Personal property in the State (other than operating property of railroads and public utilities) falls into three classes: Stock in business or inventory; Distilled spirits; All other personal property. Stock in Business. 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. Stock in business is assessed at cost or market value, whichever is lower. 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. 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. 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. All Other Personal Property. Except for operating property of railroads and public utilities and certain distilled spirits, “all other personal property” includes all personal property other than inventory. “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. Term Defined. “Salvage value” means the value of personal property after all depreciation under this regulation has been applied. 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. Depreciation Schedule. The following annual rates of depreciation shall be applied to the different types of personal property indicated: All personal property not otherwise listed in this depreciation schedule shall be depreciated at 10 percent per year; 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; Vessels (over 100 feet) shall be depreciated at 5 percent per year; To be depreciated at 20 percent per year: Mobile telephones; Heavy equipment (tractors, bulldozers); Autos, trucks, and tractors not requiring registration; Radio and television transmitting equipment; Music boxes; Open-air theatre equipment (outdoor equipment, posts, speakers, signs); Motel and hotel furniture (rooms and lobby); Self-service laundry equipment; Theatre seats; Bowling alley equipment; Nursing home furniture, fixtures, and equipment (rooms and lobby); Car wash equipment; X-ray equipment, brain scanners, and MRI equipment; Photocopy equipment; Outdoor Christmas decorations; Hospital room furniture and equipment; Rental soda fountain equipment; Rental pagers; Model home furnishings; Stevedore equipment; Vending machines; Fax machines; Mainframe computers originally costing $500,000 or more; To be depreciated at 30 percent per year: Data processing equipment other than the type mentioned in §C(4) of this regulation; Computer software; Any of the following property owned by equipment rental companies shall be depreciated at 33-1/3 percent per year: Rental televisions; Rental stereo and radio equipment; Rental video cassette recorders and tapes; To be depreciated at 33-1/3 percent per year: Drapes and shades; Carpets; To be depreciated at 50 percent per year: Pinball machines; Video games; Rental tuxedos; Rental uniforms; 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 Personal property of nonutility nuclear power plants shall be depreciated at annual rates as determined by the Department, consistent with licenses and license extensions. 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. Personal property owned by any person and permanently located on the following federal facilities is exempt from taxation: Aberdeen Proving Grounds; Andrews Air Force Base; Bainbridge Naval Training Center; National Naval Medical Center, Bethesda; Camp Detrick; Census Bureau, Suitland; Cheltenham, U. S. Navy; Custom House, Gay and Lombard Streets; Department of Agriculture, Beltsville; Edgewood Arsenal; Fort Howard Hospital; Fort McHenry; Fort Meade; Goddard Space, Beltsville; Indian Head Naval Ordinance; National Institutes of Health; Naval Academy; Naval Support Center, Suitland; Oceanographic Center, Suitland; Patuxent River Naval Air Warfare Center; Perry Point Hospital; Public Health Service Hospital, Wyman Park; U.S. Coast Guard, Curtis Bay. Tax-Property Article, §§2-201, 2-202, 5-101, 8-101(c), and 8-107, Annotated Code of Maryland Effective date: January 7, 1982 (8:26 Md. R. 2106) Regulation .03 amended effective September 19, 1988 (15:19 Md. R. 2248) Regulation .05 amended effective September 19, 1988 (15:19 Md. R. 2248) Regulation .05B amended effective June 5, 1995 (22:11 Md. R. 823) Chapter revised effective March 11, 1996 (23:5 Md. R. 383) Regulation .02 amended effective October 31, 2022 (49:22 Md. R. 980) Regulation .02A amended effective April 24, 2006 (33:8 Md. R. 734) 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)