   of the 
 Additional Locations Worksheet             . The additional  locations     worksheet  can be found on our  website 
 https://dat.maryland.gov/Pages/sdatforms.aspx 
 
 For ease in reporting, entities may upload additional        schedules     up to 50MB    when filing through Maryland Business 
 Express. All uploaded files must        be in PDF format when filing throughMaryland Business Express. 
 For businesses      that currently provide excel worksheets      and would prefer     to continue, please email your 
 supporting data to sdat.persprop@maryland.gov    
 
 Always include the complete name of the entity and the Department   ID number. 
 
    1.  Furniture, Fixtures, Tools, Machinery and Equipment            not used for Manufacturing or Research and 
    Development  This property shall be reported at original cost by year   of acquisition without          depreciation, 
    investment credit,   or trade- in of previously owned property.         Include all fully depreciated and property 
    expensed under IRS rules. 
 
 This includes, but   is not limited to, office furniture, fixtures and equipment,      factory equipment and machinery, 
 shelves, signs, counters, etc. All property   is to be reported under Category   A unless         specifically listed in another 
 category. 
 Property reported in columns   B through G requires a detailed description (e.g.,            Column C- Copiers, Fax, etc.). 
 Failure to provide the required detail will     result in the reported property    being assessed at 10% rate of 
 depreciation. 
 Refer to the Depreciation Rate List below to determine where property owned by               the business   should be 
 reported (See   , Example   , below.)  
 
 This property shall     be reported at  original    cost by year   of acquisition without deduction of depreciation, 
 investment credit,   or trade-in of   previously    owned property. Include   all fully  depreciated personal  and property 
 expensed under IRS rules. 
 
 Example: 
 
              ORIGINAL COST BY YEAR OF ACQUISITION 
                         SPECIAL DEPRECIATION RATES          TOTAL 
                                 B-G (See                     COST 
                                 chart) 
            A          B      C    D        E      F    G  
 2022                                                      
 2021       1150                       1280                  13,950 
 2020       3104                       8400                  11,504 
 2019       1500                 526                          6,761 
 2018                                                      
 2017                     250                                 2,500 
 2016       9127          500                                 9,627 
 2015    &                                                 
 prior 
 Totals  1488             300  526  2120                     44,142 
 Describe property identified in B     -G above: Category D-2011 Personal   Computer;     Category E-2012,2013 RentalDVDs, Video 
 Tapes, 2008 Vending Machine; Category        C 2009- Copier $2,000, Fax $500 
  
       Form 1 Instructions                                                                                      Page    7 of 16

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2. Commercial Inventory
Commercial Inventoryis merchandise and stock in trade available for sale. This includes manufactured
products sold at retail by the manufacturer. An average of twelve (12) monthly inventories should be reported.
Book inventories may be used for months when physical inventories were not taken. Values are to be reported
at cost or market value. LIFOmethod of valuation is prohibited.

Business entities that need a Trader’s License (retail sales) or should report commercial inventory!
" If you are unsure of whether this applies to you, please contact your county's Clerk of the Court
at https://www.courts.state.md.us/pia/clerks . Maryland Annotated Code, Business Regulation Article §17-
1808 allows counties and municipalities to adopt a Uniform Trader's License Fee ."

3. Supplies
Supplies are consumable items not held for sale (e.g., contractor's supplies, office supplies, etc.). Report the
average cost.

4. Manufacturing/Research and Development (R&D) Supplies
Manufacturing/Research and Development (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 in item 2 Commercial Inventory.
An average of twelve (12) monthly inventories should be reported. Book inventories may be used for months when
physical inventories were not taken. Values are to be reported at cost or market value.

5. Tools, Machinery and Equipment used for Manufacturing or Research and Development(R&D)
Exemption Application Requirements: If the exemption is claimed for the first time, anExemption Application for
Manufacturing and Research & Development must be submitted within 6 months after the date of the first
assessment notice for the taxable year that includes the manufacturing personal property, or September 1 of the
affected assessment year, before the exemption can be granted.
For more information as well as the application form, visit the Department's website at https://dat.maryland.gov.
Proceed to the Businesses section, Business Personal Property and then Quick References. Reporting property
on this line item is not a substitute for a manufacturing application nor an assumption of approved
exemption.

6. Vehicles
Itemize motor vehicles with Interchangeable Registrations and vehicles that are unregistered (unlicensed).
Vehicles registered in Maryland and classified A-P are exempt and should not be reported on the Personal Property
Tax return. Vehicles registered outside Maryland may also be exempt. Exempt vehicles include those registered in
another taxing jurisdiction and of a classification (A-P) described in Title 13, Subtitle 9, Part II of the Maryland
Transportation Article.
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 or depreciation,
investment credit, or trade-in of previously owned property. Include all fully depreciated personal property and
property expensed under IRS rules.
Motor vehicles with Interchangeable Registrations and unregistered/unlicensed vehicles are not exempt and will be
assessed as Category C property at 20% depreciation per annum (subject to a minimum assessment of 10% of the
original cost).

7. Non-farming Livestock
Report book value and market value.

8. 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 including a description, the original acquisition cost, and the date of acquisition of the
property. Please see additional instruction under Other Personal Property Assessment Exemptions.
Qualified Data Centersas described in 2020 SB 397 and Tax General Art. § 11-239 of the Annotated Code of
Maryland, should report their personal property under All other personal property and attach a detailed
schedule

Form 1 Instructions Page 8 of 16

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9. 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.
File separate schedule showing names and addresses of owners, lease number, description of property,
installation date and cost of each leased asset.

10. Property Owned by the 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. All leased property must be reported, including manufacturing equipment, and property leased to tax
exempt organizations.

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).
Manufacturing lessors may not report this property using the cost of manufacture.
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. Provide the physical
street address of lessees. Post Office Box numbers are not acceptable.

Excel schedules of leasing data may be submitted. Verify that the entity name and ID number are prominent
on the schedule.
Schedules may be filed electronically and submitted to sdat.persprop@maryland.gov

Please note that a Form 1, Annual Report/Business Personal Property Tax Return are still required.
Submission of an excel or other spreadsheet does not constitute receipt of the required Form 1.

SECTION VII
All Businesses must complete A-C
A. If this is the entity’s first Maryland business personal property return, state whether or not it succeeds an
established business and provide the name of the business.
B. Although it may be common practice not to report fully depreciated and/or expensed property on the Federal
Income Tax Return, it should be reported on the Business Personal Property Return and is subject to assessment.
If the business owns any fully depreciated and/or expensed personal property, and itnotis reported inSection VI,
please completeForm SD1. It may be necessary to include a schedule that contains detailed description of the
personal property, the original cost, and the year of acquisition.
C. If the business has disposed of or transferred assets in to or out of Maryland during the prior year, please
completeForm SD1 and provide the cost of the disposed/transferred property, the manner of disposal, and to
whom the property was transferred. Please provide sales agreements, settlement sheets or other supporting
documentation.

Form 1 Instructions Page 9 of 16

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DEPRECIATION RATE CHART FOR PERSONAL PROPERTY

STANDARD DEPRECIATION RATE
Category A: 10% per annum*
All property not specifically listed below.

SPECIAL(The rates below DEPRECIATION apply only to the RATES 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*
Unlicensed vehicles, 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 and other computer based equipment, canned software.

Category E: 33 11/3% 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 10% of the original cost.
** Subject to a minimum assessment of 5% of the original cost.
***Subject tominimuma assessment of 25% of the original cost

Form 1 Instructions Page 10 of 16

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ADDITIONAL INFORMATION 
 
 TRANSFER OF PROPERTY 
    If a business  transfers,   sells,   or disposes     of all personal property     on or after January     1, but  before July   1, the 
 Department must be notified in writing on or before October 1 
 1. The notification must contain an itemized description of            the property involved, the date and manner   of transfer, 
 the name(s) and address   of the new owner(s)   of the           property, the consideration received, and a copy   of the              sales 
 agreement   (ifavailable). Upon  proper notification       and compliance with          MD Code,    Tax     Property   Article §   10- 402, 
 the assessment shall be transferred to the new owner(s). SeeForm 21 as you may be required   to complete 
 and submit it to the Department. 
 
 OUT OF    BUSINESS 
     If a business  discontinues  operations      goesor  out   business   of  prior  to January      1,and has  not  ﬁled Articles of      
 Dissolution (Domestic  Corporations), an         Application for  Termination (Foreign Corporations),      aCertiﬁcate of               
 Cancellation (LLC)   ora 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 may result   in an estimated                   assessment       being made against         the 
 business and the business        not having good standing status. 
 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,     statutory trusts (formerly     business 
 trusts), and REITs). See websiteCharter Business Servicesfor frequently asked questions.  
 Please note that there are jurisdictions that will issue estimated                     business personal        property tax bills if      there 
 is no indication that   a business closed properly. The bills are not based on any assessment action taken by 
 SDAT. 
 
 AUDIT OF RETURN 
 All personal   property  assessments,        and any  information,    and ﬁgures       reported on  the personal property        return,  
 accompanying schedules and related documents                   may be subject to audit. As    a result   of such audits,      the 
 Department may issue corrected assessments. 
 
 AMENDED TAX RETURNS 
 Amended Business Personal Property Tax Returns can be filed to correct                      reporting errors   or claim   a missed 
 exemption (except for missed manufacturing exemptions) within 3 years   of the April                       15th date that the return was 
 originally due. Amended returns must         be accompanied by information explaining why                   the personal  property      tax 
 return is being amended and reconciling the differences with the original                 tax return.    Please writeAMENDEDacross 
 the top of page 1 and in the REMARKS section, along with a brief explanation for the amended personal property 
 tax return. You may also wish to provide additional detail for            an amended return by making use   of the Form                 SD1    and 
 providing additional information from other       tax forms      filed with the Comptroller   of Maryland or the IRS. Again,               please 
 verify that your entity name and Department   ID number figure prominently                             . Do not send   $300 ﬁling fee with an 
 amended tax return. Amended tax returns should be mailed                  to: 
 Maryland Dept.   ofAssessments and           Taxation Personal Property              Division    
 301 W. Preston Street      Baltimore, Maryland21201-2395                
 
 EXEMPTIONS 
 Personal Property Tax Exemptions provided by statute                 shall be strictly construed.      Before   an exemption can be             
 obtained,   the taxpayer must     show   afﬁrmatively     that   the exemption is clearly    allowed.       
 Businesses may      ﬁle amended returns        to correct  reporting errors   claim   or    missed exemptions (except          for  missed 
 manufacturing exemptions) within three years   of the April 15th date that the return was                    originally   due. The 
 following are examples   oftwo of the      more common personal property              tax exemptions.        

        Form 1 Instructions                                                                                                Page 11 of 16

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Manufacturing and Research and Development, Tax Property Article § 7-225, basis for the exemption is
the operation.
For manufacturing exemption requests, an application must be submitted on or before September 1 of the
assessment year in order to qualify for the current tax year. Please see https://dat.maryland.gov for the
Manufacturing and R&D Exemption Application. Section 7-104 of the Tax-Property Article of the Annotated Code of
Maryland has been revised to include subsection (d) that allows the owner of manufacturing personal property to
ﬁle an application within 6 months after the date of the ﬁrst assessment notice for a taxable year that includes the
manufacturing personal property. If the application is approved, the exemption shall be granted for the taxable year.
This exception to the September 1 deadline is applicable to taxable years beginning after June 30, 2009. No
manufacturing exemption can be granted unless a timely application is ﬁled.

Once the exemption is granted to an entity, no additional manufacturing applications are required in subsequent
years. Manufacturing assets acquired after the exemption is granted will need to be described as well as the role
the assets play in the manufacturing process. If this information is not provided, the assets will likely be subject to
assessment.

It will be necessary to provide the letter from the Department granting your entity theManufacturing/R&D
Exemption, to any companies that lease manufacturing equipment to your entity so that the leased equipment can
qualify for the exemption. The law speciﬁcally includes the following activities as part ofthe manufacturing process:
(1) the identiﬁcation, design or genetic engineering of biological materials for research or manufacture; and (2) the
design, development or creation of computer software for sale, lease orlicense.

Other personal property assessment exemptions: All personal property ownedby certain organizations,
including religious groups, government, non-proﬁt hospitals, cemetery and mausoleum companies, and
certain other organizations, or groups which meet certain “strict use” criteria is exempt. These are referred to as
exempt organizations and are fully exempt throughout Maryland from any assessment and taxation. In section V,
F orin Remarks, please give a brief explanation or reason for the exemption.
Charitable or Educational Purposes, Tax-Property Article § 7-202, exemption from assessment is
based on the property owned by the charitable or educational institution.
Non-stock educational or charitable exemptions are also obtained by filing an application. An organization must
submit written information detailing its operation in the form of the Department’s Charitable Application.
If the organization requiredisto ﬁle an IRS Form 990, itshould be included with the application. Also, submit a
copy ofthe 501(c)(3) certification from the IRS. Please note that because the laws differ, organizations granted
exempt status by the Internal Revenue Service are not necessarily exempt from personal property taxation in
Maryland. The exemption applies to the assessment.
Entities that are granted an exemption under Tax Property Article 7-202, are still required to file the Form 1.

Exemption applications may be emailed to sdat.ppaudit@maryland.gov

In addition, State law requires that certain types of personal property be fully exempt from assessment and taxation
throughout Maryland. These include aircraft, farming implements, residential (non-business) property, most
registered vehicles, boats not more than 100 feet in length, customized computer software, intangible personal
property (e.g., stocks, bonds, patents, goodwill, trademarks, etc.).
Full orpartial exemptions may apply depending on the location of the property for: manufacturing/R&D machinery
and equipment, manufacturing/R&D inventory and commercial inventory. Visit the Department’s website for a
complete listing of these exemptions.
Tax Property Article § 7-245
A person’s any(business entity’s) personal property is not subject to valuation or to property tax ifALLof the
person’s personal property statewidehas a total original cost less than $20000. This exemption shall take effect
July 1,2022, and shall be applicable to all taxable years beginning after December 31, 2021.

NOTES:

Mail the completed return to:
Maryland Department ofAssessments and Taxation Business Personal Property
PO Box 17052
Baltimore, Maryland 21297-1052

All other correspondence, including Amended Returns, should be sent to:
Maryland Dept. ofAssessments and Taxation Business Personal Property
301 W. Preston Street Baltimore, Maryland21201-2395

Form 1 Instructions Page 12 of 16

- 13 -

 Additional supplemental detail-see the following documents: 

 Additional locations workbook 

 Form 21, transfer, sale or disposal   of all property in Maryland.  No cost to file the   document   but     should be 
 accompanied by sales agreement, receipts, or other documents (sales advertisement               or bill   of lading 
 indicating the removal   property).of  

 Form SD-1 offers detail from a balance sheet   or depreciation    schedule and may not apply to all    entities.   It may 
 not be necessary for you to complete one.   It may only be required under certain circumstances     such as  the 
 following: 
          Disposals and transfers Expensed   and fully depreciated property 
          Exempt property/Exempt organizations Amended returns 
           
 The forms can be found online at https://dat.maryland.gov/Pages/sdatforms.aspx 
  
 FEDERAL EMPLOYER IDENTIFICATION          NUMBER       LOOKUP: 
 https://www.irs.gov/businesses/small-businesses-self- employed/employer-id-numbers 
 
 FEDERAL PRINCIPAL BUSINESS CODES LOOKUP: 
 https://www.irs.gov/pub/irs-pdf/i1040sc.pdf 
 (See pages C-16 and C-17 of IRS Publication Schedule C Instructions) 
 
 HELPFUL LINKS 
 
 SDAT ONLINE FORMS: 
 https://dat.maryland.gov/Pages/sdatforms.aspx 
 DEPARTMENT   IDNUMBER SEARCH:            
 https://egov.maryland.gov/BusinessExpress/EntitySearch 
 REQUEST A PERSONAL PROPERTY EXTENSION: 
 http://pprextensions.dat.maryland.gov/ 
 
 FILE CURRENT & PRIOR YEARS PERSONAL 
  PROPERTY RETURNS ONLINE: To use this system you must create an account 
  https://egov.maryland.gov/BusinessExpress/Account/LogO 
  n?ReturnUrl=%2fBusinessExpress%2fUserRegistrati Check “Yes”   if the business has     or is required to have 
  a Trader’s License (sometimes called a business license) issued by the Circuit Court for    the county   or 
  counties in which the business  has locations.  
  "    If you are unsure of whether this applies to you, please contact your county's Clerk   of the Court 
  at https://www.courts.state.md.us/pia/clerks  . Maryland Annotated    Code, Business     Regulation Article §17-
  1808 allows counties and municipalities to adopt   a Uniform  Trader's License Fee    ." 

     Form 1 Instructions                                                                              Page 13 of 16

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   ALLEGANY                   CECIL            GARRETT                    PRINCE                ST. MARY’S 
                                                                          GEORGE’S 
   Barton                     Cecilton         Accident                   Berwyn Heights        Leonardtown 
   Cumberland                 Charlestown      Deer Park                  Bladensburg           
   Frostburg                  Chesapeake City  Friendsville               Bowie                 SOMERSET 
   Lonaconing                 Elkton           Grantsville                Brentwood             Crisfield 
   Luke                       North East       Kitzmiller                 Capitol Heights       Princess Anne 
   Midland                    Perryville       Loch Lynn Heights          Cheverly              
   Westernport                Port Deposit     Mountain Lake Park         College Park          TALBOT 
                              Rising Sun       Oakland                    Colmar Manor          Easton 
   ANNE ARUNDEL                                                           Cottage City          Oxford 
   Annapolis                  CHARLES          HARFORD                    District Heights      Queen Anne 
   Highland Beach             Indian Head      Aberdeen                   Eagle Harbor          St. Michaels 
                              La Plata         Bel Air                    Edmonston             Trappe 
   BALTIMORE CITY             Port Tobacco     Havre de Grace             Fairmount             
                                                                          H Foresti  htHeights  WASHINGTON 
   BALTIMORE COUNTY           DORCHESTER       HOWARD                     Glenarden             Boonsboro 
   No incorporated cities or  Brookview        No incorporated cities or  Greenbelt             Clear Spring 
                              Cambridge                                   Hyattsville           Funkstown 
   CALVERT                    Church Creek     KENT                       Landover Hills        Hagerstown 
   Chesapeake Beach           East New Market  Betterton                  Laurel                Hancock 
   North Beach                Eldorado         Chestertown                Morningside           Keedysville 
                              Galestown        Galena                     Mt. Rainier           Sharpsburg 
   CAROLINE                   Hurlock          Millington                 New Carrollton        Smithsburg 
   Denton                     Secretary        Rock Hall                  North Brentwood       Williamsport 
   Federalsburg               Vienna                                      Riverdale Park        
   Goldsboro                                   MONTGOMERY                 Seat Pleasant         WICOMICO 
   Greensboro                 FREDERICK        Barnesville                University Park       Delmar 
   Henderson                  Brunswick        Brookeville                Upper Marlboro        Fruitland 
   Hillsboro                  Burkittsville    Chevy Chase, Sec.   3                            Hebron 
   Marydel                    Emmitsburg       Chevy Chase, Sec.   5      QUEEN ANNE’S          Mardela Springs 
   Preston                    Frederick        Chevy Chase View           Barclay               Pittsville 
   Ridgely                    Middletown       Chevy Chase Village        Centreville           Salisbury 
   Templeville                Mount Airy       Garrett Park               Church Hill           Sharptown 
                              Myersville       Glen Echo                  Millington            Willards 
   CARROLL                    New Market       Kensington                 Queen Anne            
   Hampstead                  Rosemont         Laytonsville               Queenstown            WORCESTER 
   Manchester                 Thurmont         Martin’s Additions         Sudlersville          Berlin 
   Mount Airy                 Walkersville     North Chevy Chase          Templeville           Ocean City 
   New Windsor                Woodsboro        Poolesville                                      Pocomoke City 
   Sykesville                                  Rockville                                        Snow Hill 
   Taneytown                                   Somerset                                         
   Union Bridge                                Takoma Park                                      
   Westminster                                 Town of Chevy Chase                              
                                               Washington Grove                                 

                             MARYLAND COUNTIES AND INCORPRATED           TOWNS 
 
  THE FOLLOWING IS A LIST OF         COUNTIES AND INCORPORATED           TOWNS   IN MARYLAND.   IF A 

  Form 1 Instructions                                                                           Page 14 of 16

- 15 -

 BUSINESS OWNS PROPERTY IN ANY OF  THESE LOCATIONS, THELOCATION SHOULD BE LISTED 
 IN SECTION VI,   AOF THE PERSONAL PROPERTY RETURN. 
 
 Form 1 Instructions                                            Page 15 of 16

- 16 -

FORM 1 – FREQUENT FILING MISTAKES

Avoid these common errors to help ensure the efficient filing and processing of your personal property return.

Location Reporting Errors
-Not providing a breakdown of property by multiple locations.

-Inaccurate or missing address information, especially regarding towns.

-Reporting the mailing address instead of the actual property location in Section VI, A of Form 1, Business
Personal Property Tax Return.

-Reporting property not located in Maryland.

Property Reporting Errors
-Property reported in wrong depreciation category; or failing to describe assets reported in categories B through G.

-Failure to report commercial inventory which may cause problems with business license renewals.

-Reporting certain exempt registered vehicles as taxable in Section VI, under line item 1 or 6. Some registered
vehicles are taxable, such as those with interchangeable registrations.

-Failure to meet the September 1st deadline for manufacturing applications. Please see specific instructions under
Manufacturing Exemptions.

-Failure to notify the Department by October 1st when a transfer/sale/disposal of all personal property occurs
between January 1st and June 30th. See website for Form 21, Report of Sale or Transfer.

Annual Report and Other Errors
-Filing under the wrong Department ID#, especially after a merger, dissolution or when several entities
under the same management or ownership are involved.

-Filing the Form 1 for the incorrect year resulting in rejection or duplicate receipts.

-Filing fee check missing, made out for incorrect amount, or made out to the Comptroller.

-Attempting to pre-pay an anticipated late filing penalty. These penalties are billed at the time the assessment is
made.

-Forms not signed by officer/principal.

-Officers/directors names omitted from corporate return.

-Incorrect page 1 information (old address, wrong officers/directors, etc.), especially when software is used to
prepare the return.

-Remitting business personal property tax payments to the Department instead of the county/town finance offices
that generated the bill.

Form 1 Instructions Page 16 of 16

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