A Maryland Personal Property Return (Form 1) must be filed by all businesses that are incorporated, qualified or registered to do business in Maryland on January 1, 2015. This includes corporations, limited liability partnerships, limited liability companies, limited partnerships, statutory trusts, and real estate investment trusts. Form 1 is required even if your business owns no property in the State or has not conducted any business activity during the year. A business which fails to file its Form 1 will receive an estimated assessment which will be twice the estimated value of the personal property owned. More importantly, failure to file will result in forfeiture of your charter if you are a domestic corporation or forfeiture of your right to do business in the State if you are a foreign corporation, LLC, LLP, LP, business trust, or REIT.
A Form 1 is mailed to all active businesses on record at the beginning of each year by the Maryland State Department of Assessments and Taxation (SDAT). If your business does not receive Form 1, you are still responsible for obtaining and filing the Form 1 by the April 15th deadline. SDAT may grant a 2 month extension to file the Form 1 if you request an internet extension online. This option is free of charge. However, no additional extension to file will be allowed. The filing fee for the privilege of maintaining a legal entity’s existence in Maryland is $300 for most legal entities. This fee is due even if your entity does not own property in the State or did not conduct any business during 2014. Corporations not authorized to issue stock, churches and foreign interstate corporations are not required to pay a filing fee. All personal property returns shall cover the calendar year regardless of your fiscal year end. As a general rule, all tangible personal property owned, leased, consigned or used by your business and located within the State of Maryland as of January 1, 2015 must be reported.
Please contact Colleen Ferg Helmlinger at 410-893-7503 for assistance and further information so that you don’t miss this very important deadline.