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MD Business Owners: April 15th Is Personal Property Tax Day, Too!

Author: Jeremy Hesselbein Date: 03/17/2016

Categories: Business Startups, Corporate and Business Law, Tax Services

A change in Maryland policy in 2016 may put you at risk of missing an important tax deadline. As you know, if you own a business in Maryland (whether it’s an LLC or a corporation) or your business is registered to conduct business in Maryland, you must file Personal Property Tax Returns each year with the Maryland State Department of Assessments and Taxation.  Just like the deadline for your federal personal income tax returns, Maryland requires all Personal Property Tax Returns be filed by April 15th.

But there is a difference this year. Instead of sending out a form Return to your business in February, the State adopted a new online filing portal to handle various business-related filings, including Personal Property Tax Returns.  Because you can now prepare and file electronically, the state will not mail a form Return to you so you won’t be reminded in that way to file. At a minimum, you should have received notice from the State of its new filing options. But if you did not note the change, consider yourself warned.

If you wish to file a paper Return, you still have that option.  However, you must download the form from the State’s website.  If you would like to try filing online this year, follow this link to the electronic filing instructions. The cost to file by paper is $300.00, while the cost to file electronically is nominally more due to convenience charges.

If you are unable to make the filing deadline, you may also request a 60-day extension online up to the April 15th deadline.

As in all jurisdictions, Maryland’s Personal Property Tax Return is its annual cost of doing business in the State.  Please be certain that you file the Return or request an extension on or before the filing deadline.  If you do not comply, the State will revoke your business’ charter, exposing you to personal liability, not to mention incurring additional filing and legal fees to return your entity to good standing.

If you have questions regarding this annual obligation, feel free to contact Jeremy Hesselbein or any of the attorneys in our Corporate & Business Law practice, and we will be happy to assist you.