Have you taken advantage of the manufacturer’s exemption from personal property tax on equipment and machinery used in your business? As a means of encouraging the growth of manufacturing businesses in Maryland, state law authorizes local governments to exempt from taxation personal property used in manufacturing—not to be confused with the sales and use tax exemption on leased or purchased equipment.
The application contains 14 questions, a schedule for leased property, and an optional flow chart. Three primary requirements must be met in order for the State to process your application. You will need to:
- Explain the manufacturing process of your business in detail.
- Supply an itemized list of assets for which you are claiming an exemption.
- Describe how the assets are used in the process.
The deadline for submitting the application is September 1st of each year. There is no fee for submitting the application. You may have unnecessarily paid personal property tax when you could have been exempted. Don’t miss this opportunity to save money!
For more information see: http://dat.maryland.gov/businesses/Pages/Manufacturing-and-Research-and-Development-Exemption-Application.aspx