10/2/2014
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Personal Property Tax

Personal Property Tax is annual tax levied on business-owned personal property located in Cecil County and generally includes furniture, fixtures, office and industrial equipment, machinery tools, supplies, etc.  The Cecil County Finance Office is responsible to collect and maintain all tax accounts for personal property for Cecil County.  This includes billing and processing additions and abatements. 

Personal property tax bills are mailed throughout the taxable year (July - June) as assessment information is received from the State.  The basis for the assessment is the Personal Property Tax returns filed annually by businesses.  For any taxable year, the taxes billed are based on personal property located in Maryland as of January 1 of that same year.

The personal property tax bill is calculated by dividing the assessed value, as determined by the State Department of Assessment and Taxation, by $100 and then multiplying by the Cecil County personal property tax rate.  Tax rates are set by the County Council each fiscal year.  The rates are based on $100 of assessed value (taxable assessment). 

Please be advised that the State Department of Assessments and Taxation determines the taxable assessment (assessed value) based on the personal property annual return you file with the State.  If you did not file a return or the State did not have the return reviewed prior to assessing the value, then the State will estimate the assessment, which may be as high as two times the previous year's assessment. 

If you believe your personal property assessment value is incorrect, then you should contact the State Department of Assessments and Taxation  in Baltimore at (410) 767-1170 (for corporations, LLC's, LLP's and limited partnerships) or 410-767-4991 (for sole proprietors and general partnerships) or you may write to: State Department of Assessments and Taxation, 301 W. Preston St., Room 806, Baltimore, MD  21201.  They also have a toll free number:  1-888-246-5941.

To view or pay your business personal property taxes online.   Note that there is a third party convenience/transaction fee when paying on our website.

When remitting payment for personal property taxes, please make check payable and mail to Cecil County, 200 Chesapeake Blvd., Ste. 1100, Elkton, MD  21921.  Please reference the bill number.

Returned Check Notice (Dishonored Check):  In accordance with Maryland Annotated Code Commercial Law Article § 15-802 and Maryland Annotated Code Criminal Law Article § 8-106 and § 8-107, Cecil County charges a $25.00 collection fee for any dishonored check.  The County also reserves all other rights and/or remedies afforded under the aforementioned articles.

If you have general questions regarding your personal property tax bill, then please contact us at 410-996-5385 or you may email us at sdondero@ccgov.org

Heavy Equipment Rental - Gross Receipts Tax - forms with information

Beginning July 1, 2011 a 2% gross receipts tax on short-term lease or rental of heavy equipment property by rental businesses must be paid directly to local government, and at the same time exempts that property from the personal property assessment effective July 1, 2011. Rental businesses must determine whether they are required to pay the gross receipts tax and are qualified to receive this exemption. The legislation requires an entity to meet all of the following provisions: 1) it must receive the largest segment of its total receipts from the short-term leases or rental of heavy equipment at retail without operators; 2) it must be defined under Code 532412 of the North American Industry Classification System as published by the U.S. Census Bureau; 3) the property exempted must meet the definition of heavy equipment property as defined in § 9-609(D)(5) of the Political Subdivisions Article and 4) the lease or rental of the heavy equipment property is for a period of rental 365 days or less.

          Heavy Equipment Rental Gross Receipts Tax Return
          Annual Report - Heavy Equipment Rental Receipts Tax

 

Other Important Information

In the event you close your business, it is important to notify the State Department of Assessments and Taxation and advise them of the disposition of your business assets.  Failure to do so will result in an estimated assessment and tax bill.

If a business transfers, sells, or disposes of all personal property on or after January 1, and before July 1, it  must notify the State Department of Assessments and Taxation in writing on or before October 1.  You will need form AT3-45 and your notification must contain an itemized description of the property involved, the date and manner of transfer and name(s) and address of the new owner(s) of the property, the consideration received, and a copy of the sales agreement (if available). Upon proper notification and compliance with Section 10-402 of the Tax Property Article, the assessment shall be transferred to the new owner(s).

OUT OF BUSINESS - If a business discontinues operations or goes "out of business" prior to January 1 and has not filed Articles of Dissolution (Domestic Corporations), an Application for Termination (Foreign Corporations), a Certificate of Cancellation (LLC) or a Withdrawal Notice (LLP, LP) with the Department's Charter Division, a return or letter of explanation detailing the date the business ceased operations and what happened to the property must be filed. Failure to provide this information will result in an estimated assessment being made against the business. Businesses that have not filed Articles of Dissolution, an Application for Termination, a Certificate of Cancellation or a Withdrawal Notice are legally active until they do so or until their charters are forfeited (Domestic Corporations) or their authority to do business is forfeited (Foreign Corporations, LLCs, LLPs, LPs, statutory trusts (formerly business trusts), and REITs).

To check the status of your company.

Obtain a Letter of Good Standing from the State of Maryland.

Obtain Personal Property tax forms.

Steps to take if your company is "Not in Good Standing" or "Forfeited," as provided by the State of Maryland.  

Note:  One of the "Steps" includes obtaining a Tax Clearance Certificate, which is provided by our office and will be provided upon request provided personal property taxes are paid and the business is current with personal property tax returns.  To request the Tax Clearance Certificate please contact our office at (410) 996-5385 or email sdondero@ccgov.org or fax the request to (410) 996-5319.  You may also mail the request to Cecil County Finance Office, 200 Chesapeake Blvd., Ste. 1100, Elkton, MD  21921.

Business License Information

If you need to change the mailing address of the company or make other changes, then you will need to obtain the required forms and submit them to the State.  

 

 

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