In Maryland there is a tax on business owned personal property which is imposed and collected by the local governments, including Worcester County. In order to foster the uniform and consistent administration of this tax, responsibility for the assessment of all personal property tax throughout Maryland rests with a single State agency, the Department of Assessments and Taxation.
Personal Property generally includes furniture, fixtures, office and industrial equipment, machinery, tools, supplies, inventory, and other property not classified as real property. When a furnished home or condominium is rented, it qualifies as a business and is subject to personal property tax.
Filing Requirements with the State Department of Assessments & Taxation
In contrast to real property, which is valued once every three years, personal property is valued every year for tax purposes. This tax is based on a personal property tax return filed annually by the taxpayer. Even if the business does not receive the return from the Assessment Office, it is still responsible for obtaining and filing one on time. To obtain a form, or if you are unsure whether you are required to file, please call 410-767-1170 or toll-free in Maryland only 1-888-246-5941 or visit http://www.dat.state.md.us/sdatweb/personal.html.
Questions about assessments or to change address
Use the numbers listed above for the State Department of Assessments & Taxation, Personal Property Division.
Worcester County Billing Information
Annual bills are generated for County business/personal property tax by the Worcester County Treasurer's Office. The current County tax rate is $2.1125 per $100.00 of assessed value. The tax year runs from July 1st through June 30th and billings are based on the assessments provided to us by the State Department of Assessments and Taxation. Personal property bills are mailed throughout the taxable year, depending on when the personal property tax return was filed. For any taxable year the tax bills are based on personal property located in Maryland as of January 1st of that same year.
Requirements for Business License Applicants
All business license applicants must receive clearance from the local Treasurer's Office to obtain a license from the Clerk of Court. Worcester County business/personal property tax must be paid before obtaining clearance from the Treasurer's Office. Pursuant to Worcester County Code, Section 1-208, all new businesses in Worcester County may be required to pay a refundable Personal Property Liability Fee based on the trader's license cost. The amount your business needs to pay can vary from $150.00 to $900.00. You may request a refund of this amount after your business has been assessed by the State Department of Assessments and Taxation and you have paid the corresponding tax for personal property to Worcester County.
For more information on the licensing process call the Worcester County Clerk of Court at (410) 632-5500, or visit http://www.mdcourts.gov/clerks/worcester/business.html.