Fillable Form 1 - Personal Property Return

State of Maryland

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Department of Assessments and Taxation

Initial returns are

Personal Property Division

to be mailed to:

PO Box 17052

Form 1

Baltimore, Maryland 21297-1052.

continued

Page 4 of 4

IMPORTANT REMINDERS

• Correspondence, appeals, applications and amended returns are to be mailed to:

State of Maryland, Department of Assessments and Taxation, Personal Property Division,

301 West Preston Street, Baltimore, Maryland 21201- 2395.

• Rules for 2006 personal property extensions:

Internet extension requests are due by April 17, 2006 and are free of charge.

Paper extension requests are now due on or before March 15, 2006 and require a $20 processing fee for each entity.

• The annual report filing fee is $300 for most legal entities. Be sure to enclose the correct fee with the Form 1.

• Manufacturing/R&D application deadline is September 1, 2006. A manufacturing exemption cannot be granted

unless a timely application is filed. Once filed, no additional applications are required in subsequent years.

• Entities requesting a revised assessment due to other missed exemptions (vehicles, software, charitable organizations, etc.) must file that

request within three years of the April 15th date the return was originally due.

• Do not prepay late filing penalties.

• Business entities that require a Trader’s License must report commercial inventory on line item

• This return must be accompanied by Form 4A (Balance Sheet) or latest available balance sheet, and Form 4B (Depreciation Schedule), unless the

business does not own any personal property in Maryland. All information on pages 2 and 3 of this report and supporting schedules are held

confidential by the Department and are not available for public inspection. Page 1 is public record (Tax-Property Article 2-212).

• If you discontinued business prior to January 1, 2006, notify the Department immediately, stating to whom and the date all personal property was

sold. If the business is sold on or after January 1, 2006 and before July 1, 2006, submit statement of sale, including value of personal property, date

of sale, name and address of the buyer on or before October 1, 2006.

• File the pre-addressed return to ensure proper posting to your account.

• This return must be signed by an officer or principal of the business.

• Make check for filing fee payable to Department of Assessments and Taxation. Place the Department lD number on the check.

• Place the Department ID number on page 1 if the pre-addressed return is not used.

LATE FILING PENALTY

DO NOT PAY PENALTIES AT TIME OF FILING RETURN

• A business which files an annual return postmarked after the due date of April 17, 2006 will receive an initial penalty of 1/10 of one percent of the

county assessment, plus interest at the rate of two percent of the initial penalty amount for each 30 days or part thereof that the return is late.

• Businesses which fail to file this report will receive estimated assessments which will be twice the estimated value of the personal property owned.

DEPRECIATION RATE CHART FOR 2006 RETURNS

STANDARD DEPRECIATION RATE

Category D: 30% per annum**

Data processing equipment, canned software.

Category A: 10% per annum*

⁄

All property not specifically listed below.

Category E: 33

% per annum*

Blinds, carpets, drapes, shades. The following applies to equipment

SPECIAL DEPRECIATION RATES

(The rates below apply only to the