<section article="gtp" article_name="Tax - Property" number="1-101" title_number="1" title_name="Definitions; Rules of Construction; General Provisions" subtitle_number="1" subtitle_name="Definitions"> <level label="a"> <text>In this article the following words have the meanings indicated.</text> </level> <level label="a–1"> <text>“Active duty” has the meaning stated in § 9–901 of the State Government Article.</text> </level> <level label="a–2"> <text>“Active military, naval, air, or space service” has the meaning stated in § 9–901 of the State Government Article.</text> </level> <level label="a–3"> <text>“Active service member” has the meaning stated in § 9–901 of the State Government Article.</text> </level> <level label="b"> <text>“Assess” means:</text> <level label="1"> <text>for real property, to determine the phased–in full cash value or use value to which the property tax rate may be applied; and</text> </level> <level label="2"> <text>for personal property, to determine the value to which the property tax rate may be applied.</text> </level> </level> <level label="c"> <text>“Assessment” means:</text> <level label="1"> <text>for real property, the phased–in full cash value or use value to which the property tax rate may be applied; and</text> </level> <level label="2"> <text>for personal property, the value to which the property tax rate may be applied.</text> </level> </level> <level label="d"> <text>“Assessment roll” means the official listing of assessments of property required under § 2–202(3) of this article.</text> </level> <level label="e"> <text>“Collector” includes an officer of a county or municipal corporation who has a duty to collect or remit taxes.</text> </level> <level label="f"> <level label="1"> <text>“Corporation” includes an association or joint–stock company.</text> </level> <level label="2"> <text>“Corporation” does not include a common trust fund as defined in § 3–501(b) of the Financial Institutions Article.</text> </level> </level> <level label="g"> <text>“County” means a county of the State and, unless expressly provided otherwise, Baltimore City.</text> </level> <level label="h"> <level label="1"> <text>“County property tax” means the tax on property that is authorized under §§ 6–202 and 10–102 through 10–105 of this article.</text> </level> <level label="2"> <text>“County property tax” does not include a tax imposed on property specifically benefited by local improvements.</text> </level> </level> <level label="i"> <text>“Date of finality” means January 1, when assessments become final for the taxable year next following.</text> </level> <level label="j"> <level label="1"> <text>“Department” means the State Department of Assessments and Taxation.</text> </level> <level label="2"> <text>“Department” includes, unless the context requires otherwise, a supervisor.</text> </level> </level> <level label="k"> <text>“Director” means the Director of the State Department of Assessments and Taxation.</text> </level> <level label="l"> <text>“Domestic corporation” means a corporation organized under the laws of the State.</text> </level> <level label="m"> <text>“Foreign corporation” means a corporation organized under the laws of the United States, a foreign country, or another state.</text> </level> <level label="n"> <text>“Governing body” means:</text> <level label="1"> <text>for Baltimore City, unless otherwise provided, the Board of Estimates;</text> </level> <level label="2"> <text>for charter counties, as provided by local law, the county council or the county executive and the county council;</text> </level> <level label="3"> <text>for code counties, the county commissioners or county council;</text> </level> <level label="4"> <text>for county commissioner counties, the county commissioners; and</text> </level> <level label="5"> <text>for municipal corporations, the body provided by municipal charter.</text> </level> </level> <level label="o"> <text>“Includes” or “including” means includes or including by way of illustration and not by way of limitation.</text> </level> <level label="p"> <text>“Internal Revenue Code” means Title 26 of the United States Code.</text> </level> <level label="q"> <text>“Law” includes any enactment, order, resolution, or ordinance of a county or municipal corporation.</text> </level> <level label="r"> <level label="1"> <text>“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.</text> </level> <level label="2"> <text>“Manufacturing” includes:</text> <level label="i"> <text>the operation of sawmills, grain mills, or feed mills;</text> </level> <level label="ii"> <text>the operation of machinery and equipment used to extract and process minerals, metals, or earthen materials or by–products that result from the extracting or processing;</text> </level> <level label="iii"> <text>research and development activities, whether or not the company has a product for sale;</text> </level> <level label="iv"> <text>the identification, design, or genetic engineering of biological materials for research or manufacture; and</text> </level> <level label="v"> <text>the design, development, or creation of computer software for sale, lease, or license.</text> </level> </level> <level label="3"> <text>“Manufacturing” does not include:</text> <level label="i"> <text>activities that are primarily a service;</text> </level> <level label="ii"> <text>activities that are intellectual, artistic, or clerical in nature;</text> </level> <level label="iii"> <text>public utility services, including telephone, gas, electric, water, and steam production services; or</text> </level> <level label="iv"> <text>any other activity that would not commonly be considered as manufacturing.</text> </level> </level> </level> <level label="s"> <text>“Municipal corporation” means an entity that is subject to Article XI–E of the Maryland Constitution.</text> </level> <level label="t"> <level label="1"> <text>“Municipal corporation property tax” means the tax on property authorized under §§ 6–203 and 10–102 through 10–105 of this article.</text> </level> <level label="2"> <text>“Municipal corporation property tax” does not include a tax imposed on property specifically benefited by local improvements.</text> </level> </level> <level label="u"> <text>“Operating land” means any land used to operate a railroad or public utility.</text> </level> <level label="v"> <level label="1"> <text>“Operating personal property” includes any property, other than real property, used to operate a railroad or public utility.</text> </level> <level label="2"> <text>For a public utility, “operating personal property” includes cables, lines, poles, and towers.</text> </level> </level> <level label="w"> <level label="1"> <text>“Operating property” means any property used to operate a railroad or public utility.</text> </level> <level label="2"> <text>“Operating property” includes operating real property and operating personal property.</text> </level> </level> <level label="x"> <text>“Operating real property” includes any real property used to operate a railroad or public utility.</text> </level> <level label="y"> <level label="1"> <text>“Operating unit” means, as determined by the Department, all of the operating property of a railroad or a public utility.</text> </level> <level label="2"> <text>“Operating unit” includes operating property that is located outside of the State.</text> </level> <level label="3"> <text>“Operating unit” does not include more than 1 railroad or public utility for which separate accounts are kept, unless the Department finds that:</text> <level label="i"> <text>the accounts are under the same or commonly controlled management; and</text> </level> <level label="ii"> <text>the inclusion is necessary to determine the value of the operating property.</text> </level> </level> </level> <level label="z"> <text>“Person” means an individual, receiver, trustee, guardian, personal representative, fiduciary, or representative of any kind and any partnership, firm, corporation, or other entity.</text> </level> <level label="aa"> <text>“Principal office of a domestic corporation” means:</text> <level label="1"> <text>the office in the State where the business of the corporation is directed and managed;</text> </level> <level label="2"> <text>if there is no office in the State where the business is directed and managed, the place in the State where the principal business of the corporation in the State is transacted; or</text> </level> <level label="3"> <text>if there is no office or place that meets the requirements of item (1) or (2) of this subsection, the principal office named in the corporation charter or reported to the Department.</text> </level> </level> <level label="bb"> <text>“Principal office of a foreign corporation in the State” means the place in the State where the principal business or operation of the corporation in the State is carried on.</text> </level> <level label="cc"> <text>“Property” means real property and personal property.</text> </level> <level label="dd"> <text>“Property tax” means the property tax imposed by:</text> <level label="1"> <text>the State;</text> </level> <level label="2"> <text>a county; or</text> </level> <level label="3"> <text>a municipal corporation.</text> </level> </level> <level label="ee"> <level label="1"> <text>“Public utility” means a company classified by the Department as a public utility under § 8–109 of this article.</text> </level> <level label="2"> <text>“Public utility” includes:</text> <level label="i"> <text>an electric company;</text> </level> <level label="ii"> <text>a gas company;</text> </level> <level label="iii"> <text>a pipeline company;</text> </level> <level label="iv"> <text>a sewage disposal company;</text> </level> <level label="v"> <text>a steam heating company;</text> </level> <level label="vi"> <text>a telephone company; and</text> </level> <level label="vii"> <text>a water company.</text> </level> </level> <level label="3"> <text>“Public utility” does not include:</text> <level label="i"> <text>a cable television company;</text> </level> <level label="ii"> <text>a cellular telephone company;</text> </level> <level label="iii"> <text>a cogenerator;</text> </level> <level label="iv"> <text>an exempt wholesale generator;</text> </level> <level label="v"> <text>an independent power producer;</text> </level> <level label="vi"> <text>a small power producer; or</text> </level> <level label="vii"> <text>a utility owned by a county or municipal corporation.</text> </level> </level> </level> <level label="ff"> <text>“Quarterly date of finality” means the April 1 or October 1 when assessments may be made for real property that becomes assessable up to that time and after the last date of finality or semiannual date of finality.</text> </level> <level label="gg"> <level label="1"> <text>“Real property” means any land or improvements to land.</text> </level> <level label="2"> <text>“Real property” includes:</text> <level label="i"> <text>a leasehold or other limited interest in real property; and</text> </level> <level label="ii"> <text>an easement.</text> </level> </level> </level> <level label="hh"> <level label="1"> <text>“Research and development” means:</text> <level label="i"> <text>basic and applied research in the sciences and engineering; and</text> </level> <level label="ii"> <text>the design, development, and governmentally required premarket testing of prototypes, products, and processes.</text> </level> </level> <level label="2"> <text>“Research and development” does not include:</text> <level label="i"> <text>market research;</text> </level> <level label="ii"> <text>research in the social sciences, psychology, or other nontechnical activities;</text> </level> <level label="iii"> <text>routine product testing;</text> </level> <level label="iv"> <text>sales services;</text> </level> <level label="v"> <text>technical and nontechnical services; or</text> </level> <level label="vi"> <text>research and development of a public utility.</text> </level> </level> </level> <level label="hh–1"> <text>“Reserve component” has the meaning stated in § 9–901 of the State Government Article.</text> </level> <level label="ii"> <text>“Resident of the State” includes a domestic corporation.</text> </level> <level label="jj"> <text>“Semiannual date of finality” means July 1, when assessments may be made for real property that becomes assessable after the immediately preceding date of finality or quarterly date of finality.</text> </level> <level label="jj–1"> <text>“Service member” has the meaning stated in § 9–901 of the State Government Article.</text> </level> <level label="kk"> <text>“State” means:</text> <level label="1"> <text>a state, possession, or territory of the United States;</text> </level> <level label="2"> <text>the District of Columbia; or</text> </level> <level label="3"> <text>the Commonwealth of Puerto Rico.</text> </level> </level> <level label="ll"> <text>“State property tax” means the tax imposed on property under § 6–201 of this article and authorized under §§ 10–102 and 10–103 of this article.</text> </level> <level label="mm"> <text>“Supervisor” means the supervisor of assessments for a county.</text> </level> <level label="nn"> <text>“Tax roll” means the assessment roll to which the property tax rate has been applied and on which the property tax on each property is shown.</text> </level> <level label="oo"> <text>“Taxable year” means July 1 to June 30, both inclusive, for which the State, each county, municipal corporation, and taxing district of the State computes, imposes, and collects property tax.</text> </level> <level label="oo–1"> <text>“Uniformed services” has the meaning stated in § 9–901 of the State Government Article.</text> </level> <level label="pp"> <text>“Valuation” means the process of determining the value of property.</text> </level> <level label="qq"> <text>“Value” means the full cash value of property.</text> </level> <level label="rr"> <text>“Veteran” has the meaning stated in § 9–901 of the State Government Article.</text> </level> </section> <section article="gtp" article_name="Tax - Property" number="1-201" title_number="1" title_name="Definitions; Rules of Construction; General Provisions" subtitle_number="2" subtitle_name="Rules of Construction"> <level label="a"> <text>A requirement in this article that a document be under oath means that the document shall be supported by a statement made under the penalties of perjury that the contents of the document are true to the best of the knowledge, information, and belief of the individual making the statement.</text> </level> <level label="b"> <text>The oath or affirmation shall be made:</text> <level label="1"> <text>before an individual authorized to administer oaths, who shall certify in writing to have administered the oath or taken the affirmation; or</text> </level> <level label="2"> <text>by a signed statement that:</text> <level label="i"> <text>is in the document or attached to and made part of the document; and</text> </level> <level label="ii"> <text>is expressly made under the penalties for perjury.</text> </level> </level> </level> <level label="c"> <text>If the procedures provided in subsection (b)(2) of this section are used, the affidavit subjects the individual making it to the penalties for perjury to the same extent as an oath or affirmation made before an individual authorized to administer oaths.</text> </level> </section> <section article="gtp" article_name="Tax - Property" number="1-202" title_number="1" title_name="Definitions; Rules of Construction; General Provisions" subtitle_number="2" subtitle_name="Rules of Construction"> <level label="a"> <text>A person doing business in the State is deemed a resident of the State and of the county and any municipal corporation where the business is conducted if personal property is used in or in connection with the business.</text> </level> <level label="b"> <text>A personal representative of the estate of a decedent is deemed a resident of the county where appointed.</text> </level> <level label="c"> <text>A guardian is deemed a resident of the county where appointed.</text> </level> </section> <section article="gtp" article_name="Tax - Property" number="1-203" title_number="1" title_name="Definitions; Rules of Construction; General Provisions" subtitle_number="2" subtitle_name="Rules of Construction"> <level label="a"> <text>In this section, “fiduciary” includes a personal representative, trustee, or guardian.</text> </level> <level label="b"> <text>Except as otherwise provided in this article, a fiduciary is liable for the taxes on property held by the fiduciary as a fiduciary.</text> </level> <level label="c"> <text>Except as otherwise provided in subsection (d) of this section or in the case of default or breach of duty, a fiduciary’s liability extends only to assets that the fiduciary holds as a fiduciary.</text> </level> <level label="d"> <level label="1"> <text>A fiduciary who distributes property held as a fiduciary after the date of finality for the next following taxable year shall retain sufficient funds to pay any taxes on the property for that taxable year for any assessment against the property held in a fiduciary capacity, if the assessment is made before the date of finality.</text> </level> <level label="2"> <text>If the fiduciary fails to retain sufficient funds to pay these taxes, the fiduciary and the bond of the fiduciary are liable for the taxes.</text> </level> </level> </section> <section article="gtp" article_name="Tax - Property" number="1-204" title_number="1" title_name="Definitions; Rules of Construction; General Provisions" subtitle_number="2" subtitle_name="Rules of Construction"> <text>A “common trust fund” as defined in § 3-501(b) of the Financial Institutions Article is not subject to tax under this article.</text> </section> <section article="gtp" article_name="Tax - Property" number="1-301" title_number="1" title_name="Definitions; Rules of Construction; General Provisions" subtitle_number="3" subtitle_name="General Provisions"> <level label="a"> <text>In this section, “tax information” means:</text> <level label="1"> <text>the amount of income or any particulars disclosed in any return required under any provision of law of this State if the return contains federal return information;</text> </level> <level label="2"> <text>the amount of income or any particulars disclosed in any application required under § 9-104 of this article; or</text> </level> <level label="3"> <text>any federal return information required to be attached to or included in a return of this State or to any application required under § 9-104 of this article.</text> </level> </level> <level label="b"> <text>An officer, employee, former officer, or former employee of the State or any political subdivision of the State may not make known, in any manner, any tax information, except:</text> <level label="1"> <text>in accordance with proper judicial or legislative order; and</text> </level> <level label="2"> <text>to an officer of the State or of any political subdivision of the State who by reason of the office has a right to tax information.</text> </level> </level> </section> <section article="gtp" article_name="Tax - Property" number="1-302" title_number="1" title_name="Definitions; Rules of Construction; General Provisions" subtitle_number="3" subtitle_name="General Provisions"> <level label="a"> <text>In this section, “taxes” includes interest and penalties on taxes.</text> </level> <level label="b"> <text>The courts of this State shall recognize and enforce liability for taxes imposed by the laws of another state if the other state recognizes and enforces liability for similar taxes imposed by this State.</text> </level> <level label="c"> <text>An official of another state described in subsection (b) of this section may bring an action in the courts of this State to collect taxes. A certification of the Secretary of State of the other state or comparable official in the District of Columbia is conclusive proof that the official has the authority to collect the taxes.</text> </level> </section> <section article="gtp" article_name="Tax - Property" number="1-303" title_number="1" title_name="Definitions; Rules of Construction; General Provisions" subtitle_number="3" subtitle_name="General Provisions"> <level label="a"> <text>In this section, “legal holiday” means:</text> <level label="1"> <text>the day on which a legal holiday, as defined in § 1–111 of the General Provisions Article, is observed; or</text> </level> <level label="2"> <text>a federal legal holiday.</text> </level> </level> <level label="b"> <text>Notwithstanding any other law, when under State or local law, the last day to pay a tax, file a tax return or perform any other act that relates to taxes under this article falls on a Saturday, Sunday, or legal holiday, performance of the act is considered timely if the act is performed on the next succeeding day that is not a Saturday, Sunday, or legal holiday.</text> </level> <level label="c"> <text>For purposes of this section, the last day to perform an act is the last day of any authorized extension of time.</text> </level> </section> <section article="gtp" article_name="Tax - Property" number="1-304" title_number="1" title_name="Definitions; Rules of Construction; General Provisions" subtitle_number="3" subtitle_name="General Provisions"> <text>The Comptroller is responsible for the collection of all State taxes at the rates required by law on the various classes of property determinations against which are certified directly to the Comptroller and on which taxes are payable directly into the Treasury of the State.</text> </section> <section article="gtp" article_name="Tax - Property" number="1-305" title_number="1" title_name="Definitions; Rules of Construction; General Provisions" subtitle_number="3" subtitle_name="General Provisions"> <text>Notwithstanding any other law of the State, the State or any of its units, political subdivisions, or special taxing districts may act as necessary to collect from the United States money that is available for reimbursement for taxes or other charges that have been lost because the United States or one of its units holds title to property in the State.</text> </section> <section article="gtp" article_name="Tax - Property" number="1-401" title_number="1" title_name="Definitions; Rules of Construction; General Provisions" subtitle_number="4" subtitle_name="Property Owner's Bill of Rights"> <text>It is the intent of the General Assembly that property owners in this State have:</text> <level label="1"> <text>knowledge that the valuation and assessment of property is the responsibility of the State Department of Assessments and Taxation;</text> </level> <level label="2"> <text>understanding of the valuation and assessment process;</text> </level> <level label="3"> <text>assurance that the valuation and assessment of property within classes is uniform;</text> </level> <level label="4"> <text>access to information which is the basis for the property valuation and assessment process in this State; and</text> </level> <level label="5"> <text>understanding that the setting of property tax rates and the collection of property taxes is a local government function.</text> </level> </section> <section article="gtp" article_name="Tax - Property" number="1-402" title_number="1" title_name="Definitions; Rules of Construction; General Provisions" subtitle_number="4" subtitle_name="Property Owner's Bill of Rights"> <text>Property owners in this State have the following rights:</text> <level label="1"> <level label="i"> <text>the right to an assessment notice upon reassessment, as provided in § 8–401 of this article, that clearly explains:</text> <level label="1"> <text>the property owner’s right to appeal an assessment;</text> </level> <level label="2"> <text>that the determination of value is based upon information contained in the valuation records of the Department;</text> </level> <level label="3"> <text>the property owner’s right of access to the valuation records of the Department; and</text> </level> <level label="4"> <text>that if an assessment has increased, the total amount of property tax owed by the property owner may also increase even if the property tax rate has not increased; and</text> </level> </level> <level label="ii"> <text>the right to receive information concerning the calculation of the assessment and description of the property on the Department’s website;</text> </level> </level> <level label="2"> <text>the right to obtain, at no charge:</text> <level label="i"> <text>a brochure explaining the valuation and assessment process;</text> </level> <level label="ii"> <text>the record card and assessment work sheet for the property that is the subject of an assessment; and</text> </level> <level label="iii"> <text>a brochure explaining the record card and assessment work sheet, their pertinent parts, and an example and definition of commonly used appraisal terms;</text> </level> </level> <level label="3"> <text>the right of access to the property assessment roll;</text> </level> <level label="4"> <text>the right to appeal an assessment within 45 days of the notice of assessment, as provided in § 14–502 of this article, and to assist in an appeal, to obtain:</text> <level label="i"> <text>at no charge, a brochure explaining the assessment appeal process;</text> </level> <level label="ii"> <text>at no charge, a copy of the sales analysis for the area in which the property is located; and</text> </level> <level label="iii"> <text>for a reasonable fee, copies of record cards and assessment work sheets for other similar properties, as provided in § 14–201 of this article;</text> </level> </level> <level label="5"> <text>the right to be provided with an alternate site or an evening or Saturday assessment appeal hearing, as provided in § 8–412 of this article;</text> </level> <level label="6"> <text>the right to an assessment appeal hearing conducted by telephone, in accordance with the standards and procedures of the Department;</text> </level> <level label="7"> <text>the right to postponement of an assessment appeal hearing one time without cause at the property owner’s request, and additional postponements only for good cause;</text> </level> <level label="8"> <text>during an appeal hearing, the right to a review and explanation by the assessor of the items and values shown on the assessment work sheet and record card;</text> </level> <level label="9"> <text>after an appeal hearing, the right to:</text> <level label="i"> <text>not have an assessment increased during the current 3–year cycle because of information ascertained at an appeal hearing on residential property; and</text> </level> <level label="ii"> <text>a reinspection of a property, upon request, to review updated information revealed during an appeal hearing that could result in a decreased assessment;</text> </level> </level> <level label="10"> <text>notwithstanding the failure to file an appeal within 45 days, the right to require the Department to review and correct any mathematical, clerical, measurement, or other technical errors used as the basis for an assessment, as provided in § 8–419 of this article;</text> </level> <level label="11"> <text>the right to file a petition for review within any year of the 3–year assessment cycle, as provided in § 8–415 of this article;</text> </level> <level label="12"> <text>the right to the consideration of the facts and reasons stated in a decision on an appeal from the Property Tax Appeal Board or the Maryland Tax Court when the assessment of a property is next reviewed, as provided in § 8–205 of this article; and</text> </level> <level label="13"> <text>the right to be notified of the availability of State property tax credits, including the homestead property tax credit, the homeowners property tax credit, and the renters tax credit.</text> </level> </section> <section article="gtp" article_name="Tax - Property" number="1-403" title_number="1" title_name="Definitions; Rules of Construction; General Provisions" subtitle_number="4" subtitle_name="Property Owner's Bill of Rights"> <text>This subtitle shall be known as the Property Owner’s Bill of Rights.</text> </section>