# COMAR Title 18 — Department of Assessments and Taxation

## Subtitle 03 — Personal Property Assessments

### Chapter 04 — Banks or Trust Companies

**Authority:** Tax-Property Article, §§2-201, 2-202, and 7-221.1, Annotated Code of Maryland

**Administrative History:** Effective date:

**Administrative History:** Regulations .01—.04 adopted as an emergency provision effective March 16, 1996 (23:7 Md. R. 549); emergency status expired October 1, 1996; adopted permanently effective January 13, 1997 (24:1 Md. R. 30)

#### Regulation .01 Definitions.

*COMAR 18.03.04.01*

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

  (1) “Bank or trust company” has the meaning stated in Tax-Property Article, §7-221.1, Annotated Code of Maryland.

  (2) Computer Hardware.

    (a) “Computer hardware” means electronic equipment connected to a computer that is used for the entry, organization, manipulation, or viewing of data.

    (b) “Computer hardware” includes monitors, keyboards, cables, central processing units, servers, mainframes, personal computers, printers, automated teller machines, check readers, and check sorters.

    (c) “Computer hardware” does not include furniture.

  (3) “Computer program” has the meaning stated in Tax-General Article, §11-225, Annotated Code of Maryland.

  (4) Word Processing.

    (a) “Word processing” means the production of documents by use of computer hardware and software.

    (b) “Word processing” does not include the production of documents that reflect, or are directly generated by, deposit or loan account activity.

#### Regulation .02 Taxable Property.

*COMAR 18.03.04.02*

A computer program or computer hardware used by a bank or trust company in connection with word processing is subject to valuation and property tax.

#### Regulation .03 Exempt Property.

*COMAR 18.03.04.03*

A computer program or computer hardware owned and used by a bank or trust company in connection with the processing of deposits or loans is not subject to valuation or property tax.

#### Regulation .04 Mixed Use.

*COMAR 18.03.04.04*

If a computer program or computer hardware owned by a bank or trust company is used in both taxable and exempt activities, its taxable status is determined by the primary use of the property.