Property Tax Alert: Maryland

December 2007

For Maryland personal property tax purposes, counties may increase, to a maximum of 65%, the percent of the assessment of any machinery or equipment used to generate (1) electricity or steam for sale or (2) hot or chilled water for sale that is used to heat or cool a building, applicable to all taxable years beginning after June 2008 and before July 2011. (Currently, such personal property is subject to county tax on 50% of its value.) Specifically, increases may not exceed the following:

• 65% for the taxable year beginning July 1, 2008;
• 60% for the taxable year beginning July 1, 2009; and
• 55% for the taxable year beginning July 1, 2010.

In addition, counties may enter into an agreement with the owners of facilities for a negotiated payment in lieu of taxes on all or part of the real and personal property at the facility.

Please contact Rash & Associates for more information.