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STATE OF MARYLAND
DEPARTMENT OF ASSESSMENTS AND TAXATION
FRANCHISE TAX UNIT
301 WEST PRESTON STREET
BALTIMORE, MARYLAND 21201-2395
202 3
PUBLIC SERVICE COMPANY
FRANCHISE TAX
RETURNS
IMPORTANT TAX DOCUMENTS
AT-3-72
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THIS BOOKLET CONTAINS:
▪ General Instructions
▪ Public Service Company Franchise Tax Return (Form 11)
▪ Public Service Company Franchise Tax Return (Form 11T)
▪ Business Tax Credit Form (AT3-74)
▪ Instructions for Completing the Business Tax Credit Form AT3-74
▪ Estimated Franchise Tax Worksheet (Form 29EW)
▪ One set of Four Payment Vouchers (Form 29E)
▪ Authorization Agreement for Electronic Funds Transfer (Form SDAT EFT-1)
▪ Electronic Funds Transfer Instructions
▪ Title 18, Subtitle 08 - Public Service Company Franchise Tax Regulations
▪ Title 18, Subtitle 11 - EFT Regulations
GENERAL INSTRUCTIONS
Electric and gas companies that are subject to public service company franchise tax file Form 11, 29EW, 29E and
AT3-74. Telephone companies that are subject to public service company franchise tax file Form 11T, 29EW, 29E,
and AT3-74. Form AT3-74 is used by public service company franchise taxpayers to claim allowable business tax
credits. These credits include Employment Opportunity Tax Credit, Job Creation Tax Credit, Maryland Disability
Employment Tax Credit, Community Investment Tax Credit and Employer Provided Long-Term Care Insurance Tax
Credit.
All public service company franchise taxpayers must also file the public utility operating property return Form 17
which is not a part of this booklet.
SPECIAL NOTICE
Important reminders:
New: Effective immediately the new IVR System to do electronic funds transfer as an ACH/ Debit
option payment is no longer available you must use the ACH/Credit option or Wire transfer. *The
costs of the ACH Credit or Wire transfer transactions are incurred by you. *You are responsible
for your own proof of payment. *If you have any further questions regarding your ACH payments
please call 410-767-1940 and leave a message on the voice mail.
▪ Payments of $10,000 or more are required to be remitted by electronic funds transfer (Please refer to
regulations and detailed instructions which are part of this booklet).
▪ Enter the Department Identification Number and the Federal Identification Number (FEIN) on all forms,
payments and correspondence.
▪ Attach copies of financial statements and a copy of the company’s annual report as submitted to the
appropriate regulatory authorities. FAILURE TO FILE THE REQUIRED SUPPORTING DOCUMENTS WILL
CAUSE THE RETURN TO BE INCOMPLETE. (Please refer to the regulation on the Title 18, Subtitle 08 of
this booklet).
▪ Sign and date the return.
Please visit our webpage at www.dat.maryland.gov/Pages/franchise-and-public-utilities.aspx
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202 3
MARYLAND
STATE OF MARYLAND PUBLIC SERVICE COMPANY FRANCHISE TAX RETURN FORM
DEPARTMENT OF ASSESSMENTS & TAXATION ELECTRIC AND GAS COMPANIES No.11
FRANCHISE TAX UNIT Report for the Calendar Year 2023 Date Received
301 West Preston Street by Department
21201-2395 Maryland April 1 , 202 ) Baltimore, (File5 4 reportthis before on or
This date may not be extended.
1. Name of Taxpayer
2. Mailing Address Zip Code
3. State & Year of Incorporation (if Incorporated)
4. Department I.D. # Federal I.D. #
(Required
5. Franchise Tax Computation: As part of this return, attach financial statements and a copy of the entity’s annual report as submitted to the
regulatory authorities. FAILURE TO FILE THE REQUIRED SUPPORTING DOCUMENTS WILL CAUSE THE RETURN TO BE INCOMPLETE.
PUBLIC SERVICE COMPANY - ELECTRIC
A-I. Gross Receipts:
1. Total Electric Operating Revenues ........................................................................................................................
2. Less: Gross charges from the sale of electricity ..............................................................
3. Less: Other Exclusion (Attach detailed schedule) ..........................................................
4. Total Operating Revenues excluded from gross receipts (Add lines 2 & 3) ..........................................................
5. Total Electric Operating Revenues subject to Franchise Tax (Subtract line 4 from line 1) ...................................
6. Franchise Tax Rate ……………………………………………………………………………………………... x 2%
7. Franchise Tax based on Gross Receipts (Multiply line 5 by line 6) ..................................................................
A-II. Delivery:
8. Number of kilowatt hours of electricity delivered for final consumption in Maryland. .......................................
9. Franchise Tax Rate for each kWh ……………………………………………………………………………... x .00062
10. Franchise Tax Due based on Delivery (Multiply line 8 by line 9) ........................................................................
Credit for electricity delivered for final consumption to a single industrial
customer for use in a production activity at the same location in the State.
11a. .00002 per kWh in excess of 500 million up to 1,500 million kWh ...........................
b. .000455 per kWh in excess of 1,500 million kWh ....................................................
c. Total credit (Add lines 11a and 11b) ................................................................................................................
12. Franchise Tax Due after Credit based on Delivery (Subtract line 11c from line 10) ......................................
A-III. Total Franchise Tax Due:
13. Franchise Tax Due based on Gross Receipts (Enter line 7)...............................................................................
14. Franchise Tax Due based on Delivery (Enter line 12) .......................................................................................
15. Total Franchise Tax Due-Electric (Add lines 13 & 14) .................................................................
PUBLIC SERVICE COMPANY - NATURAL GAS
B-I. Gross Receipts:
1. Total Natural Gas Operating Revenues .............................................................................................................
2. Less: Gross charges from sale of natural gas .............................................................
3. Less: Other Exclusion (Attach detailed schedule) .....................................................
4. Total Operating Revenues excluded from gross receipts (Add lines 2 & 3) .......................................................
5. Total Natural Gas Operating Revenues subject to Franchise Tax (Subtract line 4 from line 1) .........................
6. Franchise Tax Rate …………………………………………………………………………………………... x 2%
7. Franchise Tax based on Gross Receipts (Multiply line 5 by line 6) ..............................................................
SDAT_FT- Form 11 Page 1 of 2 http://dat.maryland.gov
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B-II. Delivery:
8. Number of therms of natural gas delivered for final consumption in Maryland. ............................................
9. Franchise Tax Rate for each therm …………………………………………………………………………. x .00402
10. Franchise Tax Due based on Delivery (Multiply line 8 by line 9) ..................................................................
11. Credit for natural gas delivered for final consumption to an industrial
customer for use in a production activity in the State (Multiply number of therms by .00402) ................
12. Franchise Tax Due after Credit based on Delivery (Subtract line 11 from line 10) ...................................
B-III. Total Franchise Tax Due:
13. Franchise Tax Due based on Gross Receipts (Enter line 7) ..........................................................................
14. Franchise Tax Due based on Delivery (Enter line 12) ..................................................................................
15. Total Franchise Tax Due-Natural Gas (Add lines 13 & 14) ......................................................
C. FRANCHISE TAX COMPUTATION SUMMARY
1. Total Franchise Tax Due - Electric (Enter line 15 of A-III) .........................................................................
2. Total Franchise Tax Due - Natural Gas (Enter line 15 of B-III) ...................................................................
3. Total Franchise Due - Electric & Natural Gas (Add lines 1 & 2) ............................................................
PAYMENTS AND CREDITS:
4a. 202 Estimated3Franchise Tax Payments .............................................................
b. Business Tax Credits as Computed on Form AT3-74, Part E, line 11. ....................
c. Total Payments and Credits (Add lines 4a through 4c) ...........................................................................
5. Balance of Franchise Tax Due (If line 3 exceeds line 4d, enter the difference) ..........................................
6. Overpayment (If line 4d exceeds Line 3, enter the difference) Indicate if overpayment.
should be applied to estimated tax for 2024 or be refunded
I declare under the penalties of perjury 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.
Officer’s (print name) Preparer’s Signature Date
Officer’s Signature Date
Title
Firm’s Name, address, e-mail address and phone number
Make Checks Payable to Department of Assessments and Taxation
Tax Payments of $10,000 or more must be remitted by Electronic Funds Transfer
If payment is made through EFT, check this box
Please use the bank account number as indicated in the ACH credit tax payment instructions.
Mail this form with payment to:
Department of Assessments and Taxation
Franchise Tax Unit
301 West Preston Street
Baltimore, Maryland 21201-2395
FOR ASSISTANCE CALL, : (410) 767-1940
FOR DEPARTMENT USE ONLY
REPORT RECEIVED POSTED AUDITED TAX DEFICIENCY INTEREST/PENALTY
SDAT_FT- Form 11 Page 2 of 2 http://dat.maryland.gov
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2023
PUBLIC SERVICE COMPANY FRANCHISE TAX RETURN MARYLAND
STATE OF MARYLAND FORM
DEPARTMENT OF ASSESSMENTS & TAXATION TELEPHONE COMPANIES
NO. 11T
FRANCHISE TAX UNIT Report for the Calendar Year 2023
Street April 1 , 202 ) 301 West(File5 4 Date Received reportPreston this before on or
Baltimore, Maryland 21201-2395 by Department
This date may not be extended.
1. Name of Taxpayer
2. Mailing Address Zip Code
3. State & Year of Incorporation (if Incorporated)
4. Date Business Began in Maryland
5. Department I.D. # Federal I.D. #
Required)
6. Itemization of gross receipts and apportionment to Maryland (see enclosed regulations):
CLASS OF RECEIPT Column 1 Column 2
TOTAL COMPANY RECEIPTS MARYLAND RECEIPTS
a. Local Network Service Revenues
b. Network Access Service Revenues
c. Message Toll Revenues
d. WATS
e. Toll Private Line Revenues
f. Other Toll Revenues
g. Other Operating Revenues
h. Rent Revenue
i. Other Non-regulated Revenues
j. Total Receipts (Add Lines 6a through 6i)
Franchise Tax Computation: As part of this return, attach financial statements and a copy of the entity’s annual report as submitted to the
regulatory authorities. FAILURE TO FILE THE REQUIRED SUPPORTING DOCUMENTS WILL CAUSE THE RETURN TO BE INCOMPLETE.
7. Total Maryland Receipts (Enter line 6j, column 2) ....................................................................................................
8. Deduct Exclusions from Gross Receipts:
a. Net Uncollectible operating revenues ........................................................................
b. Other Exclusions (Attach detailed description and computation) ................................
c. Total Exclusions from Gross Receipts .................................................................................................................
9. Taxable Maryland Receipts (Subtract line 8c from line 7) .........................................................................................
10. Tax (Multiply line 9 by 2%) .......................................................................................................................................
Payments and Credits
11a. 202 3 Estimated Franchise Tax Payments. .....................................................................
b. Telephone Lifeline Credit (This credit may not exceed line 10 and may not be
carried over; attach detailed computation and schedule) ................................................................
c. Business Tax Credits as Computed on Form AT3-74, Part E, line 11 ..............................
d. Total Payments and Credits (Add line 11a through 11d) ........................................................................................
SDAT_FT- Form 11T Page 1 of 2 http://dat.maryland.gov
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12. Balance of Franchise Tax Due (If line 10 exceeds line 11e, enter the difference) .....................................................
13. Overpayment (If line 11e exceeds line 10, enter the difference)
Indicate if overpayment should be applied to estimated for 2024 or be refunded. .........................................
14. Does the taxpayer conduct business in more than one state? Yes No
15. Identify the amount of Taxable Maryland Gross Receipts (Line 9) that are attributable to interstate revenues $
I declare under the penalties of perjury 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.
Officer’s (print name) Preparer’s Signature Date
Officer’s Signature Date
Title
Firm’s Name, address, e-mail address and phone number
Make Checks Payable to Department of Assessments and Taxation
Tax Payments of $10,000 or more must be remitted by Electronic Funds Transfer
If payment is made through EFT, check this box □
Please use the bank account number as indicated in the ACH credit tax payment instructions.
Mail this form with payment to:
Department of Assessments and Taxation
Franchise Tax Unit
301 West Preston Street
Baltimore, Maryland 21201-2395
FOR ASSISTANCE,CALL: (410) 767-1940
FOR DEPARTMENT USE ONLY
REPORT RECEIVED POSTED AUDITED TAX DEFICIENCY INTEREST/PENALTY
SDAT_FT- Form 11T Page 2 of 2 http://dat.maryland.gov
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202 3
MARYLAND
FORM
AT3-74
111 BUSINESS TAX CREDITS
ATTACH TO For Calendar Year 2023
MARYLAND FORM
11 OR 11T
Name of Taxpayer
Department ID # Federal ID #
(required)
SEE INSTRUCTIONS
PART A: JOB CREATION TAX CREDIT **Must Include Required Certification
1. Credit (certified by the Maryland Department of Commerce)
PART B: MARYLAND DISABILITY EMPLOYMENT TAX CREDIT
B-I: Credit for Employees with a Disability
1. Number of qualified employees first-year credit
2. Number of qualified employees second-year credit
3. Credit for first year (30% of first $15,000.00 of wages paid to each employee)
4. Credit for second year (30% of first $15,000.00 of wages paid to each employee)
5. Total (Add lines 3 and 4)
B-II: Credit for Child Care and Transportation Expenses
6. Number of employees eligible for first-year credit
7. Number of employees eligible for second-year credit
8. Credit for first year (limited to a combined total of $1,500 in childcare and
transportation expenses incurred for each qualified employee with a disability)
9. Credit for second year (limited to a combined total of $1,500 in childcare and
transportation expenses incurred for each qualified employee with a disability)
10. Total (Add lines 8 and 9)
SDAT_FT-Form AT3-74 Page 1 of 3 http://sdat.maryland.gov
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2023
MARYLAND FORM AT3-74
BUSINESS TAX CREDITS PAGE 2
PART B: Summary
11. Total Maryland Disability Employment Tax Credit for the current tax year
(Add lines 5 and 10)
PART C: COMMUNITY INVESTMENT TAX CREDIT **Must Include Required Certification
1. Amount of approved contributions
2. Enter 50% of line 1
3. Enter the amount from line 2 or $250,000, whichever is less
PART D: EMPLOYER PROVIDED LONG-TERM CARE INSURANCE TAX CREDIT
1. Enter 5% of long-term care insurance costs
2. Multiply the number of eligible employees by $100
3. Enter the lesser of line 1 or line 2
4. Enter the lesser of line 3 or $5,000
PART E: BUSINESS TAX CREDIT SUMMARY
1. Total Job Creation Tax Credit from Part A, line 1
2. Total Maryland Disability Employment Tax Credit from Part B, line 11
3. Total Community Investment Tax Credit from Part C, line 3
4. Total Employer Provided Long-Term Care Insurance Tax Credit from Part D
line 4
5. Total of current year credits (Add lines 1 through 4)
6. Carry over of excess credits from previous year (Attach computation)
7. Tentative credit (Add lines 5 and 6)
8. Enter amount of any credit recapture (See instructions for Part A)
9. Tentative credit after recapture (Subtract line 8 from line 7) If less than 0,
enter negative amount.
10. Enter tax from line C.3 of Form 11 or line 10 of Form 11T. If less than 0,
enter 0.
11. Allowable credit (Line 9 or 10, whichever is less). Also, enter this amount
on, line C.4c of Form 11 or line 11c of Form 11T.
SDAT_FT-Form AT3-74 Page 2 of 3 http://dat.maryland.gov
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| 202 3 MARYLAND FORM AT3-74 BUSINESS TAX CREDITS PAGE 3 PART F: EXCESS CREDIT CARRYOVER CALCULATION (If line 9 is less than or equal to line 10 of Part E, do not complete this section.) 1. Enter amount from line 10 of Part E 2. Enter amount from line 9 of Part E 3. Excess credit carryover (Subtract line 1 from line 2) SDAT_FT-Form AT3-74 Page 3 of 3 http://dat.maryland.gov |
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INSTRUCTIONS FOR
MARYLAND FORM
AT3-74 2023
BUSINESS TAX CREDITS
GENERAL INSTRUCTIONS The amount to be recaptured is the amount originally
claimed multiplied by the percentage reduction in the
Purpose of form. Form AT3-74 is used by a public number of qualified employees. The credit to be
service company to claim credits against the franchise recaptured is reported on line 8, Part E of form AT3-74.
tax.
Certification of must be included with the Form AT3-74
The tax credits available to be recorded on this form when claiming this credit.
are: Job Creation Tax Credit, Maryland Disability
Employment Tax Credit, Community Investment Tax For certification or for information on the standards
Credit, and Employer Provided Long-Term Care which businesses must meet to qualify, contact:
Insurance Tax Credit.
Maryland Department of Commerce
PART A - JOB CREATION TAX CREDIT Email:taxincentives.commerce@maryland.gov
General Requirements. Certain businesses that Specific Requirements.
create new qualified positions in Maryland may be
eligible for tax credits based on the number of qualified Part Job Creation Tax Credit **Must Include
positions created. Required Certification
The business facility must be certified as having The amount of the approved credit is entered onto
created at least 60 qualified positions, 25 qualified line 1, Part .A
positions if the business facility established or
expanded is in a State Priority Funding Area, or 10 No credits may be earned for any tax year beginning
qualified positions in a county with an annual average on or after January 1, 2027.
employment that is less than 75,000 or a median
household income that is less than two-thirds of the PART B - MARYLAND DISABILITY EMPLOYMENT
statewide median household income. TAX CREDIT.
A qualified position is a full-time position which pays at General Requirements. Businesses that employ
least 120% of the Stateminimum wage, is located in persons with disabilities as determined by the Division
Maryland, is newly created as a result of the of Rehabilitation Services (DORS) in the Maryland State
establishment or expansion of a business facility in a Department of Education and/or by the Maryland
Department of Labor, may be eligible for tax credits for
single location in the State and is filled. Small wages paid to, and for child care expenses and
businesses that hire at least 1 qualified veteran transportation expenses paid on behalf of, the qualified
employee for a full-time position in the state may employees.
apply for a credit. The credit amount is $2,500
multiplied by the number of qualified veteran Qualifying employees with a disability are those who are
employees, up to a maximum of 5 veteran certified as such by the DORS (or by the Maryland
Department of Labor if the employee is a disabled
employees. Qualified business entities are those that veteran). A copy of the DORS or Maryland Department
are certified as such by the Maryland Department of of Labor certification must be included with your tax
Commerce. A qualified employee is an employee return when claiming this tax credit.
filling a qualified position.
For certification or for additional information, contact:
This credit is not refundable and is applied only against
the Maryland State franchise tax. To the extent Maryland State Department of Education
Division of Rehabilitation Services,
the credit is earned in any year and it exceeds the Darlene Peregoy
State franchise tax, the business is entitled to an 2301 Argonne Drive, Baltimore, MD 21218
excess carryover of the credit until it is used, or the 1-888-554-0334 or 410-554-9408
expiration of five years after the credit is was earned,
whichever comes first. Email: dors.maryland.gov
or,
Recapture Provision. If, at any time during the three
tax years after the year the credit was earned, the Maryland Department of Labor
average number of qualified positions falls more than 1100 N. Eutaw St., Room 201
5% below the average number of qualified positions Baltimore, MD 21201
410-767-2047.
during the year in which the credit was earned, a
portion of the credit will be recaptured for the tax year in
which this occurs.
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BUSINESS TAX CREDITS—INSTRUCTIONS PAGE 2
On line 1, Part B-1, enter the number of qualified
employees in their "F irst Y "ear of employment. On line
A “Qualified Employee” with a disability means 2, Part B-1 Enter the number of qualified employees in
an individual who: their "Second Year " of employment.
1. Meets the definition of an individual with a On line 3, Part B-I, enter the credit equal to 30% of the
disability as defined by the Americans with first $15,000 of wages paid to each first year qualified
Disabilities Act; employee.
2. Has a disability that presently constitutes an
impediment to obtaining, or maintaining One line 4, Part B-1, enter the credit equal to 30% of
employment or to transitioning from school to the first $15,000 of wages paid to each second year
work; and, qualified employee.
3. Is ready for employment; or, On line 5, Part B-1, enter the sum of lines 3 and 4.
4. Is a veteran who has been discharged or released
from active duty by the American Armed Forces Part B-II Credit for Qualified Care and
for a service-connected disability. Transportation Expenses.
An employee must not have been hired to replace- a laidAnoffadditional credit is allowed for expenses incurred by
employee or to replace an employee who is on strike or for the employer for approved day care services for a child
whom the business simultaneously receives federal or state or children of a qualified employee, or for transportation
employment training benefits. expenses that are incurred to enable a qualified
employee to travel to and from work.
Qualifying child care expenses are those expenses
incurred by a business to enable a qualified employee with A credit of up to $1,500 is allowed for the first year of
a disability to be gainfully employed. employment and up to $1,500 for the second year. To
verify if a child care center qualifies as an approved
Transportation expenses are those expenses incurred by a provider, contact the Department of Human Resources,
business entity to enable a qualified employee with a Child Care Administrator for the county or city in which
disability to travel to and from work. the child care center is located.
Specific Requirements. On line 6, Part B-II, enter the number of qualified
employees in their first year of employment on the "First
Part B-I Credit for employees with a disability hired. A Year" line. On line 7, Part B-II, enter the number of
credit is allowed for each new employee with a disability for qualified employees in their second year of employment
a two-year period beginning with the year the employee on the "Second Year" line.
was qualified. The credit for each disabled employee hired
On line 8, Part B-II, enter the credit equal to a
is equal to 30% of the first $15,000 of qualified first year
combined total of $1,500 in child care and
wages and 30% of the first $15,000 of qualified second year
transportation expenses per each "F irst Y "ear qualified
wages.
employee with a disability.
The employer is not entitled to claim the credit until
On line 9, Part B-II enter the credit equal to a combined
employment has continued for at least one full year unless
total of $1,500 in child care and transportation
the employee:
expenses per each second year qualified employee
(a) Voluntary leaves the employer; with a disability.
(b) Becomes further disabled or death occurs; or, On line 10, Part B-II, enter the sum of lines 8 and 9.
(c) Is terminated for cause. The credit must be prorated Part B - Summary
for the portion of the year the employee worked
unless the employee voluntary left to take another On line 11 Part B, enter the sum of lines 5 and 10.
job.
Also the amount on line 11, Part B, becomes an
addition modification.
This credit is not refundable and applied only against
the Maryland State franchise tax. To the extent the
credit is earned in any year and it exceeds the State
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BUSINESS TAX CREDITS—INSTRUCTIONS _____________________ PAGE 3
franchise tax, the business is entitled to an excess Specific Instructions
carryover of the credit until it is used, or the expiration of
five years, whichever comes first. On line 1, Part D, enter 5% of the long-term care
insurance premiums paid as part of an employee benefit
PART C – COMMUNITY INVESTMENT TAX CREDIT package.
On line 2, Part D, enter the number of employees within
Businesses or individuals who contribute to Maryland covered under the employee
approved Community Investment Programs may be benefit package on the line provided.
eligible for a credit against the Maryland State
franchise tax. Contributions must be made to a Multiply this by $100 and enter the result on line 2.
nonprofit organization approved by the
Department of Housing and Community On line 3, Part D, enter the lesser of line 1 or line 2.
Development (DHCD). The taxpayer must apply to
and receive approval by the DHCD for each On line 4, Part D, enter the lesser of line 3 or $5,000.
contribution for which a credit is claimed. The credit is
limited to 50% of the approved contributions Also enter the amount from line 4, Part D, on line 4, Part
(including real property) not to exceed $250,000. E.
This credit is not refundable and is applied only against
Businesses and PTE members who are eligible to claim the Maryland State franchise tax. To the extent the
the Community Investment Tax Credit must claim the
credit on the Form AT3-74. credit is earned in any year and it exceeds the State
franchise tax, the business is entitled to an excess
Note: A copy of the required approval from the carryover of the credit until it is used, or the expiration of
DHCD must be included with Form AT3-74. five years after the credit is earned, whichever comes
first.
Specific Instructions
State Department of Assessments and Taxation
Enter the amount of approved to contributions on line 1, 301 West Preston Street
Part C. Baltimore, MD 21201-2395
Enter 50% of line 1 on line 2, Part C. 410-767-1191
On line 3, enter the lesser of line 2 of $250,000. PART E - BUSINESS TAX CREDIT SUMMARY
Also, enter this amount on line 3, Part E. This part is to summarize all available nonrefundable tax
credits reported on this form. If the total credits
This credit is not refundable and is applied only against available in a particular tax year exceed the State
franchise tax developed for that year, the excess may
the Maryland State franchise Tax. To the extent the not be refunded.
credit is earned in any year and it exceeds
the State franchise tax, the individual or business is Enter on line 5, the total of the credits listed on lines 1
through 4.
entitled to an excess carryover of the credit until it
is used, or it expires five years after the Enter on line 6, the carryover of excess credits unable to
credit was earned, whichever comes first. be used on last year’s return. This amount comes from
line 3, Part F, from 202 2 Form AT3-74
For more information contact: Add lines 5 and 6 and enter the result on line 7. This is
the tentative tax credit.
Department of Housing and Community Development On Line 8, enter the amount of recaptured tax credits
Division of Neighborhood Revitalization (See Instructions for Part A).
2 N. Charles St., Suite 450
Baltimore MD 21201 Subtract line 8 from line 7 and enter the result on line 9.
410-209-5817 or 410-290-5843 On line 10, Part E, enter the franchise tax from your
Email:citc.nr@mdhousing.org return. Public service companies will enter line C.3 of
the MD Form 11 or line 10 of Form 11T on line 10, Part
E.
On line 11, enter the lesser of line 9 or 10
PART D - EMPLOYER PROVIDED LONG-TERM An addition to income is required for credits from Part B.
CARE INSURANCE TAX CREDIT These additions are comprised of line 2, from Part E.
The totals of these amounts are included on line 4c
A credit is allowed for premiums paid by employers of Form 11, and Line 11c of Form 11T.
to provide long-term care insurance to their employees
as part of their benefits package. The employer may
claim a credit of 5% of the premiums paid during the tax
year, or $100 for each Maryland employee covered by
long-term care insurance provided, whichever is
less, but cannot be more than $5,000.
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| BUSINESS TAX CREDITS—INSTRUCTIONS PAGE 4 PART F – EXCESS CREDIT CARRYOVER CALCULATION Most credits may not exceed the Maryland State franchise tax liability, but may be carried forward for a specified number of successive tax years or until fully applied. It is your responsibility to maintain a record of credits for which you qualify, credits that have been taken in prior years, and the amount of each credit that may be carried forward. |
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202 4
MARYLAND
FORM DECLARATION OF ESTIMATED FRANCHISE TAX
NO. 29EW TELEPHONE, ELECTRIC, AND GAS COMPANIES
FOR CALENDAR YEAR 202 4
Name of Taxpayer:
Address: Zip Code:
Department I.D.: Federal I.D.:
(Required)
.
ALL PUBLIC SERVICE COMPANY TAXPAYERS OF RECORD MUST USE THE DECLARATION OF ESTIMATED FRANCHISE TAX
PREPRINTED VOUCHERS (FORM NO. 29E) TO SUBMIT QUARTERLY INSTALLMENTS. SEE INSTRUCTIONS FOR COMPLETING THE
DECLARATION OF ESTIMATED FRANCHISE TAX ON THE NEXT PAGE.
ESTIMATED FRANCHISE TAX WORKSHEET (Complete this worksheet to compute the estimated franchise tax due.)
A. PUBLIC SERVICE COMPANY TELEPHONE-
1. Estimated Maryland Gross Receipts
2. Estimated Franchise Tax due for the year (Multiply line 1 by 2%)*
3. Estimated Tax due per quarter (Multiply line 2 x 25%)
B. PUBLIC SERVICE COMPANY- ELECTRIC AND GAS
1. Estimated Maryland Gross Receipts
2. Estimated Franchise Tax due for the year (Multiply line 1 by 2%)*
3. Estimated KWH of electricity delivered for final
consumption in Maryland _
4. Estimated franchise tax due for the year (Multiply line 3 by .00062)*
5. Estimated THERMS of natural gas delivered
for final consumption in Maryland _
6. Estimated franchise tax due for the year (Multiply line 5 by .00402)*
7. Total estimated franchise tax due for the year
(Add lines 2, 4 and 6) _ _
8. Estimated tax due per quarter (Multiply line 7 by 25%)
*Estimated tax net of credits
SDAT_FT Form 29EW 202 4 Page 1 of 3 http://dat.maryland.gov
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. .
RECORD OF INSTALLMENT PAYMENTS (Complete this record for your files)
1. PRIOR YEAR (202 OVERPAYMENT applied3 as a credit to estimated tax for 202 ) 4
Payment Document/
Date Due Date Paid Check No.
2. 15th day of the 4th month
3. 15th day of the 6th month
4. 15th day of the 9th month
5. 15th day of the 12th month
6.Total estimated tax payments for 202 4(Add lines 1 through 5). Claim this amount on
line C.4a of Form 11, or line 11a of Form 11T.
ATTACH A COPY OF THIS WORKSHEET WITH THE FIRST QUARTERLY REMITTANCE OF THE TAX.
SDAT_FT Form 29EW 202 4 Page 2 of 3 http://dat.maryland.gov
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INSTRUCTIONS FOR COMPLETING THE DECLARATION OF ESTIMATED
PUBLIC SERVICE COMPANY FRANCHISE TAX
1. Sections 8-402 and 8-402.1 of the Tax General Article of the Maryland Code imposes a franchise tax on each
public service company doing business in Maryland. A "public service company" means a person (a) engaged
in a telephone business in Maryland; or (b) engaged in the transmission, distribution, or delivery of electricity
or natural gas in Maryland. Please refer to the Department’s regulations Title 18, Subtitle 8 Public Service
Company Franchise Tax.
2. Each public service company that reasonably expects its franchise tax to exceed $1,000 for the taxable year
must make estimated tax payments. The total estimated tax payments for the year must be at least 90% of
the tax developed for the current taxable year or 110% of the tax paid for the prior taxable year.
3. The declaration of estimated tax must be filed with the Department of Assessments and Taxation on or before
the 15th day of the 4th, 6th, 9th, and 12th months following the beginning of the taxable year.
4. Each public service company required to file a declaration of estimated franchise tax shall remit by each of
the four installment due dates at least 25% of the total estimated tax.
5. Maryland law provides for the accrual of interest and imposition of penalty for failure to pay any tax when
due.
6. Franchise tax payments of $10,000 or more must be remitted by electronic funds transfer. Please refer to the
Department’s regulations Title 18, Subtitle 11 Tax Payments.
7. Maryland law provides for the accrual of interest and imposition of penalty for failure to remit the tax by
electronic funds transfer as required by the regulations.
Department of Assessments and Taxation
Franchise Tax Unit
301 West Preston Street
Baltimore, Maryland 21201-2395
For assistance, call: (410) 767-1940
SDAT_FT Form 29EW 202 4 Page 3 of 3 http://dat.maryland.gov
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MARYLAND STATE DEPARTMENT OF ASSESSMENTS AND TAXATION
DECLARATION OF ESTIMATED FRANCHISE TAX FOR
TELEPHONE, ELECTRIC, AND GAS COMPANIES
FOR CALENDAR YEAR 202 4
202 4 PAYMENT VOUCHER 1 MARYLAND
FORM 29E
DUE APRIL 1 ,5202 4
Enter Amount of Total
Federal I.D. Number Estimated Tax for the Year $
Department I. D. Number
(Required) Enter Total Credit
Carryover for the Year $
NAME 1. Amount of this Installment $
ADDRESS 2. Unused Credit Applied to
this Installment $
CITY OR TOWN STATE ZIP CODE 3. Amount of this Installment
Payment $
PRINT NAME OF OFFICER OR AGENT E-MAIL ADDRESS
SIGNATURE OF OFFICER OR AGENT DATE
TITLE PHONE NUMBER
RETURN THIS PAYMENT VOUCHER WITH REMITTANCE TO:
Department of Assessments and Taxation
Franchise Tax Unit
301 West Preston Street
Baltimore, Maryland 21201-2395
Tax payments of $10,000 or more must be remitted by electronic funds transfer.
If remittance is made through EFT, mark the box and return this payment
voucher to the Department.
Please use the bank account number as indicated in the ACH credit tax payment instructions
SDAT_FT-Form 29E April Revised: January 202 4
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MARYLAND STATE DEPARTMENT OF ASSESSMENTS AND TAXATION
DECLARATION OF ESTIMATED FRANCHISE TAX FOR
TELEPHONE, ELECTRIC, AND GAS COMPANIES
FOR CALENDAR YEAR 202 4
202 4 PAYMENT VOUCHER 2 MARYLAND
FORM 29E
DUE JUNE 7 1 , 202 4
Enter Amount of Total
Federal I.D. Number Estimated Tax for the Year $
Department I. D. Number
(Required) Enter Total Credit
Carryover for the Year $
NAME 1. Amount of this Installment $
ADDRESS 2. Unused Credit Applied to
this Installment $
CITY OR TOWN STATE ZIP CODE 3. Amount of this Installment
Payment $
PRINT NAME OF OFFICER OR AGENT E-MAIL ADDRESS
SIGNATURE OF OFFICER OR AGENT DATE
TITLE PHONE NUMBER
RETURN THIS PAYMENT VOUCHER WITH REMITTANCE TO:
Department of Assessments and Taxation
Franchise Tax Unit
301 West Preston Street
Baltimore, Maryland 21201-2395
Tax payments of $10,000 or more must be remitted by electronic funds transfer.
If remittance is made through EFT, mark the box and return this payment
voucher to the Department.
Please use the bank account number as indicated in the ACH credit tax payment instructions
SDAT_FT-Form 29E June Revised: January 202 4
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MARYLAND STATE DEPARTMENT OF ASSESSMENTS AND TAXATION
DECLARATION OF ESTIMATED FRANCHISE TAX FOR
TELEPHONE, ELECTRIC, AND GAS COMPANIES
FOR CALENDAR YEAR 202 4
202 4 PAYMENT VOUCHER 3 MARYLAND
FORM 29E
DUE SEPTEMBER 61 , 202 4
Enter Amount of Total
Federal I.D. Number Estimated Tax for the Year $
Department I. D. Number
(Required) Enter Total Credit
Carryover for the Year $
NAME 1. Amount of this Installment $
ADDRESS 2. Unused Credit Applied to
this Installment $
CITY OR TOWN STATE ZIP CODE 3. Amount of this Installment
Payment $
PRINT NAME OF OFFICER OR AGENT E-MAIL ADDRESS
SIGNATURE OF OFFICER OR AGENT DATE
TITLE PHONE NUMBER
RETURN THIS PAYMENT VOUCHER WITH REMITTANCE TO:
Department of Assessments and Taxation
Franchise Tax Unit
301 West Preston Street
Baltimore, Maryland 21201-2395
Tax payments of $10,000 or more must be remitted by electronic funds transfer.
If remittance is made through EFT, mark the box and return this payment
voucher to the Department.
Please use the bank account number as indicated in the ACH credit tax payment instructions
SDAT_FT-Form 29E September Revised: January 202 4
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MARYLAND STATE DEPARTMENT OF ASSESSMENTS AND TAXATION
DECLARATION OF ESTIMATED FRANCHISE TAX FOR
TELEPHONE, ELECTRIC, AND GAS COMPANIES
FOR CALENDAR YEAR 202 4
202 4 PAYMENT VOUCHER 4 MARYLAND
FORM 29E
DUE DECEMBER 61 , 202 4
Enter Amount of Total
Federal I.D. Number Estimated Tax for the Year $
Department I. D. Number
(Required) Enter Total Credit
Carryover for the Year $
NAME 1. Amount of this Installment $
ADDRESS 2. Unused Credit Applied to
this Installment $
CITY OR TOWN STATE ZIP CODE 3. Amount of this Installment
Payment $
PRINT NAME OF OFFICER OR AGENT E-MAIL ADDRESS
SIGNATURE OF OFFICER OR AGENT DATE
TITLE PHONE NUMBER
RETURN THIS PAYMENT VOUCHER WITH REMITTANCE TO:
Department of Assessments and Taxation
Franchise Tax Unit
301 West Preston Street
Baltimore, Maryland 21201-2395
Tax payments of $10,000 or more must be remitted by electronic funds transfer.
If remittance is made through EFT, mark the box and return this payment
voucher to the Department.
Please use the bank account number as indicated in the ACH credit tax payment instructions
SDAT_FT-Form 29E December Revised: January 202 4
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ACH CREDIT OPTION ACH DEBIT OPTION
To use the ACH Credit option, you must Effective immediately the interactive
first contact your bank to determine if voice response (IVR) system to do
your bank offers ACH origination. electronic funds transfer as an ACH/
Please have your bank complete the DEBIT option is no longer available.
specific portion of the Authorization Please use the ACH/Credit option or
Agreement (Form EFT-1) as verification Wire transfer.
that your bank can conform to these *The costs of the ACH Credit or
standards. Also, please complete the
Wire transfer transactions are
contact person information before
incurred by you. *You are
returning the form to the Franchise Tax
responsible for your own proof of
Unit of the Department.
payment. If you have any further
Supplemental filing information must be
sent with your payment using the ACH questions regarding your ACH
standard CCD+ format and the TXP payments please call and leave a
addenda record. The Cash message on 767-1940 (voicemail
Concentration or Disbursement (CCD) is only).
the most basic form of ACH payment.
The CCD format can be processed by all
ACH-member banks. The TXP addenda
record allows the format to carry
additional characters of payment-related
data. The TXP will be used for
Department identification number, tax
type code, tax period end date.
You will initiate the credit transaction
through your bank to the state's bank
account for the amount of your tax
payment.
An ACH origination charge from your
bank will be incurred by you if you select
the ACH Credit option.
Important characteristics of the ACH
Credit transactions are:
* Credit transactions require you to
enter all payments related data in the
standard CCD+TXP.
* The costs of the ACH Credit
transactions are incurred by you.
* You are responsible for your own
proof of payment.
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INSTRUCTIONS FOR SDAT EFT-1
Section A - This section must be completed by ALL taxpayers.
EFT contact person: The primary contact person should be someone within your company who will be
directly involved in all phases of the EFT registration process, systems implementation and the payment
of the tax. You should also designate a secondary contact person.
Address: Indicate the mailing address to be used for correspondence regarding electronic funds transfer.
Telephone number: Indicate the telephone number(s) for the EFT contact persons.
Signature of officer: Authorized signature of officer of the company.
Section B- Complete this section only if you are choosing the ACH Credit option.
Name and address of bank: Provide the name and address of the bank you will be using for electronic
fund transfers.
Printed name and signature of bank representative (include bank representative's telephone number).
You must have a bank representative sign this form to confirm that you and your bank are capable of
initiating ACH Credit transactions in the CCD+TXP format. You cannot use the ACH Credit option
unless your bank can initiate transactions in this form.
Mail this completed form to:
Department of Assessments and Taxation
Franchise Tax Unit
301 W. Preston Street
Baltimore, Maryland 21201-2395
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State of Maryland
Department of Assessments and Taxation
FORM
Authorization Agreement for Electronic Funds Transfer
SDAT EFT-1
Name of Corporation:
Tax Type: Public Service Company Franchise Tax
Department I.D. Number:
THIS SECTION MUST BE COMPLETED BY ALL TAXPAYERS
C Primary EFT contact person__________________________________________________________________________________________
O
N Address__________________________________________________________________________________________________________
T
A ________________________________________________________________ ________________ ____________________________
A C City State Zip Telephone Number
T
Secondary EFT contact Person________________________________________________________________________________________________
P
E
R Address___________________________________________________________________________________________________________________
S
O ______________________________________________________________________________________________________________________
N City State Zip Telephone Number
(S)
_____________________________________________________________________________________________________________________________
Signature of officer Title Date
This section to be completed only if you choose the ACH CREDIT OPTION
An AUTHORIZED REPRESENTATIVE of your bank must complete and sign this section confirming that you and your bank are
A capable of initiating ACH CREDITS in the required CCD+ TXP format.
C
H Bank Name _____________________________________________________________________________________
C Bank Address __________________________________________________________________________________
R
B E
D
I
T City State Zip
Printed name of bank representative (optional) Telephone Number
_________________________________________________________________________________________________
Signature of bank representative Date
This form must be completed and mailed to: Dept. of Assessments & Taxation - Franchise Tax Unit
301 W. Preston Street, Baltimore, Maryland 21201-2395
AT3-73
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MARYLAND ACH CREDIT TAX PAYMENT INSTRUCTIONS
PUBLIC SERVICE COMPANY FRANCHISE TAX
The Department provides for the payment of franchise taxes by means of Electronic Funds Transfer.
Tax payments may be made by sending an Automated Clearing House (ACH) CCD+ record to:
Routing/Transit #121000248 - Wells Fargo Bank, N.A.
Bank Account # 4104095823 - Maryland Department of Assessments & Taxation
The Automated Clearing House (ACH) CCD+ record should include the following
information in the receiver defined "individual name" field of the entry detail record,
240300 ASSESS TAX
and a TXP addendum convention in the addendum record "Payment Related Information"
field. An example of the TXP addendum convention is attached.
PLEASE NOTE:
(1) TXPO1 field must contain the nine digit Department identification number assigned by the
Department of Assessments and Taxation.
(2) TXPO2 field must contain "04600" for a public service company franchise tax payment.
(3) TXPO3 field must contain the ending date of the tax period in YYMMDD format.
(4) TXPO4 field must contain "T".
(5) TXPO5 field must contain the amount of taxes due as reported for this period. Amounts are to be
positive and entered without dollar signs, commas or decimal points.
Each field, even blank fields, must be separated by an * and the entire record must be followed
by \.
Any questions concerning these instructions or the record layout should be directed to the Department
of Assessments and Taxation at (410) 767-1940 (message only).
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CODES
EXAMPLE OF AN ACH CREDIT RECORD LAYOUT
M - Mandatory
O - Optional
Name of Taxpayer: ABC Telephone, Inc. C - Conditional
Account Number: F01234567
Type of Tax: Public Service Company Franchise Tax (04600)
Amount Due: $10,000.00
For Tax Period Ending: December 31, 2023
ENTRY DETAIL RECORD
DATA RECORD RECEIVING INDIVIDUAL ADDENDA
ELEMENT TYPE TRANSACTION DPI CHECK DPI ACCOUNT IDENTIFICATION DISCRETIONARY RECORD TRACE
NAME CODE CODE IDENTIFICATION DIGIT NUMBER AMOUNT NUMBER INDIVIDUAL NAME DATA INDICATOR NUMBER
Field
Requirement M M M M M M O M O M M
Contents 6 22 121000248 3 4104095823 1000000 240300 Assess Tax 1
Length 1 2 8 1 17 10 15 22 2 1 15
Position 01-01 02-03 04-11 12-12 13-29 30-39 40-54 55-76 77-78 79-79 80-94
ADDENDUM RECORD
DATA RECORD TYPE
ELEMENT ADDENDA TYPE SPECIAL ADDENDA ENTRY DETAIL
NAME CODE CODE PAYMENT RELATED INFORMATION SEQUENCE NUMBER SEQUENCE NUMBER
Field Requirements M M M M M
Contents 7 05 TXP*F01234567*04600*231231*T*1000000* * * * * \ 1
Length 1 2 80 4 7
Position 01-01 02-03 04-83 84-87 88-94
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Title 18 .03 Inter-Company Transactions.
DEPARTMENT OF ASSESSMENTS AND TAXATION A. The incidence of the gross receipts tax is intended to fall on a company providing
services to the ultimate retail consumer. Therefore, in order to avoid taxing the same
Subtitle 08 PUBLIC SERVICE COMPANY FRANCHISE TAX transaction more than once, any revenues received by a company for services that will later
Chapter 01 Administration be resold may not be considered gross receipts as long as the reseller is subject to the tax on
those revenues in this State or any other state. For example:
Authority: Tax-Property Article, §2-201: Tax-General Article §§8-402, (1) Network access, billing, or other revenues derived from the provision of exchange
8-402.1, and 8-408; access or other services to an inter exchange carrier are not considered gross receipts for a
local exchange carrier;
Annotated Code of Maryland (2) Revenues derived from the transmission of gas or electricity to another gas or electric
Chapter 792. Acts of 1988 company for the purpose of resale are not considered gross receipts.
B. The amount and type of all revenues excluded from gross receipts shall be clearly
.01 Definitions identified in the filing of the annual tax return. The information necessary to support the
A. In these regulations the following terms have the meanings indicated. amount of the exclusions shall be retained and made available to the Department upon
B. Terms Defined. request or audit.
(1) “Company” means a person engaged in electric, gas, or telephone business in this
State. “Company” includes an individual, partnership, corporation, receiver or other entity. .04 Filing Forms and Additional Information.
(2) “Department” means the State Department of Assessments and Taxation. A. Forms shall be filed with the Department at the locations specified on the form.
(3) “Electric company” means a company engaged in the transmission, distribution, or B. Each report, application, or response filed for the tax shall be made under oath with a
delivery of electricity in the State. declaration preceding the signature of the author that it is made under penalties of perjury.
(4) “Gas company” means a company engaged in the transmission, distribution or C. A company that anticipates a total tax liability of at least $1,000 for a taxable year shall
delivery, of natural gas in the State. file a declaration of estimated tax with the Department by April 15 of the taxable year. The
(5) Gross Receipts. company shall pay the Department an amount equal to at least 25 percent of the tax liability
(a) “Gross receipts” means the total receipts that occur as a result of the company doing for the full taxable year on April 15, June 15, September 15, and December 15.
business in the state as an electric, gas, or telephone company during the calendar year. For D. On or before March 15 annually, each company shall file with the Department a return
gas and electric companies, “gross receipts” means all revenues included in the operating detailing all operating and non-operating revenues for the preceding calendar year.
revenue accounts as prescribed by the Federal Energy Regulatory Commission, unless (1) A check made payable to the Department for the remaining tax due for the period
otherwise specified by Maryland law or regulation. covered by the return; and
(b) For a telephone company providing interstate long distance (2) Financial statements and a copy of the company’s annual report as submitted to the
telecommunications service, gross receipts are computed based on services charged to a appropriate regulatory authorities.
Maryland address. The revenues include the gross charges from the sale of long distance E. If a company fails to file the return as required under this regulation, the Department
telecommunications service that originates or terminates in Maryland and for which a charge will mail to the company a notice and demand for the return. If the return is not filed within
is made to a service address located in the State, regardless of where the amount is billed or 30 days of the mailing of the notice, the Department will estimate the company's operating
paid. revenues and assess an additional penalty of up to 25 percent of the estimated tax liability.
(c) Gross receipts includes all surcharges imposed on customers, including the F. Returns Filed Without Supporting Documents.
environmental surcharge and surcharges to recover State or local taxes imposed on the (1) If a company files a return but fails to include financial statements and a copy of the
company. company’s annual report as required in §D(2) of this regulation, the Department will mail to
(d) Exclusions from gross receipts are as provided in Tax-General Article, the company a notice and demand for the supporting documents. If the supporting
§8-401(c) Annotated Code of Maryland. documents are not filed within 30 days of the mailing of the notice, the Department will
(6) “State” means: estimate the company’s operating revenues and assess an additional penalty of up to 25
(a) A state, possession or territory of the United States; percent of the estimated tax liability.
(b) The District of Columbia; or (2) If, at the time of filing a return, a company’s annual report has not been submitted to
(c) The Commonwealth of Puerto Rico. the appropriate regulatory authorities, the company shall furnish to the Department the date
(7) “Tax” means the public service company franchise tax imposed under Tax-General that it is due to be submitted. If the company’s annual report is not filed with the Department
Article, §§8-402 and 8-402.1, Annotated Code of Maryland. within 30 days of the date that it is due to be submitted, the Department will mail to the
(8) Telecommunications service. company a notice and demand for the annual report. If the annual report is not filed within
(a) “Telecommunications service” means the: 30 days of the mailing of the notice, the Department will estimate the company’s operating
(i) Transmission of any interactive electromagnetic communications, including revenues and assess an additional penalty of up to 25 percent of the estimated tax liability.
voice, image, data, and any other information, by means of wire, cable, fiber optics, laser, G. A company claiming tax credits shall include with the annual return information
microwave, radio wave, satellite, or other facility, or any combination of these media; or detailing the basis for the calculation of the credit. In order to qualify for a Maryland-mined
(ii) Provision of facilities and services for the transmission of any interactive coal tax credit, a company must be able to document that the coal was directly purchased
electromagnetic communications. from a mine that extracted the coal from a location in Maryland.
(b) “Telecommunications service” includes: H. A long distance telephone company shall be allowed a credit for the amount paid, not to
(i) Basic telephone service, including any facility or service provided in connection exceed the Maryland tax due, upon proof that it has paid a properly due excise, sales and
with basic telephone service; use, or gross receipts tax in another state on a sale from which the gross receipts are subject
(ii) Toll telephone service and teletypewriter or computer exchange service; to Maryland tax.
(iii) Business service; and
(iv) Directory assistance. .05 Assessments, Appeals, and Penalties.
(9) Telephone Company. A. If, after an audit of the tax return, the Department determines that the tax is more than
(a) “Telephone company” means a company that owns lines for the reception, the amount shown on the return; the Department will mail to the company a deficiency
transmission, or communication of messages by telephone or teletype, or that lets, licenses, or assessment for taxes due.
sells telecommunications service. B. Interest and penalty shall be imposed if a company fails to pay an installment when due,
(b) “Telephone company” includes companies operating as local exchange carriers, or estimates a tax that is less than 90 percent of the amount due for the current taxable year
inter exchange carriers, or resellers of telecommunications service. and less than 110% of the tax paid for the prior taxable year.
(c) “Telephone company” does not include a radio common carrier, a person that owns C. Failure to file a return or pay the tax when due will result in the imposition of interest
a customer-owned coin operated telephone, or a company that owns and operates lines for and penalty.
telecommunications service exclusively for its own use. D. A company may appeal an assessment within 30 days of the date of mailing of the
assessment by applying in writing to the Department for a revision or abatement of amounts
.02 Companies Subject to the Tax due. The company may request an informal hearing on the issue. Following the application
or hearing, the Department will take appropriate action and issue a final assessment to the
A. The tax has two parts: company.
(1) A gross receipts tax on electric, gas, and telephone companies; and E. A company may appeal a final assessment to the Maryland Tax Court within 30 days
(2) For electric and gas companies, a tax based on the kilowatt hours of electricity or after the date of mailing of the final assessment.
therms of natural gas delivered by the company for final consumption in the State.
B. County and municipal utilities and nonprofit electric cooperatives are not subject to the
gross receipts tax, but are subject to the tax based on kilowatt hours of electricity
delivered. County and municipal utilities are not subject to the tax based on therms of natural
gas delivered.
C. An interstate natural gas pipeline is subject to both the gross receipts tax and the tax
based on therms of natural gas delivered if the company delivers natural gas for final
consumption to a customer in this State.
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Title 18
DEPARTMENT OF ASSESSMENTS AND TAXATION
Subtitle 11 TAX PAYMENTS
Chapter 01 Tax Payments - Immediately Available Funds
Authority: Tax-Property Article, §2-201; Tax-General Article §13-104,
Annotated Code of Maryland
Additional instructions which may be provided by the Department
.01 Definitions. shall be followed by the taxpayer.
B. A separate ACH credit, or wire transfer as allowed under
A. In this chapter, the following terms have the meanings indicated.
B. Terms Defined. §A of this regulation shall be made for each type of tax and for each
(1) "ACH credit" means a transaction in which a taxpayer, period for which the tax is due.
through the taxpayer's bank and an automated clearing house, C. A taxpayer may satisfy the obligation to remit payment in immediately
originates an entry crediting the State's bank account and debiting available funds by physical delivery of U.S. currency, with the
the taxpayer's bank account for the amount of the payment due. appropriate return, on or before 1 p.m. on the due date of the
obligation, to the Department of Assessments and Taxation, 301
(2) "Automated clearing house (ACH)" means a central clearing West Preston Street, Baltimore, Maryland 21201.
facility operated by:
.03 Registration.
(a) A federal reserve bank; or A person making a payment by as an agent for a taxpayer may be
(b) An organization established by agreement with required to register with the department before initiation of an ACH tax
the National Automated Clearing House Association payment.
( NACHA) which: .04 Use of ACH Payments.
(i) Operates as a clearing house for transmitting or A. General. A taxpayer using the ACH payment method shall make
receiving entries between banks and bank accounts, and the appropriate arrangements to initiate the payment so that the transfer
(ii)Authorizes an electronic transfer of funds between is executed on the date payment is due.
ACH Credit
banks or bank accounts.
(1) A taxpayer using the ACH credit payment method shall initiate each
(4) "Business day" means the hours between 8 a.m. and 5 payment of tax by contacting its own financial institution and requesting the
p.m. prevailing Eastern time, on a day other than a Saturday, institution to transfer both the appropriateidentifying information and
Sunday or any holiday as defined in Tax-General Article, §1-201(a), payment to the State's depository bank via an ACH credit.
Annotated Code of Maryland. (2)The taxpayer shall remit an ACH credit transaction with an addendum
(5) "Department" means the State Department of Assessments
record formatted in accordance with the appropriate TXP convention.
and Taxation or its designee.
(6) "Immediately available funds" means an ACH credit, U.S.
.05 Miscellaneous Filing and Reporting Provisions.
currency or wire transfer.
(7) "Person" means an individual, receiver, trustee, guardian, A. The Department may require persons remitting taxes by ACH credit,
personal representative, fiduciary or representative of any kind, wire transfer method to file an annual reconciliation report.
and any partnership, firm, association, corporation or other entity.
B. A taxpayer who remits taxes by ACH credit, or wire transfer method
(8) "Tax" means financial institution franchise tax or public shall indicate that fact on all tax returns required to be filed for that
service company franchise tax, including any interest, penalty or fees. period for which tax payment is being made.
(9) "Taxpayer" means any person required to pay a tax or file a
return or a report.
(10) "TXP" means the tax payment addendum convention for use
with the National Automated Clearing House Association's "CCD
Plus" format application.
(11) "Wire transfer" means a transaction in which a taxpayer,
through the taxpayer's bank, originates an entry which credits the
State's bank account and debits the taxpayer's bank account on the
same day the transaction is initiated.
.02 Requirements for Payment by Immediately Available Funds.
A. A taxpayer whose unpaid tax liability is $10,000 or more shall
remit payment by immediately available funds pursuant to the
following:
(1) Except as provided in A(2) and (3) of this regulation, tax
payment shall be made by using ACH credit;
(2) Tax payment by wire transfer may be used if the taxpayer:
(a) Initiates an ACH credit transaction which fails
(b) Receives prior approval from the Department, and
(c) Assumes all costs associated with the wire transfer
transaction.
Updated January 2024
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