COMAR Title 18 — DEPARTMENT OF ASSESSMENTS AND TAXATION

18.01.01 Assessment Reduction

COMAR 18.01.01.01 Relief.

The following regulations apply:

A. If it is apparent that a mechanical or clerical error was made in the calculation of the assessment, the assessment is adjusted.

B. On the date of finality, if the assessment office was unaware of the existence of a condition affecting value, the assessment may be adjusted.

C. If the basis for a request for reduction is a difference of opinion or a difference in valuation judgment, relief is denied.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Authority: Tax-Property Article, §§2-201, 2-202, and 8-419, Annotated Code of Maryland

18.01.02 Appeal Hearings

COMAR 18.01.02.01 Definition.

A. In this chapter, the following term has the meaning indicated.

B. Term Defined. “Good cause” means:

(1) A serious medical or health condition experienced by the property owner or the property owner's agent which prevents a scheduled departmental appeal hearing from being conducted; or

(2) Any other extraordinary circumstance which prevents a scheduled departmental appeal hearing from being conducted.

History

Administrative History: Effective date: October 6, 1997 (24:20 Md. R. 1405)
Administrative History: Regulation .03 adopted effective April 29, 2024 (51:8 Md. R. 368)
Authority: Tax-Property Article, §§1-402, 2-201, and 2-202, Annotated Code of Maryland

COMAR 18.01.02.02 Postponements.

A. Upon request of the property owner or the property owner's agent, a scheduled departmental appeal hearing will be postponed one time without cause.

B. Any additional postponements will be granted only for good cause.

History

Administrative History: Effective date: October 6, 1997 (24:20 Md. R. 1405)
Administrative History: Regulation .03 adopted effective April 29, 2024 (51:8 Md. R. 368)
Authority: Tax-Property Article, §§1-402, 2-201, and 2-202, Annotated Code of Maryland

COMAR 18.01.02.03 Proof of Representation for Real Property Assessment Appeals.

A. An appeal filed by a representative on behalf of a property owner or taxpayer shall include proper authorization from the property owner or taxpayer to pursue the appeal.

B. The authorization required by §A of this regulation shall be in writing and filed no later than:

(1) 45 days from the date of the notice if the appeal is submitted pursuant to Tax-Property Article, §14-502(a)(1), Annotated Code of Maryland;

(2) 60 days after the date the property transfers if the appeal is submitted pursuant to Tax-Property Article, §14-502(a)(2), Annotated Code of Maryland; or

(3) On or before the date of finality for the next taxable year if the appeal is submitted pursuant to Tax-Property Article, §14-503, Annotated Code of Maryland.

C. The failure to provide timely authorization as required by §B of this regulation will result in an appeal hearing being set up exclusively for the property owner or taxpayer and all future correspondence being directed to the property owner or taxpayer.

D. If timely authorization is not provided as required by §B of this regulation and a property owner or taxpayer wants to be represented at a scheduled appeal hearing, proper authorization shall be received by the Department on or before the assigned hearing date.

History

Administrative History: Effective date: October 6, 1997 (24:20 Md. R. 1405)
Administrative History: Regulation .03 adopted effective April 29, 2024 (51:8 Md. R. 368)
Authority: Tax-Property Article, §§1-402, 2-201, and 2-202, Annotated Code of Maryland

18.01.03 Public Information Requests

COMAR 18.01.03.01 Fees.

A. The following fees shall be charged when the Department is requested to provide a copy of public records:

(1) For an applicant's own real property worksheet and sales analysis, no charge;

(2) For real property worksheets of comparable properties where the applicant has an active appeal as provided in Tax-Property Article, §14-201(c), Annotated Code of Maryland, $1.00 per worksheet;

(3) For business entity records, the fee set by Corporations and Associations Article, Title 1, Annotated Code of Maryland; and

(4) For all other records, no charge for the first three pages, $1.00 for four pages and 25 cents for each page beyond four.

B. The fee for searching and preparing a public record is:

(1) No charge for the first 2 hours of work; and

(2) After the first 2 hours, a charge reasonably related to the hourly rate of the employee performing the search and preparation.

History

Administrative History: Effective date: November 26, 2001 (28:23 Md. R. 2055)
Authority: Tax-Property Article, §§2-201 and 2-202; State Government Article, §10-621; Annotated Code of Maryland

18.02.01 General

COMAR 18.02.01.01 Ownership and Classification.

A. In the case of separate ownership of land and buildings (or other improvements), the buildings shall be assessed to the owner of the land.

B. In the case of joint ownership, only a single assessment and billing to all joint owners shall be made for their undivided interests in the single parcel of real property. This includes parcels held by cotenants, joint tenants as well as by tenants by the entireties.

C. All structures shall be considered real estate unless they are considered to be personal property. Personal property is property not generally affixed to or a part of the real estate. In deciding whether an item is personal property or real estate one should consider the manner in which it is affixed, the intention of the party who made the affixation, and the purpose for which the premises is used.

D. Owner of Record. Immediate family includes spouse, son, daughter, father, mother, sister, brother, grandmother, grandfather, son-in-law, daughter-in-law, father-in-law, mother-in-law, and grandchildren.

E. In the case of property subject to a time-share instrument under Real Property Article, Title 11A, Annotated Code of Maryland, notices of assessment shall be sent to the managing entity as defined in §11A-109 of that article.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01E adopted effective July 29, 1985 (12:15 Md. R. 1525)
Administrative History: Regulation .02C amended effective September 19, 1988 (15:19 Md. R. 2248)
Administrative History: Regulation .02C repealed effective January 14, 1999 (26:1 Md. R. 24)
Authority: Tax-Property Article, §§2-201, 2-202, 5-101, and 8-234, Annotated Code of Maryland

COMAR 18.02.01.02 Taxable Status.

A. Classification of Structure.

(1) Structures, other than those specified in §A(3) of this regulation, used for the purpose of housing, storing, or protection of grain or other commodity from the elements, shall be classified as real property and assessed accordingly.

(2) Nothing in this section may be construed to classify structures as personal property where equipment or machinery is installed to maintain a suitable climate or temperature necessary to the preservation of the stored grain or commodity.

(3) Structures including the equipment or machinery used in the cleaning, drying, processing, mixing, and blending of grain or other commodities used exclusively for the processing operation of the grain or other commodity, shall be classified as personal property and assessed accordingly.

(4) Machinery and equipment (aeration equipment, auger loading and unloading tubes) installed in the structures referred to in §A(3) of this regulation shall be classified as personal property and assess accordingly.

B. This same determination is extended to include all types of storage tanks, including oil tanks, chemical tanks, and any other structure built for the purpose of storing a product. These tanks should be considered real property and assessed accordingly.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01E adopted effective July 29, 1985 (12:15 Md. R. 1525)
Administrative History: Regulation .02C amended effective September 19, 1988 (15:19 Md. R. 2248)
Administrative History: Regulation .02C repealed effective January 14, 1999 (26:1 Md. R. 24)
Authority: Tax-Property Article, §§2-201, 2-202, 5-101, and 8-234, Annotated Code of Maryland

18.02.02 Valuation

COMAR 18.02.02.01 Residential Land.

Lot value includes site improvements such as well, septic system, water, sewer, landscaping, and driveway. A lot without site improvements should first be valued as if the lot had site improvements and then the assessor should deduct for the absence of site improvements by either percentage or dollar amounts.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 repealed and new Regulation .01 adopted effective March 11, 1996 (23:5 Md. R. 382)
Administrative History: Regulation .04 adopted effective September 9, 1996 (23:18 Md. R. 1318)
Administrative History: Regulation .04 amended effective December 23, 2013 (40:25 Md. R. 2070)
Administrative History: Regulation .05 adopted effective October 16, 2000 (27:20 Md. R. 1841)
Administrative History: Regulation .05 repealed effective November 5, 2018 (45:22 Md. R. 1027)
Authority: Tax-Property Article, §§2-201, 2-202, and 8-104, Annotated Code of Maryland

COMAR 18.02.02.02 Solar Energy.

If a structure is built to house a solar heating or cooling unit, there may not be additional assessment for these structures. If this structure has a dual use such as storage, only the value attributable to the use other than solar heating and cooling shall be assessed.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 repealed and new Regulation .01 adopted effective March 11, 1996 (23:5 Md. R. 382)
Administrative History: Regulation .04 adopted effective September 9, 1996 (23:18 Md. R. 1318)
Administrative History: Regulation .04 amended effective December 23, 2013 (40:25 Md. R. 2070)
Administrative History: Regulation .05 adopted effective October 16, 2000 (27:20 Md. R. 1841)
Administrative History: Regulation .05 repealed effective November 5, 2018 (45:22 Md. R. 1027)
Authority: Tax-Property Article, §§2-201, 2-202, and 8-104, Annotated Code of Maryland

COMAR 18.02.02.03 Subdivided Land — Bulk Ownership of Lots.

The valuation of subdivided land should consider each lot as a single legal entity regardless of ownership.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 repealed and new Regulation .01 adopted effective March 11, 1996 (23:5 Md. R. 382)
Administrative History: Regulation .04 adopted effective September 9, 1996 (23:18 Md. R. 1318)
Administrative History: Regulation .04 amended effective December 23, 2013 (40:25 Md. R. 2070)
Administrative History: Regulation .05 adopted effective October 16, 2000 (27:20 Md. R. 1841)
Administrative History: Regulation .05 repealed effective November 5, 2018 (45:22 Md. R. 1027)
Authority: Tax-Property Article, §§2-201, 2-202, and 8-104, Annotated Code of Maryland

COMAR 18.02.02.04 Substantially Completed Improvements.

When real property is revalued because substantially completed improvements have been made adding at least the statutory minimum in value to the property under Tax-Property Article, §8-104, Annotated Code of Maryland, both the land and improvements shall be revalued on the date of finality, the semiannual date of finality, or quarterly date of finality following the substantial completion.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 repealed and new Regulation .01 adopted effective March 11, 1996 (23:5 Md. R. 382)
Administrative History: Regulation .04 adopted effective September 9, 1996 (23:18 Md. R. 1318)
Administrative History: Regulation .04 amended effective December 23, 2013 (40:25 Md. R. 2070)
Administrative History: Regulation .05 adopted effective October 16, 2000 (27:20 Md. R. 1841)
Administrative History: Regulation .05 repealed effective November 5, 2018 (45:22 Md. R. 1027)
Authority: Tax-Property Article, §§2-201, 2-202, and 8-104, Annotated Code of Maryland

18.02.03 Agricultural Use Assessments

COMAR 18.02.03.01 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) “Actively used land” means land that is actually and primarily used for a continuing farm or agricultural use.

(2) “Actually devoted land” means that portion of actively used land which is engaged in an approved agricultural activity.

(3) “Agricultural land unit (ALU)” means the combination, for the purpose of qualifying for agricultural use assessment, of not more than three parcels of land located in the same county and under the same ownership.

(4) “Approved agricultural activity” means those activities recognized as agricultural pursuits under Regulation .03 of this chapter.

(5) “Associated land” means that portion of actively used land which is not actually devoted land but is located on the same parcel as actually devoted land, including woodland under Regulation .06A—C of this chapter, and other vacant land which is devoted to passive use.

(6) “FCMA” means a forest conservation and management agreement under Tax-Property Article, §8-211, Annotated Code of Maryland.

(7) “Gross income” means the actual income that is received in a calendar year that results directly from the farm or agricultural use of the land.

(8) “Parcel” means a piece of land of any size in one ownership.

(9) “Ratio requirement” means the ratio of associated land to actually devoted land which determines the total amount of actively used land eligible for agricultural use assessment.

(10) “Same ownership” means, in terms of the ownership of two or more parcels, that at least one common name appears as grantee in all deeds to those parcels.

Cross References

18.02.03.06A(1)

18.02.03.06A(6)

18.02.03.06B

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Chapter revised effective November 17, 1986 (13:23 Md. R. 2481); December 5, 1994 (21:24 Md. R. 1990)
Administrative History: Regulation .03A amended effective February 16, 2026 (53:3 Md. R. 123)
Administrative History: Regulation .04 amended effective January 20, 2014 (41:1 Md. R. 13)
Administrative History: Regulation .05 amended effective May 25, 2026 (53:10 Md. R. 455l90p[9)
Administrative History: Regulation .05D, E adopted effective January 24, 2022 (49:2 Md. R. 78)
Administrative History: Regulation .06 amended effective February 16, 2026 (53:3 Md. R. 123)
Administrative History: Regulation .08 amended effective October 16, 2000 (27:20 Md. R. 1841)
Authority: Tax-Property Article, §§2-201, 2-202, and 8-209, Annotated Code of Maryland

COMAR 18.02.03.02 Criteria to Be Considered.

The following criteria shall be considered in determining whether land that appears to be actively used is in fact actively used and qualifies for agricultural use assessment under Tax-Property Article, §8-209, Annotated Code of Maryland:

A. Zoning applicable to the land, in particular if land is zoned to a more intensive use than is permitted under agricultural zoning;

B. Present and past use of the land;

C. Participation in governmental or private agricultural programs;

D. Extent of production for sale of plants, timber, livestock, and food for human and animal consumption;

E. Size of the parcel or parcels farmed, in particular, whether the size is economically compatible with the agricultural use to which the land is devoted;

F. Amount of acreage in crops, pasture, and woodland;

G. Amount of livestock or poultry;

H. Inventory of farm buildings and equipment and condition of same;

I. Marketing of the land as evidenced by multiple sales of parcels out of a tract;

J. Ratio of associated land to actually devoted land; and

K. The gross income that is derived from the agricultural activity on the land.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Chapter revised effective November 17, 1986 (13:23 Md. R. 2481); December 5, 1994 (21:24 Md. R. 1990)
Administrative History: Regulation .03A amended effective February 16, 2026 (53:3 Md. R. 123)
Administrative History: Regulation .04 amended effective January 20, 2014 (41:1 Md. R. 13)
Administrative History: Regulation .05 amended effective May 25, 2026 (53:10 Md. R. 455l90p[9)
Administrative History: Regulation .05D, E adopted effective January 24, 2022 (49:2 Md. R. 78)
Administrative History: Regulation .06 amended effective February 16, 2026 (53:3 Md. R. 123)
Administrative History: Regulation .08 amended effective October 16, 2000 (27:20 Md. R. 1841)
Authority: Tax-Property Article, §§2-201, 2-202, and 8-209, Annotated Code of Maryland

COMAR 18.02.03.03 Approved Agricultural Activities.

A. Approved agricultural activities are as follows:

(1) Raising grains, fruit, herbs, melons, mushrooms, nuts, seeds, tobacco, or vegetables;

(2) Raising poultry, for example, chicken, turkeys, or eggs;

(3) Dairy, for example, milking cows;

(4) Raising livestock, for example, cattle, sheep, lambs, hogs, or pigs;

(5) Horse boarding, breeding, or training;

(6) Turf farming;

(7) Ornamental horticulture with the raising and marketing of ornamental trees, shrubs, plants, and flowers, including aquatic plants;

(8) Aquaculture with the raising and marketing of aquatic organisms such as fish and shellfish; and

(9) Silviculture, as defined in Regulation .06 A(4) or (5) of this chapter.

B. An activity not listed in §A of this regulation may be recognized as an approved agricultural activity at the discretion of the Department.

Cross References

18.02.03.01B(4)

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Chapter revised effective November 17, 1986 (13:23 Md. R. 2481); December 5, 1994 (21:24 Md. R. 1990)
Administrative History: Regulation .03A amended effective February 16, 2026 (53:3 Md. R. 123)
Administrative History: Regulation .04 amended effective January 20, 2014 (41:1 Md. R. 13)
Administrative History: Regulation .05 amended effective May 25, 2026 (53:10 Md. R. 455l90p[9)
Administrative History: Regulation .05D, E adopted effective January 24, 2022 (49:2 Md. R. 78)
Administrative History: Regulation .06 amended effective February 16, 2026 (53:3 Md. R. 123)
Administrative History: Regulation .08 amended effective October 16, 2000 (27:20 Md. R. 1841)
Authority: Tax-Property Article, §§2-201, 2-202, and 8-209, Annotated Code of Maryland

COMAR 18.02.03.04 Parcels of 20 acres or more — Ratio Requirements.

A. The ratio requirements are established by regions as follows:

(1) Western region—Garrett, Allegany, and Washington counties, 10:1;

(2) Central region—all counties on the western shore of Maryland, except Harford County and those listed in §A(1) of this regulation, 5:1; and

(3) Eastern region—all counties on the eastern shore of Maryland, and Harford County, 10:1.

B. Only Class 3 land under Regulation .08 of this chapter may be used in developing the ratio requirement.

C. Five acres or more must be actually devoted land.

D. Examples of Ratio Requirements.

(1) A taxpayer owns a 401-acre parcel in the western region (10:1 ratio). None of the land is Class 1 or Class 2 land under Regulation .08 of this chapter. Twenty acres are actually devoted. There is a 1-acre homesite. The amount of actively used land eligible for agricultural use assessment is 220 acres, calculated as follows:

20 X 10 = 200 acres associated land + 20 acres actually devoted land = 220 acres eligible for agricultural use assessment. The remaining 181 acres are valued and assessed at market value.

(2) A taxpayer owns a 400-acre parcel of vacant, passively used land. Because there is no actually devoted land, a ratio requirement cannot be met and no land qualifies for agricultural use assessment.

Cross References

18.02.03.05E

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Chapter revised effective November 17, 1986 (13:23 Md. R. 2481); December 5, 1994 (21:24 Md. R. 1990)
Administrative History: Regulation .03A amended effective February 16, 2026 (53:3 Md. R. 123)
Administrative History: Regulation .04 amended effective January 20, 2014 (41:1 Md. R. 13)
Administrative History: Regulation .05 amended effective May 25, 2026 (53:10 Md. R. 455l90p[9)
Administrative History: Regulation .05D, E adopted effective January 24, 2022 (49:2 Md. R. 78)
Administrative History: Regulation .06 amended effective February 16, 2026 (53:3 Md. R. 123)
Administrative History: Regulation .08 amended effective October 16, 2000 (27:20 Md. R. 1841)
Authority: Tax-Property Article, §§2-201, 2-202, and 8-209, Annotated Code of Maryland

COMAR 18.02.03.05 Parcels of Less Than 20 Acres — Use Test vs. Income Test.

A. A parcel of land or ALU less than 20 acres but greater than or equal to 3 acres shall receive agricultural use assessment if its meets one of the following tests:

(1) If at least 3 acres but less than 5 acres are actually devoted and $2,500 gross income is derived from the approved agricultural activities; or

(2) If at least 5 acres but less than 20 acres are actually devoted, the land qualifies for agricultural use assessment regardless of gross income.

B. A parcel of land or ALU of less than 3 acres excluding the homesite shall receive the agricultural use assessment if it meets one of the following tests:

(1) Gross income from the approved agricultural activity on the land:

(a) Generates a minimum of $2500; and

(b) Amounts to at least 51 percent of the owner’s total gross income:

(i) The owner’s total gross income shall include all sources of income for the calendar year that immediately precedes the taxable year, whether or not the income is included in the definition of gross income for federal or State tax purposes;

(ii) This income shall include any benefit under the Social Security Act or Railroad Retirement Act;

(iii) No more than 2 parcels of land may qualify under the same ownership;

(2) A family farm unit as defined in Tax Property Article, §8-209(g)(1)(iv), Annotated Code of Maryland; or

(3) A parcel of land under the same ownership and contiguous to a parcel of land receiving agricultural use assessment and is actively used. No more than 2 parcels of land may qualify under the same ownership.

C. Different approved agricultural activities may be combined to meet the requirements of §§A and B of this regulation.

D. The Department may determine the reasonableness of gross income claimed by an owner.

E. The ratio requirements under Regulation .04 of this chapter are used to establish the associated lands.

F. Only Class 3 land under Regulation .08 of this chapter will be used in developing ratio requirements.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Chapter revised effective November 17, 1986 (13:23 Md. R. 2481); December 5, 1994 (21:24 Md. R. 1990)
Administrative History: Regulation .03A amended effective February 16, 2026 (53:3 Md. R. 123)
Administrative History: Regulation .04 amended effective January 20, 2014 (41:1 Md. R. 13)
Administrative History: Regulation .05 amended effective May 25, 2026 (53:10 Md. R. 455l90p[9)
Administrative History: Regulation .05D, E adopted effective January 24, 2022 (49:2 Md. R. 78)
Administrative History: Regulation .06 amended effective February 16, 2026 (53:3 Md. R. 123)
Administrative History: Regulation .08 amended effective October 16, 2000 (27:20 Md. R. 1841)
Authority: Tax-Property Article, §§2-201, 2-202, and 8-209, Annotated Code of Maryland

COMAR 18.02.03.06 Woodland.

A. A woodland parcel of 5 acres or more shall receive agricultural use assessment only if it is:

(1) A part of a parcel of land which is determined to be actively used as defined in Regulation .01B(1) of this chapter:

(2) A parcel contiguous to a parcel qualifying for agricultural use assessment provided both parcels are in the same ownership;

(3) A parcel separated from a parcel of land which qualifies for agricultural use assessment, provided both parcels were purchased at the same time by the same owner;

(4) Subject to and in compliance with a forestry management plan prepared by a registered professional forester;

(5) Subject to and in compliance with an FCMA; or

(6) Actually devoted land as defined in Regulation .01B(2) of this chapter.

B. A woodland parcel less than 5 acres cannot be combined with another woodland parcel to establish an agricultural land unit as defined in Regulation .01B(3) of this chapter in order to meet the minimum parcel size of 5 acres.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Chapter revised effective November 17, 1986 (13:23 Md. R. 2481); December 5, 1994 (21:24 Md. R. 1990)
Administrative History: Regulation .03A amended effective February 16, 2026 (53:3 Md. R. 123)
Administrative History: Regulation .04 amended effective January 20, 2014 (41:1 Md. R. 13)
Administrative History: Regulation .05 amended effective May 25, 2026 (53:10 Md. R. 455l90p[9)
Administrative History: Regulation .05D, E adopted effective January 24, 2022 (49:2 Md. R. 78)
Administrative History: Regulation .06 amended effective February 16, 2026 (53:3 Md. R. 123)
Administrative History: Regulation .08 amended effective October 16, 2000 (27:20 Md. R. 1841)
Authority: Tax-Property Article, §§2-201, 2-202, and 8-209, Annotated Code of Maryland

COMAR 18.02.03.07 Homesites.

A. Except as provided in §B of this regulation, for each dwelling house located on a parcel for which agricultural use assessment is determined applicable, a minimum of 1 acre shall be designated as homesite and assessed at fair market value. If the amount of land serving the dwelling house as homesite exceeds 1 acre, that greater amount of acreage shall be assessed at fair market value.

B. When a dwelling is located on a parcel under an FCMA of less than 6 acres, the Department may adjust the size of the homesite.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Chapter revised effective November 17, 1986 (13:23 Md. R. 2481); December 5, 1994 (21:24 Md. R. 1990)
Administrative History: Regulation .03A amended effective February 16, 2026 (53:3 Md. R. 123)
Administrative History: Regulation .04 amended effective January 20, 2014 (41:1 Md. R. 13)
Administrative History: Regulation .05 amended effective May 25, 2026 (53:10 Md. R. 455l90p[9)
Administrative History: Regulation .05D, E adopted effective January 24, 2022 (49:2 Md. R. 78)
Administrative History: Regulation .06 amended effective February 16, 2026 (53:3 Md. R. 123)
Administrative History: Regulation .08 amended effective October 16, 2000 (27:20 Md. R. 1841)
Authority: Tax-Property Article, §§2-201, 2-202, and 8-209, Annotated Code of Maryland

COMAR 18.02.03.08 Agricultural Use Value Rates.

The following ranges govern the valuation and assessment of land eligible for agricultural use assessment, based on the capitalization of Statewide farmland rentals:

		Use Value/Assessment
Class 1	FCMA land	$125 per acre/$125 per acre
Class 2	Land under a private woodland management plan	$187.50 per acre/$187.50 per acre
Class 3	Other eligible land	$125—$500 per acre/$125—$500 per acre

Cross References

18.02.03.04B

18.02.03.04D(1)

18.02.03.05F

18.02.10.01

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Chapter revised effective November 17, 1986 (13:23 Md. R. 2481); December 5, 1994 (21:24 Md. R. 1990)
Administrative History: Regulation .03A amended effective February 16, 2026 (53:3 Md. R. 123)
Administrative History: Regulation .04 amended effective January 20, 2014 (41:1 Md. R. 13)
Administrative History: Regulation .05 amended effective May 25, 2026 (53:10 Md. R. 455l90p[9)
Administrative History: Regulation .05D, E adopted effective January 24, 2022 (49:2 Md. R. 78)
Administrative History: Regulation .06 amended effective February 16, 2026 (53:3 Md. R. 123)
Administrative History: Regulation .08 amended effective October 16, 2000 (27:20 Md. R. 1841)
Authority: Tax-Property Article, §§2-201, 2-202, and 8-209, Annotated Code of Maryland

18.02.04 Additions for Medical Necessity

COMAR 18.02.04.01 Application and Attestation.

A. Application shall be made on form number RP-1, which may be obtained from local assessment offices.

B. The application shall be prepared by the physician of the property owner and signed attesting that the improvements were needed for medical reasons and that the person resides in the residence.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01A amended effective September 19, 1988 (15:19 Md. R. 2248)
Authority: Tax-Property Article, §§2-201, 2-202, and 8-233, Annotated Code of Maryland

COMAR 18.02.04.02 Qualification.

A. Sufficient evidence of medical necessity is required and must be attested to by a physician for the improvement made. Determination will be made on a case-by-case basis.

B. Credit may not be given for any improvement that is not a specific addition to the value of the property and valued for assessment purposes.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01A amended effective September 19, 1988 (15:19 Md. R. 2248)
Authority: Tax-Property Article, §§2-201, 2-202, and 8-233, Annotated Code of Maryland

18.02.05 Country Clubs

COMAR 18.02.05.01 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) “Family” means those individuals recognized by a country club's or golf course's organizational documents as being in a member's family, but does not include more individuals than those listed in COMAR 18.02.01.01D.

(2) “General public” means those individuals or organizations using a country club's or golf course's facilities who are not:

(a) Members;

(b) A member's family;

(d) Employees of the club or course.

(3) “Guests” means those individuals recognized by a country club's or golf course's organizational documents as being a member's guest, subject to the following:

(a) When club or course facilities are used by a group of eight individuals or less and one of the group is a member or family who pays for the use of the facilities, then any individual in the group who is not a member or family is considered a guest;

(b) When club or course facilities are used by a group of more than eight individuals at least 75 percent of whom are members or family, the other individuals are considered guests;

(c) When a club's or course's facilities are used by a group of more than eight individuals and the activity serves a personal, social, or business purpose directly benefiting a member, family, or employer of a member and is paid for by either the member or the employer, the individuals who are not members or family are considered guests.

(4) “Members” means those individuals or organizations recognized by a country club's or golf course's organizational documents as belonging to the club or course, including their spouses.

(5) “Primarily used” for a country club means:

(a) At least 50 percent of the use of the club facility must be by members, family, or guests; and

(b) Not more than 49 percent of the use of that facility may be by the general public.

(6) “Primarily used” for a golf course means:

(a) At least 50 percent of the use of the course facility must be by the general public; and

(b) Not more than 49 percent of the use of that facility may be by members, family, or guests.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended and Regulations .02—.04 adopted effective March 11, 1996 (23:5 Md. R. 382)
Administrative History: ——————
Administrative History: Chapter revised effective October 19, 1998 (25:21 Md. R. 1575)
Administrative History: Regulation .05A amended effective May 26, 2003 (30:10 Md. R. 668)
Administrative History: Regulation .05B amended effective April 15, 2002 (29:7 Md. R. 622)
Administrative History: Regulation .08C amended effective May 26, 2003 (30:10 Md. R. 668)
Administrative History: ——————
Administrative History: Chapter revised effective March 15, 2004 (31:5 Md. R. 451)
Administrative History: Regulation .06A amended effective January 24, 2022 (49:2 Md. R. 78)
Authority: Tax-Property Article, §§2-201, 2-202, 8-213, 8-218, and 8-219, Annotated Code of Maryland

COMAR 18.02.05.02 Qualification.

A. For a country club to qualify for a country club agreement the:

(1) Club must be located on at least 50 acres of land maintaining a regular or championship golf course of at least 9 holes and a clubhouse;

(2) Golfing facilities within the area covered by the agreement must be primarily used by members, family, or guests;

(3) Dining, ballroom, and meeting facilities within the area covered by the agreement must be primarily used by members, family, or guests;

(4) Other club facilities within the area covered by the agreement must be primarily used by members, family, or guests;

(5) Club shall submit the Department's application before the commencement of the agreement and each renewal term; and

(6) Club shall submit the Department's questionnaire before the commencement of the agreement and each renewal term, and at other times the Department requires.

B. Except for the golf course, the clubhouse, and a minimum of 50 acres of land, any club facility that is not primarily used by members, family, or guests may be excluded from an agreement.

C. For a golf course to qualify for a golf course agreement the:

(1) Course shall be located on at least 50 acres of land maintaining a regular or championship golf course of at least nine holes;

(2) Golfing facilities within the area covered by the agreement shall be primarily used by the general public;

(3) Other course facilities within the area covered by the agreement shall be primarily used by the general public in connection with the use of the golf facilities;

(4) Course shall submit the Department's application before the commencement of the agreement and each renewal term; and

(5) Course shall submit the Department's application questionnaire before the commencement of the agreement and each renewal term, and at other times the Department requires.

D. Except for the golf course and a minimum of 50 acres of land, any course facility which is not primarily used by the general public in connection with the use of the golf facilities may be excluded from an agreement.

Cross References

18.02.05.09B(3)

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended and Regulations .02—.04 adopted effective March 11, 1996 (23:5 Md. R. 382)
Administrative History: ——————
Administrative History: Chapter revised effective October 19, 1998 (25:21 Md. R. 1575)
Administrative History: Regulation .05A amended effective May 26, 2003 (30:10 Md. R. 668)
Administrative History: Regulation .05B amended effective April 15, 2002 (29:7 Md. R. 622)
Administrative History: Regulation .08C amended effective May 26, 2003 (30:10 Md. R. 668)
Administrative History: ——————
Administrative History: Chapter revised effective March 15, 2004 (31:5 Md. R. 451)
Administrative History: Regulation .06A amended effective January 24, 2022 (49:2 Md. R. 78)
Authority: Tax-Property Article, §§2-201, 2-202, 8-213, 8-218, and 8-219, Annotated Code of Maryland

COMAR 18.02.05.03 Percentage Use — Country Clubs.

A. The percentage use of golfing facilities is determined by comparing the number of rounds played by members, family, and guests and by the general public with the total number of rounds played at the club.

B. The percentage use of the dining, ballroom, and meeting facilities is determined by comparing the income generated by general public use with the total income attributed by the club to the use of those facilities.

C. The percentage use of all other club facilities is determined by comparing the use by the members, family, and guests and the use by the general public with the total use of those facilities.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended and Regulations .02—.04 adopted effective March 11, 1996 (23:5 Md. R. 382)
Administrative History: ——————
Administrative History: Chapter revised effective October 19, 1998 (25:21 Md. R. 1575)
Administrative History: Regulation .05A amended effective May 26, 2003 (30:10 Md. R. 668)
Administrative History: Regulation .05B amended effective April 15, 2002 (29:7 Md. R. 622)
Administrative History: Regulation .08C amended effective May 26, 2003 (30:10 Md. R. 668)
Administrative History: ——————
Administrative History: Chapter revised effective March 15, 2004 (31:5 Md. R. 451)
Administrative History: Regulation .06A amended effective January 24, 2022 (49:2 Md. R. 78)
Authority: Tax-Property Article, §§2-201, 2-202, 8-213, 8-218, and 8-219, Annotated Code of Maryland

COMAR 18.02.05.04 Percentage Use — Golf Courses.

A. The percentage use of golfing facilities is determined by comparing the number of rounds played by members, family, and guests and the number of rounds played by the general public with the total number of rounds played on the course.

B. The percentage use of any dining, ballroom, and meeting facilities is determined by comparing the:

(1) Income generated by member, family, and guest use connected with the use of the golfing facilities;

(2) Income generated by all use of those facilities that is also connected with the use of the golf facilities; and

(3) Total income generated by all use of those facilities.

C. The percentage use of all other club facilities is determined by comparing the use by the general public connected with the use of the golf facilities and the use by members, family, and guests connected with the use of the golf facilities with the total use of those facilities.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended and Regulations .02—.04 adopted effective March 11, 1996 (23:5 Md. R. 382)
Administrative History: ——————
Administrative History: Chapter revised effective October 19, 1998 (25:21 Md. R. 1575)
Administrative History: Regulation .05A amended effective May 26, 2003 (30:10 Md. R. 668)
Administrative History: Regulation .05B amended effective April 15, 2002 (29:7 Md. R. 622)
Administrative History: Regulation .08C amended effective May 26, 2003 (30:10 Md. R. 668)
Administrative History: ——————
Administrative History: Chapter revised effective March 15, 2004 (31:5 Md. R. 451)
Administrative History: Regulation .06A amended effective January 24, 2022 (49:2 Md. R. 78)
Authority: Tax-Property Article, §§2-201, 2-202, 8-213, 8-218, and 8-219, Annotated Code of Maryland

COMAR 18.02.05.05 Application.

A. The Department shall provide an application and questionnaire relative to a country club or golf course agreement.

B. The application shall set forth the requirements for a country club or golf course use valuation.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended and Regulations .02—.04 adopted effective March 11, 1996 (23:5 Md. R. 382)
Administrative History: ——————
Administrative History: Chapter revised effective October 19, 1998 (25:21 Md. R. 1575)
Administrative History: Regulation .05A amended effective May 26, 2003 (30:10 Md. R. 668)
Administrative History: Regulation .05B amended effective April 15, 2002 (29:7 Md. R. 622)
Administrative History: Regulation .08C amended effective May 26, 2003 (30:10 Md. R. 668)
Administrative History: ——————
Administrative History: Chapter revised effective March 15, 2004 (31:5 Md. R. 451)
Administrative History: Regulation .06A amended effective January 24, 2022 (49:2 Md. R. 78)
Authority: Tax-Property Article, §§2-201, 2-202, 8-213, 8-218, and 8-219, Annotated Code of Maryland

COMAR 18.02.05.06 Valuation — Use Value.

A. Land values shall be based upon Tax-Property Article, §8-213, Annotated Code of Maryland.

B. Course improvements such as tees, greens, fairways, and similar items shall be based upon the cost of these improvements less applicable depreciation.

C. Any land and improvements that are not devoted to country club or golf course use shall be valued at market value.

D. The land used as a country club or golf course clubhouse site shall be valued at use value.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended and Regulations .02—.04 adopted effective March 11, 1996 (23:5 Md. R. 382)
Administrative History: ——————
Administrative History: Chapter revised effective October 19, 1998 (25:21 Md. R. 1575)
Administrative History: Regulation .05A amended effective May 26, 2003 (30:10 Md. R. 668)
Administrative History: Regulation .05B amended effective April 15, 2002 (29:7 Md. R. 622)
Administrative History: Regulation .08C amended effective May 26, 2003 (30:10 Md. R. 668)
Administrative History: ——————
Administrative History: Chapter revised effective March 15, 2004 (31:5 Md. R. 451)
Administrative History: Regulation .06A amended effective January 24, 2022 (49:2 Md. R. 78)
Authority: Tax-Property Article, §§2-201, 2-202, 8-213, 8-218, and 8-219, Annotated Code of Maryland

COMAR 18.02.05.07 Notices.

When country club or golf course land is reassessed according to its use value, country club or golf course land shall also be valued according to its market value. If the market value exceeds the use value, the owner shall be notified of both values.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended and Regulations .02—.04 adopted effective March 11, 1996 (23:5 Md. R. 382)
Administrative History: ——————
Administrative History: Chapter revised effective October 19, 1998 (25:21 Md. R. 1575)
Administrative History: Regulation .05A amended effective May 26, 2003 (30:10 Md. R. 668)
Administrative History: Regulation .05B amended effective April 15, 2002 (29:7 Md. R. 622)
Administrative History: Regulation .08C amended effective May 26, 2003 (30:10 Md. R. 668)
Administrative History: ——————
Administrative History: Chapter revised effective March 15, 2004 (31:5 Md. R. 451)
Administrative History: Regulation .06A amended effective January 24, 2022 (49:2 Md. R. 78)
Authority: Tax-Property Article, §§2-201, 2-202, 8-213, 8-218, and 8-219, Annotated Code of Maryland

COMAR 18.02.05.08 Termination of Agreement.

After an agreement terminates, dual use and market valuations cease, and the market valuation is effective for the subsequent tax year.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended and Regulations .02—.04 adopted effective March 11, 1996 (23:5 Md. R. 382)
Administrative History: ——————
Administrative History: Chapter revised effective October 19, 1998 (25:21 Md. R. 1575)
Administrative History: Regulation .05A amended effective May 26, 2003 (30:10 Md. R. 668)
Administrative History: Regulation .05B amended effective April 15, 2002 (29:7 Md. R. 622)
Administrative History: Regulation .08C amended effective May 26, 2003 (30:10 Md. R. 668)
Administrative History: ——————
Administrative History: Chapter revised effective March 15, 2004 (31:5 Md. R. 451)
Administrative History: Regulation .06A amended effective January 24, 2022 (49:2 Md. R. 78)
Authority: Tax-Property Article, §§2-201, 2-202, 8-213, 8-218, and 8-219, Annotated Code of Maryland

COMAR 18.02.05.09 Termination by Club or Course Prohibited.

A. Except as otherwise provided in this regulation, when a country club or golf course makes an agreement with the Department under Tax-Property Article, §8-213(b), Annotated Code of Maryland, it may not terminate the agreement during its original term or any extension of the term, as provided by Tax-Property Article, §8-213(d), Annotated Code of Maryland, without the written consent of the Department.

B. A country club or golf course may not enter into or continue an agreement if it:

(1) Allows or practices discrimination under Tax-Property Article, §8-214, Annotated Code of Maryland;

(2) Fails to meet the qualifications for a country club or golf course under Tax-Property Article, §8-212, Annotated Code of Maryland; or

(3) Fails to meet the qualifications under Regulation .02 of this chapter.

C. Land may not continue under an agreement if it:

(1) Is conveyed to a new owner who does not accept the obligation of an agreement pursuant to Tax-Property Article, §8-217, Annotated Code of Maryland;

(2) Ceases to be used as a country club and is not immediately subjected to a golf course agreement; or

(3) Ceases to be used as a golf course and is not immediately subjected to a country club agreement.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended and Regulations .02—.04 adopted effective March 11, 1996 (23:5 Md. R. 382)
Administrative History: ——————
Administrative History: Chapter revised effective October 19, 1998 (25:21 Md. R. 1575)
Administrative History: Regulation .05A amended effective May 26, 2003 (30:10 Md. R. 668)
Administrative History: Regulation .05B amended effective April 15, 2002 (29:7 Md. R. 622)
Administrative History: Regulation .08C amended effective May 26, 2003 (30:10 Md. R. 668)
Administrative History: ——————
Administrative History: Chapter revised effective March 15, 2004 (31:5 Md. R. 451)
Administrative History: Regulation .06A amended effective January 24, 2022 (49:2 Md. R. 78)
Authority: Tax-Property Article, §§2-201, 2-202, 8-213, 8-218, and 8-219, Annotated Code of Maryland

18.02.06 Assessor Inspections

COMAR 18.02.06.01 Procedures.

A. Except as otherwise provided in this regulation, “inspection” means an exterior physical inspection of real property for the purpose of determining the condition and attributes of real property and verifying the measurements of any improvements to land.

B. Only one inspection of a real property shall be made in a 3-year cycle, as provided in the Tax-Property Article, §8-104(b), Annotated Code of Maryland, unless an assessor determines an additional inspection is necessary.

C. Inspection Procedure.

(1) Except as provided in §C(2) of this regulation, an assessor shall conduct an inspection according to the following procedure:

(a) The assessor shall determine if a person is physically present on the real property. If a person is physically present on the real property, the assessor shall attempt to communicate with that person, stating the assessor's name, occupation, and the purpose of the inspection. If the person indicates that an inspection may not be permitted, the assessor shall leave the real property without making the inspection.

(b) If a person is not physically present on the real property, or the assessor is unable to communicate with a person on the real property, the assessor may conduct an inspection, except as provided in §D of this regulation. After the inspection is completed, the assessor, when practical, shall leave a business card on the real property.

(2) Certain properties, specifically designated by the local supervisor of assessments and approved by the Department, may be inspected without performing the procedure specified in §C(1) of this regulation.

D. An inspection may not be made when:

(1) A person refuses to permit an inspection, as provided in §C of this regulation; or

(2) An owner of real property has notified the Supervisor of Assessments for the county where the real property is located in writing that an inspection may not be permitted.

E. Interior Inspection. An interior inspection of real property may be made:

(1) Upon request of the owner.

(2) Upon request of an assessor when approved by the owner.

(3) When the real property such as office buildings, common areas of apartment complexes, and retail stores, is open to the general public. In making an inspection under §E(3), the assessor shall comply, when practical, with §C of this regulation.

History

Administrative History: Effective date: December 29, 1986 (13:26 Md. R. 2808)
Administrative History: Regulation .01C amended effective January 7, 1991 (17:26 Md. R. 2977)
Authority: Tax-Property Article, §§2-201, 2-202, and 2-217, Annotated Code of Maryland

18.02.07 Release of Property Data

COMAR 18.02.07.01 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) “CAMA” means the Computer Assisted Mass Appraisal system of the Department.

(2) “Property data” means information that describes the physical characteristics of land or improvements to land.

History

Administrative History: Effective date: March 29, 1993 (20:6 Md. R. 584)
Authority: Tax-Property Article, §§2-201 and 14-201, Annotated Code of Maryland

COMAR 18.02.07.02 Procedure for Release of Data.

A. The Department shall annually compile for public release property data in the CAMA system.

B. Property data for each county in the CAMA system will be made available in data processing tapes or other forms approved by the Department.

C. A person may purchase property data for one or more counties by:

(1) Completing a written property data request form; and

(2) Paying the fees specified by the Department.

History

Administrative History: Effective date: March 29, 1993 (20:6 Md. R. 584)
Authority: Tax-Property Article, §§2-201 and 14-201, Annotated Code of Maryland

18.02.08 Tidal Marshland Valuation

COMAR 18.02.08.01 Valuation.

Tidal marshland is valued at $37.50 per acre.

History

Administrative History: Effective date: December 5, 1994 (21:24 Md. R. 1990)
Administrative History: Regulation .01 amended effective October 16, 2000 (27:20 Md. R. 1841)
Authority: Tax-Property Article, §§2-201 and 2-202, Annotated Code of Maryland

18.02.09 Rezoned Real Property

COMAR 18.02.09.01 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) “Dwelling” has the meaning stated in Tax-Property Article, §8-226(b), Annotated Code of Maryland.

(2) “Homeowner” has the meaning stated in Tax-Property Article, §8-226(b), Annotated Code of Maryland.

(3) “Immediate family” has the meaning stated in COMAR 18.02.01.01D.

(4) “Legal interest” has the meaning stated in Tax-Property Article, §8-226(b), Annotated Code of Maryland.

(5) “Principal residence” means the one location where the user of rezoned real property regularly resides and is the location designated by the user for the legal purposes of voting, obtaining a driver's license, and filing income tax returns.

(6) “Residential use” means use of rezoned real property either as a:

(a) Dwelling; or

(b) Principal residence by a homeowner's immediate family member.

(7) “Rezoned real property” has the meaning stated in Tax-Property Article, §8-226(b), Annotated Code of Maryland.

History

Administrative History: Effective date: June 5, 1995 (22:11 Md. R. 823)
Authority: Tax-Property Article, §§2-201 and 8-227(c), Annotated Code of Maryland

COMAR 18.02.09.02 Payment of Penalty.

A. If a residential use assessment is terminated under Tax-Property Article, §8-228(a), Annotated Code of Maryland, the homeowner who paid taxes based on the residential use assessment shall pay the penalty imposed by Tax-Property Article, §8-228(b), Annotated Code of Maryland.

B. If a part of any rezoned real property is:

(1) Subdivided by a recorded plat, the penalty is due and payable at the time the plat is recorded;

(2) Used for a purpose other than a residential use, the penalty is due and payable at the time the Department determines the other use to have begun; or

(3) Transferred to someone other than an immediate family member of the homeowner, the penalty is due and payable at the time the property is transferred on the assessment books or records.

History

Administrative History: Effective date: June 5, 1995 (22:11 Md. R. 823)
Authority: Tax-Property Article, §§2-201 and 8-227(c), Annotated Code of Maryland

18.02.10 Open Space Easement Valuation

COMAR 18.02.10.01 Valuation.

The value of conservation property subject to a perpetual easement, as defined by Tax-Property Article, §§8-209.1, 8-219, and 9-107, Annotated Code of Maryland, shall be valued at a rate equivalent to the highest rate that is used to value land that is eligible for agricultural use assessment under Tax Property Article, §8–209, Annotated Code of Maryland, and is set forth in COMAR 18.02.03.08.

History

Administrative History: Effective date:
Administrative History: Regulation .01 adopted as an emergency provision effective June 1, 2002 (29:18 Md. R. 1439); adopted permanently effective December 12, 2002 (29:24 Md. R. 1920)
Administrative History: Regulation .01 amended effective October 23, 2006 (33:21 Md. R. 1678); February 16, 2026 (53:3 Md. R.123)
Authority: Tax-Property Article, §§2-201, 2-202, 8-209, 8-209.1, 8-219, and 9-107, Annotated Code of Maryland

18.03.01 General

COMAR 18.03.01.01 Categories and Valuation.

A. Personal property in the State (other than operating property of railroads and public utilities) falls into three classes:

(1) Stock in business or inventory;

(2) Distilled spirits;

(3) All other personal property.

B. Stock in Business.

(1) Stock in business or inventory is goods held by a taxpayer for sale or goods placed on consignment to another for sale. Stock in business does not include goods manufactured by the taxpayer or obtained from others and 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 goods.

(2) Stock in business is assessed at cost or market value, whichever is lower.

(3) In the case of manufacturers who sell some portion of their product at retail, that portion sold at retail is assessed at the cost a retailer would pay for the goods.

(4) Materials and Supplies. All materials and supplies that are consumed in the day-to-day operation of any business shall be treated as inventories of stock and trade. This includes items such as contractors' supplies, office supplies, wrapping paper, and bags used in a mercantile operation. It excludes such items as bottles, cases, and other returnable containers used by soft drink or beer industries, as well as supplies of rental uniform and linen operations.

C. Distilled Spirits. In the valuation and assessment of inventories of distilled spirits of wholesale whiskey businesses, the Maryland Alcoholic Beverage Tax may not be included as part of the inventory value.

D. All Other Personal Property.

(1) Except for operating property of railroads and public utilities and certain distilled spirits, “all other personal property” includes all personal property other than inventory.

(2) “All other personal property” is assessed at full cash value. Taxpayers shall report property which has been acquired by purchase at cost in the year of acquisition. Taxpayers shall report property which has been acquired other than by purchase (including property manufactured by the taxpayer) at what the property would have sold for in the year of acquisition.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .03 amended effective September 19, 1988 (15:19 Md. R. 2248)
Administrative History: Regulation .05 amended effective September 19, 1988 (15:19 Md. R. 2248)
Administrative History: Regulation .05B amended effective June 5, 1995 (22:11 Md. R. 823)
Administrative History: ——————
Administrative History: Chapter revised effective March 11, 1996 (23:5 Md. R. 383)
Administrative History: Regulation .02 amended effective October 31, 2022 (49:22 Md. R. 980)
Administrative History: Regulation .02A amended effective April 24, 2006 (33:8 Md. R. 734)
Administrative History: Regulation .02B amended effective January 1, 1997 (23:25 Md. R. 1786); April 29, 2002 (29:8 Md. R. 701); April 24, 2006 (33:8 Md. R. 734)
Authority: Tax-Property Article, §§2-201, 2-202, 5-101, 8-101(c), and 8-107, Annotated Code of Maryland

COMAR 18.03.01.02 Depreciation.

A. Term Defined. “Salvage value” means the value of personal property after all depreciation under this regulation has been applied.

B. In the assessment of all other personal property under Tax-Property Article, §8-101(c)(7), Annotated Code of Maryland, a 10 percent rate of depreciation per year is applied to the original cost of most property. Exceptions to the 10 percent depreciation rate can be found in §C of this regulation. Personal property may be depreciated to its salvage value.

C. Depreciation Schedule. The following annual rates of depreciation shall be applied to the different types of personal property indicated:

(1) All personal property not otherwise listed in this depreciation schedule shall be depreciated at 10 percent per year;

(2) Except as provided in §C(10) of this regulation, long-lived electric generation machinery and equipment of nonutility entities that generate electricity for sale shall be depreciated at 3-1/3 percent per year;

(3) Vessels (over 100 feet) shall be depreciated at 5 percent per year;

(4) To be depreciated at 20 percent per year:

(a) Mobile telephones;

(b) Heavy equipment (tractors, bulldozers);

(d) Radio and television transmitting equipment;

(e) Music boxes;

(f) Open-air theatre equipment (outdoor equipment, posts, speakers, signs);

(g) Motel and hotel furniture (rooms and lobby);

(h) Self-service laundry equipment;

(i) Theatre seats;

(j) Bowling alley equipment;

(k) Nursing home furniture, fixtures, and equipment (rooms and lobby);

(l) Car wash equipment;

(m) X-ray equipment, brain scanners, and MRI equipment;

(n) Photocopy equipment;

(o) Outdoor Christmas decorations;

(p) Hospital room furniture and equipment;

(q) Rental soda fountain equipment;

(r) Rental pagers;

(s) Model home furnishings;

(t) Stevedore equipment;

(u) Vending machines;

(v) Fax machines;

(w) Mainframe computers originally costing $500,000 or more;

(5) To be depreciated at 30 percent per year:

(a) Data processing equipment other than the type mentioned in §C(4) of this regulation;

(b) Computer software;

(6) Any of the following property owned by equipment rental companies shall be depreciated at 33-1/3 percent per year:

(a) Rental televisions;

(b) Rental stereo and radio equipment;

(7) To be depreciated at 33-1/3 percent per year:

(a) Drapes and shades;

(b) Carpets;

(8) To be depreciated at 50 percent per year:

(a) Pinball machines;

(b) Video games;

(d) Rental uniforms;

(9) 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; and

(10) Personal property of nonutility nuclear power plants shall be depreciated at annual rates as determined by the Department, consistent with licenses and license extensions.

Cross References

18.10.03.01B(3)

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .03 amended effective September 19, 1988 (15:19 Md. R. 2248)
Administrative History: Regulation .05 amended effective September 19, 1988 (15:19 Md. R. 2248)
Administrative History: Regulation .05B amended effective June 5, 1995 (22:11 Md. R. 823)
Administrative History: ——————
Administrative History: Chapter revised effective March 11, 1996 (23:5 Md. R. 383)
Administrative History: Regulation .02 amended effective October 31, 2022 (49:22 Md. R. 980)
Administrative History: Regulation .02A amended effective April 24, 2006 (33:8 Md. R. 734)
Administrative History: Regulation .02B amended effective January 1, 1997 (23:25 Md. R. 1786); April 29, 2002 (29:8 Md. R. 701); April 24, 2006 (33:8 Md. R. 734)
Authority: Tax-Property Article, §§2-201, 2-202, 5-101, 8-101(c), and 8-107, Annotated Code of Maryland

COMAR 18.03.01.03 Possession and Ownership.

If title to personal property is in one person and possession or control of the property in another, as lessee, custodian, consignee, bailee, or otherwise, either the title holder or person in possession or control is considered to be the owner of the property for purpose of property taxation.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .03 amended effective September 19, 1988 (15:19 Md. R. 2248)
Administrative History: Regulation .05 amended effective September 19, 1988 (15:19 Md. R. 2248)
Administrative History: Regulation .05B amended effective June 5, 1995 (22:11 Md. R. 823)
Administrative History: ——————
Administrative History: Chapter revised effective March 11, 1996 (23:5 Md. R. 383)
Administrative History: Regulation .02 amended effective October 31, 2022 (49:22 Md. R. 980)
Administrative History: Regulation .02A amended effective April 24, 2006 (33:8 Md. R. 734)
Administrative History: Regulation .02B amended effective January 1, 1997 (23:25 Md. R. 1786); April 29, 2002 (29:8 Md. R. 701); April 24, 2006 (33:8 Md. R. 734)
Authority: Tax-Property Article, §§2-201, 2-202, 5-101, 8-101(c), and 8-107, Annotated Code of Maryland

COMAR 18.03.01.04 Exempt Federal Facilities.

Personal property owned by any person and permanently located on the following federal facilities is exempt from taxation:

A. Aberdeen Proving Grounds;

B. Andrews Air Force Base;

C. Bainbridge Naval Training Center;

D. National Naval Medical Center, Bethesda;

E. Camp Detrick;

F. Census Bureau, Suitland;

G. Cheltenham, U. S. Navy;

H. Custom House, Gay and Lombard Streets;

I. Department of Agriculture, Beltsville;

J. Edgewood Arsenal;

K. Fort Howard Hospital;

L. Fort McHenry;

M. Fort Meade;

N. Goddard Space, Beltsville;

O. Indian Head Naval Ordinance;

P. National Institutes of Health;

Q. Naval Academy;

R. Naval Support Center, Suitland;

S. Oceanographic Center, Suitland;

T. Patuxent River Naval Air Warfare Center;

U. Perry Point Hospital;

V. Public Health Service Hospital, Wyman Park;

W. U.S. Coast Guard, Curtis Bay.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .03 amended effective September 19, 1988 (15:19 Md. R. 2248)
Administrative History: Regulation .05 amended effective September 19, 1988 (15:19 Md. R. 2248)
Administrative History: Regulation .05B amended effective June 5, 1995 (22:11 Md. R. 823)
Administrative History: ——————
Administrative History: Chapter revised effective March 11, 1996 (23:5 Md. R. 383)
Administrative History: Regulation .02 amended effective October 31, 2022 (49:22 Md. R. 980)
Administrative History: Regulation .02A amended effective April 24, 2006 (33:8 Md. R. 734)
Administrative History: Regulation .02B amended effective January 1, 1997 (23:25 Md. R. 1786); April 29, 2002 (29:8 Md. R. 701); April 24, 2006 (33:8 Md. R. 734)
Authority: Tax-Property Article, §§2-201, 2-202, 5-101, 8-101(c), and 8-107, Annotated Code of Maryland

18.03.02 Filings

COMAR 18.03.02.01 Annual Report.

Annual reports required to be filed with the State Department of Assessments and Taxation, pursuant to the provisions of Tax-Property Article, §11-101, Annotated Code of Maryland, shall be submitted to the Department on a form generated by the Department, on a substantially similar form, or through an approved online filing system. The signature of the person signing the report shall be an original inked signature, an exact copy of an original inked signature, or an electronic signature acceptable to the Department under Commercial Law Article, §21-117, Annotated Code of Maryland.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended effective March 11, 1996 (23:5 Md. R. 383); February 16, 2015 (42:3 Md. R. 318); December 12, 2022 (49:25 Md. R. 1050)
Authority: Tax-Property Article, §§2-201, 2-202, and 11-101, Annotated Code of Maryland

18.03.03 Penalties

COMAR 18.03.03.01 Good Cause.

A. Definition of Good Cause.

(1) “Good cause” means:

(a) A serious medical or health condition which causes an annual report to be filed late;

(b) A penalty which is unjustly excessive;

(d) A taxpayer has filed timely annual reports for each of the 4 preceding taxable years, provided that the report is filed by December 31 of the calendar year in which it is due; or

(e) Any other extraordinary circumstance which a person of ordinary business prudence and intelligence would consider reasonable cause for an annual report to be filed late.

(2) “Good cause” does not mean failure:

(a) To receive an annual report form;

(b) Of an agent or employee of a taxpayer to file a timely annual report; or

B. The excusing conditions in this regulation shall have been experienced by the person who prepares the annual report, so that the report could not have been timely filed. Additionally, it shall be shown that no one other than the person experiencing the condition could have prepared the report.

C. The Department may abate or reduce a penalty imposed under Tax-Property Article, §14-704, Annotated Code of Maryland, for good cause shown.

History

Administrative History: Effective date: July 29, 1985 (12:15 Md. R. 1528)
Administrative History: Regulation .01 amended effective January 1, 1996 (22:26 Md. R. 2030)
Administrative History: Regulation .01A amended effective July 3, 2006 (33:13 Md. R. 1065)
Administrative History: Regulation .02 adopted effective June 30, 1986 (13:13 Md. R. 1496)
Administrative History: Regulation .02 repealed and new Regulation .02 adopted effective March 11, 1996 (23:5 Md. R. 383)
Authority: Tax-Property Article, §§2-201, 2-202, 11-101, and 14-704, Annotated Code of Maryland

COMAR 18.03.03.02 Timely Filing—Wrong Office.

An annual report that is filed with the wrong Departmental office, but is timely filed, is not considered untimely filed.

History

Administrative History: Effective date: July 29, 1985 (12:15 Md. R. 1528)
Administrative History: Regulation .01 amended effective January 1, 1996 (22:26 Md. R. 2030)
Administrative History: Regulation .01A amended effective July 3, 2006 (33:13 Md. R. 1065)
Administrative History: Regulation .02 adopted effective June 30, 1986 (13:13 Md. R. 1496)
Administrative History: Regulation .02 repealed and new Regulation .02 adopted effective March 11, 1996 (23:5 Md. R. 383)
Authority: Tax-Property Article, §§2-201, 2-202, 11-101, and 14-704, Annotated Code of Maryland

18.03.04 Banks or Trust Companies

COMAR 18.03.04.01 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) “Bank or trust company” has the meaning stated in Tax-Property Article, §7-221.1, Annotated Code of Maryland.

(2) Computer Hardware.

(a) “Computer hardware” means electronic equipment connected to a computer that is used for the entry, organization, manipulation, or viewing of data.

(b) “Computer hardware” includes monitors, keyboards, cables, central processing units, servers, mainframes, personal computers, printers, automated teller machines, check readers, and check sorters.

(3) “Computer program” has the meaning stated in Tax-General Article, §11-225, Annotated Code of Maryland.

(4) Word Processing.

(a) “Word processing” means the production of documents by use of computer hardware and software.

(b) “Word processing” does not include the production of documents that reflect, or are directly generated by, deposit or loan account activity.

History

Administrative History: Effective date:
Administrative History: Regulations .01—.04 adopted as an emergency provision effective March 16, 1996 (23:7 Md. R. 549); emergency status expired October 1, 1996; adopted permanently effective January 13, 1997 (24:1 Md. R. 30)
Authority: Tax-Property Article, §§2-201, 2-202, and 7-221.1, Annotated Code of Maryland

COMAR 18.03.04.02 Taxable Property.

A computer program or computer hardware used by a bank or trust company in connection with word processing is subject to valuation and property tax.

History

Administrative History: Effective date:
Administrative History: Regulations .01—.04 adopted as an emergency provision effective March 16, 1996 (23:7 Md. R. 549); emergency status expired October 1, 1996; adopted permanently effective January 13, 1997 (24:1 Md. R. 30)
Authority: Tax-Property Article, §§2-201, 2-202, and 7-221.1, Annotated Code of Maryland

COMAR 18.03.04.03 Exempt Property.

A computer program or computer hardware owned and used by a bank or trust company in connection with the processing of deposits or loans is not subject to valuation or property tax.

History

Administrative History: Effective date:
Administrative History: Regulations .01—.04 adopted as an emergency provision effective March 16, 1996 (23:7 Md. R. 549); emergency status expired October 1, 1996; adopted permanently effective January 13, 1997 (24:1 Md. R. 30)
Authority: Tax-Property Article, §§2-201, 2-202, and 7-221.1, Annotated Code of Maryland

COMAR 18.03.04.04 Mixed Use.

If a computer program or computer hardware owned by a bank or trust company is used in both taxable and exempt activities, its taxable status is determined by the primary use of the property.

History

Administrative History: Effective date:
Administrative History: Regulations .01—.04 adopted as an emergency provision effective March 16, 1996 (23:7 Md. R. 549); emergency status expired October 1, 1996; adopted permanently effective January 13, 1997 (24:1 Md. R. 30)
Authority: Tax-Property Article, §§2-201, 2-202, and 7-221.1, Annotated Code of Maryland

18.03.05 Manufacturing Processes

COMAR 18.03.05.01 General.

Under Tax-Property Article, §§7-108, 7-109, and 7-225, Annotated Code of Maryland, counties and municipalities are authorized to exempt from local taxation personal property used in a manufacturing process. There are three general activities that encompass the overall manufacturing process, each of which qualifies for the exemption. Each activity may exist without the others being present. These activities are research, development, and manufacturing.

History

Administrative History: Effective date: April 19, 1999 (26:8 Md. R. 619)
Authority: Tax-Property Article, §§1-101(r), 2-201, 2-202, 7-108, 7-109, and 7-225, Annotated Code of Maryland

COMAR 18.03.05.02 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) Development.

(a) “Development” means the design, development, and governmentally required premarket testing of prototypes, products, and processes, which involves the translation of research findings or other knowledge into a plan or design for a new product, process, or technique for a business or for a significant improvement to an existing product, process, or technique whether intended for sale or use.

(b) “Development” includes:

(i) The conceptual formulation and design of product alternatives;

(ii) Construction of prototypes; and

(iii) Operation of pilot plants.

(i) Routine or periodic alterations to existing products, production lines, manufacturing, and other ongoing operations, even though those alterations may represent improvements;

(ii) Routine product testing activities, except for governmentally required premarket testing; or

(iii) Activities that are primarily a service, or development activities of a public utility.

(2) Manufacturing.

(a) “Manufacturing” means the process of substantially transforming, or a substantial step in the process of substantially transforming, tangible personal property into a new and different article of tangible personal property by use of labor or machinery, converting a tangible raw material into a tangible product.

(b) “Manufacturing” includes, pursuant to Tax-Property Article, §1-101(r), Annotated Code of Maryland:

(i) The operation of sawmills, grain mills, or feed mills;

(ii) Mining;

(iii) The identification, design, or genetic engineering of biological materials; and

(iv) The design, development, or creation of computer software for sale, lease, or license.

(i) Activities that are primarily a service;

(ii) Activities that are intellectual, artistic, or clerical in nature; or

(iii) Public utility services.

(3) Research.

(a) “Research” means basic and applied research in the sciences and engineering, involving a planned search or critical investigation aimed at discovery of new knowledge with the hope that this knowledge will be useful in developing a new product, process, or technique for the business or in bringing about a significant improvement to an existing product, process, or technique.

(b) “Research” does not include:

(i) Market research;

(ii) Research of a public utility; or

(iii) Research in the social sciences, psychology, or other nontechnical activities.

History

Administrative History: Effective date: April 19, 1999 (26:8 Md. R. 619)
Authority: Tax-Property Article, §§1-101(r), 2-201, 2-202, 7-108, 7-109, and 7-225, Annotated Code of Maryland

COMAR 18.03.05.03 Substantial Step.

When a manufacturing operation is performed by different businesses, the activity of any one business is considered manufacturing only if it represents a substantial step in the overall operation.

History

Administrative History: Effective date: April 19, 1999 (26:8 Md. R. 619)
Authority: Tax-Property Article, §§1-101(r), 2-201, 2-202, 7-108, 7-109, and 7-225, Annotated Code of Maryland

COMAR 18.03.05.04 Secondary Factors.

A. When it is not clear whether a raw material has undergone a substantial transformation, the Department will consider secondary factors in determining whether manufacturing has occurred.

B. Secondary factors include:

(1) The scale and character of the operation;

(2) The number of employees; and

(3) Whether the nature of the operation is consistent with the common understanding of the term “manufacturing”.

History

Administrative History: Effective date: April 19, 1999 (26:8 Md. R. 619)
Authority: Tax-Property Article, §§1-101(r), 2-201, 2-202, 7-108, 7-109, and 7-225, Annotated Code of Maryland

COMAR 18.03.05.05 Application Required.

A business shall file a completed exemption application before an exemption will be approved by the Department.

History

Administrative History: Effective date: April 19, 1999 (26:8 Md. R. 619)
Authority: Tax-Property Article, §§1-101(r), 2-201, 2-202, 7-108, 7-109, and 7-225, Annotated Code of Maryland

18.03.06 Small Businesses

COMAR 18.03.06.01 Definition of Principal Residence.

“Principal residence” means the one location where an individual regularly resides and is the location designated by the individual for the legal purpose of voting, obtaining a driver's license, and filing income tax returns.

History

Administrative History: Effective date: April 19, 1999 (26:8 Md. R. 619)
Administrative History: Regulation .02 amended effective December 12, 2022 (49:25 Md. R. 1050)
Authority: Tax-Property Article, §§2-201, 2-202, and 7-227, Annotated Code of Maryland

COMAR 18.03.06.02 Criteria for Exemption.

To qualify for the small business personal property exemption under Tax-Property Article, §7-227, Annotated Code of Maryland, the following criteria shall be met:

A. The business personal property shall be owned by an individual and used in connection with a business, occupation, or profession that is a sole proprietorship;

B. The business personal property for which the exemption is claimed shall be located at the individual's principal residence which is also the principal place of business of the sole proprietorship; and

C. The total original cost of all business personal property owned by the individual, excluding vehicles exempt under Tax-Property Article, §7-230, Annotated Code of Maryland, shall be as provided by Tax-Property Article, §7-227, Annotated Code of Maryland.

History

Administrative History: Effective date: April 19, 1999 (26:8 Md. R. 619)
Administrative History: Regulation .02 amended effective December 12, 2022 (49:25 Md. R. 1050)
Authority: Tax-Property Article, §§2-201, 2-202, and 7-227, Annotated Code of Maryland

18.04.01 Information Provided by the Department

COMAR 18.04.01.01 Information Provided.

The Department will provide the following information:

A. In answer to written or telephoned requests, the Department will provide free of charge the following information for domestic corporations, limited partnerships, limited liability partnerships, limited liability companies, and any other organization which is required to file its original organizational document or trade name with the Department:

(1) Address of principal office;

(2) Date of incorporation or date of filing the certificate of limited partnership, the certificate of limited liability partnership, the articles of organization of a limited liability company, any other original organizational document, or the trade name certificate;

(3) Resident agent for service, or for business entities that have filed a trade name certificate, the names and addresses of the principal or owner.

B. In answer to written or telephoned requests, the Department will provide free of charge the following information for foreign corporations, limited partnerships, limited liability partnerships, limited liability companies, and other foreign organizations which are required to qualify or register with the Department:

(1) Address of principal office;

(2) Date of qualification or registration;

(3) Resident agent for service.

C. In answer to written requests, the Department will provide free of charge information as to availability of trade names and names for corporations, limited partnerships, limited liability partnerships, and limited liability companies.

D. On written request and accompanied by a fee, the Department will prepare and forward an abstract comprising the items listed above, and, in addition:

(1) The names of corporate officers and directors as listed on the most recent report filed with the Department, if available;

(2) Whether the corporation is delinquent as to filing required reports;

(3) Whether a domestic corporation has had its charter forfeited, or whether a foreign corporation has had its qualification or registration withdrawn or forfeited, and the dates of these proceedings;

(4) Whether a domestic corporation, limited partnership, limited liability partnership, limited liability company, or other domestic organization which is required to file its original organizational document with the Department, has been dissolved, has had its certificate withdrawn or has merged into another organization, and the dates of these proceedings;

(5) Whether a foreign corporation, limited partnership, limited liability partnership, limited liability company, or other foreign organization which is required to qualify or register with the Department, has had its qualification or registration withdrawn or cancelled or has been merged into another organization, and the dates of these proceedings.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended effective November 7, 1983 (10:22 Md. R. 1968); August 28, 1995 (22:17 Md. R. 1320); September 21, 1998 (25:19 Md. R. 1496)
Administrative History: Regulation .02 adopted effective June 4, 1999 (26:12 Md. R. 926)
Authority: Tax-Property Article, §2-201; Corporations and Associations Article, §1-406; Annotated Code of Maryland

COMAR 18.04.01.02 Certificates and Certified Copies.

When the Department provides certificates or certified copies, the signature of the custodian or other person authorized to make certification for the Department and the Department's official seal may be originally produced on a computer-generated printed form approved by the Department.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended effective November 7, 1983 (10:22 Md. R. 1968); August 28, 1995 (22:17 Md. R. 1320); September 21, 1998 (25:19 Md. R. 1496)
Administrative History: Regulation .02 adopted effective June 4, 1999 (26:12 Md. R. 926)
Authority: Tax-Property Article, §2-201; Corporations and Associations Article, §1-406; Annotated Code of Maryland

18.04.02 Name Availability

COMAR 18.04.02.01 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) “Distinctive” means a comparison of two written entity names that reveals the presence of a letter or numeral in one that is not in the other, subject to Regulations .03 and .04 of this chapter.

(2) “Distinguishable upon the Department's records” means that an entity name must be distinctive from the following names on record with the Department:

(a) Names of other active entities;

(b) Active trade names;

(d) Registered names; and

(e) Disclosed assumed names of foreign entities.

(3) “Entity” includes those business organizations stated in Corporations and Associations Article, §1-501, Annotated Code of Maryland.

(4) “Tail” means those words, or their abbreviations, that must be included in an entity's name under Corporations and Associations Article, §1-502, Annotated Code of Maryland.

(5) “Trade name” means a name, title, or designation filed with the Department under Corporations and Associations Article, §1-406, Annotated Code of Maryland.

History

Administrative History: Effective date: January 2, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended effective February 13, 1984 (11:3 Md. R. 204)
Administrative History: Regulation .01D amended effective May 21, 1984 (11:10 Md. R. 864)
Administrative History: Regulation .01Q, R adopted effective September 4, 1989 (16:17 Md. R. 1887)
Administrative History: Regulation .02 adopted effective September 27, 1982 (9:19 Md. R. 1896)
Administrative History: Regulation .02 amended effective September 4, 1989 (16:17 Md. R. 1887)
Administrative History: Regulation .03 adopted effective March 24, 1986 (13:6 Md. R. 684)
Administrative History: ——————
Administrative History: Regulations .01—.03 repealed and new Regulations .01—.12 adopted effective February 3, 1992 (19:2 Md. R. 156)
Administrative History: Chapter revised effective March 11, 1996 (23:5 Md. R. 383)
Administrative History: Regulation .01B amended effective April 21, 1997 (24:8 Md. R. 617)
Administrative History: Regulation .04B-4 adopted effective April 21, 1997 (24:8 Md. R. 617)
Administrative History: ——————
Administrative History: Regulations .01—.12 repealed and new Regulations .01—.06 adopted effective December 14, 1998 (25:25 Md. R. 1834)
Administrative History: Regulation .04B amended effective December 12, 2022 (49:25 Md. R. 1050)
Authority: Corporations and Associations Article, §§1-406, 1-508, 2-106, 4A-208, 4A-1004, 5-106, 7-101, 7-203, 9A-1003, 9A-1004, 9A-1103,10-102, and 10-103; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.02.02 Entity Names.

An entity name shall be distinguishable upon the Department's records from:

A. The entity name of an entity organized or authorized to transact business in the State;

B. An entity name reserved or registered under Corporations and Associations Article, Title 1, Subtitle 5, Annotated Code of Maryland; and

C. The disclosed assumed name adopted by a foreign entity authorized to transact business in this State.

History

Administrative History: Effective date: January 2, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended effective February 13, 1984 (11:3 Md. R. 204)
Administrative History: Regulation .01D amended effective May 21, 1984 (11:10 Md. R. 864)
Administrative History: Regulation .01Q, R adopted effective September 4, 1989 (16:17 Md. R. 1887)
Administrative History: Regulation .02 adopted effective September 27, 1982 (9:19 Md. R. 1896)
Administrative History: Regulation .02 amended effective September 4, 1989 (16:17 Md. R. 1887)
Administrative History: Regulation .03 adopted effective March 24, 1986 (13:6 Md. R. 684)
Administrative History: ——————
Administrative History: Regulations .01—.03 repealed and new Regulations .01—.12 adopted effective February 3, 1992 (19:2 Md. R. 156)
Administrative History: Chapter revised effective March 11, 1996 (23:5 Md. R. 383)
Administrative History: Regulation .01B amended effective April 21, 1997 (24:8 Md. R. 617)
Administrative History: Regulation .04B-4 adopted effective April 21, 1997 (24:8 Md. R. 617)
Administrative History: ——————
Administrative History: Regulations .01—.12 repealed and new Regulations .01—.06 adopted effective December 14, 1998 (25:25 Md. R. 1834)
Administrative History: Regulation .04B amended effective December 12, 2022 (49:25 Md. R. 1050)
Authority: Corporations and Associations Article, §§1-406, 1-508, 2-106, 4A-208, 4A-1004, 5-106, 7-101, 7-203, 9A-1003, 9A-1004, 9A-1103,10-102, and 10-103; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.02.03 Distinctive Factors.

A. In addition to the requirements of the other regulations of this chapter, when two entities are not in the same category of business organization, that is, corporation, limited partnership, limited liability company, etc., and the only difference between their names is the tails, the names are distinctive.

B. Example: “JGB Corp.” is distinctive from “JGB LLC” or “JGB Limited Partnership”.

History

Administrative History: Effective date: January 2, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended effective February 13, 1984 (11:3 Md. R. 204)
Administrative History: Regulation .01D amended effective May 21, 1984 (11:10 Md. R. 864)
Administrative History: Regulation .01Q, R adopted effective September 4, 1989 (16:17 Md. R. 1887)
Administrative History: Regulation .02 adopted effective September 27, 1982 (9:19 Md. R. 1896)
Administrative History: Regulation .02 amended effective September 4, 1989 (16:17 Md. R. 1887)
Administrative History: Regulation .03 adopted effective March 24, 1986 (13:6 Md. R. 684)
Administrative History: ——————
Administrative History: Regulations .01—.03 repealed and new Regulations .01—.12 adopted effective February 3, 1992 (19:2 Md. R. 156)
Administrative History: Chapter revised effective March 11, 1996 (23:5 Md. R. 383)
Administrative History: Regulation .01B amended effective April 21, 1997 (24:8 Md. R. 617)
Administrative History: Regulation .04B-4 adopted effective April 21, 1997 (24:8 Md. R. 617)
Administrative History: ——————
Administrative History: Regulations .01—.12 repealed and new Regulations .01—.06 adopted effective December 14, 1998 (25:25 Md. R. 1834)
Administrative History: Regulation .04B amended effective December 12, 2022 (49:25 Md. R. 1050)
Authority: Corporations and Associations Article, §§1-406, 1-508, 2-106, 4A-208, 4A-1004, 5-106, 7-101, 7-203, 9A-1003, 9A-1004, 9A-1103,10-102, and 10-103; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.02.04 Nondistinctive Factors.

A. In addition to the requirements of other regulations of this chapter, presence or absence of the following factors or words do not make an entity name distinctive from one on record.

B. Factors, Words, Letters, or Punctuation.

(1) Tails Between Similar Organizations.

(a) When two entities are in the same category of business organization, that is, corporation, limited partnership, limited liability company, etc., and the only difference between their names is the tails, the names are not distinctive.

(b) Example: “WYZ Corp.” is not distinctive from “WYZ, Inc.” or “WYZ Limited”.

(2) Spacing.

(a) When the only difference between two entity names is the presence or absence of a space, the names are not distinctive.

(b) Example: “Maryland LLLP” is not distinctive from Mary land LLLP".

(3) Case Sensitivity.

(a) When the only difference between two entity names is the presence or absence of lower or uppercase letters, the names are not distinctive.

(b) Example: “Smith Chartered” is not distinctive from “SMIth Chartered”.

(4) “And”, “The”, “An”, “Or”, and “Of”.

(a) When the only difference between two entity names is the presence or absence of the words “And”, “The”, “An”, “Or”, or “Of”, the names are not distinctive.

(b) Examples: “The ABC, Inc.” is not distinctive from “ABC, Inc.”; “A or B LLLP” is not distinctive from “AB LLLP”.

(5) Use of “A”.

(a) When the only difference between two entity names is the presence or absence of the letter “A” where “A” is used as an indefinite article, the names are not distinctive.

(b) Example: “A Dog’s Life LLC” is not distinctive from “Dog’s Life LLC”.

(6) Punctuation.

(a) When the only difference between two entity names is the presence or absence of punctuation, the names are not distinctive.

(b) Example: “The EFG, LLC” is not distinctive from “The EFG LLC”.

History

Administrative History: Effective date: January 2, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended effective February 13, 1984 (11:3 Md. R. 204)
Administrative History: Regulation .01D amended effective May 21, 1984 (11:10 Md. R. 864)
Administrative History: Regulation .01Q, R adopted effective September 4, 1989 (16:17 Md. R. 1887)
Administrative History: Regulation .02 adopted effective September 27, 1982 (9:19 Md. R. 1896)
Administrative History: Regulation .02 amended effective September 4, 1989 (16:17 Md. R. 1887)
Administrative History: Regulation .03 adopted effective March 24, 1986 (13:6 Md. R. 684)
Administrative History: ——————
Administrative History: Regulations .01—.03 repealed and new Regulations .01—.12 adopted effective February 3, 1992 (19:2 Md. R. 156)
Administrative History: Chapter revised effective March 11, 1996 (23:5 Md. R. 383)
Administrative History: Regulation .01B amended effective April 21, 1997 (24:8 Md. R. 617)
Administrative History: Regulation .04B-4 adopted effective April 21, 1997 (24:8 Md. R. 617)
Administrative History: ——————
Administrative History: Regulations .01—.12 repealed and new Regulations .01—.06 adopted effective December 14, 1998 (25:25 Md. R. 1834)
Administrative History: Regulation .04B amended effective December 12, 2022 (49:25 Md. R. 1050)
Authority: Corporations and Associations Article, §§1-406, 1-508, 2-106, 4A-208, 4A-1004, 5-106, 7-101, 7-203, 9A-1003, 9A-1004, 9A-1103,10-102, and 10-103; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.02.05 Trade Names.

A. Trade names may include a tail.

B. If a trade name includes a tail, then it is subject to the regulations of this chapter applying to the category of business organization indicated by the tail. (Example: The trade name “ABC, Inc.” is distinctive from “ABC LP”, but not distinctive from “ABC Limited”).

C. If a trade name does not include a tail and the only difference between it and another entity name is a tail, the names are distinctive. (Example: The trade name “ABC” is distinctive from “ABC, Inc.”).

D. If a trade name does not include a tail and is being compared to another trade name without a tail, the regulations of this chapter apply. (Example: The trade name “ABC” is distinctive from the trade name “ABC Supplies”, but not distinctive from “The Abc”).

History

Administrative History: Effective date: January 2, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended effective February 13, 1984 (11:3 Md. R. 204)
Administrative History: Regulation .01D amended effective May 21, 1984 (11:10 Md. R. 864)
Administrative History: Regulation .01Q, R adopted effective September 4, 1989 (16:17 Md. R. 1887)
Administrative History: Regulation .02 adopted effective September 27, 1982 (9:19 Md. R. 1896)
Administrative History: Regulation .02 amended effective September 4, 1989 (16:17 Md. R. 1887)
Administrative History: Regulation .03 adopted effective March 24, 1986 (13:6 Md. R. 684)
Administrative History: ——————
Administrative History: Regulations .01—.03 repealed and new Regulations .01—.12 adopted effective February 3, 1992 (19:2 Md. R. 156)
Administrative History: Chapter revised effective March 11, 1996 (23:5 Md. R. 383)
Administrative History: Regulation .01B amended effective April 21, 1997 (24:8 Md. R. 617)
Administrative History: Regulation .04B-4 adopted effective April 21, 1997 (24:8 Md. R. 617)
Administrative History: ——————
Administrative History: Regulations .01—.12 repealed and new Regulations .01—.06 adopted effective December 14, 1998 (25:25 Md. R. 1834)
Administrative History: Regulation .04B amended effective December 12, 2022 (49:25 Md. R. 1050)
Authority: Corporations and Associations Article, §§1-406, 1-508, 2-106, 4A-208, 4A-1004, 5-106, 7-101, 7-203, 9A-1003, 9A-1004, 9A-1103,10-102, and 10-103; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.02.06 Foreign Entity Assumed Names.

Assumed names for foreign entities are permitted when that entity's name is not available. When an assumed name is used, it shall include a tail consistent with the foreign entity's category of business organization, and is subject to the regulations of this chapter.

History

Administrative History: Effective date: January 2, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended effective February 13, 1984 (11:3 Md. R. 204)
Administrative History: Regulation .01D amended effective May 21, 1984 (11:10 Md. R. 864)
Administrative History: Regulation .01Q, R adopted effective September 4, 1989 (16:17 Md. R. 1887)
Administrative History: Regulation .02 adopted effective September 27, 1982 (9:19 Md. R. 1896)
Administrative History: Regulation .02 amended effective September 4, 1989 (16:17 Md. R. 1887)
Administrative History: Regulation .03 adopted effective March 24, 1986 (13:6 Md. R. 684)
Administrative History: ——————
Administrative History: Regulations .01—.03 repealed and new Regulations .01—.12 adopted effective February 3, 1992 (19:2 Md. R. 156)
Administrative History: Chapter revised effective March 11, 1996 (23:5 Md. R. 383)
Administrative History: Regulation .01B amended effective April 21, 1997 (24:8 Md. R. 617)
Administrative History: Regulation .04B-4 adopted effective April 21, 1997 (24:8 Md. R. 617)
Administrative History: ——————
Administrative History: Regulations .01—.12 repealed and new Regulations .01—.06 adopted effective December 14, 1998 (25:25 Md. R. 1834)
Administrative History: Regulation .04B amended effective December 12, 2022 (49:25 Md. R. 1050)
Authority: Corporations and Associations Article, §§1-406, 1-508, 2-106, 4A-208, 4A-1004, 5-106, 7-101, 7-203, 9A-1003, 9A-1004, 9A-1103,10-102, and 10-103; Tax-Property Article, §2-201; Annotated Code of Maryland

18.04.03 Good Standing Status

COMAR 18.04.03.01 Criteria to Maintain Good Standing with the Department.

A. In order to be in good standing with the Department, the requirements of §§A-1—H of this regulation shall be met.

A-1. Domestic Corporations.

(1) Articles of Incorporation shall be on file with the Department.

(2) The name and address of a resident agent for the corporation shall be on file with the Department.

(3) The corporation shall have filed all annual reports required by Tax-Property Article, §11-101, Annotated Code of Maryland.

(4) The corporation shall have paid all penalties imposed under Tax-Property Article, §14-704, Annotated Code of Maryland.

(5) The charter of the corporation may not be forfeited.

(6) The corporation may not be dissolved.

(7) The corporation may not have merged out of existence or consolidated or converted.

B. Foreign Corporations.

(1) The corporation shall have duly registered or qualified to do interstate, intrastate, or foreign business with the Department.

(2) The name and address of a resident agent for the corporation shall be on file with the Department.

(3) The corporation shall have filed all annual reports required by Tax-Property Article, §11-101, Annotated Code of Maryland.

(4) The corporation shall have paid all fines and penalties imposed by Tax-Property Article, §14-704, Annotated Code of Maryland, and the Corporations and Associations Article, §§7-302 and 7-303, Annotated Code of Maryland.

(5) The corporation's right to do business in Maryland cannot have been forfeited or its registration or qualification rendered ineffective.

(6) The corporation may not have terminated its registration or qualification.

(7) The corporation may not have merged out of existence or consolidated or converted.

C. Domestic Limited Partnerships.

(1) A certificate of limited partnership shall be on file with the Department.

(2) The name and address of a resident agent shall be on file with the Department.

(3) Annual reports required by Tax-Property Article, §11-101, Annotated Code of Maryland, shall be filed with the Department.

(4) Late filing penalties imposed under Tax-Property Article, §14-704, Annotated Code of Maryland, shall be paid.

(5) The limited partnership's right to use its name and do business in Maryland may not have been forfeited.

(6) The limited partnership may not have filed a certificate of cancellation.

(7) The limited partnership may not be merged out of existence or converted.

D. Foreign Limited Partnerships.

(1) An application for registration shall be on file with the Department.

(2) Annual reports required by Tax-Property Article, §11-101, Annotated Code of Maryland, shall be filed with the Department.

(3) The name and address of a resident agent shall be on file with the Department.

(4) All late filing penalties imposed under Tax-Property Article, §14-704, Annotated Code of Maryland, shall be paid.

(5) The limited partnership's right to use its name and do business in Maryland may not have been forfeited.

(6) The limited partnership may not have filed a certificate of cancellation.

(7) The limited partnership may not be merged out of existence or converted.

E. Domestic Limited Liability Companies.

(1) Articles of organization shall be on file with the Department.

(2) The name and address of a resident agent shall be on file with the Department.

(3) Annual reports required by Tax-Property Article, §11-101, Annotated Code of Maryland, shall be filed with the Department.

(4) Late filing penalties imposed under Tax-Property Article, §14-704, Annotated Code of Maryland, shall be paid.

(5) The company's right to use its name and do business in Maryland may not have been forfeited.

(6) The company may not have filed articles of cancellation.

(7) The company may not be merged out of existence or converted.

F. Foreign Limited Liability Companies.

(1) An application for registration shall be on file with the Department.

(2) The name and address of a resident agent shall be on file with the Department.

(3) Annual reports required by Tax-Property Article, §11-101, Annotated Code of Maryland, shall be filed with the Department.

(4) Late filing penalties imposed by Tax-Property Article, §14-704, Annotated Code of Maryland, shall be paid.

(5) The company's right to use its name and do business in Maryland may not have been forfeited.

(6) The company may not have filed a certificate of cancellation.

(7) The company may not be merged out of existence or converted.

G. Domestic Limited Liability Partnerships.

(1) A certificate of limited liability partnership shall be on file with the Department.

(2) The name and address of a resident agent shall be on file with the Department.

(3) Annual reports required by Tax-Property Article, §11-101, Annotated Code of Maryland, shall be filed with the Department.

(4) Late filing penalties imposed under Tax-Property Article, §14-704, Annotated Code of Maryland, shall be paid.

(5) The partnership's right to use its name and do business in Maryland may not have been forfeited.

(6) The partnership may not have filed a withdrawal notice.

(7) The limited liability partnership may not be merged out of existence or converted.

H. Foreign Limited Liability Partnerships.

(1) An application for registration shall be on file with the Department.

(2) The name and address of a resident agent shall be on file with the Department.

(3) Annual reports required by Tax-Property Article, §11-101, Annotated Code of Maryland, shall be filed with the Department.

(4) Late filing penalties imposed under Tax-Property Article, §14-704, Annotated Code of Maryland, shall be paid.

(5) The partnership's right to do business in Maryland may not have been forfeited.

(6) The partnership may not have filed a certificate of cancellation.

(7) The limited liability partnership may not be merged out of existence or converted.

Cross References

10.09.36.03I(2)

History

Administrative History: Effective date: September 27, 1982 (9:19 Md. R. 1896)
Administrative History: Regulation .01 amended effective March 11, 1996 (23:5 Md. R. 383); November 5, 2018 (45:22 Md. R. 1027)
Authority: Tax-Property Article, §§2-201, 4-207, and 12-101, Annotated Code of Maryland

COMAR 18.04.04 Administration of Maryland Revised Uniform Limited Partnership Act [Repealed]

History

Administrative History: Effective date: November 7, 1983 (10:22 Md. R. 1968)
Administrative History: Regulation .01 amended effective July 15, 1985 (12:14 Md. R. 1433)
Administrative History: Regulation .02 adopted effective February 9, 1987 (14:3 Md. R. 274)
Administrative History: Regulation .02 repealed effective January 15, 1996 (23:1 Md. R. 35)
Administrative History: ——————
Administrative History: Chapter repealed effective November 5, 2018 (45:22 Md. R. 1028)

18.04.05 Revival or Reinstatement of Entity Charters or Authority to Do Business

COMAR 18.04.05.01 Entity.

In this chapter, “entity” means corporation, limited liability company, limited liability partnership, limited partnership, limited liability limited partnership, statutory trust, or professional corporation.

History

Administrative History: Effective date: August 13, 1984 (11:16 Md. R. 1394)
Administrative History: Regulation .01 amended and recodified to Regulation .02, and new Regulation .01 adopted effective September 21, 1998 (25:19 Md. R. 1496)
Administrative History: Regulation .01 amended effective November 5, 2018 (45:22 Md. R. 1028)
Administrative History: Regulation .02 amended effective December 12, 2022 (49:25 Md. R. 1051)
Authority: Tax-Property Article, §§2-201 and 2-202, Annotated Code of Maryland

COMAR 18.04.05.02 Evidence of Tax Payment.

In order for the Department to accept articles of revival, reinstatement, or a certificate of reinstatement for an entity, there shall be confirmation of personal property tax payment, acceptable to the Department, from each subdivision of Maryland where assessments on personal property have been certified.

History

Administrative History: Effective date: August 13, 1984 (11:16 Md. R. 1394)
Administrative History: Regulation .01 amended and recodified to Regulation .02, and new Regulation .01 adopted effective September 21, 1998 (25:19 Md. R. 1496)
Administrative History: Regulation .01 amended effective November 5, 2018 (45:22 Md. R. 1028)
Administrative History: Regulation .02 amended effective December 12, 2022 (49:25 Md. R. 1051)
Authority: Tax-Property Article, §§2-201 and 2-202, Annotated Code of Maryland

18.04.06 Transfers of Real Property

COMAR 18.04.06.01 Evidence of Tax Payment.

A. A document required to be filed with the Department which transfers title to an interest in real property located in Maryland may not be accepted for record unless all:

(1) Public taxes, assessments, and charges due on the real property have been paid to the treasurer, tax collector, or director of finance of the county in which the real property is assessed, as required by law; and

(2) Taxes on personal property in the county due by the transferor have been paid when all land owned by the transferor in the county is being transferred, as required by law.

B. Documents covered by this regulation include, but are not limited to:

(1) Articles of merger;

(2) Articles of consolidation; or

(3) Other documents which evidence a consolidation or merger of foreign corporations, foreign limited partnerships, foreign limited liability partnerships, foreign limited liability companies, or other foreign organizations.

C. An affidavit of tax payment signed by a representative of the transferor stating that the taxes, assessments, and charges referenced in §A of this regulation have been paid shall be sufficient for the Department to accept a document transferring title to an interest in real property..

History

Administrative History: Effective date: May 2, 1988 (15:9 Md. R. 1113)
Administrative History: Regulation .01B amended effective August 28, 1995 (22:17 Md. R. 1321); December 12, 2022 (49:25 Md. R. 1051)
Authority: Real Property Article, §3-104; Tax-Property Article, §2-201; Annotated Code of Maryland

18.04.07 Acceptance of Documents

COMAR 18.04.07.01 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) “Acceptance date” means the date a document is accepted for record by the Department.

(2) “Document” includes any document that is filed for recordation with the Department by a foreign or domestic corporation, limited partnership, limited liability partnership, limited liability company, or other organization.

(3) “Electronic signature” has the meaning stated in Commercial Law Article, §21-101, Annotated Code of Maryland.

(4) “Information processing system” has the meaning stated in Commercial Law Article, §21-101, Annotated Code of Maryland.

History

Administrative History: Effective date: December 28, 1987 (14:26 Md. R. 2749)
Administrative History: Regulation .01B amended effective August 28, 1995 (22:17 Md. R. 1321); December 11, 2003 (30:24 Md. R. 1745); June 10, 2013 (40:11 Md. R. 977)
Administrative History: Regulation .02 amended effective December 11, 2003 (30:24 Md. R. 1745; December 12, 2022 (49:25 Md. R. 1051))
Administrative History: Regulation .02A amended effective August 28, 1995 (22:17 Md. R. 1321); November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .03 adopted effective October 11, 2004 (31:20 Md. R. 1486)
Administrative History: Regulation .03 amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .04 adopted effective June 10, 2013 (40:11 Md. R. 977)
Authority: Commercial Law Article, §21-117; Corporations and Associations Article, §§1-102, 1-203, and 1-406;Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.07.02 Procedure.

A. Original Filings. The acceptance date of a document is the date that the document is received by the Department provided the:

(1) Document conforms with law;

(2) Name of the corporation, limited partnership, limited liability partnership, limited liability limited partnership, real estate investment trust, statutory trust, or limited liability company, or trade name is available; and

(3) Appropriate fees and taxes are remitted with the document.

B. Resubmitted Filings. A resubmitted document may retain the date that the document is first received by the Department as the acceptance date if, at the program manager’s discretion, the filer demonstrates good cause for that acceptance date.

C. If the Department incorrectly rejects a document, then the acceptance date shall be the original date that the document is received by the Department.

History

Administrative History: Effective date: December 28, 1987 (14:26 Md. R. 2749)
Administrative History: Regulation .01B amended effective August 28, 1995 (22:17 Md. R. 1321); December 11, 2003 (30:24 Md. R. 1745); June 10, 2013 (40:11 Md. R. 977)
Administrative History: Regulation .02 amended effective December 11, 2003 (30:24 Md. R. 1745; December 12, 2022 (49:25 Md. R. 1051))
Administrative History: Regulation .02A amended effective August 28, 1995 (22:17 Md. R. 1321); November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .03 adopted effective October 11, 2004 (31:20 Md. R. 1486)
Administrative History: Regulation .03 amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .04 adopted effective June 10, 2013 (40:11 Md. R. 977)
Authority: Commercial Law Article, §21-117; Corporations and Associations Article, §§1-102, 1-203, and 1-406;Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.07.03 Conditions for Nonrefundable Processing Fees.

If documents are not accepted by the Department, the processing fees referenced in Corporations and Associations Article, §1-203, Annotated Code of Maryland, are applied to the resubmission of those documents if resubmitted and accepted within 60 days of the date of non-acceptance.

History

Administrative History: Effective date: December 28, 1987 (14:26 Md. R. 2749)
Administrative History: Regulation .01B amended effective August 28, 1995 (22:17 Md. R. 1321); December 11, 2003 (30:24 Md. R. 1745); June 10, 2013 (40:11 Md. R. 977)
Administrative History: Regulation .02 amended effective December 11, 2003 (30:24 Md. R. 1745; December 12, 2022 (49:25 Md. R. 1051))
Administrative History: Regulation .02A amended effective August 28, 1995 (22:17 Md. R. 1321); November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .03 adopted effective October 11, 2004 (31:20 Md. R. 1486)
Administrative History: Regulation .03 amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .04 adopted effective June 10, 2013 (40:11 Md. R. 977)
Authority: Commercial Law Article, §21-117; Corporations and Associations Article, §§1-102, 1-203, and 1-406;Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.07.04 Electronic Signatures.

A. The general provisions of the Corporations and Associations Article, Annotated Code of Maryland, require certain signatures to be affixed to certain records filed with the Department.

B. Commercial Law Article, §21-117, Annotated Code of Maryland, permits the Department to determine whether, and the extent to which, it will accept electronic signatures and rely upon electronic signatures.

C. When a record is filed with the Department using an information processing system, the Department shall accept and rely on any associated electronic signature.

History

Administrative History: Effective date: December 28, 1987 (14:26 Md. R. 2749)
Administrative History: Regulation .01B amended effective August 28, 1995 (22:17 Md. R. 1321); December 11, 2003 (30:24 Md. R. 1745); June 10, 2013 (40:11 Md. R. 977)
Administrative History: Regulation .02 amended effective December 11, 2003 (30:24 Md. R. 1745; December 12, 2022 (49:25 Md. R. 1051))
Administrative History: Regulation .02A amended effective August 28, 1995 (22:17 Md. R. 1321); November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .03 adopted effective October 11, 2004 (31:20 Md. R. 1486)
Administrative History: Regulation .03 amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .04 adopted effective June 10, 2013 (40:11 Md. R. 977)
Authority: Commercial Law Article, §21-117; Corporations and Associations Article, §§1-102, 1-203, and 1-406;Tax-Property Article, §2-201; Annotated Code of Maryland

18.04.08 Expedited Filing Service

COMAR 18.04.08.01 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined. “Expedited service” means the fastest available service for the processing of documents or for providing copies or certificates.

History

Administrative History: Effective date: October 16, 1989 (16:20 Md. R. 2183)
Administrative History: ——————
Administrative History: Chapter revised effective March 14, 1994 (21:5 Md. R. 405)
Administrative History: ——————
Administrative History: Chapter revised effective September 6, 1999 (26:18 Md. R. 1377)
Administrative History: Regulation .02 amended effective December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .03 amended effective December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .05 repealed and Regulation .06 amended and recodified to be Regulation .05 effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .06 adopted effective December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .07 adopted effective December 12, 2022 (49:25 Md. R. 1051)
Authority: Corporations and Associations Article, §1-203.2; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.08.02 Types of Expedited Service.

The Business Service Unit shall make the following services available on an expedited basis to the extent that budgetary, personnel, or equipment considerations allow:

A. Review and acceptance for record or rejection of corporation documents, limited partnership documents, and limited liability company documents, including both domestic and foreign entities;

B. Certified copies and certificates of status (short form only) requested in conjunction with §A of this regulation;

C. Short form certificates of status for entities already on file and copies of documents already on file, including corporate abstracts;

D. Review and acceptance for record or rejection of Uniform Commercial Code documents, trade name registrations, trade name amendments, trade name cancellations, and name reservation documents.

History

Administrative History: Effective date: October 16, 1989 (16:20 Md. R. 2183)
Administrative History: ——————
Administrative History: Chapter revised effective March 14, 1994 (21:5 Md. R. 405)
Administrative History: ——————
Administrative History: Chapter revised effective September 6, 1999 (26:18 Md. R. 1377)
Administrative History: Regulation .02 amended effective December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .03 amended effective December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .05 repealed and Regulation .06 amended and recodified to be Regulation .05 effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .06 adopted effective December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .07 adopted effective December 12, 2022 (49:25 Md. R. 1051)
Authority: Corporations and Associations Article, §1-203.2; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.08.03 Methods of Expedited Service.

Requests for expedited service are received and processed using the following methods in the Department's discretion:

A. In hard copy delivered or dropped off at the Department’s headquarters office;

B. In hard copy by mail; or

C. In electronic format by Internet or electronic mail transmission.

History

Administrative History: Effective date: October 16, 1989 (16:20 Md. R. 2183)
Administrative History: ——————
Administrative History: Chapter revised effective March 14, 1994 (21:5 Md. R. 405)
Administrative History: ——————
Administrative History: Chapter revised effective September 6, 1999 (26:18 Md. R. 1377)
Administrative History: Regulation .02 amended effective December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .03 amended effective December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .05 repealed and Regulation .06 amended and recodified to be Regulation .05 effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .06 adopted effective December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .07 adopted effective December 12, 2022 (49:25 Md. R. 1051)
Authority: Corporations and Associations Article, §1-203.2; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.08.04 Scope of Expedited Service.

Requests for expedited service are processed as promptly as practicable based upon:

A. The volume of the request;

B. When the request is received; and

C. The manner in which the request is transmitted.

History

Administrative History: Effective date: October 16, 1989 (16:20 Md. R. 2183)
Administrative History: ——————
Administrative History: Chapter revised effective March 14, 1994 (21:5 Md. R. 405)
Administrative History: ——————
Administrative History: Chapter revised effective September 6, 1999 (26:18 Md. R. 1377)
Administrative History: Regulation .02 amended effective December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .03 amended effective December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .05 repealed and Regulation .06 amended and recodified to be Regulation .05 effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .06 adopted effective December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .07 adopted effective December 12, 2022 (49:25 Md. R. 1051)
Authority: Corporations and Associations Article, §1-203.2; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.08.05 Other Matters.

A. A request for more than one copy of a certificate of status for an entity is treated as one request and only one expedited fee is charged.

B. A request for processing foreign or domestic corporation documents, limited partnership certificates, or limited liability company documents may include up to five certificates of status for the entity or five copies of the document being filed, or both, provided an expedited fee for each type of request is paid.

C. Fees for expedited service may not be charged on rejected documents.

D. If the Department is unable to accommodate a request for expedited service, the expedited fee is refunded.

History

Administrative History: Effective date: October 16, 1989 (16:20 Md. R. 2183)
Administrative History: ——————
Administrative History: Chapter revised effective March 14, 1994 (21:5 Md. R. 405)
Administrative History: ——————
Administrative History: Chapter revised effective September 6, 1999 (26:18 Md. R. 1377)
Administrative History: Regulation .02 amended effective December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .03 amended effective December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .05 repealed and Regulation .06 amended and recodified to be Regulation .05 effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .06 adopted effective December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .07 adopted effective December 12, 2022 (49:25 Md. R. 1051)
Authority: Corporations and Associations Article, §1-203.2; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.08.06 Fee Tiers.

A. Documents filed in hard copy with a request to be processed under Corporations and Associations Article, §1-203.2(b)(1), Annotated Code of Maryland, shall be accompanied by an expediting fee of $425.

B. Documents filed online with a request to be processed under Corporations and Associations Article, §1-203.2(b)(1), Annotated Code of Maryland, shall be accompanied by an expediting fee of $325.

C. Documents filed in hard copy or online with an expedited request not under Corporations and Associations Article, §1-203.2(b)(1), Annotated Code of Maryland, shall be accompanied by an expediting fee of $50 unless otherwise provided by law.

History

Administrative History: Effective date: October 16, 1989 (16:20 Md. R. 2183)
Administrative History: ——————
Administrative History: Chapter revised effective March 14, 1994 (21:5 Md. R. 405)
Administrative History: ——————
Administrative History: Chapter revised effective September 6, 1999 (26:18 Md. R. 1377)
Administrative History: Regulation .02 amended effective December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .03 amended effective December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .05 repealed and Regulation .06 amended and recodified to be Regulation .05 effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .06 adopted effective December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .07 adopted effective December 12, 2022 (49:25 Md. R. 1051)
Authority: Corporations and Associations Article, §1-203.2; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.08.07 Filing Acknowledgement.

After a document filed on an expedited basis has been accepted, as promptly as practicable based upon the time and manner by which the filing is transmitted to the Department, the Department shall:

A. Return to the filer evidence acknowledging the successful filing, any requested good standing certificates, and any requested certified copies of filed documents; and

B. Post record of the filing to the Department's business registry.

History

Administrative History: Effective date: October 16, 1989 (16:20 Md. R. 2183)
Administrative History: ——————
Administrative History: Chapter revised effective March 14, 1994 (21:5 Md. R. 405)
Administrative History: ——————
Administrative History: Chapter revised effective September 6, 1999 (26:18 Md. R. 1377)
Administrative History: Regulation .02 amended effective December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .03 amended effective December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .05 repealed and Regulation .06 amended and recodified to be Regulation .05 effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .06 adopted effective December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .07 adopted effective December 12, 2022 (49:25 Md. R. 1051)
Authority: Corporations and Associations Article, §1-203.2; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.09 Fax Service [Repealed]

History

Administrative History: Effective date: February 4, 1991 (18:2 Md. R. 151)
Administrative History: Regulation .01B amended effective September 21, 1998 (25:19 Md. R. 1497)
Administrative History: Regulation .02 amended effective March 14, 1994 (21:5 Md. R. 405)
Administrative History: Chapter repealed effective September 6, 1999 (26:18 Md. R. 1377)

18.04.10 Administration of Trade Names

COMAR 18.04.10.01 Disposition.

After the trade name certificate has been imaged or scanned, the Department may dispose of the original certificate.

History

Administrative History: Effective date: February 3, 1992 (19:2 Md. R. 156)
Administrative History: Adopted as COMAR 18.04.09; recodified to 18.04.10
Administrative History: Regulation .01 amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .03B amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .04B amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .05 amended effective May 6, 1996 (23:9 Md. R. 671); December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .05F amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .08 adopted effective May 6, 1996 (23:9 Md. R. 671)
Authority: Corporations and Associations Article, §1-406; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.10.02 Indexing.

Each certificate shall be indexed by trade name and principal or owner.

History

Administrative History: Effective date: February 3, 1992 (19:2 Md. R. 156)
Administrative History: Adopted as COMAR 18.04.09; recodified to 18.04.10
Administrative History: Regulation .01 amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .03B amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .04B amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .05 amended effective May 6, 1996 (23:9 Md. R. 671); December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .05F amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .08 adopted effective May 6, 1996 (23:9 Md. R. 671)
Authority: Corporations and Associations Article, §1-406; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.10.03 Amendments.

A. The party listed as principal or owner in the certificate already filed may file a certificate amending any item on the certificate, except the trade name.

B. The amending certificate shall:

(1) Set forth the trade name;

(2) Set forth the item being amended;

(3) Be signed by the principal or owner named in the certificate, and if a new owner or principal is being named, by the new owner or principal, under penalties of perjury; and

(4) Be accompanied by a fee set by Corporations and Associations Article, §1-406, Annotated Code of Maryland.

Cross References

18.04.10.06A

18.04.10.06B

History

Administrative History: Effective date: February 3, 1992 (19:2 Md. R. 156)
Administrative History: Adopted as COMAR 18.04.09; recodified to 18.04.10
Administrative History: Regulation .01 amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .03B amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .04B amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .05 amended effective May 6, 1996 (23:9 Md. R. 671); December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .05F amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .08 adopted effective May 6, 1996 (23:9 Md. R. 671)
Authority: Corporations and Associations Article, §1-406; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.10.04 Cancellation.

A. The party listed as owner or principal in the certificate may file a certificate cancelling the trade name at any time.

B. The certificate of cancellation shall:

(1) State the trade name;

(2) State that the certificate is cancelled;

(3) Be signed by the principal or owner named in the certificate; and

(4) Be accompanied by a fee set by Corporations and Associations Article, §1-406, Annotated Code of Maryland.

History

Administrative History: Effective date: February 3, 1992 (19:2 Md. R. 156)
Administrative History: Adopted as COMAR 18.04.09; recodified to 18.04.10
Administrative History: Regulation .01 amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .03B amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .04B amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .05 amended effective May 6, 1996 (23:9 Md. R. 671); December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .05F amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .08 adopted effective May 6, 1996 (23:9 Md. R. 671)
Authority: Corporations and Associations Article, §1-406; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.10.05 Renewal.

A. In this regulation, “filed” means delivered to and date-stamped by the Department.

B. A certificate is effective for a period of 5 years from the date it is filed.

C. Every 5 years following the year in which a certificate is filed or renewed, a person who has filed or renewed a certificate and who wishes to renew the certificate shall cause to be filed a completed renewal application within 6 months before the end of the 5-year period.

D. A renewal application that is completed and filed extends the certificate for 5 years from the end of the previous 5-year period.

E. The Department shall determine the form of a renewal application.

F. Except for certificates canceled on the Department's records, the Department may mail a notice of impending expiration of the trade name, during the 6-month period mentioned in §C of this regulation, to the person listed as principal or owner in the certificate, amended certificate, or most recent renewal application.

G. A completed renewal application shall:

(1) State the trade name being renewed and the current address of the business conducted under the trade name;

(2) State that the trade name certificate is being renewed;

(3) State the SDAT identification number of the associated business;

(4) Be signed by a person listed as principal or owner in the certificate, amended certificate, or most recent renewal application; and

(5) Be accompanied by a fee set by Corporations and Associations Article, §1-406, Annotated Code of Maryland.

H. The Department's failure to mail a renewal application form pursuant to §F of this regulation does not suspend the obligation to file a completed renewal application.

Cross References

18.04.10.06A

18.04.10.06B

18.04.10.08A

History

Administrative History: Effective date: February 3, 1992 (19:2 Md. R. 156)
Administrative History: Adopted as COMAR 18.04.09; recodified to 18.04.10
Administrative History: Regulation .01 amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .03B amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .04B amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .05 amended effective May 6, 1996 (23:9 Md. R. 671); December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .05F amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .08 adopted effective May 6, 1996 (23:9 Md. R. 671)
Authority: Corporations and Associations Article, §1-406; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.10.06 Signatures Required on Certificates.

A. When a certificate lists more than one principal or owner, the signature of any one owner or principal named in the certificate is sufficient execution for the certificates described in Regulations .03—.05 of this chapter.

B. When joint forms of ownership are listed, such as tenants by the entireties, joint tenants with right of survivorship, etc., the signature of any one of the principals or owners is sufficient execution for the certificates described in Regulations .03—.05 of this chapter.

History

Administrative History: Effective date: February 3, 1992 (19:2 Md. R. 156)
Administrative History: Adopted as COMAR 18.04.09; recodified to 18.04.10
Administrative History: Regulation .01 amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .03B amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .04B amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .05 amended effective May 6, 1996 (23:9 Md. R. 671); December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .05F amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .08 adopted effective May 6, 1996 (23:9 Md. R. 671)
Authority: Corporations and Associations Article, §1-406; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.10.07 Number of Trade Names Per Application.

Only one trade name may be filed per application.

History

Administrative History: Effective date: February 3, 1992 (19:2 Md. R. 156)
Administrative History: Adopted as COMAR 18.04.09; recodified to 18.04.10
Administrative History: Regulation .01 amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .03B amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .04B amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .05 amended effective May 6, 1996 (23:9 Md. R. 671); December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .05F amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .08 adopted effective May 6, 1996 (23:9 Md. R. 671)
Authority: Corporations and Associations Article, §1-406; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.04.10.08 Expiration.

A. Unless renewed under Regulation .05 of this chapter, a certificate expires 5 years from the date it is filed.

B. The Department shall note a certificate's expiration on its records as soon as practical.

C. The Department's failure to note a certificate's expiration does not extend a certificate past its expiration date.

D. After a certificate expires, the:

(1) Filing of a completed renewal application does not extend the certificate; and

(2) Trade name which is the subject of the certificate is available to a person entitled to file a certificate under Corporations and Associations Article, §1-406, Annotated Code of Maryland.

History

Administrative History: Effective date: February 3, 1992 (19:2 Md. R. 156)
Administrative History: Adopted as COMAR 18.04.09; recodified to 18.04.10
Administrative History: Regulation .01 amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .03B amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .04B amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .05 amended effective May 6, 1996 (23:9 Md. R. 671); December 12, 2022 (49:25 Md. R. 1051)
Administrative History: Regulation .05F amended effective November 19, 2018 (45:23 Md. R. 1071)
Administrative History: Regulation .08 adopted effective May 6, 1996 (23:9 Md. R. 671)
Authority: Corporations and Associations Article, §1-406; Tax-Property Article, §2-201; Annotated Code of Maryland

18.04.11 Prohibited Filings

COMAR 18.04.11.01 Affidavits.

The affidavit form required by Corporations and Associations Article, §1-201.1(c), Annotated Code of Maryland, is adopted and the Department has it available to provide to the public.

FORM AT END OF CHAPTER

Attachments

18.04.11.01-affidavit

History

Administrative History: Effective date: January 2, 2017 (43:26 Md. R. 1449)
Authority: Corporations and Associations Article, §1-201.1(c), Annotated Code of Maryland

18.04.12 Annual Reports

COMAR 18.04.12.01 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) “Accept” has the meaning set forth in COMAR 18.04.07.

(2) “Annual report” means the report required by Tax-Property Article, §11-101, Annotated Code of Maryland.

(3) “Converted entity” means the entity resulting after a conversion.

(4) “Converting entity” means an entity that initiates a conversion.

(5) “Current year” means the calendar year in which conversion or merger documents are presented to the Department for filing or recordation.

(6) “Documents evidencing a conversion” include:

(a) A certificate filed by a foreign unincorporated entity registered to do business in Maryland to correct or terminate the entity’s registration due to a conversion; or

(b) A certified statement of fact or other evidence of a conversion issued by the keeper of corporate records for the home jurisdiction of a foreign entity registered or qualified to do business in Maryland.

(7) “Documents evidencing a merger” include:

(a) A certificate filed by a foreign unincorporated entity registered to do business in Maryland to correct or terminate the entity’s registration due to a merger; or

(b) A certified statement of fact or other evidence of a merger issued by the keeper of corporate records for the home jurisdiction of a foreign entity registered or qualified to do business in Maryland.

(8) “Effective date of filing” has the meaning referenced in Corporations and Associations Article, §1-206, Annotated Code of Maryland, and COMAR 18.04.07, unless otherwise provided by Maryland law.

(9) “Foreign corporation or foreign entity” means a corporation or unincorporated entity formed under the laws of a jurisdiction other than Maryland.

(10) “Merging entity” means an entity that ceases to exist as the result of a merger.

(11) “Past due annual report” means:

(a) An annual report due but not filed in a prior year; or

(b) An annual report due but not filed in the current year where the effective date of filing is:

(i) After April 15, unless all entities involved in a merger were granted an extension under Tax-Property Article, §14-704, Annotated Code of Maryland; or

(ii) After June 15, if all entities involved in a merger were granted an extension under Tax-Property Article §14-704, Annotated Code of Maryland.

(12) “Prior year” means any calendar year before the current year.

(13) “Surviving entity” means the successor to a merger.

History

Administrative History: Effective date: December 12, 2022 (49:25 Md. R. 1051)
Authority: Tax-Property Article, §§2-201 and 11-101, Annotated Code of Maryland

COMAR 18.04.12.02 Conversions.

A. The Department may not accept articles of conversion until all required annual reports have been filed and related filing fees and penalties have been paid through the current year if the converting entity is:

(1) A Maryland domestic entity;

(2) A foreign unincorporated entity registered to do business in Maryland; or

(3) A foreign corporation qualified to do business in Maryland.

B. The Department may not accept documents evidencing a conversion until all required annual reports have been filed and related filing fees and penalties have been paid through the current year if the converting entity is:

(1) A foreign unincorporated entity registered to do business in Maryland; or

(2) A foreign corporation qualified to do business in Maryland.

C. If a converted entity is a Maryland domestic entity or a foreign entity which qualifies or registers to do business in Maryland, the converted entity will not be required to file an annual report until the calendar year immediately following the current year.

History

Administrative History: Effective date: December 12, 2022 (49:25 Md. R. 1051)
Authority: Tax-Property Article, §§2-201 and 11-101, Annotated Code of Maryland

COMAR 18.04.12.03 Mergers.

A. The Department may accept articles of merger or documents evidencing a merger if the merging entity is not required to file an annual report for the current year.

B. The Department may not accept articles of merger or documents evidencing a merger until all required annual reports have been filed and related filing fees and penalties have been paid by the merging entity through the current year if the surviving entity is:

(1) A Maryland domestic entity formed on or after January 1 of the current year;

(2) A foreign unincorporated entity registered to do business in Maryland on or after January 1 of the current year;

(3) A foreign corporation qualified to do business in Maryland on or after January 1 of the current year; or

(4) An entity that has already filed an annual report for the current year or is not required to file an annual report for the current year.

C. The Department may not accept articles of merger or documents evidencing a merger until all past due annual reports have been filed and related filing fees and penalties have been paid by the merging entity if the surviving entity has not filed its annual report for the current year, and the surviving entity is:

(1) A Maryland domestic entity formed prior to January 1 of the current year;

(2) A foreign unincorporated entity registered to do business in Maryland prior to January 1 of the current year; or

(3) A foreign corporation qualified to do business in Maryland prior to January 1 of the current year.

History

Administrative History: Effective date: December 12, 2022 (49:25 Md. R. 1051)
Authority: Tax-Property Article, §§2-201 and 11-101, Annotated Code of Maryland

18.05.01 Administration

COMAR 18.05.01.01 Rates of Tax.

A. The agricultural land transfer tax (tax) rates are as follows:

(1) The rate is 3 percent for a transfer of less than 20 acres of agricultural land with either or both of the following included in the sale price of the lot or parcel:

(a) Structures or other items that are separately assessed by the Department; or

(b) Site improvements, for example, street, curb, sewer, water, septic, and well.

(2) The rate is 4 percent for a transfer of less than 20 acres of unimproved agricultural land.

(3) The rate is 5 percent for a transfer of agricultural land greater than or equal to 20 acres, whether improved or unimproved.

B. Reduction in Tax. Except as provided in Tax-Property Article, §13–305(b)(2) or (c)(4), Annotated Code of Maryland, the agricultural land transfer tax is reduced by:

(1) 25 percent if property tax on the agricultural land was paid on the basis of any assessment other than the farm or agricultural use assessment for 1 full taxable year before a transfer;

(2) 50 percent if property tax on the agricultural land was paid on the basis of any assessment other than the farm or agricultural use assessment for 2 full consecutive taxable years before a transfer; and

(3) 65 percent if property tax on the agricultural land was paid on the basis of any assessment other than the farm or agricultural use assessment for 3 or more full consecutive taxable years before a transfer.

C. In addition to the agricultural land transfer tax imposed under this subtitle, certain counties may impose county agricultural land transfer tax.

D. In addition to the agricultural land transfer tax, a surcharge in an amount equal to 25 percent of the tax is imposed on an instrument of writing that transfers title to agricultural land, except for an instrument of writing that transfers property of 2 acres or less to be improved to a child or grandchild of the owner.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended effective September 27, 1982 (9:19 Md. R. 1897)
Administrative History: Regulation .01G amended effective October 8, 1984 (11:20 Md. R. 1743); December 31, 1984 (11:26 Md. R. 2281)
Administrative History: ——————
Administrative History: Regulation .01 repealed and new Regulations .01—.06 adopted effective December 2, 1996 (23:24 Md. R. 1684)
Administrative History: Regulation .01 amended effective June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .02 amended effective December 23, 2013 (40:25 Md. R. 2070); June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .04 amended effective June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .04A amended effective January 24, 2022 (49:2 Md. R. 78)
Administrative History: Regulation .05 amended effective June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .06B amended effective June 29, 2020 (47:13 Md. R. 643)
Authority: Tax-Property Article, §§2-201, 2-202, and 13-307, Annotated Code of Maryland

COMAR 18.05.01.02 Calculation of Tax and Surcharge — Value Deductions.

A. Under Tax-Property Article, §13-304, Annotated Code of Maryland, the supervisor is required to deduct from the consideration payable for the instrument of writing the “total value”, as defined in Tax-Property Article, §13-301(d), Annotated Code of Maryland, of any improvement on the property before applying the applicable tax rate and surcharge. For this purpose, the supervisor shall deduct only the total value of any structure or other item that is separately assessed on the property's assessment worksheet. For example, a 5-acre parcel transfers for a consideration of $250,000. It is improved with an outbuilding that has a separately itemized value of $175,000 on the property's assessment worksheet. The parcel is also improved with certain site improvements — a driveway, a well, a septic system, and sidewalks — which are all included in the $50,000 land value portion on the assessment worksheet, but are not set out on the worksheet with a separate value for each item. The tax and surcharge are calculated as follows:

$250,000 Consideration

less $175,000 Total Improvement Value

$75,000 Net Consideration

$75,000 X 0.03 = $2,250 Tax

$2,250 X 0.25 = $562.50 Surcharge

$2,812.50 = Total Tax and Surcharge Due

B. Under Tax-Property Article, §13-304, Annotated Code of Maryland, the supervisor is required to deduct from the consideration payable for the instrument of writing the “total value”, as defined in Tax-Property Article, §13-301(d), Annotated Code of Maryland, of any land not subject to the tax and surcharge before applying the applicable tax rate and surcharge. For example, a 10-acre parcel transfers for a consideration of $500,000. One acre of that parcel is a homesite assessed at $100,000 that is not subject to the tax and surcharge. The tax and surcharge are calculated as follows:

$500,000 Consideration

less $100,000 Nonagricultural Land

$400,000 Net Consideration

$400,000 X 0.04 = $16,000 Tax

$16,000 X 0.25 = $4,000 Surcharge

$20,000 = Total Tax and Surcharge Due

C. Both §§A and B of this regulation may apply in the same transaction. For example, a 10-acre parcel transfers for a consideration of $500,000. It is improved with a dwelling that has a separately itemized value of $175,000 on the property's assessment worksheet. The parcel is also improved with certain site improvements — a driveway, a well, a septic system, and sidewalks — which are all included in the land value portion on the assessment worksheet, but are not set out on the worksheet with a separate value for each item. It also includes a 1-acre homesite assessed at $100,000 that is not subject to the tax and surcharge. The tax and surcharge are calculated as follows:

$500,000 Consideration

less $175,000 Improvement Value

less $100,000 Nonagricultural Land

$225,000 Net Consideration

$225,000 X 0.03 = $6,750 Tax

$6,750 x 0.25 = $1,687.50 Surcharge

$8,437.50 = Total Tax and Surcharge Due

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended effective September 27, 1982 (9:19 Md. R. 1897)
Administrative History: Regulation .01G amended effective October 8, 1984 (11:20 Md. R. 1743); December 31, 1984 (11:26 Md. R. 2281)
Administrative History: ——————
Administrative History: Regulation .01 repealed and new Regulations .01—.06 adopted effective December 2, 1996 (23:24 Md. R. 1684)
Administrative History: Regulation .01 amended effective June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .02 amended effective December 23, 2013 (40:25 Md. R. 2070); June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .04 amended effective June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .04A amended effective January 24, 2022 (49:2 Md. R. 78)
Administrative History: Regulation .05 amended effective June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .06B amended effective June 29, 2020 (47:13 Md. R. 643)
Authority: Tax-Property Article, §§2-201, 2-202, and 13-307, Annotated Code of Maryland

COMAR 18.05.01.03 Records.

The supervisor of assessments in each county shall maintain adequate records to administer the tax. These records shall include the identification of parcels receiving agricultural use assessment and parcels subject to declarations of intent.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended effective September 27, 1982 (9:19 Md. R. 1897)
Administrative History: Regulation .01G amended effective October 8, 1984 (11:20 Md. R. 1743); December 31, 1984 (11:26 Md. R. 2281)
Administrative History: ——————
Administrative History: Regulation .01 repealed and new Regulations .01—.06 adopted effective December 2, 1996 (23:24 Md. R. 1684)
Administrative History: Regulation .01 amended effective June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .02 amended effective December 23, 2013 (40:25 Md. R. 2070); June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .04 amended effective June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .04A amended effective January 24, 2022 (49:2 Md. R. 78)
Administrative History: Regulation .05 amended effective June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .06B amended effective June 29, 2020 (47:13 Md. R. 643)
Authority: Tax-Property Article, §§2-201, 2-202, and 13-307, Annotated Code of Maryland

COMAR 18.05.01.04 Transfer Procedure.

A. The supervisor shall calculate the tax and surcharge, and the body of the written instrument conveying title shall be stamped or electronically noted with the local tax collecting authority’s verification of the amount of tax and surcharge, if any, due. The local tax collecting authority shall collect the tax and surcharge before the supervisor processes the instrument.

B. The agricultural land transfer tax and surcharge do not apply to an instrument of writing that transfers title to agricultural land that was previously transferred by an instrument of writing that was subject to the agricultural land transfer tax.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended effective September 27, 1982 (9:19 Md. R. 1897)
Administrative History: Regulation .01G amended effective October 8, 1984 (11:20 Md. R. 1743); December 31, 1984 (11:26 Md. R. 2281)
Administrative History: ——————
Administrative History: Regulation .01 repealed and new Regulations .01—.06 adopted effective December 2, 1996 (23:24 Md. R. 1684)
Administrative History: Regulation .01 amended effective June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .02 amended effective December 23, 2013 (40:25 Md. R. 2070); June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .04 amended effective June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .04A amended effective January 24, 2022 (49:2 Md. R. 78)
Administrative History: Regulation .05 amended effective June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .06B amended effective June 29, 2020 (47:13 Md. R. 643)
Authority: Tax-Property Article, §§2-201, 2-202, and 13-307, Annotated Code of Maryland

COMAR 18.05.01.05 Violations of Declaration of Intent.

The following are nonexclusive examples of violations of a declaration of intent where the tax, surcharge, and penalty are imposed on that portion of the land subject to the violation:

A. Discontinuing or failing to maintain an agricultural activity on the land;

B. Constructing nonagricultural improvements or nonagricultural site improvements on the land;

C. Transferring part of the land so that the remaining land no longer qualifies for agricultural use assessment;

D. Developing a residential building site on the land;

E. Subdividing the land so that it no longer qualifies for agricultural use assessment; and

F. Rezoning the land under Tax-Property Article, §8-209(h), Annotated Code of Maryland.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended effective September 27, 1982 (9:19 Md. R. 1897)
Administrative History: Regulation .01G amended effective October 8, 1984 (11:20 Md. R. 1743); December 31, 1984 (11:26 Md. R. 2281)
Administrative History: ——————
Administrative History: Regulation .01 repealed and new Regulations .01—.06 adopted effective December 2, 1996 (23:24 Md. R. 1684)
Administrative History: Regulation .01 amended effective June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .02 amended effective December 23, 2013 (40:25 Md. R. 2070); June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .04 amended effective June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .04A amended effective January 24, 2022 (49:2 Md. R. 78)
Administrative History: Regulation .05 amended effective June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .06B amended effective June 29, 2020 (47:13 Md. R. 643)
Authority: Tax-Property Article, §§2-201, 2-202, and 13-307, Annotated Code of Maryland

COMAR 18.05.01.06 Appeal Procedures.

A. General Rule. Except as provided in §B of this regulation, a person appeals the imposition of the tax by first paying the tax. The person then files a written request for refund with the supervisor for the county where the tax was paid. After the person is afforded an opportunity to be heard, the supervisor notifies the person in writing of the supervisor's determination regarding the refund request, which the person may appeal to the Maryland Tax Court under Tax-Property Article, §14-512(d), Annotated Code of Maryland. A final order of the Tax Court may be appealed to the circuit court under Tax-General Article, §13-532, Annotated Code of Maryland.

B. Declaration of Intent Violation.

(1) When the tax, surcharge, and penalty are imposed because there is a violation of a declaration of intent under Tax-Property Article, §13-305, Annotated Code of Maryland, the supervisor determines the value of the land and imposes the tax, surcharge, and penalty on that value. This value is determined as of the most recent July 1, based on the condition and characteristics of the land as of the date of violation. The supervisor notifies the person in writing of the value and the amount of tax, surcharge, and penalty due.

(2) The tax, surcharge, and penalty are due on the earlier of the next date on which property tax is due on the land or the date of the next transfer of any part of the land.

(3) If the tax, surcharge, and penalty are not yet due under §B(2) of this regulation, the person may appeal the imposition of the tax, surcharge, and penalty to the supervisor under Tax-Property Article, §14-506, Annotated Code of Maryland, without paying the tax, surcharge, and penalty. After affording the person an opportunity to be heard, the supervisor shall notify the person of the supervisor's determination regarding the appeal, which may be appealed to the Tax Court under Tax-Property Article, §14-512(b), Annotated Code of Maryland. A final order of the Tax Court may be appealed to the circuit court under Tax-General Article, §13-532, Annotated Code of Maryland. An appeal under this subsection does not postpone the due date of the tax, surcharge, and penalty.

(4) If the person pays the tax, surcharge, and penalty, his appeal rights with regard to the tax, surcharge and penalty are as set forth in §A of this regulation.

(5) Whether or not the person pays the tax, surcharge, and penalty, the person may appeal the value used to determine the amount of tax, surcharge, and penalty to the supervisor. Further appeal of the value is to the local property tax assessment appeal board for the county where the land is situated, the Tax Court, and then the circuit court, under Tax-Property Article, §§14-509(a) and 14-512(f)(2), and Tax-General Article, §13-532, Annotated Code of Maryland.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01 amended effective September 27, 1982 (9:19 Md. R. 1897)
Administrative History: Regulation .01G amended effective October 8, 1984 (11:20 Md. R. 1743); December 31, 1984 (11:26 Md. R. 2281)
Administrative History: ——————
Administrative History: Regulation .01 repealed and new Regulations .01—.06 adopted effective December 2, 1996 (23:24 Md. R. 1684)
Administrative History: Regulation .01 amended effective June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .02 amended effective December 23, 2013 (40:25 Md. R. 2070); June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .04 amended effective June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .04A amended effective January 24, 2022 (49:2 Md. R. 78)
Administrative History: Regulation .05 amended effective June 29, 2020 (47:13 Md. R. 643)
Administrative History: Regulation .06B amended effective June 29, 2020 (47:13 Md. R. 643)
Authority: Tax-Property Article, §§2-201, 2-202, and 13-307, Annotated Code of Maryland

COMAR 18.06.01.01 Receiving Exemption.

A. The property of a blind person, held with the spouse as tenants by the entireties, is entitled to exemption.

B. In tenancy in common and joint tenancy, the exemption is applied only to the undivided interest of the joint tenant or tenant in common, not against the total assessed valuation.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Authority: Tax-Property Article, §§2-201, 2-202, 5-101, and 7-207, Annotated Code of Maryland

18.06.02 Payments In Lieu of Taxes

COMAR 18.06.02.01 Records.

A. If an agreement for payment in lieu of taxes is made by a local government, the office of the supervisor of assessments in the respective counties shall be notified and provided with the following:

(1) The name of the owner;

(2) The name of the project;

(3) A copy of the executed agreement;

(4) The amount of the payment in lieu of taxes.

B. There is no change in the status of the account unless this information is provided.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulation .01A amended effective September 19, 1988 (15:19 Md. R. 2248)
Authority: Tax-Property Article, §§2-201 and 2-202, Annotated Code of Maryland

18.06.03 Disabled Veteran, Surviving Spouse, Disabled Active Duty Service Member

COMAR 18.06.03.01 Legal Residence.

A. Definition.

(1) In this chapter, the following term has the meaning indicated.

(2) Term Defined. “Legal residence”, as set forth in Tax-Property Article, §7-208, Annotated Code of Maryland, has the same meaning as “principal residence” as that term is defined in COMAR 18.07.03.01.

B. The Department may request documentation to verify that a dwelling house is the legal or principal residence of an applicant. This documentation may include, but is not limited to, requiring an applicant to execute a sworn affidavit regarding residency for purposes of voting, driver's license address, and income tax filing. Failure to provide the requested information within 30 days of the date of a request shall result in a dwelling house being designated as not a legal or principal residence for purposes of the exemption provided in Tax-Property Article, §7-208, Annotated Code of Maryland.

C. A dwelling house in this State will not qualify as the legal or principal residence of an applicant if another dwelling is the applicant’s legal or principal residence, either within or outside the State.

History

Administrative History: Effective date: April 29, 2024 (51:8 Md. R 368)
Authority: Tax Property Article, §§2-201, 2-202, and 7-208, Annotated Code of Maryland

18.07.01 Homeowners' Tax Credit Program

COMAR 18.07.01.01 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) “Affidavit” means a sworn statement in writing on a standard form furnished by the Department.

(2) “All persons residing in the home” means household occupants as of the date an application is submitted.

(3) “Applicant” means a person filing for a property tax credit.

(4) “Combined gross income of all persons” means the monies received in the prior calendar year by the applicant homeowner, the spouse, unless separated, divorced, or widowed, or the resident co-owner, or all of these, and the monies received by other nondependent occupants of the household unless they are paying reasonable fixed charges.

(5) “Combined net worth” means the net worth of the applicant, spouse or co-owner, or all of these, residing in the dwelling house.

(6) “Curtilage” means that amount of land necessary and used for the homesite and dwelling.

(7) “Dependent” means a person who satisfies the federal Internal Revenue Service standard for a dependent.

(8) “Dwelling house” means the principal residence of a homeowner but does not include any portion of the structure used for a business or income-producing purpose.

(9) “Principal residence of the homeowner” is the one dwelling house where the homeowner regularly resides and is the location designated by the owner for the legal purpose of voting, obtaining a driver's license, and filing income tax returns.

(10) “Reasonable fixed charges” means the amount of room and board, rent, or expenses paid which are sufficient to defray the cost of an individual residing on the premises.

(11) “Total income” means all monies received by a person in a given year, whether taxable for federal or State income tax purposes, or not.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulations .01—.03 amended effective March 11, 1996 (23:5 Md. R. 384)
Administrative History: Regulation .04 adopted as an emergency provision effective June 1, 2000 (27:14 Md. R. 1339); adopted permanently effective December 11, 2000 (27:24 Md. R. 2199)
Administrative History: Annotation: COMAR 18.07.01.03 cited in Wargo v. State, 62 Md. App. 620 (1985), in which the requirement that an applicant for the homeowners' tax credit provide a copy of his or her federal income tax return was upheld.
Authority: Tax-Property Article, §§2-201, 2-202, and 9-104, Annotated Code of Maryland

COMAR 18.07.01.02 Criteria Adopted.

The following criteria have been adopted by the Department in the processing of applications for the Homeowners' Tax Credit Program:

A. Curtilage.

(1) The amount of real property taxes eligible for credit consideration is calculated upon the curtilage, which shall include:

(a) The land occupied by the dwelling house and garage and assessed at a primary rate;

(b) The amount of any additional land insufficient in size according to local zoning requirements for another homesite and assessed at a lesser rate, excluding any agriculturally assessed land.

(2) The curtilage determined under §A(1) of this regulation shall be posted to the assessment field card by the local supervisor of assessments.

B. Dwelling House.

(1) The amount of real property taxes eligible for credit consideration shall be calculated on the curtilage as defined in §A(1) of this regulation and the dwelling house, which is used as the principal residence of a homeowner.

(2) A trailer may qualify as a dwelling house if it meets all of the following criteria:

(a) The trailer is the principal residence of its owner;

(b) The trailer is not located in a trailer park, as defined by local zoning ordinances, where an excise tax is collected by the local government under Article 24, §9-401, Annotated Code of Maryland;

(c) The owner of the trailer is not paying a fee for the privilege of using the parking space as defined in Tax-Property Article, §8-234, Annotated Code of Maryland;

(d) The owner of the site upon which the trailer is located has established a separate property tax account for the site;

(e) The owner of the trailer receives a separate property tax bill for the trailer.

C. Combined Gross Income of All Persons Residing in the Home.

(1) An applicant shall report on the application the combined gross income of all persons residing in the home, if the persons are not dependents, or not paying reasonable fixed charges.

(2) An applicant who refuses to submit the information required under §C(1) of this regulation shall be denied a property tax credit.

D. Dependent. An applicant who claims a person is a dependent, but who does not file a federal income tax return, shall submit verification of the dependency status to the Department in the form of a sworn affidavit.

E. Reasonable Fixed Charges.

(1) A fixed charge reported by an applicant is considered reasonable if it equals one of the following amounts:

(a) A minimum weekly standard established by the Department;

(b) Ten percent of the nondependent occupant's gross income;

(d) The aggregate of all individual expenses paid by the occupant to assist in the maintenance of the dwelling house;

(e) An amount the local supervisor of assessments or tax credit administrator finds sufficient in cases of extreme hardship.

(2) An applicant who does not state initially on the application form the amount of a reasonable fixed charge received from a person shall execute a sworn affidavit.

F. Total Income.

(1) Total income, whether taxable for federal or State income tax purposes or not, shall be reported on the tax credit application, and requires:

(a) The counting of 100 percent of capital gains and dividends;

(b) The disallowance of capital losses in excess of capital gains;

(d) The disallowance of all federal adjustments to personal income except employee business expenses and the penalty for early withdrawal of savings.

(2) Total income does not include lump-sum life insurance payments, research grants, and Veterans Administration educational benefits.

G. Recovery of Tax Credits.

(1) The Department shall recover under Tax-Property Article, §9-104(o), Annotated Code of Maryland, the excess amount of credit granted in the following instances:

(2) The Department shall request repayment of the excess credit amount from the owner of the dwelling house and shall direct the local city or county treasurer to place a lien on the property if payment is not received.

(a) The dwelling house is sold before the end of the taxable year for which a credit was granted;

(b) The dwelling house is transferred to the heirs of an applicant before the end of the relevant taxable year;

(c) The dwelling house initially was granted an improper amount of tax credit as determined upon a post audit investigation;

(d) The homeowner dies before the end of the taxable year for which a credit was granted.

H. Timeliness of Application. The Department shall consider an application as timely under Tax-Property Article, §9-104(k), Annotated Code of Maryland, if the application is postmarked or received on or before the applicable date.

I. Illness or Need of Special Care. For purposes of Tax-Property Article, §9-104(j), Annotated Code of Maryland, “illness or need of special care” means that the applicant, spouse, or dependents are actually in need of ongoing medical treatment at a level which cannot be provided in the dwelling house.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulations .01—.03 amended effective March 11, 1996 (23:5 Md. R. 384)
Administrative History: Regulation .04 adopted as an emergency provision effective June 1, 2000 (27:14 Md. R. 1339); adopted permanently effective December 11, 2000 (27:24 Md. R. 2199)
Administrative History: Annotation: COMAR 18.07.01.03 cited in Wargo v. State, 62 Md. App. 620 (1985), in which the requirement that an applicant for the homeowners' tax credit provide a copy of his or her federal income tax return was upheld.
Authority: Tax-Property Article, §§2-201, 2-202, and 9-104, Annotated Code of Maryland

COMAR 18.07.01.03 Application Procedures Established.

A. The Department of Assessments and Taxation has established specific procedures for applicants to complete the Homeowners' Tax Credit application.

B. Application Procedures Listed.

(1) An applicant shall submit with the application form copies of the federal income tax return and accompanying schedules and forms.

(2) An applicant who has a substantial ownership interest in a business or partnership shall submit a complete copy of the federal tax return filed for that business or partnership.

(3) An applicant may be requested to complete an affidavit to substantiate any information reported on the application.

(4) An applicant seeking to exclude the income of a spouse on the basis of a marital separation shall complete an affidavit setting forth the date separation occurred and stating the unlikelihood of the spouse returning to the dwelling house.

(5) An applicant not filing by the September 1 deadline shall complete an affidavit stating the reason for the untimely filing if the application is to be considered for an extension.

(6) An applicant who can submit proof that the applicant is a home purchaser under Tax-Property Article, §9-104(k-1), Annotated Code of Maryland, may file an application by June 30 of the taxable year for which the credit is sought.

(7) An applicant who, pursuant to a court order or separation agreement, permits a spouse, former spouse, or children of that person to reside in the dwelling house without payment of rent, shall submit with the application a copy of the court order.

(8) An applicant who refuses to submit any information required under Tax-Property Article, §9-104, Annotated Code of Maryland, and the regulations, shall be denied a tax credit for failure to substantiate the income reported.

(9) An applicant who provides false or misleading information to the Department may be denied a tax credit.

C. The Department may establish additional application procedures which do not appear here, if considered necessary and if not inconsistent with the regulations.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulations .01—.03 amended effective March 11, 1996 (23:5 Md. R. 384)
Administrative History: Regulation .04 adopted as an emergency provision effective June 1, 2000 (27:14 Md. R. 1339); adopted permanently effective December 11, 2000 (27:24 Md. R. 2199)
Administrative History: Annotation: COMAR 18.07.01.03 cited in Wargo v. State, 62 Md. App. 620 (1985), in which the requirement that an applicant for the homeowners' tax credit provide a copy of his or her federal income tax return was upheld.
Authority: Tax-Property Article, §§2-201, 2-202, and 9-104, Annotated Code of Maryland

COMAR 18.07.01.04 Home Purchasers.

A. The Department of Assessments and Taxation establishes the following procedures for Homeowners' Tax Credit applicants who are home purchasers under Tax-Property Article, §9-104, Annotated Code of Maryland.

B. Application Procedures Listed.

(1) The tax credit used to adjust a home purchaser's final tax liability at settlement will be in the form of a check made payable jointly to the home purchaser and the title company, attorney, or agent conducting the settlement.

(2) A home purchaser shall submit with the application a copy of the executed sale agreement and all other forms required on the application form to verify the income reported.

(3) A home purchaser shall provide information with the application regarding the name and address of the title company, attorney, or agent conducting the settlement and the specific date chosen for the settlement.

(4) If a home purchaser fails to provide the Department with the specific date chosen for the settlement, the Department shall use the latest possible settlement date under the contract of sale to calculate the credit. If any additional amount of credit is due, it will be paid to the home purchaser after the settlement occurs.

(5) If a home purchaser chooses to use the credit due at the time of settlement, the settlement shall be scheduled not sooner than 45 days after the Department receives the application to allow sufficient time for payment by the Comptroller.

(6) A home purchaser may receive at the time of settlement any credit due only on the current tax year's property tax liability. A home purchaser shall apply separately for a tax credit in any subsequent tax year when application forms and income tax returns applicable for that year are available.

(7) A home purchaser who fails to meet the conditions or requirements outlined will not receive any credit due at the time of settlement.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulations .01—.03 amended effective March 11, 1996 (23:5 Md. R. 384)
Administrative History: Regulation .04 adopted as an emergency provision effective June 1, 2000 (27:14 Md. R. 1339); adopted permanently effective December 11, 2000 (27:24 Md. R. 2199)
Administrative History: Annotation: COMAR 18.07.01.03 cited in Wargo v. State, 62 Md. App. 620 (1985), in which the requirement that an applicant for the homeowners' tax credit provide a copy of his or her federal income tax return was upheld.
Authority: Tax-Property Article, §§2-201, 2-202, and 9-104, Annotated Code of Maryland

18.07.02 Renters' Tax Credit Program

COMAR 18.07.02.01 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) “Affidavit” means a sworn statement in writing on a standard form furnished by the Department.

(2) “All persons who are actual occupants of the dwelling” means household residents during the calendar year for which a credit is sought.

(3) “Applicant” means a person filing for a property tax credit.

(4) “Combined gross income of all persons” means the monies received in the prior year by the applicant renter, the spouse, unless separated, divorced, or widowed, or the resident co-tenant, or all of these, and the monies received by other nondependent occupants of the household unless they are paying reasonable fixed charges to the applicant renter.

(5) “Combined net worth” means the net worth of the applicant, spouse or co-tenant, or all of these, residing in the dwelling unit.

(6) “Dependent” means a person who satisfies the federal Internal Revenue Service standard for a dependent.

(7) “Dwelling unit” means the principal residence of a renter and may be any type of apartment, an individual house, a duplex, a co-op or condominium, or a house trailer or trailer pad.

(8) “Principal residence of the renter” is the one dwelling unit where the renter regularly resides and is the location designated by the renter for the legal purpose of voting, obtaining a driver's license, and filing income tax returns.

(9) “Leasehold interest” means a tenancy in the dwelling unit held under a written lease.

(10) “Persons 60 years old or older” means a person who reached that age as of December 31 of the year for which a credit is sought.

(11) “Reasonable fixed charges” means the amount of room and board, rent, or expenses paid which are sufficient to defray the cost of a person residing on the premises.

(12) “Reasonable value of utilities” means the cost of providing heat, gas, or electricity for the dwelling unit.

(13) “Total income” means all monies received by a person in a calendar year, whether taxable for federal or State income tax purposes or not.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulations .01—.03 amended effective March 11, 1996 (23:5 Md. R. 384)
Authority: Tax-Property Article, §§2-201, 2-202, and 9-102, Annotated Code of Maryland

COMAR 18.07.02.02 Criteria Adopted.

The following criteria have been adopted by the Department in the processing of applications for the Renters' Tax Credit Program:

A. Eligibility.

(1) A Renters' Tax Credit shall be available to all persons who meet the following requirements:

(a) The individual meets the requirements of Tax-Property Article, §9-102(a)(9), Annotated Code of Maryland, or is the surviving spouse of an individual satisfying the qualification;

(b) The individual has a bona fide leasehold interest in the dwelling unit, which may not be owned by a public housing authority or an organization exempt from the payment of property taxes;

(c) The individual has resided in the dwelling unit in Maryland for at least 6 months during the calendar year for which the credit is sought;

(d) The individual, spouse or resident co-tenant, or all of these, have a combined net worth of less than $200,000, as defined in Tax-Property Article, §9-102(i)(2), Annotated Code of Maryland;

(e) The person qualifies on the basis of the formula established in Tax-Property Article, §9-102(h), Annotated Code of Maryland, for comparing the combined gross income reported to the assumed real property taxes included in the occupancy rent, as those terms are defined in Tax-Property Article, §9-102(g), Annotated Code of Maryland, and the regulations;

(f) The person submits a complete application furnishing all information required under Tax-Property Article, §9-102(f), Annotated Code of Maryland, and the regulations.

(2) A person failing to meet the requirements under §A(1) of this regulation shall be notified in writing of the reason by the Department.

B. Reasonable Value of Utilities.

(1) The amount of tax credit shall be calculated on 15 percent of the total rent paid to occupy the dwelling unit in the calendar year reduced by the reasonable value of any utilities included in the rent.

(2) The reasonable value of utilities shall be determined according to the following criteria:

(a) If the cost of heat and electricity or gas all have been included in the monthly rent charge, the total rent for the calendar year eligible for credit consideration shall be reduced by 18 percent.

(b) If only the cost of heat has been included in the monthly rent charge, the total rent for the calendar year eligible for credit consideration shall be reduced by 12 percent.

(c) If only the cost of electricity or gas has been included in the monthly rent charge, the total rent for the calendar year eligible for credit consideration shall be reduced by 6 percent.

C. Combined Gross Income of All Occupants.

(1) An applicant shall report on the application the combined gross income of all persons who are actual occupants of the dwelling unit, if the persons are not dependents, or not paying reasonable fixed charges.

(2) An applicant who refuses to submit the information required under §C(1) of this regulation shall be denied a property tax credit.

E. Reasonable Fixed Charges.

(1) A fixed charge reported by an applicant is considered reasonable if it equals one of the following amounts:

(a) A minimum weekly standard established by the Department;

(b) Ten percent of the nondependent occupant's gross income;

(d) The aggregate of all individual expenses paid by the occupant to assist in the maintenance of the dwelling unit;

(e) An amount the local supervisor of assessments or tax credit administrator finds sufficient in cases of extreme hardship.

(2) An applicant who does not state initially on the application form the amount of a reasonable fixed charge received from a person shall execute a sworn affidavit.

F. Total Income.

(1) Total income, whether taxable for federal or State income tax purposes or not, shall be reported on the tax credit application and requires:

(a) The counting of 100 percent of capital gains and dividends;

(b) The disallowance of capital losses in excess of capital gains;

(d) The disallowance of all federal adjustments to personal income except the penalty for early withdrawal of savings.

(2) Total income does not include lump-sum life insurance payments, research grants, and Veterans Administration educational benefits.

G. Timeliness of Application. The Department shall consider an application as timely under Tax-Property Article, §9-102(f), Annotated Code of Maryland, if the application is received or postmarked on or before the applicable date.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulations .01—.03 amended effective March 11, 1996 (23:5 Md. R. 384)
Authority: Tax-Property Article, §§2-201, 2-202, and 9-102, Annotated Code of Maryland

COMAR 18.07.02.03 Application Procedures Established.

A. The Department of Assessments and Taxation has established specific procedures for applicants to complete the Renters' Tax Credit application.

B. Application Procedures Listed.

(1) An applicant shall submit with the application form copies of his federal income tax return and accompanying schedules and forms.

(2) An applicant may be requested to complete an affidavit to substantiate any information reported on the application.

(3) An applicant seeking to exclude the income of a spouse on the basis of a marital separation shall complete an affidavit setting forth the date separation occurred and stating the unlikelihood of the spouse returning to the dwelling unit.

(4) An applicant may be required to submit proof of the leasehold interest.

(5) An applicant who refuses to submit any information required under Tax-Property Article, §9-102, Annotated Code of Maryland, and the regulations, shall be denied a tax credit for failure to substantiate the application.

(6) An applicant who provides false or misleading information to the Department may be denied a tax credit.

C. The Department may establish additional application procedures which do not appear here, if considered necessary and if not inconsistent with the promulgated regulations.

History

Administrative History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
Administrative History: Regulations .01—.03 amended effective March 11, 1996 (23:5 Md. R. 384)
Authority: Tax-Property Article, §§2-201, 2-202, and 9-102, Annotated Code of Maryland

18.07.03 Homestead Property Tax Credit Program

COMAR 18.07.03.01 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) “Actually occupied” means that the homeowner physically resides in the dwelling for the required time period.

(2) “Expected to be actually occupied” means the homeowner intends to reside in the dwelling for the required time period except for an unforeseen absence due to illness or need of hospitalization or special care.

(3) “Principal residence” is the one dwelling where the homeowner regularly resides and is the location designated by the owner for the legal purposes of voting, obtaining a driver's license, and filing income tax returns.

History

Administrative History: Effective date: November 8, 1993 (20:22 Md. R. 1709)
Administrative History: Regulation .03 adopted effective June 30, 2008 (35:13 Md. R. 1181)
Authority: Tax-Property Article, §§2-201, 2-202, 2-218, and 9-105, Annotated Code of Maryland

COMAR 18.07.03.02 Verification of Owner Occupancy.

The Department may request documentation to verify that a dwelling is the principal residence of a homeowner. This documentation may include, but is not limited to, requiring an individual to execute a sworn affidavit regarding residency for purposes of voting, driver's license address, and income tax filing. Failure to provide the requested information within 30 days from the date of a request shall result in a dwelling being designated as non-owner-occupied for purposes of the Homestead Property Tax Credit.

History

Administrative History: Effective date: November 8, 1993 (20:22 Md. R. 1709)
Administrative History: Regulation .03 adopted effective June 30, 2008 (35:13 Md. R. 1181)
Authority: Tax-Property Article, §§2-201, 2-202, 2-218, and 9-105, Annotated Code of Maryland

COMAR 18.07.03.03 Cooperative Corporations.

A. Pursuant to Tax-Property Article, §9-105, Annotated Code of Maryland, dwellings occupied through membership in a cooperative corporation are eligible for the Homestead Property Tax Credit.

B. The following information shall be provided for the Department to administer the credit:

(1) For a dwelling's initial eligibility for the credit:

(a) The name of any individuals holding membership in the cooperative corresponding to the dwelling; and

(b) Documentation under Tax-Property Article, §2-218, Annotated Code of Maryland, verifying that the dwelling is the principal residence of the individuals holding that membership; and

(2) For a dwelling whose occupants change due to a change of membership in the cooperative:

(a) The name of any individuals acquiring membership in the cooperative corresponding to the dwelling;

(b) The date the membership was acquired;

(d) Documentation under Tax-Property Article, §2-218, Annotated Code of Maryland, verifying that the dwelling is the principal residence of the individuals holding that membership.

C. The information required by §B of this regulation shall be provided:

(1) To the Department's local assessment offices;

(2) Under the signed oath of the individuals holding membership in the cooperative corresponding to the dwelling; and

(3) On a form furnished by the Department.

D. The information required by §B(2) of this regulation shall be provided within 60 days of the date that a change of membership in the cooperative occurs.

E. Failure or refusal to provide the information required by §B of this regulation will result in a dwelling being designated as not a principal residence for purposes of the credit.

History

Administrative History: Effective date: November 8, 1993 (20:22 Md. R. 1709)
Administrative History: Regulation .03 adopted effective June 30, 2008 (35:13 Md. R. 1181)
Authority: Tax-Property Article, §§2-201, 2-202, 2-218, and 9-105, Annotated Code of Maryland

18.07.04 Enterprise Zone Tax Credit Program

COMAR 18.07.04.01 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) “Business entity” has the meaning stated in Tax-Property Article, §9-103, Annotated Code of Maryland.

(2) “Certified” means designated by a political subdivision as complying with the standards submitted by the subdivision as provided in Article 83A, §5-402(d)(4), Annotated Code of Maryland.

(3) “Date of finality” has the meaning stated in Tax-Property Article, §1-101(i), Annotated Code of Maryland.

(4) “Eligible assessment” means the value of qualified personal property which is initially purchased, acquired, leased, transferred, or otherwise brought into Maryland by a certified business entity from January 1 of the calendar year that entity is first certified until the underlying focus area expires.

(5) “Focus area” has the meaning stated in Article 83A, §5-401, Annotated Code of Maryland.

(6) “Political subdivision” has the meaning stated in Article 83A, §5-401, Annotated Code of Maryland.

(7) “Qualified personal property” means personal property located in a focus area.

(8) “Tax credit” means the enterprise zone tax credit provided for in Tax-Property Article, §9-103, Annotated Code of Maryland.

(9) “Taxable year” has the meaning stated in Tax-Property Article, §1-101(ii), Annotated Code of Maryland.

History

Administrative History: Effective date:
Administrative History: Regulations .01—.04 adopted as an emergency provision effective December 15, 2000 (28:2 Md. R. 97); emergency status expired May 14, 2001; adopted permanently effective May 28, 2001 (28:10 Md. R. 950)
Authority: Tax-Property Article, §§2-201, 2-202, and 9-103; Article 83A, §5-401 and 5-402; Annotated Code of Maryland

COMAR 18.07.04.02 Duration of Credit for Personal Property.

Qualified personal property entitled to an eligible assessment may receive a tax credit for 10 consecutive taxable years regardless of whether the underlying focus area expires.

History

Administrative History: Effective date:
Administrative History: Regulations .01—.04 adopted as an emergency provision effective December 15, 2000 (28:2 Md. R. 97); emergency status expired May 14, 2001; adopted permanently effective May 28, 2001 (28:10 Md. R. 950)
Authority: Tax-Property Article, §§2-201, 2-202, and 9-103; Article 83A, §5-401 and 5-402; Annotated Code of Maryland

COMAR 18.07.04.03 Certification for Personal Property.

In order to administer the tax credit, the Department shall receive annually, on or before the date of finality immediately preceding the taxable year for which the tax credit is to be granted, a listing as to the:

A. Business entities certified for the tax credit; and

B. Date the business entities were certified for the tax credit.

History

Administrative History: Effective date:
Administrative History: Regulations .01—.04 adopted as an emergency provision effective December 15, 2000 (28:2 Md. R. 97); emergency status expired May 14, 2001; adopted permanently effective May 28, 2001 (28:10 Md. R. 950)
Authority: Tax-Property Article, §§2-201, 2-202, and 9-103; Article 83A, §5-401 and 5-402; Annotated Code of Maryland

COMAR 18.07.04.04 List of Eligible Assessments.

In each taxable year, the Department shall submit to the appropriate governing body a listing of the amount of the eligible assessments for each certified business entity.

History

Administrative History: Effective date:
Administrative History: Regulations .01—.04 adopted as an emergency provision effective December 15, 2000 (28:2 Md. R. 97); emergency status expired May 14, 2001; adopted permanently effective May 28, 2001 (28:10 Md. R. 950)
Authority: Tax-Property Article, §§2-201, 2-202, and 9-103; Article 83A, §5-401 and 5-402; Annotated Code of Maryland

18.08.01 Administration

COMAR 18.08.01.01 Definitions.

A. In these regulations the following terms have the meanings indicated.

B. Terms Defined.

(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.

(2) “Department” means the State Department of Assessments and Taxation.

(3) “Electric company” means a company engaged in the transmission, distribution, or delivery of electricity in the State.

(4) “Gas company” means a company engaged in the transmission, distribution or delivery, of natural gas in the State.

(5) Gross Receipts.

(a) “Gross receipts” means the total receipts that occur as a result of the company doing business in the State as an electric, gas, or telephone company during the calendar year. For gas and electric companies, “gross receipts” means all revenues included in the operating revenue accounts as prescribed by the Federal Energy Regulatory Commission, unless otherwise specified by Maryland law or regulation.

(b) For a telephone company providing interstate long distance telecommunications service, gross receipts are computed based on services charged to a Maryland address. The revenues include the gross charges from the sale of long distance telecommunications service that originates or terminates in Maryland and for which a charge is made to a service address located in the State, regardless of where the amount is billed or paid.

(c) Gross receipts includes all surcharges imposed on customers, including the environmental surcharge and surcharges to recover State or local taxes imposed on the company.

(d) Exclusions from gross receipts are as provided in Tax-General Article, §8-401(c), Annotated Code of Maryland.

(6) “State” means:

(a) A state, possession, or territory of the United States;

(b) The District of Columbia; or

(7) “Tax” means the public service company franchise tax imposed under Tax-General Article, §§8-402 and 8-402.1, Annotated Code of Maryland.

(8) Telecommunications Service.

(a) “Telecommunications service” means the:

(i) Transmission of any interactive electromagnetic communications, including voice, image, data, and any other information, by means of wire, cable, fiber optics, laser, microwave, radio wave, satellite, or other facility, or any combination of these media; or

(ii) Provision of facilities and services for the transmission of any interactive electromagnetic communications.

(b) “Telecommunications service” includes:

(i) Basic telephone service, including any facility or service provided in connection with basic telephone service;

(ii) Toll telephone service and teletypewriter or computer exchange service;

(iii) Business service; and

(iv) Directory assistance.

(9) Telephone Company.

(a) “Telephone company” means a company that owns lines for the reception, transmission, or communication of messages by telephone or teletype, or that lets, licenses, or sells telecommunications service.

(b) “Telephone company” includes companies operating as local exchange carriers, interexchange carriers, or resellers of telecommunications service.

(c) “Telephone company” does not include a radio common carrier, a person that owns a customer-owned coin operated telephone, or a company that owns and operates lines for telecommunications service exclusively for its own use.

History

Administrative History: Effective date: February 22, 1988 (15:4 Md. R. 474)
Administrative History: Regulation .01B amended effective February 20, 1989 (16:3 Md. R. 347); October 26, 1992 (19:21 Md. R. 1893); December 4, 1995 (22:24 Md. R. 1904); June 1, 1998 (25:11 Md. R. 822)
Administrative History: Regulation .01B amended as an emergency provision effective January 1, 2000 (27:2 Md. R. 141)
Administrative History: Regulation .01B amended effective April 17, 2000 (27:7 Md. R. 707)707
Administrative History: Regulation .02B amended effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .02 amended and recodified to Regulation .03 and new Regulation .02 adopted effective April 17, 2000 (27:7 Md. R. 707)
Administrative History: Regulation .03 repealed effective October 26, 1992 (19:21 Md. R. 1893)
Administrative History: Regulation .03F amended effective September 21, 1998 (25:19 Md. R. 1497)
Administrative History: Regulation .03 amended and recodified to Regulation .04 effective April 17, 2000 (27:7 Md. R. 707)
Administrative History: Regulation .04 amended and recodified to Regulation .03 effective October 26, 1992 (19:21 Md. R. 1893)
Administrative History: Regulation .04D amended effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .04E amended effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .04F adopted effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .04 amended and recodified to Regulation .05 effective April 17, 2000 (27:7 Md. R. 707)
Administrative History: Regulation .05 amended effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .05 amended and recodified to Regulation .04 effective October 26, 1992 (19:21 Md. R. 1893)
Administrative History: Regulation .06 repealed effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: ——————
Administrative History: Chapter revised effective April 17, 2000 (27:7 Md. R. 707)
Administrative History: Regulation .04 amended effective September 15, 2014 (41:18 Md. R. 1010)
Administrative History: Regulation .05B amended effective June 19, 2006 (33:12 Md. R. 998)
Authority: Tax-General Article, §§8-402, 8-402.1, 8-404, 8-408, 13-303, 13-402, 13-701, 13-702 and 13-708; Tax-Property Article §2-201; Annotated Code of Maryland

COMAR 18.08.01.02 Companies Subject to the Tax.

A. The tax has two parts:

(1) A gross receipts tax on electric, gas, and telephone companies; and

(2) For electric and gas companies, a tax based on the kilowatt hours of electricity or 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.

History

Administrative History: Effective date: February 22, 1988 (15:4 Md. R. 474)
Administrative History: Regulation .01B amended effective February 20, 1989 (16:3 Md. R. 347); October 26, 1992 (19:21 Md. R. 1893); December 4, 1995 (22:24 Md. R. 1904); June 1, 1998 (25:11 Md. R. 822)
Administrative History: Regulation .01B amended as an emergency provision effective January 1, 2000 (27:2 Md. R. 141)
Administrative History: Regulation .01B amended effective April 17, 2000 (27:7 Md. R. 707)707
Administrative History: Regulation .02B amended effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .02 amended and recodified to Regulation .03 and new Regulation .02 adopted effective April 17, 2000 (27:7 Md. R. 707)
Administrative History: Regulation .03 repealed effective October 26, 1992 (19:21 Md. R. 1893)
Administrative History: Regulation .03F amended effective September 21, 1998 (25:19 Md. R. 1497)
Administrative History: Regulation .03 amended and recodified to Regulation .04 effective April 17, 2000 (27:7 Md. R. 707)
Administrative History: Regulation .04 amended and recodified to Regulation .03 effective October 26, 1992 (19:21 Md. R. 1893)
Administrative History: Regulation .04D amended effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .04E amended effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .04F adopted effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .04 amended and recodified to Regulation .05 effective April 17, 2000 (27:7 Md. R. 707)
Administrative History: Regulation .05 amended effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .05 amended and recodified to Regulation .04 effective October 26, 1992 (19:21 Md. R. 1893)
Administrative History: Regulation .06 repealed effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: ——————
Administrative History: Chapter revised effective April 17, 2000 (27:7 Md. R. 707)
Administrative History: Regulation .04 amended effective September 15, 2014 (41:18 Md. R. 1010)
Administrative History: Regulation .05B amended effective June 19, 2006 (33:12 Md. R. 998)
Authority: Tax-General Article, §§8-402, 8-402.1, 8-404, 8-408, 13-303, 13-402, 13-701, 13-702 and 13-708; Tax-Property Article §2-201; Annotated Code of Maryland

COMAR 18.08.01.03 Inter-Company Transactions.

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 transaction more than once, any revenues received by a company for services that will later 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:

(1) Network access, billing, or other revenues derived from the provision of exchange access or other services to an interexchange carrier are not considered gross receipts for a local exchange carrier;

(2) Revenues derived from the transmission of gas or electricity to another gas or electric 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 identified in the filing of the annual tax return. The information necessary to support the amount of the exclusions shall be retained and made available to the Department upon request or audit.

History

Administrative History: Effective date: February 22, 1988 (15:4 Md. R. 474)
Administrative History: Regulation .01B amended effective February 20, 1989 (16:3 Md. R. 347); October 26, 1992 (19:21 Md. R. 1893); December 4, 1995 (22:24 Md. R. 1904); June 1, 1998 (25:11 Md. R. 822)
Administrative History: Regulation .01B amended as an emergency provision effective January 1, 2000 (27:2 Md. R. 141)
Administrative History: Regulation .01B amended effective April 17, 2000 (27:7 Md. R. 707)707
Administrative History: Regulation .02B amended effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .02 amended and recodified to Regulation .03 and new Regulation .02 adopted effective April 17, 2000 (27:7 Md. R. 707)
Administrative History: Regulation .03 repealed effective October 26, 1992 (19:21 Md. R. 1893)
Administrative History: Regulation .03F amended effective September 21, 1998 (25:19 Md. R. 1497)
Administrative History: Regulation .03 amended and recodified to Regulation .04 effective April 17, 2000 (27:7 Md. R. 707)
Administrative History: Regulation .04 amended and recodified to Regulation .03 effective October 26, 1992 (19:21 Md. R. 1893)
Administrative History: Regulation .04D amended effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .04E amended effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .04F adopted effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .04 amended and recodified to Regulation .05 effective April 17, 2000 (27:7 Md. R. 707)
Administrative History: Regulation .05 amended effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .05 amended and recodified to Regulation .04 effective October 26, 1992 (19:21 Md. R. 1893)
Administrative History: Regulation .06 repealed effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: ——————
Administrative History: Chapter revised effective April 17, 2000 (27:7 Md. R. 707)
Administrative History: Regulation .04 amended effective September 15, 2014 (41:18 Md. R. 1010)
Administrative History: Regulation .05B amended effective June 19, 2006 (33:12 Md. R. 998)
Authority: Tax-General Article, §§8-402, 8-402.1, 8-404, 8-408, 13-303, 13-402, 13-701, 13-702 and 13-708; Tax-Property Article §2-201; Annotated Code of Maryland

COMAR 18.08.01.04 Filing Forms and Additional Information.

A. Forms shall be filed with the Department at the locations specified on the form.

B. Each report, application, or response filed for the tax shall be made under oath with a declaration preceding the signature of the author that it is made under penalties of perjury.

C. A company that anticipates a total tax liability of at least $1,000 for a taxable year shall file a declaration of estimated tax with the Department by April 15 of the taxable year. The company shall pay the Department an amount equal to at least 25 percent of the tax liability for the full taxable year on April 15, June 15, September 15, and December 15.

D. On or before March 15 annually, each company shall file with the Department a return detailing all operating and nonoperating revenues for the preceding calendar year. Each company shall attach to the return:

(1) A check made payable to the Department for the remaining tax due for the period covered by the return; and

(2) Financial statements and a copy of the company’s annual report as submitted to the appropriate regulatory authorities.

E. If a company fails to file the return as required under this regulation, the Department will mail to the company a notice and demand for the return. If the return is not filed within 30 days of the mailing of the notice, the Department will estimate the company’s operating revenues and assess an additional penalty of up to 25 percent of the estimated tax liability.

F. Returns Filed Without Supporting Documents.

(1) If a company files a return but fails to include financial statements and a copy of the company’s annual report as required in §D(2) of this regulation, the Department will mail to the company a notice and demand for the supporting documents. If the supporting documents are not filed within 30 days of the mailing of the notice, the Department will estimate the company’s operating revenues and assess an additional penalty of up to 25 percent of the estimated tax liability.

(2) If, at the time of filing a return, a company’s annual report has not been submitted to the appropriate regulatory authorities, the company shall furnish to the Department the date that it is due to be submitted. If the company’s annual report is not filed with the Department within 30 days of the date that it is due to be submitted, the Department will mail to the company a notice and demand for the annual report. If the annual report is not filed within 30 days of the mailing of the notice, the Department will estimate the company’s operating revenues and assess an additional penalty of up to 25 percent of the estimated tax liability.

G. A company claiming a telephone lifeline credit or a credit for the purchase of Maryland-mined coal shall include with the annual return information detailing the basis for the calculation of the credit. In order to qualify for a Maryland-mined coal tax credit, a company must be able to document that the coal was directly purchased from a mine that extracted the coal from a location in Maryland.

H. A long distance telephone company shall be allowed a credit for the amount paid, not to exceed the Maryland tax due, upon proof that it has paid a properly due excise, sales and use, or gross receipts tax in another state on a sale from which the gross receipts are subject to Maryland tax.

History

Administrative History: Effective date: February 22, 1988 (15:4 Md. R. 474)
Administrative History: Regulation .01B amended effective February 20, 1989 (16:3 Md. R. 347); October 26, 1992 (19:21 Md. R. 1893); December 4, 1995 (22:24 Md. R. 1904); June 1, 1998 (25:11 Md. R. 822)
Administrative History: Regulation .01B amended as an emergency provision effective January 1, 2000 (27:2 Md. R. 141)
Administrative History: Regulation .01B amended effective April 17, 2000 (27:7 Md. R. 707)707
Administrative History: Regulation .02B amended effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .02 amended and recodified to Regulation .03 and new Regulation .02 adopted effective April 17, 2000 (27:7 Md. R. 707)
Administrative History: Regulation .03 repealed effective October 26, 1992 (19:21 Md. R. 1893)
Administrative History: Regulation .03F amended effective September 21, 1998 (25:19 Md. R. 1497)
Administrative History: Regulation .03 amended and recodified to Regulation .04 effective April 17, 2000 (27:7 Md. R. 707)
Administrative History: Regulation .04 amended and recodified to Regulation .03 effective October 26, 1992 (19:21 Md. R. 1893)
Administrative History: Regulation .04D amended effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .04E amended effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .04F adopted effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .04 amended and recodified to Regulation .05 effective April 17, 2000 (27:7 Md. R. 707)
Administrative History: Regulation .05 amended effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .05 amended and recodified to Regulation .04 effective October 26, 1992 (19:21 Md. R. 1893)
Administrative History: Regulation .06 repealed effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: ——————
Administrative History: Chapter revised effective April 17, 2000 (27:7 Md. R. 707)
Administrative History: Regulation .04 amended effective September 15, 2014 (41:18 Md. R. 1010)
Administrative History: Regulation .05B amended effective June 19, 2006 (33:12 Md. R. 998)
Authority: Tax-General Article, §§8-402, 8-402.1, 8-404, 8-408, 13-303, 13-402, 13-701, 13-702 and 13-708; Tax-Property Article §2-201; Annotated Code of Maryland

COMAR 18.08.01.05 Assessments, Appeals, and Penalties.

A. If, after an audit of the tax return, the Department determines that the tax is more than the amount shown on the return, the Department will mail to the company a deficiency assessment for taxes due.

B. Interest and penalty shall be imposed if a company fails to pay an installment when due, or estimates a tax that is less than 90 percent of the amount due for the current taxable year and less than 110 percent of the tax paid for the prior taxable year.

C. Failure to file a return or pay the tax when due will result in the imposition of interest and penalty.

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 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 company.

E. A company may appeal a final assessment to the Maryland Tax Court within 30 days after the date of mailing of the final assessment.

History

Administrative History: Effective date: February 22, 1988 (15:4 Md. R. 474)
Administrative History: Regulation .01B amended effective February 20, 1989 (16:3 Md. R. 347); October 26, 1992 (19:21 Md. R. 1893); December 4, 1995 (22:24 Md. R. 1904); June 1, 1998 (25:11 Md. R. 822)
Administrative History: Regulation .01B amended as an emergency provision effective January 1, 2000 (27:2 Md. R. 141)
Administrative History: Regulation .01B amended effective April 17, 2000 (27:7 Md. R. 707)707
Administrative History: Regulation .02B amended effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .02 amended and recodified to Regulation .03 and new Regulation .02 adopted effective April 17, 2000 (27:7 Md. R. 707)
Administrative History: Regulation .03 repealed effective October 26, 1992 (19:21 Md. R. 1893)
Administrative History: Regulation .03F amended effective September 21, 1998 (25:19 Md. R. 1497)
Administrative History: Regulation .03 amended and recodified to Regulation .04 effective April 17, 2000 (27:7 Md. R. 707)
Administrative History: Regulation .04 amended and recodified to Regulation .03 effective October 26, 1992 (19:21 Md. R. 1893)
Administrative History: Regulation .04D amended effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .04E amended effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .04F adopted effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .04 amended and recodified to Regulation .05 effective April 17, 2000 (27:7 Md. R. 707)
Administrative History: Regulation .05 amended effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: Regulation .05 amended and recodified to Regulation .04 effective October 26, 1992 (19:21 Md. R. 1893)
Administrative History: Regulation .06 repealed effective February 20, 1989 (16:3 Md. R. 347)
Administrative History: ——————
Administrative History: Chapter revised effective April 17, 2000 (27:7 Md. R. 707)
Administrative History: Regulation .04 amended effective September 15, 2014 (41:18 Md. R. 1010)
Administrative History: Regulation .05B amended effective June 19, 2006 (33:12 Md. R. 998)
Authority: Tax-General Article, §§8-402, 8-402.1, 8-404, 8-408, 13-303, 13-402, 13-701, 13-702 and 13-708; Tax-Property Article §2-201; Annotated Code of Maryland

18.09.01 Allocation

COMAR 18.09.01.01 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) “Property factors” means data that measure the physical presence of the operating unit within the State. Examples of property factors include such items as property cost and miles of track.

(2) “Revenue factors” means data that measure the economic activity of the operating unit within the State. Examples of revenue factors include such items as gross revenue and net operating income.

(3) “Use factors” means data that measure the physical activity of the operating unit within the State. Examples of use factors include such items as ton mileage and originating and terminating tons of freight.

History

Administrative History: Effective date: July 22, 1991 (18:14 Md. R. 1610)
Authority: Tax-Property Article, §§2-201 and 8-108, Annotated Code of Maryland

COMAR 18.09.01.02 Allocation Factors.

In allocating a portion of the operating unit to the State, the Department may use a combination of property, revenue, and use factors. The factors used shall be sufficient to produce a reasonable estimate of the unit value attributable to the State.

History

Administrative History: Effective date: July 22, 1991 (18:14 Md. R. 1610)
Authority: Tax-Property Article, §§2-201 and 8-108, Annotated Code of Maryland

18.10.01 Classification

COMAR 18.10.01.01 Procedure.

A. In this regulation, “operating unit” has the meaning stated in Tax-Property Article, §1-101(y), Annotated Code of Maryland.

B. The Department considers the criteria in Tax-Property Article, §§1-101(ee) and 8-109(h), Annotated Code of Maryland, in determining whether a company should be classified as a public utility for property tax assessment purposes. A company that does not fully meet all of the criteria may still be classified as a public utility if the Department determines that the company predominantly meets the criteria.

C. The classification of property as public utility operating property will generally be determined by the ownership and use of the property as of January 1 preceding the taxable year.

D. If all personal property of a public utility operating unit is transferred between a utility and a nonutility entity on or after January 1, but before July 1, and is reported to the Department, then all of the transferred real and personal property will be reclassified and assessed to the transferee for the taxable year following the transfer. The report shall be filed under oath by the transferor or transferee with the Department by October 1 following the transfer, and include the following information:

(1) A description of the property transferred;

(2) The date and manner of transfer;

(3) The name and address of the transferee;

(4) The consideration, including separate allocation of consideration to real and personal property; and

(5) Any other information that the Department requires.

E. If a public utility operating unit transfers less than all of its personal property after January 1, but before July 1, and the transfer includes real property, then for the taxable year following the transfer the:

(1) Personal property will be assessed to the transferor;

(2) Real property will be assessed to the transferee; and

(3) Transferor must file a report with the Department within 30 days of the transfer including the information listed in §D of this regulation.

F. The Department may require nonutility entities to annually file reports of real and personal property used to generate electricity, and consider cost, income, and sales comparison indicators of value in valuing the property.

G. In determining the classification of utility operating property, multiple entities under commonly controlled management will generally be included in one public utility operating unit if an unregulated entity is receiving significant revenue or using a significant portion of its real and personal property in providing goods or services to the public utility.

History

Administrative History: Effective date: January 26, 1998 (25:2 Md. R. 79)
Administrative History: Regulation .01 amended effective May 29, 2000 (27:10 Md. R. 968); October 2, 2000 (27:18 Md. R. 1729)
Administrative History: Regulation .01A, B amended effective December 6, 2018 (45:24 Md. R. 1162)
Administrative History: Regulation .02 repealed effective May 29, 2000 (27:10 Md. R. 968)
Authority: Tax-Property Article, §§1-101(y) and (ee), 2-201, and 8-109(h), Annotated Code of Maryland

18.10.02 Allocation

COMAR 18.10.02.01 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) “Property factors” means data that measure the physical presence of the operating unit within the State. Examples of property factors include such items as original property cost and depreciated property cost.

(3) “Use factors” means data that measure the physical activity of the operating unit within the State. Examples of use factors include such items as kilowatts sold or generated, therms sold, and barrel/miles.

History

Administrative History: Effective date: July 22, 1991 (18:14 Md. R. 1610)
Administrative History: Chapter recodified from COMAR 18.10.01 to COMAR 18.10.02 effective January 26, 1998 (25:2 Md. R. 79)
Authority: Tax-Property Article, §§2-201 and 8-109, Annotated Code of Maryland

COMAR 18.10.02.02 Allocation Factors.

History

Administrative History: Effective date: July 22, 1991 (18:14 Md. R. 1610)
Administrative History: Chapter recodified from COMAR 18.10.01 to COMAR 18.10.02 effective January 26, 1998 (25:2 Md. R. 79)
Authority: Tax-Property Article, §§2-201 and 8-109, Annotated Code of Maryland

18.10.03 Coal Pollution Facilities

COMAR 18.10.03.01 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) “Certified coal pollution control facility” has the meaning stated in Tax-Property Article, §7-239(a)(1), Annotated Code of Maryland.

(2) “Coal Waste Disposal Power Project” has the meaning stated in Tax-Property Article, §7-239(a)(2), Annotated Code of Maryland.

(3) “Depreciated value” means the original cost of property less its standard depreciation as determined by the Department under COMAR 18.03.01.02.

History

Administrative History: Effective date: June 2, 1997 (24:11 Md. R. 794)
Administrative History: Chapter recodified from COMAR 08.10.02 to COMAR 08.10.03 effective January 26, 1998 (25:2 Md. R. 79)
Administrative History: Regulation .01B amended effective December 6, 2018 (45:24 Md. R. 1162)
Administrative History: Regulation .03 amended effective December 6, 2018 (45:24 Md. R. 1162)
Authority: Tax-Property Article, §§7-239(f) and 8-109, Annotated Code of Maryland

COMAR 18.10.03.02 Exemptions From Property Tax.

A. Except as otherwise provided in this regulation, a partial exemption equal to 95 percent of the assessment of the property applies to property placed in service as part of a certified coal pollution control facility or a coal waste disposal power project and for which all necessary permits, including a certificate of public convenience and necessity, are issued after January 1, 1997.

B. If a certified coal pollution control facility produces a profitable by-product or if a part of the facility is required for the operation of the business without regard to State and federal air quality, water quality, and effluent requirements, the partial exemption under this regulation applies only to that portion of the value of the facility attributable to pollution control activity.

C. If a certified coal pollution facility engages in the replacement, repair, or retrofit of equipment that was subject to the property tax on or before December 31, 1996, the partial exemption under this regulation is reduced by the replacement value of existing equipment that is replaced, repaired, or retrofitted.

Cross References

18.10.03.03A

18.10.03.03B

History

Administrative History: Effective date: June 2, 1997 (24:11 Md. R. 794)
Administrative History: Chapter recodified from COMAR 08.10.02 to COMAR 08.10.03 effective January 26, 1998 (25:2 Md. R. 79)
Administrative History: Regulation .01B amended effective December 6, 2018 (45:24 Md. R. 1162)
Administrative History: Regulation .03 amended effective December 6, 2018 (45:24 Md. R. 1162)
Authority: Tax-Property Article, §§7-239(f) and 8-109, Annotated Code of Maryland

COMAR 18.10.03.03 Methods for Calculating the Exemption.

A. Any exemption applied to property under Regulation .02B of this chapter is based on its depreciated value.

B. Any exemption applied to property under Regulation .02C of this chapter is based on the cost of replacement, repair, or retrofit of the equipment minus the depreciated value of the equipment replaced, repaired, or retrofitted.

C. Partial exemptions described in this chapter are calculated using standard depreciation as determined by the Department. Certified pollution control property is depreciated and subtracted from the depreciated cost of electric generation machinery and equipment. The taxable portion of the partial exemption (95 percent exempt; 5 percent taxable) is depreciated and added to the assessment.

History

Administrative History: Effective date: June 2, 1997 (24:11 Md. R. 794)
Administrative History: Chapter recodified from COMAR 08.10.02 to COMAR 08.10.03 effective January 26, 1998 (25:2 Md. R. 79)
Administrative History: Regulation .01B amended effective December 6, 2018 (45:24 Md. R. 1162)
Administrative History: Regulation .03 amended effective December 6, 2018 (45:24 Md. R. 1162)
Authority: Tax-Property Article, §§7-239(f) and 8-109, Annotated Code of Maryland

18.11.01 Tax Payments — Immediately Available Funds

COMAR 18.11.01.01 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) “ACH credit” means a transaction in which a taxpayer, through the taxpayer's bank and an automated clearing house, originates an entry crediting the State's bank account and debiting the taxpayer's bank account for the amount of the payment due.

(2) “Automated clearing house (ACH)” means a central clearing facility operated by:

(a) A federal reserve bank; or

(b) An organization established by agreement with the National Automated Clearing House Association (NACHA) which:

(i) Operates as a clearing house for transmitting or receiving entries between banks and bank accounts; and

(ii) Authorizes an electronic transfer of funds between banks or bank accounts.

(3) “Business day” means the hours between 8 a.m. and 5 p.m., prevailing Eastern time, on a day other than a Saturday, Sunday, or any holiday as defined in Tax-General Article, §1-201(a), Annotated Code of Maryland.

(4) “Department” means the State Department of Assessments and Taxation or its designee.

(5) “Immediately available funds” means an ACH credit, U.S. currency, or wire transfer.

(6) “Person” means an individual, receiver, trustee, guardian, personal representative, fiduciary, or representative of any kind, and any partnership, firm, association, corporation, or other entity.

(7) “Tax” means a public service company franchise tax, including any interest, penalty, or fees.

(8) “Taxpayer” means a person required to pay a tax or file a return or a report.

(9) “TXP” means the tax payment addendum convention for use with the National Automated Clearing House Association's “CCD Plus” format application.

(10) “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.

History

Administrative History: Effective date:
Administrative History: Regulations .01—.05 adopted as an emergency provision effective March 11, 1993 (20:7 Md. R. 637); adopted permanently effective July 19, 1993 (20:14 Md. R. 1170)
Administrative History: Regulation .01B amended effective January 30, 1995 (22:2 Md. R. 78); December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .02A amended effective January 30, 1995 (22:2 Md. R. 78); September 21, 1998 (25:19 Md. R. 1497); December 11, 2003 (30:24 Md. R. 1745); December 6, 2018 (45:24 Md. R. 1162); December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .02C amended effective December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .03 amended effective December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .04 amended effective December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .05 amended effective December 12, 2022 (49:25 Md. R. 1052)
Authority: Tax-General Article, §13-104; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.11.01.02 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) of this regulation, tax payment shall be made by using ACH credit; or

(2) Tax payment by wire transfer may be used if the taxpayer:

(a) Initiates an ACH credit or authorizes an ACH debit transaction which fails;

(b) Receives prior approval from the Department; and

B. Additional instructions which may be provided by the Department shall be followed by the taxpayer.

C. A separate ACH credit or wire transfer allowed under §A of this regulation shall be made for each type of tax and for each period for which the tax is due.

D. A taxpayer may satisfy the obligation to remit payment in immediately available funds by physical delivery of U.S. currency, with the appropriate return, on or before 1 p.m. on the due date of the obligation, to the Department of Assessments and Taxation, 301 West Preston Street, Room 806, Baltimore, Maryland 21201.

History

Administrative History: Effective date:
Administrative History: Regulations .01—.05 adopted as an emergency provision effective March 11, 1993 (20:7 Md. R. 637); adopted permanently effective July 19, 1993 (20:14 Md. R. 1170)
Administrative History: Regulation .01B amended effective January 30, 1995 (22:2 Md. R. 78); December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .02A amended effective January 30, 1995 (22:2 Md. R. 78); September 21, 1998 (25:19 Md. R. 1497); December 11, 2003 (30:24 Md. R. 1745); December 6, 2018 (45:24 Md. R. 1162); December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .02C amended effective December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .03 amended effective December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .04 amended effective December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .05 amended effective December 12, 2022 (49:25 Md. R. 1052)
Authority: Tax-General Article, §13-104; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.11.01.03 Registration.

A person making a payment as an agent for a taxpayer may be required to register with the Department before initiation of an ACH tax payment.

History

Administrative History: Effective date:
Administrative History: Regulations .01—.05 adopted as an emergency provision effective March 11, 1993 (20:7 Md. R. 637); adopted permanently effective July 19, 1993 (20:14 Md. R. 1170)
Administrative History: Regulation .01B amended effective January 30, 1995 (22:2 Md. R. 78); December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .02A amended effective January 30, 1995 (22:2 Md. R. 78); September 21, 1998 (25:19 Md. R. 1497); December 11, 2003 (30:24 Md. R. 1745); December 6, 2018 (45:24 Md. R. 1162); December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .02C amended effective December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .03 amended effective December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .04 amended effective December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .05 amended effective December 12, 2022 (49:25 Md. R. 1052)
Authority: Tax-General Article, §13-104; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.11.01.04 Use of ACH Payments.

A. General. A taxpayer using the ACH payment method shall make the appropriate arrangements to initiate the payment so that the transfer is executed on the date payment is due.

B. ACH Credit.

(1) A taxpayer using the ACH credit payment method shall initiate each payment of tax by contacting its own financial institution and requesting the institution to transfer both the appropriate identifying information and payment to the State's depository bank via an ACH credit.

(2) A taxpayer shall remit an ACH credit transaction with an addendum record formatted in accordance with the appropriate TXP convention.

History

Administrative History: Effective date:
Administrative History: Regulations .01—.05 adopted as an emergency provision effective March 11, 1993 (20:7 Md. R. 637); adopted permanently effective July 19, 1993 (20:14 Md. R. 1170)
Administrative History: Regulation .01B amended effective January 30, 1995 (22:2 Md. R. 78); December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .02A amended effective January 30, 1995 (22:2 Md. R. 78); September 21, 1998 (25:19 Md. R. 1497); December 11, 2003 (30:24 Md. R. 1745); December 6, 2018 (45:24 Md. R. 1162); December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .02C amended effective December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .03 amended effective December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .04 amended effective December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .05 amended effective December 12, 2022 (49:25 Md. R. 1052)
Authority: Tax-General Article, §13-104; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.11.01.05 Miscellaneous Filing and Reporting Provisions.

A. The Department may require persons remitting taxes by ACH credit or wire transfer method to file an annual reconciliation report.

B. A taxpayer who remits taxes by ACH credit or wire transfer method shall indicate that fact on all tax returns required to be filed for that period for which tax payment is being made.

History

Administrative History: Effective date:
Administrative History: Regulations .01—.05 adopted as an emergency provision effective March 11, 1993 (20:7 Md. R. 637); adopted permanently effective July 19, 1993 (20:14 Md. R. 1170)
Administrative History: Regulation .01B amended effective January 30, 1995 (22:2 Md. R. 78); December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .02A amended effective January 30, 1995 (22:2 Md. R. 78); September 21, 1998 (25:19 Md. R. 1497); December 11, 2003 (30:24 Md. R. 1745); December 6, 2018 (45:24 Md. R. 1162); December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .02C amended effective December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .03 amended effective December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .04 amended effective December 12, 2022 (49:25 Md. R. 1052)
Administrative History: Regulation .05 amended effective December 12, 2022 (49:25 Md. R. 1052)
Authority: Tax-General Article, §13-104; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.12.01 Tax Returns [Repealed]

History

Administrative History: Effective date: November 20, 1994 (21:23 Md. R. 1936)
Administrative History: Regulation .01 repealed effective December 6, 2018 (45:24 Md. R. 1162)

18.13.01 Security Agreements

COMAR 18.13.01.01 Definitions.

A. In this chapter, the following terms in Commercial Law Article, §9-402(d), Annotated Code of Maryland, have the meanings indicated.

B. Terms Defined.

(1) “County in which each debtor's principal place of business in the State is located” means:

(a) For a debtor with one place of business, where the business is conducted;

(b) For a debtor with more than one place of business, where the debtor's:

(i) Chief executive office is situated, or, if inapplicable,

(ii) Business in this State is otherwise directed or managed, or, if inapplicable,

(iii) Business in this State is primarily conducted.

(2) “County of residence in the State” means:

(a) For a debtor with no place of business maintaining one place of abode, where the abode is situated;

(b) For a debtor with no place of business maintaining more than one place of abode, where the debtor pays or would be required to pay county income tax.

History

Administrative History: Effective date: June 30, 2008 (35:13 Md. R. 1181)
Authority: Tax-Property Article, §§2-201, 12-103, and 12-112; Commercial Law Article, §§9-401 and 9-402; Annotated Code of Maryland

18.13.02 Transfers of Controlling Interests

COMAR 18.13.02.01 Scope.

The regulations in this chapter apply to both recordation and transfer taxes administered by the Department under Tax-Property Article, Titles 12 and 13, Annotated Code of Maryland, to the extent allowed by law.

History

Administrative History: Effective date: June 30, 2008 (35:13 Md. R. 1181)
Authority: Tax-Property Article, §§12-201, 12-103, 12-112, 12-117, and 13-202, Annotated Code of Maryland

COMAR 18.13.02.02 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) “Beneficially owned by a real property entity” means the entity holds:

(a) An ownership interest in another entity that owns the real property directly;

(b) An interest in another entity or entities that, through a series of ownership tiers, ultimately reaches an entity that owns the real property directly; or

(c) A beneficial interest in a trust that directly owns the real property or, through a series of trusts or other entities, ultimately reaches an entity that owns the real property directly.

(2) “Controlling interest” has the meaning stated in Tax-Property Article, §12-117, Annotated Code of Maryland.

(3) “Controlling interest percentage standard” means the more-than-80-percent standard in the definition of “controlling interest” as stated in Tax-Property Article, §12-117, Annotated Code of Maryland.

(4) “Directly owned by a real property entity” means the entity holds an interest in real property transferable by an instrument of writing.

(5) Final Transfer.

(a) “Final transfer” has the meaning stated in Tax-Property Article, §12-117, Annotated Code of Maryland.

(b) “Final transfer” does not include any transfers or steps in a transfer occurring before July 1, 2008.

(6) “Instrument of writing” has the meaning stated in Tax-Property Article, §12-101, Annotated Code of Maryland.

(7) “Plan of transfer” has the meaning stated in Tax-Property Article, §12-117, Annotated Code of Maryland, and includes:

(a) Transfers of interests in a real property entity to multiple grantees under one or more agreements if the totality of the transfers to the separate grantees meets the controlling interest percentage standard in any 12-month period, unless the real property entity can establish to the Department's satisfaction that the transfers were part of entirely separate, distinct, and unrelated contracts or agreements; and

(b) Transfers of interests in a real property entity that, if done by an instrument of writing for real property directly, would be taxable under Tax-Property Article, Titles 12 and 13, Annotated Code of Maryland, including articles of consolidation, articles of merger, and articles of transfer, as those terms are defined in Tax-Property Article, §12-101, Annotated Code of Maryland, whereby either:

(i) The real property entity ceases to exist; or

(ii) The parties holding the controlling interest in the real property entity and their respective allocation of distributions, profits, and losses are not identical at the beginning and end of the transaction.

(8) “Real property” has the meaning stated in Tax-Property Article, §12-117, Annotated Code of Maryland.

(9) “Real property entity” has the meaning stated in Tax-Property Article, §12-117, Annotated Code of Maryland.

(10) “Step transaction doctrine” means the legal doctrine that:

(a) Looks to the substance of a transaction over its form to determine that steps have been taken to achieve tax avoidance;

(b) Amalgamates or collapses the separate transfers or steps into one transaction where they are actually component parts of a single transaction; and

(c) Is based on the application of three separate tests as defined and applied in Read v. Supervisor of Assessments, 354 Md. 383, 731 A.2d 868 (1999), which are the:

(i) End result test;

(ii) Interdependence test; and

(iii) Binding commitment test.

History

Administrative History: Effective date: June 30, 2008 (35:13 Md. R. 1181)
Authority: Tax-Property Article, §§12-201, 12-103, 12-112, 12-117, and 13-202, Annotated Code of Maryland

COMAR 18.13.02.03 Valuation of Controlling Interests.

The valuation of a controlling interest:

A. Is not determined solely by the number of shares or other units of ownership interest and the par value or other value assigned to those interests by a real property entity; and

B. Will consider the value of the rights and benefits associated with the majority ownership of the controlling interest being transferred as reflected in the transactional documents and any other evidence considered relevant by the Department.

History

Administrative History: Effective date: June 30, 2008 (35:13 Md. R. 1181)
Authority: Tax-Property Article, §§12-201, 12-103, 12-112, 12-117, and 13-202, Annotated Code of Maryland

COMAR 18.13.02.04 Determination of Completed Transfer.

A. A transfer of controlling interest is considered complete when the controlling interest percentage standard is met within any 12-month period, regardless of whether other transfers may be planned or have taken place outside of the 12-month period.

B. If a final transfer of controlling interest is accomplished through multiple steps that would be considered one transaction under the step transaction doctrine, then that one transaction, including all multiple steps that make up that one transaction, is considered effective and complete upon the earlier of the date when:

(1) The last step has occurred; or

(2) The interest transferred in the multiple steps meets the controlling interest percentage standard, regardless of the fact that other steps may be planned for the future.

History

Administrative History: Effective date: June 30, 2008 (35:13 Md. R. 1181)
Authority: Tax-Property Article, §§12-201, 12-103, 12-112, 12-117, and 13-202, Annotated Code of Maryland

COMAR 18.13.02.05 Reports of Transfers.

A. A real property entity shall file the report required by Tax-Property Article, §12-117(d), Annotated Code of Maryland:

(1) On a form required by the Department; and

(2) Under the signed oath of an individual who has authority to bind the real property entity.

B. Reports of transfers of controlling interest shall be filed with the Department within 30 days of the final transfer, regardless of the application of any exemption.

C. If there is a transfer of an interest in an entity where the value of the real property interest held by that entity is between 70 percent and 80 percent of the value of its assets, that entity may file a report with the Department to reflect that the transfer has occurred without the payment of recordation or transfer taxes.

D. If there is a transfer of an interest in a real property entity and its value is between 50 percent and the controlling interest percentage standard, that entity may file a report with the Department to reflect that the transfer has occurred without the payment of recordation or transfer taxes.

E. The fact that the Department accepts a permissive filing under this regulation without the payment of recordation or transfer taxes does not estop it from subsequently determining that the transfer reflected in that filing was taxable.

F. The filing of a report of transfer under Tax-Property Article, §12-117, Annotated Code of Maryland, or this regulation does not create a requirement to qualify or register with the Department under the Corporations and Associations Article, Annotated Code of Maryland, unless otherwise required by law.

Cross References

18.13.02.06A(1)

History

Administrative History: Effective date: June 30, 2008 (35:13 Md. R. 1181)
Authority: Tax-Property Article, §§12-201, 12-103, 12-112, 12-117, and 13-202, Annotated Code of Maryland

COMAR 18.13.02.06 Determination of Consideration.

A. The Department determines the amount of consideration payable for the transfer of a controlling interest and imposes the corresponding tax based upon:

(1) The report referenced in Regulation .05 of this chapter; and

(2) Any other information secured by the Department.

B. Consideration payable for the transfer of a controlling interest includes all consideration payable under a plan of transfer, regardless of whether it has been totally paid at the time of the final transfer.

C. If the Department determines that there has been a failure to establish the consideration attributable to the transfer of the controlling interest, the Department will impose the tax upon that proportion of the fair market value of the real property directly or beneficially owned by the real property entity that equals the same proportion of the controlling interest being transferred.

D. The fair market value referenced in §C of this regulation is the value of the real property determined by the Department as of the date of finality immediately preceding the final transfer.

History

Administrative History: Effective date: June 30, 2008 (35:13 Md. R. 1181)
Authority: Tax-Property Article, §§12-201, 12-103, 12-112, 12-117, and 13-202, Annotated Code of Maryland

COMAR 18.13.02.07 Applicability of Exemptions.

A. The transfer of a controlling interest is exempt from recordation tax only to the extent that a specific transfer under a plan of transfer meets the criteria for an exemption set forth in Tax-Property Article, §12-117(c), Annotated Code of Maryland.

B. The transfer of a controlling interest is exempt from transfer tax only to the extent that a specific transfer under a plan of transfer meets the criteria for an exemption set forth in Tax-Property Article, §13-103(c), Annotated Code of Maryland.

C. The transfer of a portion of a controlling interest that is exempt will be considered in determining whether there has been a transfer of controlling interest.

History

Administrative History: Effective date: June 30, 2008 (35:13 Md. R. 1181)
Authority: Tax-Property Article, §§12-201, 12-103, 12-112, 12-117, and 13-202, Annotated Code of Maryland

COMAR 18.13.02.08 Applicability of Other Sections.

If the transfer of a controlling interest is taxable under Tax-Property Article, §§12-117, 12-105(g), and 13-205(d), Annotated Code of Maryland, recordation and transfer taxes will be imposed based only on the latter two sections.

History

Administrative History: Effective date: June 30, 2008 (35:13 Md. R. 1181)
Authority: Tax-Property Article, §§12-201, 12-103, 12-112, 12-117, and 13-202, Annotated Code of Maryland

COMAR 18.13.02.09 Ending Existence.

A. If a transaction, such as a merger or consolidation, ends the existence of one or more entities, the determination of whether there has been a transfer of controlling interest of a real property entity will be based on the entity that holds the direct or beneficial interest in the real property at the beginning of the transaction.

B. If the transfer of a controlling interest of a real property entity ends the existence of that real property entity, the surviving entity or entities, regardless of whether they meet the definition of a real property entity, shall:

(1) File a report of transfer; and

(2) Pay any recordation and transfer tax due.

History

Administrative History: Effective date: June 30, 2008 (35:13 Md. R. 1181)
Authority: Tax-Property Article, §§12-201, 12-103, 12-112, 12-117, and 13-202, Annotated Code of Maryland

COMAR 18.13.02.10 Burden of Proof.

A real property entity has the burden of establishing to the satisfaction of the Department any information required to administer Tax-Property Article, §12-117, Annotated Code of Maryland, or this chapter.

History

Administrative History: Effective date: June 30, 2008 (35:13 Md. R. 1181)
Authority: Tax-Property Article, §§12-201, 12-103, 12-112, 12-117, and 13-202, Annotated Code of Maryland

COMAR 18.13.02.11 Examples.

A Delaware limited liability company (DE LLC) owns only Maryland real property with a value of $10,000,000. A New Jersey corporation (NJ Corp) owns all of the membership interest in DE LLC, which represents 100 percent of NJ Corp's assets. A California corporation (CA Corp) owns all of the stock of NJ Corp and all of the membership interest in a Florida limited liability company (FL LLC), which represents 100 percent of CA Corp's assets. FL LLC owns only Florida real property valued at $1,000,000. The following apply:

A. The transfer of DE LLC's membership interest is subject to recordation and transfer taxes in Maryland under Tax-Property Article, §12-117, Annotated Code of Maryland;

B. The transfer of the stock of NJ Corp is subject to recordation and transfer taxes in Maryland under Tax-Property Article, §12-117, Annotated Code of Maryland;

C. The transfer of the stock of CA Corp is subject to recordation and transfer taxes in Maryland under Tax-Property Article, §12-117, Annotated Code of Maryland, because 80 percent of its assets are still Maryland real property; and

D. In §C of this regulation, if FL LLC owns only Florida real property valued at $5,000,000, the transfer of the stock of CA Corp is not subject to recordation and transfer taxes in Maryland under Tax-Property Article, §12-117, Annotated Code of Maryland, because CA Corp would no longer be a real property entity.

History

Administrative History: Effective date: June 30, 2008 (35:13 Md. R. 1181)
Authority: Tax-Property Article, §§12-201, 12-103, 12-112, 12-117, and 13-202, Annotated Code of Maryland

COMAR 18.13.02.12 Tax Avoidance.

The Department will administer Tax-Property Article, §12-117, Annotated Code of Maryland, and this chapter in the broadest legal manner to impose a tax when a transaction involving a transfer of controlling interest in a real property entity is structured to avoid the payment of the taxes.

History

Administrative History: Effective date: June 30, 2008 (35:13 Md. R. 1181)
Authority: Tax-Property Article, §§12-201, 12-103, 12-112, 12-117, and 13-202, Annotated Code of Maryland

18.14.01 General Provisions

COMAR 18.14.01.01 Scope.

The regulations set forth in this subtitle are effective with respect to financing statements filed on or after July 1, 2001.

History

Administrative History: Effective date: July 1, 2001 (28:12 Md. R. 1112)
Administrative History: Regulation .04A amended effective July 4, 2016 (43:13 Md. R. 714)
Administrative History: Regulation .05 amended effective December 21, 2015 (42:25 Md. R. 1546)
Administrative History: Regulation .06 amended effective July 4, 2016 (43:13 Md. R. 714)
Administrative History: Regulation .07 amended effective July 4, 2016 (43:13 Md. R. 714)
Authority: Commercial Law Article, §§9-501.1 and 9-526; Corporations and Associations Article, §§1-203(8) and 1-203.2; Annotated Code of Maryland

COMAR 18.14.01.02 Definitions.

A. In this subtitle, the following terms have the meanings indicated.

B. Terms Defined.

(1) Amendment.

(a) “Amendment” means a UCC record that amends the information contained in a financing statement.

(b) “Amendment” includes assignments, continuations, and terminations.

(2) “Assignment” means an amendment that assigns all or a part of a secured party's power to authorize an amendment to a financing statement.

(3) “Continuation statement” has the meaning stated in Commercial Law Article, §9-102(27), Annotated Code of Maryland.

(4) “Correction statement” means a record filed under Commercial Law Article, §9-518, Annotated Code of Maryland, indicating that a financing statement is inaccurate or wrongfully filed.

(5) “File number” has the meaning stated in Commercial Law Article, §§9-102(36) and 9-519(a), Annotated Code of Maryland.

(6) “Filing office” means the State Department of Assessments and Taxation.

(7) “Filing office correction statement” means a statement of correction entered into the filing office's information system to correct an error by the filing office.

(8) “Financing statement” has the meaning stated in Commercial Law Article, §9-102(39), Annotated Code of Maryland.

(9) “Individual” means a human being, or a decedent in the case of a debtor that is the decedent's estate.

(10) “Initial financing statement” means a UCC record containing the information required to be in an initial financing statement and that causes the filing office to establish the initial record of existence of a financing statement.

(11) “Lapse date” means the date on which the effectiveness of a financing statement lapses under Commercial Law Article, §9-515, Annotated Code of Maryland.

(12) “Organization” means a legal person who is not an individual.

(13) “Record” means an initial financing statement, an amendment, an assignment, a continuation statement, a termination statement, or a correction statement.

(14) Remitter.

(a) “Remitter” means a person who tenders a UCC record to the filing office for filing, whether the person is a filer or an agent of a filer responsible for tendering the record for filing.

(b) “Remitter” includes a service provider who acts as a filer's representative in the filing process.

(c) “Remitter” does not include a person responsible merely for the delivery of the record to the filing office, such as the postal service or a courier service.

(15) “Secured party of record” has the meaning stated in Commercial Law Article, §9-511, Annotated Code of Maryland.

(16) “Termination statement” has the meaning stated in Commercial Law Article, §§9-102(79) and 9-513, Annotated Code of Maryland.

(17) “UCC ” means the Maryland Uniform Commercial Code.

History

Administrative History: Effective date: July 1, 2001 (28:12 Md. R. 1112)
Administrative History: Regulation .04A amended effective July 4, 2016 (43:13 Md. R. 714)
Administrative History: Regulation .05 amended effective December 21, 2015 (42:25 Md. R. 1546)
Administrative History: Regulation .06 amended effective July 4, 2016 (43:13 Md. R. 714)
Administrative History: Regulation .07 amended effective July 4, 2016 (43:13 Md. R. 714)
Authority: Commercial Law Article, §§9-501.1 and 9-526; Corporations and Associations Article, §§1-203(8) and 1-203.2; Annotated Code of Maryland

COMAR 18.14.01.03 Duties and Responsibilities.

A. The duties and responsibilities of the filing office with respect to the administration of the UCC are ministerial. In accepting for recordation or refusing to record a financing statement pursuant to this subtitle, the filing office does not:

(1) Determine the legal sufficiency or insufficiency of a record;

(2) Determine that a security interest in collateral exists or does not exist;

(3) Determine that information in the record is correct or incorrect, in whole or in part; or

(4) Create a presumption that information in the record is correct or incorrect, in whole or in part.

B. The responsibility for the legal effectiveness of a financing statement filing rests with the filers and remitters, and the filing office bears no responsibility for effectiveness.

C. The State and the filing office and their employees and agents are immune from liability that occurs as a result of errors in or omissions from information provided from the UCC information management system or any other errors or omissions with respect to financing statement filings.

History

Administrative History: Effective date: July 1, 2001 (28:12 Md. R. 1112)
Administrative History: Regulation .04A amended effective July 4, 2016 (43:13 Md. R. 714)
Administrative History: Regulation .05 amended effective December 21, 2015 (42:25 Md. R. 1546)
Administrative History: Regulation .06 amended effective July 4, 2016 (43:13 Md. R. 714)
Administrative History: Regulation .07 amended effective July 4, 2016 (43:13 Md. R. 714)
Authority: Commercial Law Article, §§9-501.1 and 9-526; Corporations and Associations Article, §§1-203(8) and 1-203.2; Annotated Code of Maryland

COMAR 18.14.01.04 Date, Time, and Method of Filing.

A. Filing Methods.

(1) The Filing Office may accept filings by the methods specified in §A(2)—(4) of this regulation.

(2) Hand Delivery to the Filing Office. The file time for a UCC record delivered by this method is the date and time of presentation of a paper record to a representative of the filing office.

(3) Postal Service or Express Mail Delivery to the Filing Office. The file time for a UCC record delivered by this method is the date the filing record is received and the time that is manually stamped on the filing by a representative of the filing office.

(4) Electronic Transmission to the Filing Office, Excluding Telefacsimile Transmission. The file time for a UCC record delivered by this method is the date and time the filing record is received.

B. The file times in §A of this regulation apply even though the UCC record may not yet have been accepted for filing and may be subsequently rejected.

Cross References

18.14.03.03B(2)

History

Administrative History: Effective date: July 1, 2001 (28:12 Md. R. 1112)
Administrative History: Regulation .04A amended effective July 4, 2016 (43:13 Md. R. 714)
Administrative History: Regulation .05 amended effective December 21, 2015 (42:25 Md. R. 1546)
Administrative History: Regulation .06 amended effective July 4, 2016 (43:13 Md. R. 714)
Administrative History: Regulation .07 amended effective July 4, 2016 (43:13 Md. R. 714)
Authority: Commercial Law Article, §§9-501.1 and 9-526; Corporations and Associations Article, §§1-203(8) and 1-203.2; Annotated Code of Maryland

COMAR 18.14.01.05 Forms.

A. The filing office shall accept for filing a form approved by the National Conference of Commissioners on Uniform State Laws or the International Association of Corporation Administrators or any other form providing the information required by Commercial Law Article, Title 9, Annotated Code of Maryland.

B. The affidavit form required by Commercial Law Article, §9-501.1(f), Annotated Code of Maryland, is adopted and made available.

C. Affidavit Form.

FORM AT END OF CHAPTER

History

Administrative History: Effective date: July 1, 2001 (28:12 Md. R. 1112)
Administrative History: Regulation .04A amended effective July 4, 2016 (43:13 Md. R. 714)
Administrative History: Regulation .05 amended effective December 21, 2015 (42:25 Md. R. 1546)
Administrative History: Regulation .06 amended effective July 4, 2016 (43:13 Md. R. 714)
Administrative History: Regulation .07 amended effective July 4, 2016 (43:13 Md. R. 714)
Authority: Commercial Law Article, §§9-501.1 and 9-526; Corporations and Associations Article, §§1-203(8) and 1-203.2; Annotated Code of Maryland

COMAR 18.14.01.06 Fees.

A. Expedited Service Fee. In addition to fees set forth in Commercial Law Article, §9-525, Annotated Code of Maryland, the fee is $50 for the expedited processing of a record as provided in Corporations and Associations Article, §§1-203(8) and 1-203.2, Annotated Code of Maryland.

B. Copy Fees. In addition to the fees set forth in §A of this regulation, other fees are:

(1) $1 per page for a copy of a record;

(2) $6 to certify a copy of a record; and

(3) $20 per copy or per certified copy of each record provided by expedited service.

History

Administrative History: Effective date: July 1, 2001 (28:12 Md. R. 1112)
Administrative History: Regulation .04A amended effective July 4, 2016 (43:13 Md. R. 714)
Administrative History: Regulation .05 amended effective December 21, 2015 (42:25 Md. R. 1546)
Administrative History: Regulation .06 amended effective July 4, 2016 (43:13 Md. R. 714)
Administrative History: Regulation .07 amended effective July 4, 2016 (43:13 Md. R. 714)
Authority: Commercial Law Article, §§9-501.1 and 9-526; Corporations and Associations Article, §§1-203(8) and 1-203.2; Annotated Code of Maryland

COMAR 18.14.01.07 Payment Methods.

A. Fees may be paid by the methods specified in §§B—C of this regulation.

B. Checks by Hand Delivery, by Postal Service, or by Express Mail. Personal checks, cashier's checks, and money orders made payable to the filing office and presented by these methods of delivery are accepted by the filing office.

C. Debit Cards and Credit Cards for All Methods of Delivery. The filing office accepts payment by debit and credit cards for filings.

History

Administrative History: Effective date: July 1, 2001 (28:12 Md. R. 1112)
Administrative History: Regulation .04A amended effective July 4, 2016 (43:13 Md. R. 714)
Administrative History: Regulation .05 amended effective December 21, 2015 (42:25 Md. R. 1546)
Administrative History: Regulation .06 amended effective July 4, 2016 (43:13 Md. R. 714)
Administrative History: Regulation .07 amended effective July 4, 2016 (43:13 Md. R. 714)
Authority: Commercial Law Article, §§9-501.1 and 9-526; Corporations and Associations Article, §§1-203(8) and 1-203.2; Annotated Code of Maryland

COMAR 18.14.01.08 Overpayment.

The filing office shall process the record and shall refund separately at a later date any overpayment to the remitter.

Attachments

18.14.01.05-affidavit

History

Administrative History: Effective date: July 1, 2001 (28:12 Md. R. 1112)
Administrative History: Regulation .04A amended effective July 4, 2016 (43:13 Md. R. 714)
Administrative History: Regulation .05 amended effective December 21, 2015 (42:25 Md. R. 1546)
Administrative History: Regulation .06 amended effective July 4, 2016 (43:13 Md. R. 714)
Administrative History: Regulation .07 amended effective July 4, 2016 (43:13 Md. R. 714)
Authority: Commercial Law Article, §§9-501.1 and 9-526; Corporations and Associations Article, §§1-203(8) and 1-203.2; Annotated Code of Maryland

18.14.02 Refusal of Records

COMAR 18.14.02.01 Grounds for Refusal.

A. The grounds for refusal by the filing office to accept a record for filing are listed in Commercial Law Article, §9-516, Annotated Code of Maryland.

B. Multiple Debtor Record. If the initial financing statement or an amendment contains more than one debtor name or address and some names or addresses are missing or illegible, the filing office shall accept only the debtors with legible name or names and address pairings.

C. Multiple Secured Party or Parties Record. If the initial financing statement or an amendment contains more than one secured party or assignee name or address and some names or addresses are missing or illegible, the filing office shall accept only the legible name or names and address pairings.

D. Remitter Responsibility. It is the responsibility of the remitter to insure the accuracy and completeness of the record in §§B and C of this regulation by performing a subsequent inspection of the public record once indexed.

Cross References

18.14.03.03A(3)(a)

History

Administrative History: Effective date: July 1, 2001 (28:12 Md. R. 1112)
Authority: Commercial Law Article, §9-526, Annotated Code of Maryland

COMAR 18.14.02.02 Procedure Upon Refusal.

If the filing office finds grounds to refuse to accept a UCC record for filing, the filing office shall return the filing to the remitter and provide a written notice of refusal stating the grounds for refusal and the date and time that the record would have been accepted if not refused. The filing office shall separately refund the filing fee at a later date or apply the filing fee to a subsequent filing of a financing statement by the remitter.

History

Administrative History: Effective date: July 1, 2001 (28:12 Md. R. 1112)
Authority: Commercial Law Article, §9-526, Annotated Code of Maryland

COMAR 18.14.02.03 Notification of Defects.

This subtitle does not prevent a filing office from communicating to a filer or a remitter that the filing office noticed apparent potential defects in a UCC record, whether or not it was filed or refused for filing. However, the filing office is under no obligation to do so.

History

Administrative History: Effective date: July 1, 2001 (28:12 Md. R. 1112)
Authority: Commercial Law Article, §9-526, Annotated Code of Maryland

COMAR 18.14.02.04 Refusal Errors.

If a secured party or a remitter demonstrates to the satisfaction of the filing office that a UCC record that was refused for filing should not have been, the filing office shall file the UCC record as provided in this subtitle with the filing date and time that the record would have been accepted if not refused. The filing office shall also file a filing office correction statement that states the date and time the filing was originally presented for filing and should have been accepted by the filing office.

History

Administrative History: Effective date: July 1, 2001 (28:12 Md. R. 1112)
Authority: Commercial Law Article, §9-526, Annotated Code of Maryland

18.14.03 UCC Information Management System

COMAR 18.14.03.01 Data Elements.

A. The UCC data elements used in the information management system are specified in §§B—G of this regulation.

B. File Number.

(1) Each initial financing statement is identified by its file number. Identification of the initial financing statement is affixed on the UCC files or otherwise permanently associated with the record maintained for UCC files in the information management system. A record is created in the information management system for each initial financing statement and all information comprising the record is maintained in the system.

(2) A UCC record other than an initial financing statement is identified by a unique acknowledgment number assigned by the filing office. In the information management system, records of all UCC records other than initial financing statements are linked to the record by the file number of their related initial financing statements.

C. Type of Record. The type of UCC record from which data is transferred is identified in the information management system from information supplied in the record.

D. Filing Date and Filing Time. The filing date and filing time of a UCC record is stored in the information management system. Calculation of the lapse date of an initial financing statement is based upon the filing date.

E. Identification of Parties. The names and addresses of debtors and secured parties are transferred from UCC records to the UCC information management system.

F. Status of Financing Statement. In the information management system, each financing statement has an active status unless designated terminated or lapsed.

G. Page Count. The total number of pages in a UCC record is maintained in the information management system.

History

Administrative History: Effective date: July 1, 2001 (28:12 Md. R. 1112)
Administrative History: Regulation .03A amended effective July 4, 2016 (43:13 Md. R. 714)
Authority: Commercial Law Article, §9-526, Annotated Code of Maryland

COMAR 18.14.03.02 Name Indexes.

A. Individual Debtors.

(1) Individual Name Fields. The names of individuals are stored in fields that include only the names of individuals, and not the names of organizations. Separate data entry fields are established for first, middle, and last names of individuals. If the filer makes no designation as to first, middle, and last name, the filing office shall treat the name as submitted as first, middle, and last name for purposes of this regulation. A filer should place the name of a debtor with a single name, for example, “Cher”, in the last name field. The filing office assumes no responsibility for the accurate designation of the components of a name but will accurately enter the data in accordance with the filer's designations.

(2) Titles and Prefixes Before Names. Titles and prefixes, such as “doctor”, “reverend”, “Mr.”, “Ms.”, are not entered in the UCC information management system.

(3) Titles and Suffixes After Names. Titles or indications of status such as “M.D.” and “esquire” are not entered in the UCC information management system. The only suffixes after names that are entered into the management system are “Jr.”, “Sr.”, and Roman numerals (“II”, “III”, “IV”, “V”, etc.).

(4) Truncation—Individual Names. Personal name fields in the UCC database are fixed in length. Although filers should continue to provide full names on their UCC records, a name that exceeds the fixed length is entered as presented to the filing office, up to the maximum length of the data entry field. The length of data entry name files are as follows:

(a) First name: 20 characters;

(b) Middle name: 20 characters;

(d) Suffix: 25 characters.

B. Organization Debtors.

(1) Single Field. The names of organizations are stored in fields that include only the names of organizations and not the names of individuals. A single field is used to store an organization name.

(2) Truncation—Organization Names. The organization name field in the UCC database is fixed in length. The maximum length is 250 characters. A name that exceeds the fixed length is entered as presented to the filing office, up to the maximum length of the data entry field.

Cross References

18.14.03.03B(5)(c)

History

Administrative History: Effective date: July 1, 2001 (28:12 Md. R. 1112)
Administrative History: Regulation .03A amended effective July 4, 2016 (43:13 Md. R. 714)
Authority: Commercial Law Article, §9-526, Annotated Code of Maryland

COMAR 18.14.03.03 Processing and Data Entry Procedures.

A. Processing.

(1) Date and Time Stamp. The date and time of receipt are noted on the record or otherwise permanently associated with the record maintained for a UCC filing in the UCC information management system at the earliest possible time.

(2) Transactions necessary for processing payment of the filing fee are performed.

(3) Document Review.

(a) The filing office determines whether a ground exists to refuse the document under COMAR 18.14.02.01.

(b) File Stamp. If there is no ground for refusal of the document, the document is determined filed, and a label is affixed containing a file number, a unique acknowledgment number, and the file time and date. All such information contained on the label is permanently associated with the record maintained in the UCC information management system. The sequence of the file or acknowledgment number is not an indication of the order in which the document was received.

(i) If a record tendered by hand for expedited service is accepted, a paper acknowledgment is delivered by hand to the presenter.

(ii) If a record tendered by hand for expedited service is refused, the record, the filing fee, and a notice of refusal are returned in person.

(iii) If a record tendered by hand for non-expedited service is accepted or rejected, a paper acknowledgment or notice of refusal is sent via United States Postal Service first class mail.

(iv) If a record tendered by postal service, express mail, or any other means is accepted or rejected, a paper acknowledgment or notice of refusal is sent via United States Postal Service first class mail.

B. Data Entered Into Information Management System.

(1) Filing Date. The filing date of a UCC record is the date the UCC record is received with the proper filing fee if the filing office is open to the public on that date. If the filing office is not open on that date, the filing date is the next date the filing office is open. The filing office may perform any duty relating to the record on the filing date or on a date after the filing date.

(2) Filing Time. The filing time of a UCC record is determined as provided in COMAR 18.14.01.04.

(3) Lapse Date and Time. A lapse date is calculated for each initial financing statement, unless the debtor is indicated to be a transmitting utility. The lapse date is the same date of the same month as the filing date in the fifth year after the filing date or relevant subsequent fifth anniversary if a timely continuation statement is filed. If the initial financing statement indicates that it is filed with respect to a public finance transaction or a manufactured home transaction, the lapse date is the same date of the same month as the filing date in the thirtieth year after the filing date. If there is no timely filing of a continuation, the financing statement will be indicated as “lapsed” after midnight at the end of the lapse date. The relevant anniversary for a February 29 filing date shall be the March 1 in the fifth or thirtieth year following the year of the filing date depending upon the type of transaction.

(4) Errors of the Filing Office. The filing office may correct the errors of filing office personnel in the UCC information management system at any time. If the correction occurs after the filing office has issued an acknowledgment, the filing office shall file a filing office correction statement in the UCC information management system identifying the record, stating the date of the correction and explaining the nature of the corrective action taken. The record shall be preserved as long as the record of the initial financing statement is preserved in the UCC information management system.

(5) Data Entry of Names from Forms with Designated Fields.

(a) A form with designated fields must indicate whether a name is a name of an individual or an organization. The rules in §B(5)(b) and (c) of this regulation apply.

(b) Organization Names. Organization names are entered into the UCC information management system exactly as set forth in the UCC record, even if it appears that the name of an individual has been included in the field designated for an organization name.

(c) Individual Names. On a form that designates separate fields for first, middle, and last names and any suffix, the filing office enters the names into the first, middle, and last name and suffix fields in the UCC information management system exactly as set forth on the form subject to the provisions of Regulation .02A of this chapter.

(6) Data Entry of Names from Forms without Designated Fields.

(a) The rules in §B(6)(b)—(c) of this regulation apply when entering data from forms without designated fields.

(b) Individual and Organization Names on a Single Line. When it is apparent that the name of an individual and the name of an entity are stated on a single line, the name of the individual and the name of the entity are entered as two separate debtors, one as an individual and one as an entity.

(i) Freestanding Initials. An initial in the first position of the name is treated as a first name. An initial in the second position of the name is treated as a middle name.

(ii) Combined Initials and Names. If an initial and a name to which the initial apparently corresponds are submitted in one name field, only the name is entered, for example, “D. (David)” in the name “John D. (David) Rockefeller” is entered as “John” (first name), “David” (middle name), “Rockefeller” (last name).

(iii) Multiple Individual Names on a Single Line. Two individual names contained in a single line are entered as two different debtors, for example, the debtor name “John and Mary Smith” is entered as two debtors, “John Smith” and “Mary Smith”.

(iv) Nicknames. A nickname is entered in the name field together with the name preceding the nickname, or if none, then as the first name, for example, “William (Bill) Jones”.

(d) A form without designated fields that is an initial financing statement or an amendment that adds a debtor to a financing statement and that fails to specify whether the debtor is an individual or an organization shall be refused by the filing office.

(7) Verification of Data Entry. The filing office uses visual inspection to verify the accuracy of its data entry. The filing office also relies upon the inspection of the record by the remitter to verify the data entered into the management information system.

(8) Initial Financing Statement.

(a) A new record that bears the file number of the financing statement and the date and time of filing is opened in the UCC information management system for each initial financing statement.

(b) The name and address of each debtor set forth in the financing statement are entered into the record of the financing statement. This debtor name is included in the searchable index and is not removed from the information management system of the filing office even after the financing statement lapses.

(c) The name and address of each secured party set forth in the financing statement are entered into the record of the financing statement.

(d) The record is indexed according to the name of the debtor or debtors and is maintained for public inspection.

(e) A lapse date is established for the financing statement, unless the initial financing statement indicates it is filed against a transmitting utility, and the lapse date is maintained as part of the record.

(9) Amendment.

(a) A record that bears the acknowledgment number for the amendment and the date and time of filing is created for the amendment.

(b) The record of the amendment is associated with the record of the related initial financing statement in a manner that causes the amendment to be retrievable each time a record of the financing statement is retrieved.

(c) The name and address of each additional debtor and secured parties are entered into the UCC information management system in the record of the financing statement. Each additional debtor name is added to the searchable index and is not removed from the information management system of the filing office even after the financing statement lapses. An amendment that changes a debtor's name is cross-indexed in the UCC information management system so that a search under either the debtor's old name or debtor's new name will reveal the initial financing statement and all related UCC records. An amendment that changes the name of a secured party is entered into the UCC information management system but is not indexed.

(d) If the amendment is a continuation, a new lapse date is established for the financing statement and maintained as part of its record.

(10) Termination Statement. A termination statement shall cause the filing office to designate the financing statement as “terminated”.

(11) Correction Statement. A record that bears the acknowledgment number for the correction statement and the date and time of filing is created for the correction statement. The record of the correction statement is associated with the record of the related initial financing statement in a manner that causes the correction statement to be retrievable each time a record of the financing statement is retrieved.

(12) Archives. The filing office shall act on any UCC record filed with the filing office by adding information obtained from the UCC record to the information system. The filing office may not act on any UCC record by deleting any information from the information system. A record will be maintained indefinitely in the UCC management information system of the filing office regardless of the status of the financing statement.

History

Administrative History: Effective date: July 1, 2001 (28:12 Md. R. 1112)
Administrative History: Regulation .03A amended effective July 4, 2016 (43:13 Md. R. 714)
Authority: Commercial Law Article, §9-526, Annotated Code of Maryland

18.15.01 Redemption

COMAR 18.15.01.01 Scope.

This chapter applies to the redemption of reversions in leases under Real Property Article, §8-804, Annotated Code of Maryland, filed on or after January 1, 2004.

History

Administrative History: Effective date: March 15, 2004 (31:5 Md. R. 451)
Administrative History: Regulation .01 amended effective December 6, 2018 (45:24 Md. R. 1162)
Administrative History: Regulation .02 amended effective December 6, 2018 (45:24 Md. R. 1162); February 24, 2020 (47:4 Md. R. 263)
Administrative History: Regulation .03 amended effective December 6, 2018 (45:24 Md. R. 1162)
Administrative History: Regulation .06A amended effective February 24, 2020 (47:4 Md. R. 263)
Administrative History: ——————
Administrative History: Chapter revised effective January 24, 2022 (49:2 Md. R. 78)
Authority: Real Property Article, §8-804; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.15.01.02 Documentation of Lease by Tenant.

To redeem a reversion in a lease under Real Property Article, §8-804, Annotated Code of Maryland, a tenant shall file with the Department of Assessments and Taxation:

A. A copy of:

(1) The publicly recorded lease creating the leasehold on the property and ground rent interest of the landlord; or

(2) Any publicly recorded documents establishing the existence of the lease;

B. A copy of the publicly recorded deed, deed of assignment, or other document of transfer by which the current tenant received an interest in the property;

C. An application form prescribed by the Department which includes, but is not limited to, the:

(1) Tenant's name and address;

(2) Address of the property subject to the ground rent;

(3) Property account number in the Department's records for the subject property; and

(4) Tenant's affidavit certifying that the requirements of Real Property Article, §8-804, Annotated Code of Maryland, have been met;

D. If the tenant has received a bill for ground rent or other communication from the ground lease holder regarding the ground rent during the 3 years immediately before the filing of the documentation required by this regulation:

(1) A copy of the correspondence from the tenant notifying the landlord of tenant's intention to redeem the ground rent; and

(2) Proof of mailing from the United States Postal Service of the notice to the landlord by certified mail; and

E. Pay any fees required by Corporations and Associations Article, §1-203, and Real Property Article, §8-804, Annotated Code of Maryland.

Cross References

18.15.01.03A(1)

18.15.01.03A(2)

History

Administrative History: Effective date: March 15, 2004 (31:5 Md. R. 451)
Administrative History: Regulation .01 amended effective December 6, 2018 (45:24 Md. R. 1162)
Administrative History: Regulation .02 amended effective December 6, 2018 (45:24 Md. R. 1162); February 24, 2020 (47:4 Md. R. 263)
Administrative History: Regulation .03 amended effective December 6, 2018 (45:24 Md. R. 1162)
Administrative History: Regulation .06A amended effective February 24, 2020 (47:4 Md. R. 263)
Administrative History: ——————
Administrative History: Chapter revised effective January 24, 2022 (49:2 Md. R. 78)
Authority: Real Property Article, §8-804; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.15.01.03 Calculation of Redemption Amount.

A. The Department shall:

(1) Calculate the ground rent redemption amount as if no ground lease payments have been made by or on behalf of the tenant to the ground lease holder during the 3 years immediately before the filing of the documentation required by Regulation .02 of this chapter; and

(2) Reduce the ground rent redemption amount if the tenant provides proof that ground lease payments have been made by or on behalf of the tenant to the ground lease holder during the 3 years immediately before the filing of the documentation required by Regulation .02 of this chapter.

B. If a tenant is unable to document when the ground lease was originally executed or created, the Department shall calculate the redemption amount using the formula set forth in Real Property Article, §8-804(b)(2)(i)3, Annotated Code of Maryland.

History

Administrative History: Effective date: March 15, 2004 (31:5 Md. R. 451)
Administrative History: Regulation .01 amended effective December 6, 2018 (45:24 Md. R. 1162)
Administrative History: Regulation .02 amended effective December 6, 2018 (45:24 Md. R. 1162); February 24, 2020 (47:4 Md. R. 263)
Administrative History: Regulation .03 amended effective December 6, 2018 (45:24 Md. R. 1162)
Administrative History: Regulation .06A amended effective February 24, 2020 (47:4 Md. R. 263)
Administrative History: ——————
Administrative History: Chapter revised effective January 24, 2022 (49:2 Md. R. 78)
Authority: Real Property Article, §8-804; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.15.01.04 Documentation of Claimant's Interest.

To file a claim under Real Property Article, §8-804, Annotated Code of Maryland, a claimant shall:

A. File a copy of the publicly recorded documents establishing the claimant as the current landlord to the satisfaction of the Department;

B. If the claimant is the landlord and a natural person, submit a notarized affidavit acknowledged under oath to the

Department verifying their identity;

C. If the claimant is the landlord and an entity, provide proof of identity and current existence, which may include documents on file in public records;

D. If the claimant is an heir or devisee of the landlord, file:

(1) Copies of the will, final probate orders, and accounting statements or other publicly recorded document showing that the claimant is entitled to the interest of the landlord; and

(2) Identification of the type described in §B or C of this regulation;

E. If the claimant is a creditor of the landlord, provide:

(1) Satisfactory proof of any lien on the ground rent interest; and

(2) Identification of the type described in §B or C of this regulation; and

F. Pay any fees required by Corporations and Associations Article, §1-203, and Real Property Article, §8-804, Annotated Code of Maryland.

History

Administrative History: Effective date: March 15, 2004 (31:5 Md. R. 451)
Administrative History: Regulation .01 amended effective December 6, 2018 (45:24 Md. R. 1162)
Administrative History: Regulation .02 amended effective December 6, 2018 (45:24 Md. R. 1162); February 24, 2020 (47:4 Md. R. 263)
Administrative History: Regulation .03 amended effective December 6, 2018 (45:24 Md. R. 1162)
Administrative History: Regulation .06A amended effective February 24, 2020 (47:4 Md. R. 263)
Administrative History: ——————
Administrative History: Chapter revised effective January 24, 2022 (49:2 Md. R. 78)
Authority: Real Property Article, §8-804; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.15.01.05 Internet Posting.

A. The Department will place on its website a link from the real property system to a ground rents filing system showing each property for which an application for ground rent redemption has been made.

B. If a ground rent redemption filing exists, the ground rents filing system will provide information showing that a redemption:

(1) Application has been filed;

(2) Certificate has been issued; and

(3) Payment has been authorized by the Department.

History

Administrative History: Effective date: March 15, 2004 (31:5 Md. R. 451)
Administrative History: Regulation .01 amended effective December 6, 2018 (45:24 Md. R. 1162)
Administrative History: Regulation .02 amended effective December 6, 2018 (45:24 Md. R. 1162); February 24, 2020 (47:4 Md. R. 263)
Administrative History: Regulation .03 amended effective December 6, 2018 (45:24 Md. R. 1162)
Administrative History: Regulation .06A amended effective February 24, 2020 (47:4 Md. R. 263)
Administrative History: ——————
Administrative History: Chapter revised effective January 24, 2022 (49:2 Md. R. 78)
Authority: Real Property Article, §8-804; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.15.01.06 Issuance of Redemption Certificates.

The Department will issue the ground rent redemption certificate:

A. 90 days after the posting of the notice of the application on the Department's website; and

B. After the redemption amount has been paid by the tenant to the Department.

History

Administrative History: Effective date: March 15, 2004 (31:5 Md. R. 451)
Administrative History: Regulation .01 amended effective December 6, 2018 (45:24 Md. R. 1162)
Administrative History: Regulation .02 amended effective December 6, 2018 (45:24 Md. R. 1162); February 24, 2020 (47:4 Md. R. 263)
Administrative History: Regulation .03 amended effective December 6, 2018 (45:24 Md. R. 1162)
Administrative History: Regulation .06A amended effective February 24, 2020 (47:4 Md. R. 263)
Administrative History: ——————
Administrative History: Chapter revised effective January 24, 2022 (49:2 Md. R. 78)
Authority: Real Property Article, §8-804; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.15.01.07 Payment Methods.

A. The tenant shall pay the redemption amount to the Department either by certified check or money order unless the tenant is a government or subdivision of a government.

B. The Department will authorize a redemption payment to the State Treasurer and a check payment will be mailed by first class mail to the claimant.

History

Administrative History: Effective date: March 15, 2004 (31:5 Md. R. 451)
Administrative History: Regulation .01 amended effective December 6, 2018 (45:24 Md. R. 1162)
Administrative History: Regulation .02 amended effective December 6, 2018 (45:24 Md. R. 1162); February 24, 2020 (47:4 Md. R. 263)
Administrative History: Regulation .03 amended effective December 6, 2018 (45:24 Md. R. 1162)
Administrative History: Regulation .06A amended effective February 24, 2020 (47:4 Md. R. 263)
Administrative History: ——————
Administrative History: Chapter revised effective January 24, 2022 (49:2 Md. R. 78)
Authority: Real Property Article, §8-804; Tax-Property Article, §2-201; Annotated Code of Maryland

18.15.02 Registration

COMAR 18.15.02.01 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) “Current ground rent deed of record” has the meaning stated in Real Property Article, §8-701(b), Annotated Code of Maryland.

(2) “Department” has the meaning stated in Real Property Article, §8-701(c), Annotated Code of Maryland.

(3) “Ground lease” has the meaning stated in Real Property Article, §8-701(d), Annotated Code of Maryland.

(4) “Ground lease holder” has the meaning stated in Real Property Article, §8-701(e), Annotated Code of Maryland.

(5) “Register” means to submit to the Department, for each ground rent:

(a) The Department's completed registration form; and

(b) Any appropriate registration fee.

(6) Submit.

(a) “Submit” means to cause the Department to receive only by:

(i) Hand delivery;

(ii) Regular mail postmarked with a date on or before the time allowed for the action; or

(iii) Specific electronic means approved by the Department.

(b) “Submit” does not mean delivery by:

(i) Facsimile; or

(ii) Any means other than those set forth above in §B(6)(a) of this regulation.

(7) “Substantially completed registration form” means one that:

(a) Has a response for each question;

(b) Is legible; and

(c) Is sufficiently accurate to allow the Department to reasonably identify the property for which the ground lease was created.

History

Administrative History: Effective date: September 20, 2010 (37:19 Md. R. 1285)
Administrative History: Regulation .01B amended effective December 6, 2018 (45:24 Md. R. 1163)
Administrative History: Regulation .05 amended effective December 6, 2018 (45:24 Md. R. 1163)
Authority: Real Property Article, §8-710; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.15.02.02 Registration Deadline.

As provided in Real Property Article, §8-707(a), Annotated Code of Maryland, and subject to Real Property Article, §8-707(b), Annotated Code of Maryland, a ground lease holder shall register a ground lease with the Department before September 30, 2010.

History

Administrative History: Effective date: September 20, 2010 (37:19 Md. R. 1285)
Administrative History: Regulation .01B amended effective December 6, 2018 (45:24 Md. R. 1163)
Administrative History: Regulation .05 amended effective December 6, 2018 (45:24 Md. R. 1163)
Authority: Real Property Article, §8-710; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.15.02.03 Duties and Responsibilities.

A. The Department's duties and responsibilities respecting the registration of ground rents are ministerial. In registering a ground rent or refusing to register a ground rent pursuant to this chapter, the Department does not:

(1) Determine that a ground rent does or does not exist;

(2) Determine that a lot does or does not exist;

(3) Determine that information contained in a registration form is correct or incorrect, in whole or in part; or

(4) Create a presumption that the information contained in a registration form is correct or incorrect, in whole or in part.

B. The responsibility for the legal effectiveness of a ground rent registration rests with the ground lease holder. The Department bears no responsibility for effectiveness.

C. The Department and its employees and agents are immune from any liability resulting from inaccurate, incomplete, or illegible information submitted in a ground rent registration form.

History

Administrative History: Effective date: September 20, 2010 (37:19 Md. R. 1285)
Administrative History: Regulation .01B amended effective December 6, 2018 (45:24 Md. R. 1163)
Administrative History: Regulation .05 amended effective December 6, 2018 (45:24 Md. R. 1163)
Authority: Real Property Article, §8-710; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.15.02.04 Substantially Completed Registration Forms.

The Department may register a ground lease for which a substantially completed registration form has been submitted.

History

Administrative History: Effective date: September 20, 2010 (37:19 Md. R. 1285)
Administrative History: Regulation .01B amended effective December 6, 2018 (45:24 Md. R. 1163)
Administrative History: Regulation .05 amended effective December 6, 2018 (45:24 Md. R. 1163)
Authority: Real Property Article, §8-710; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.15.02.05 Inconsistent or Incomplete Information.

If any information requested on a registration form has not been provided or if, for any other reason, the Department is unable to register a ground lease for which a registration form and appropriate fee has been submitted:

A. The Department shall notify the ground lease holder of that ground lease, within 30 days of processing the registration form, of any information needed by the Department to complete the registration; and

B. The ground lease holder shall have up to 30 days from the date on the Department's notice to submit the needed information before the ground lease is considered not registered under Real Property Article, §8-707, Annotated Code of Maryland.

History

Administrative History: Effective date: September 20, 2010 (37:19 Md. R. 1285)
Administrative History: Regulation .01B amended effective December 6, 2018 (45:24 Md. R. 1163)
Administrative History: Regulation .05 amended effective December 6, 2018 (45:24 Md. R. 1163)
Authority: Real Property Article, §8-710; Tax-Property Article, §2-201; Annotated Code of Maryland

COMAR 18.15.02.06 Consolidated or Subdivided Lots.

When a ground rent is attempted to be registered for a tax identification number that no longer exists due to consolidation or subdivision of the associated lot, the Department will register the ground rent using the currently existing tax identification number that most closely identifies the consolidated or subdivided lot.

History

Administrative History: Effective date: September 20, 2010 (37:19 Md. R. 1285)
Administrative History: Regulation .01B amended effective December 6, 2018 (45:24 Md. R. 1163)
Administrative History: Regulation .05 amended effective December 6, 2018 (45:24 Md. R. 1163)
Authority: Real Property Article, §8-710; Tax-Property Article, §2-201; Annotated Code of Maryland

18.16.01 General Provisions

COMAR 18.16.01.01 Scope.

The regulations set forth in this subtitle are effective with respect to any filing on or after July 1, 2006.

History

Administrative History: Effective date: March 26, 2007 (34:6 Md. R. 628)
Authority: Public Utilities Article, §7-542(d), Annotated Code of Maryland

COMAR 18.16.01.02 Definitions.

A. In this subtitle, the following terms have the meanings indicated.

B. Terms Defined.

(1) “Amendment” means a record that amends a previously filed record.

(2) “Assignee” has the meaning stated in Public Utilities Article, §7-520(b), Annotated Code of Maryland.

(3) “Assignor” means an electric company or other person that transfers an interest in rate stabilization property to an assignee.

(4) “Case number” means a number assigned by the Commission to a docketed matter.

(5) “Commission” means the Public Service Commission of Maryland, including a duly appointed successor entity.

(6) “Correction” means a record that corrects a previously filed record.

(7) “Date of delivery of transfer documents to assignee” means the date of delivery of documents pursuant to Public Utilities Article, §7-542(c), Annotated Code of Maryland.

(8) “Date value received for rate stabilization bonds” means the date certain that consideration is received for rate stabilization bonds.

(9) “Electric company” has the meaning stated in Public Utilities Article, §7-521, Annotated Code of Maryland.

(10) “Filing” means presenting a record to the filing office.

(11) “Filing date” means the date on which the filing office is presented with a record as evidenced by a notation on the record and a permanent entry in the information management system of the filing office.

(12) “File number” means a unique identifying number assigned by the information management system of the filing office to a record filed pursuant to this subtitle.

(13) “Filing office” means the State Department of Assessments and Taxation.

(14) “Filing party” means a person that makes a filing pursuant to this subtitle.

(15) “Filing time” means the time of day at which the filing office is presented with a record as evidenced by a notation on the record and a permanent entry in the information management system of the filing office.

(16) “Financing party” has the meaning stated in Public Utilities Article, §7-520(c), Annotated Code of Maryland.

(17) “Grantor” means an electric company or other person that grants a security interest in a rate stabilization property to another entity.

(18) “Person” has the meaning stated in Public Utilities Article, §1-101(m), Annotated Code of Maryland.

(19) “Qualified rate order” has the meaning stated in Public Utilities Article, §7-520(d), Annotated Code of Maryland.

(20) “Qualified rate stabilization charge” has the meaning stated in Public Utilities Article, §7-520(e), Annotated Code of Maryland.

(21) “Rate stabilization bond” has the meaning stated in Public Utilities Article, §7-520(f), Annotated Code of Maryland.

(22) “Rate stabilization cost” has the meaning stated in Public Utilities Article, §7-520(g), Annotated Code of Maryland.

(23) “Rate stabilization property” has the meaning stated in Public Utilities Article, §7-520(i), Annotated Code of Maryland.

(24) Record.

(a) “Record” means a document filed with the filing office on the form approved by the filing office entitled “Rate Stabilization Property Notice”.

(b) “Record” includes:

(i) The notice of a security interest in rate stabilization property pursuant to Public Utilities Article, §7-542(b), Annotated Code of Maryland, and all amendments, corrections, and terminations related to that notice; and

(ii) The notice of sale and transfer to an assignee of an interest (other than a security interest) in rate stabilization property and all amendments, corrections, and terminations related to that notice.

(25) “Termination” means a record that indicates that the related rate stabilization property notice has ceased to be effective as to the financing party or assignee authorizing the termination.

Cross References

18.16.01.04E

History

Administrative History: Effective date: March 26, 2007 (34:6 Md. R. 628)
Authority: Public Utilities Article, §7-542(d), Annotated Code of Maryland

COMAR 18.16.01.03 Duties and Responsibilities.

A. The duties and responsibilities of the filing office with respect to the filing of records pursuant to this subtitle are ministerial.

B. In accepting or refusing to accept a record, the filing office does not:

(1) Determine the legal sufficiency or insufficiency of a record;

(2) Determine that a security interest in rate stabilization property exists or does not exist;

(3) Determine that information in the record is correct or incorrect, in whole or in part; or

(4) Create a presumption that information in the record is correct or incorrect, in whole or in part.

C. The responsibility for the legal effectiveness of a record rests with the filing party and the filing office bears no responsibility for effectiveness.

D. The State and the filing office and its employees, agents, and servants are immune from liability occurring as a result of errors in or omissions of information provided from the filing office's information management system or any other errors or omissions with respect to filings.

History

Administrative History: Effective date: March 26, 2007 (34:6 Md. R. 628)
Authority: Public Utilities Article, §7-542(d), Annotated Code of Maryland

COMAR 18.16.01.04 Date, Time, and Method of Filing.

A. A record shall be filed with the filing office by the filing party.

B. A record shall be filed on the form approved by the filing office or an identical replication of the form.

C. Hand delivery to the filing office shall be the sole method for filing a record.

D. The filing office is open to the public between the hours of 8:30 a.m. and 5 p.m., Monday through Friday, except for State holidays.

E. The filing date and filing time of a record shall be as defined in Regulation .02 of this chapter.

F. The filing office shall assign a unique file number to a record.

G. An acknowledgement of acceptance by the filing office of a record shall be provided to the filing party.

History

Administrative History: Effective date: March 26, 2007 (34:6 Md. R. 628)
Authority: Public Utilities Article, §7-542(d), Annotated Code of Maryland

COMAR 18.16.01.05 Grounds for Refusal of a Record.

The filing office shall refuse to accept a record and provide an explanation for the refusal if:

A. An item on the record fails to contain a required entry by the filing party;

B. An entry on the record fails to be legible and capable of being imaged by the filing office's information management system;

C. A record purporting to add an assignor, grantor, financing party, or assignee fails to include a legible name and address of the assignor, grantor, financing party, or assignee;

D. A record fails to identify itself as a new or supplemental filing;

E. A record, when applicable, fails to indicate its purpose or fails to provide the file number of the affected rate stabilization property notice existing in the information management system of the filing office;

F. A record fails to include the information requested on the approved form as to whether the notice relates to all or a portion of the recovery permitted under a qualified rate order;

G. A record fails to include in legible form the:

(1) Qualified rate order number and case number;

(2) Name of the electric company in the order;

(3) Date that value is received for the rate stabilization bonds;

(4) Signatures and names of the assignor or grantor and assignee or financing party; or

(5) If an assignment, date of delivery of the transfer documents to the assignee; or

H. A record includes any other entry or omission inconsistent with the purpose and intent of the Public Utilities Article, Annotated Code of Maryland.

History

Administrative History: Effective date: March 26, 2007 (34:6 Md. R. 628)
Authority: Public Utilities Article, §7-542(d), Annotated Code of Maryland

18.16.02 Information Management System

COMAR 18.16.02.01 Indices.

A. The filing office shall maintain a unique computer index of records.

B. Each record shall be indexed by:

(1) Assignee or financing party;

(2) Assignor or grantor;

(3) File number; and

(4) Qualified rate order number.

C. A record shall be retrievable by each index.

History

Administrative History: Effective date: March 26, 2007 (34:6 Md. R. 628)
Authority: Public Utilities Article, §7-542(d), Annotated Code of Maryland

COMAR 18.16.02.02 Record Availability.

A. All records shall be available on the filing office's website as imaged documents.

B. All records shall be permanently maintained.

History

Administrative History: Effective date: March 26, 2007 (34:6 Md. R. 628)
Authority: Public Utilities Article, §7-542(d), Annotated Code of Maryland

18.17.01 Registration

COMAR 18.17.01.01 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) “Affordable housing land trust” has the meaning stated in Real Property Article, §14-501(b), Annotated Code of Maryland.

(2) “Department” has the meaning stated in Real Property Article, §14-503(a), Annotated Code of Maryland.

(3) “Register” means to submit to the Department a completed registration form as prescribed by the Department.

(4) “Resident agent” has the meaning stated in Corporations and Associations Article, §1-101(s), Annotated Code of Maryland.

History

Administrative History: Effective date: January 24, 2011 (38:2 Md. R. 85)
Authority: Tax Property Article, §2-201; Real Property Article, §14-503; Annotated Code of Maryland

COMAR 18.17.01.03 Name Requirements.

The name of an affordable housing land trust must:

A. Include the words “Affordable Housing Land Trust”; and

B. Comply with Corporations and Associations Article, §1-504, Annotated Code of Maryland, and COMAR 18.04.02.

History

Administrative History: Effective date: January 24, 2011 (38:2 Md. R. 85)
Authority: Tax Property Article, §2-201; Real Property Article, §14-503; Annotated Code of Maryland

COMAR 18.17.01.04 Resident Agent Requirement.

An affordable housing land trust shall designate a resident agent and the street address of that resident agent at the time of registration.

History

Administrative History: Effective date: January 24, 2011 (38:2 Md. R. 85)
Authority: Tax Property Article, §2-201; Real Property Article, §14-503; Annotated Code of Maryland

COMAR 18.17.01.05 Change of Resident Agent.

An affordable housing land trust may change its resident agent by filing with the Department a statement that authorizes the change.

History

Administrative History: Effective date: January 24, 2011 (38:2 Md. R. 85)
Authority: Tax Property Article, §2-201; Real Property Article, §14-503; Annotated Code of Maryland

COMAR 18.17.01.06 Change of Resident Agent’s Address.

The resident agent of an affordable housing land trust may change the resident agent’s address by filing a statement with the Department:

A. Signed by the resident agent or on behalf of the resident agent; and

B. Including:

(1) The names of the affordable housing land trust for which the change is effective;

(2) The resident agent's old and new addresses; and

(3) The date on which the change is effective.

History

Administrative History: Effective date: January 24, 2011 (38:2 Md. R. 85)
Authority: Tax Property Article, §2-201; Real Property Article, §14-503; Annotated Code of Maryland

COMAR 18.17.01.07 Effective Date.

The change of resident agent or change of the resident agent’s address is effective when the Department accepts the statement for record.

History

Administrative History: Effective date: January 24, 2011 (38:2 Md. R. 85)
Authority: Tax Property Article, §2-201; Real Property Article, §14-503; Annotated Code of Maryland

COMAR 18.17.01.08 Service of Process.

Service of process on a resident agent designated by an affordable housing land trust is as effective as if served on one of its trustees.

History

Administrative History: Effective date: January 24, 2011 (38:2 Md. R. 85)
Authority: Tax Property Article, §2-201; Real Property Article, §14-503; Annotated Code of Maryland

COMAR 18.17.01.09 Reporting Status.

A nonprofit organization operating an affordable housing land trust that gives up or loses its nonprofit status or ceases to exist shall promptly report this information to the Department.

History

Administrative History: Effective date: January 24, 2011 (38:2 Md. R. 85)
Authority: Tax Property Article, §2-201; Real Property Article, §14-503; Annotated Code of Maryland

18.18.01 General

COMAR 18.18.01.01 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) “Affidavit” means a sworn statement in writing on a form furnished by the Department and containing an oath or affirmation set forth in Maryland Rule 1-304, Annotated Code of Maryland.

(2) “Applicant” means a person applying for enrollment in the Homeowner Protection Program as defined in Tax-Property Article, §14-883, Annotated Code of Maryland.

(3) “Combined income” has the meaning stated in Tax-Property Article, §14-883, Annotated Code of Maryland.

(4) “Dependent” has the meaning stated in 26 U.S.C.A. §152, United States Annotated Code.

(5) “Dwelling” has the meaning stated in Tax-Property Article, §14-883, Annotated Code of Maryland.

(6) “Enrollee” means an applicant enrolled in the Homeowner Protection Program.

(7) “Homeowner” has the meaning stated in Tax-Property Article, §14-883, Annotated Code of Maryland.

(8) “Ombudsman” has the meaning stated in Tax-Property Article, §14-883, Annotated Code of Maryland.

(9) “Program” has the meaning stated in Tax-Property Article, §14-883, Annotated Code of Maryland.

(10) “Total outstanding tax debt” means the full amount of any property tax lien, any amount paid to the holder of a property tax sale certificate, or any other charge paid by the Department on behalf of a Program enrollee under Tax-Property Article, §14-801, Annotated Code of Maryland, including any interest as determined by the Department.

History

Administrative History: Effective date: December 12, 2022 (49:25 Md. R. 1052)
Authority: Tax-Property Article, §§2-201 and 14-885, Annotated Code of Maryland

COMAR 18.18.01.02 Application Procedures.

A. The Department has established procedures to apply for the Program.

B. Application Procedures.

(1) An applicant shall report the combined income corresponding to the dwelling for which application is made.

(2) An applicant may be required to submit copies of corresponding federal income tax returns and accompanying schedules and forms, along with other proof of combined income, as requested by the Ombudsman.

(3) An applicant having a substantial ownership interest in a business or partnership shall submit a complete copy of the federal tax return filed for that business or partnership.

(4) An applicant may be requested to complete an affidavit to substantiate any information reported on the application.

(5) An applicant seeking to exclude the income of a spouse on the basis of a marital separation shall submit a legal separation agreement or, if none exists, an affidavit stating the date of separation and whether their estranged spouse is likely to return to the dwelling house.

(6) An applicant claiming a person is a dependent who does not file a federal income tax return shall submit verification of the dependency status to the Ombudsman in an affidavit.

(7) An applicant failing or refusing to submit any information requested by the Ombudsman shall be denied enrollment for failure to substantiate the information reported.

C. The Department may establish application procedures in addition to those set forth above if not inconsistent with these regulations.

History

Administrative History: Effective date: December 12, 2022 (49:25 Md. R. 1052)
Authority: Tax-Property Article, §§2-201 and 14-885, Annotated Code of Maryland

COMAR 18.18.01.03 Additional Eligibility Criteria.

A. The Department has established additional eligibility criteria for the Program in accordance with Tax-Property Article, §14-885(b), Annotated Code of Maryland.

B. Additional Eligibility Criteria.

(1) Enrollment From Every County. The maximum number of homeowners who may be enrolled in the Program in a given fiscal year will be proportionately divided among the 23 counties and Baltimore City based on the percentage of Statewide property tax sales occurring within each jurisdiction, as determined by the Ombudsman.

(2) Limit on Total Outstanding Tax Debt. To ensure that homeowners are enrolled in the Program who reside in each jurisdiction in a given fiscal year, the Ombudsman may set a maximum amount of total outstanding tax debt that the Department will incur on behalf of any one dwelling.

(3) Affordability Requirement. The total outstanding tax debt paid by the Department on behalf of an enrollee under Tax-Property Article, §14-887, Annotated Code of Maryland, may not exceed an amount that may reasonably be expected to be repaid by the enrollee within a three-year period. Consideration will be given to the homeowner’s income, expenses other than total outstanding tax debt, and the likelihood of receiving tax credits, grants, and other benefits.

(4) Long-term homeowner enrollment preference. Applications from homeowners whose dwelling has been their principal residence for at least 10 years as of the date of application will be given enrollment preference over other applicants from the same jurisdiction.

History

Administrative History: Effective date: December 12, 2022 (49:25 Md. R. 1052)
Authority: Tax-Property Article, §§2-201 and 14-885, Annotated Code of Maryland

COMAR 18.18.01.04 Priorities.

A. The Department has established enrollment priorities for the Program in accordance with Tax-Property Article, §14-885(b), Annotated Code of Maryland.

B. Enrollment Priorities.

(1) Priority for Applicants Age 60 and Over. Applications from homeowners who are at least 60 years of age as of the date of application will be given priority enrollment over applicants from the same jurisdiction who are under 60.

(2) Priority for Applicants on Disability. Applications from homeowners who are receiving disability benefits from the federal Social Security Disability Insurance program or the federal Supplemental Security Income program as of the date of application will be given priority enrollment over applicants from the same jurisdiction who are not receiving such benefits.

History

Administrative History: Effective date: December 12, 2022 (49:25 Md. R. 1052)
Authority: Tax-Property Article, §§2-201 and 14-885, Annotated Code of Maryland

COMAR 18.18.01.05 Maintaining Enrollment.

A. The Department has established requirements to maintain enrollment in the Program.

B. Maintaining Enrollment.

(1) Regular Communication. An enrollee shall respond to communications from the Ombudsman within a reasonable time period as required by the Department. If an enrollee’s contact information changes, the updated contact information must be shared seasonably with the Ombudsman.

(2) Assistance Agreement. An enrollee must follow any assistance plan created for them by the Ombudsman. The assistance plan may include an obligation to:

(a) Apply for tax credits, grants, or other public benefits as recommended by the Ombudsman;

(b) Meet with housing and financial counselors and legal service providers; and

(c) Take advantage of other assistance strategies recommended by the Ombudsman to help an enrollee pay their total outstanding tax debt and improve their financial situation.

(3) Financial Information. When requested by the Ombudsman, an enrollee shall provide detailed and complete information about their financial situation to aid in developing an appropriate assistance strategy. An enrollee shall immediately report to the Ombudsman any significant changes to their financial circumstances as they occur.

(4) Repayment Requirement. For any total outstanding tax debt paid by the Department on behalf of an enrollee under Tax-Property Article, §14-887, Annotated Code of Maryland, the enrollee shall repay the Department in monthly installments based on a plan agreed upon during the enrollment process.

History

Administrative History: Effective date: December 12, 2022 (49:25 Md. R. 1052)
Authority: Tax-Property Article, §§2-201 and 14-885, Annotated Code of Maryland

COMAR 18.18.01.06 Collection Procedures

A. The Ombudsman may charge less interest under Tax-Property Article, §14-889, Annotated Code of Maryland, to enrollees who repay the Department using automatic electronic payments.

B. The total outstanding tax debt owed by an enrollee to the Department will be recorded in land records as a lien attached to the enrollee’s dwelling until it is repaid.

History

Administrative History: Effective date: December 12, 2022 (49:25 Md. R. 1052)
Authority: Tax-Property Article, §§2-201 and 14-885, Annotated Code of Maryland