Business Personal Property Tax
There is no state tax on business personal property in Maryland. All regional counties and Baltimore City levy taxes on the depreciated value of business personal property, which for most property is 10 percent annually to a minimum of 25 percent of original cost.
Business Personal Property Tax Incentives for the Baltimore Region
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Manufacturing machinery, equipment, materials, and supplies are totally exempt; many municipalities also offer exemptions.
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Machinery, equipment, materials, and supplies used primarily in research and development are treated as manufacturing equipment for tax purposes and are exempt.
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Manufacturing and R&D inventory is exempt; many municipalities also offer exemptions.
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Commercial inventory for warehouse/distribution is exempt; many municipalities also offer exemptions.
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Customized computer software is exempt. Local jurisdictions may grant a tax credit for "off-the-shelf" computer software.
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In "focus areas" within
Maryland's
Enterprise Zones, a 10 year, 80 percent credit is given on the increase in assessment of business personal property.
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Through their discretionary authority, local jurisdictions may grant tax exemptions and credits.
Additional information on property tax and exemptions, including municipalities, is available though the Maryland Department of Assessments and Taxation(DAT).