Table of Contents
Summary of Contents.......................................................................... iii
Foreword............................................................................................. v
Preface to the Fourth Edition............................................................. vii
Preface to the Third Edition................................................................ ix
Acknowledgements............................................................................ xiii
Capsule Review of 2005 Maryland Tax Legislation............................ xv
Table of Contents.............................................................................. xxv
Table of Forms.................................................................................. xcv
Chapter One
Administration by the Comptroller
I.
INTRODUCTION
...................................................................... 1-5
A.
[§ 1.1]
Taxes
Administered by Comptroller ............................... 1-5
B.
[§ 1.2]
Taxes
Not Administered by Comptroller ......................... 1-5
C.
[§ 1.3]
Scope
of Chapter .......................................................... 1-6
II.
ADMINISTRATIVE
PROVISIONS ............................................ 1-6
A.
[§ 1.4]
Generally
..................................................................... 1-6
B.
[§ 1.5]
Returns
........................................................................ 1-7
C.
[§ 1.6]
Licenses,
Stamps and Certificates .................................. 1-7
D.
[§ 1.7]
Chesapeake
Bay and Endangered Species Fund ............. 1-8
E.
[§ 1.8]
Fair
Campaign Financing Fund ....................................... 1-9
F.
[§ 1.9]
Maryland
Cancer Fund ................................................. 1-9
G .
[§ 1.10]
Police
Responsibilities ................................................... 1-9
H.
[§ 1.11]
Miscellaneous
............................................................. 1-10
Chapter Two
Admissions and Amusement Tax
I.
INTRODUCTION
...................................................................... 2-5
A.
[§ 2.1]
Scope
of Chapter .......................................................... 2-5
B.
Statutory History .......................................................................... 2-5
1.
[§ 2.2]
The
First Admissions and Amusement Tax ............. 2-5
2.
[§ 2.3]
Scope
and Application of the 1936 Act ................... 2-6
3.
[§ 2.4]
The
1941 Amendments .......................................... 2-6
4.
[§ 2.5]
The
1947 and 1949 Amendments ............................ 2-7
5.
[§ 2.6]
Exemptions
Added Between 1949 and 1969 ............ 2-8
6.
[§ 2.7]
The
1969 and 1970 Amendments ............................ 2-9
7.
[§ 2.8]
The
1971 and 1972 Amendments .......................... 2-10
C.
[§ 2.9]
Local
Subdivisions Benefit from the Tax ....................... 2-10
II.
IMPOSITION
OF THE TAX ..................................................... 2-11
A.
[§ 2.10]
Statutory
Framework Generally ............................... 2-11
B.
[§ 2.11]
Activities
Subject to Tax .............................................. 2-13
C.
[§ 2.12]
Charges
for Admission ................................................ 2-13
D.
[§ 2.13]
Use
of Games of Entertainment ................................... 2-15
E.
[§ 2.14]
Use
of Sporting or Recreational Facilities or
Rental of Equipment .................................................... 2-16
F.
Refreshment,
Service, or Merchandise Supplied in
Connection with Entertainment .................................................... 2-17
1.
[§ 2.15]
The
Pre‑1988 Statute ........................................... 2-17
2.
[§ 2.16]
The
1988 Code Revision ...................................... 2-17
3.
[§ 2.17]
The
Nature of the Entertainment
The Four Star Case ............................................ 2-18
4.
[§ 2.18]
The
Citizens for Hoyer Case .............................. 2-19
5.
[§ 2.19]
Receipts
from Refreshments ................................ 2-20
6.
[§ 2.20]
Must
the Entertainment Constitute a
Performance? .................................................. 2-20
7.
[§ 2.21]
Meaning
of In Connection With ......................... 2-20
G.
[§ 2.22]
Conclusion
.................................................................. 2-21
III.
LIMITATIONS
ON AUTHORIZATION TO TAX .................... 2-22
A.
[§ 2.23]
Generally
.................................................................... 2-22
B.
[§ 2.24]
Permissive
Exemptions ................................................ 2-23
C.
[§ 2.25]
The
Exclusively Requirement ................................... 2-23
IV.
FILING, PAYMENT, AND RECORD-KEEPING
REQUIREMENTS .................................................................... 2-24
A.
[§ 2.26]
Filing
Requirements in General ..................................... 2-24
B.
[§ 2.27]
Payment
Requirements Generally ............................ 2-25
C.
[§ 2.28]
Computation
of the Tax ............................................... 2-25
D.
[§ 2.29]
Penalties
and Interest for Failure to File a Return,
Pay Taxes, or Keep Records ....................................... 2-25
E.
[§ 2.30]
Criminal
Penalties and Fines ........................................ 2-26
F.
[§ 2.31]
Record-Keeping
Requirements .................................... 2-27
V.
ASSESSMENT AND COLLECTION PROCEDURES .............. 2-27
A.
[§ 2.32]
Generally
.................................................................... 2-27
B.
[§ 2.33]
Jeopardy
Assessments ................................................ 2-28
VI.
APPEAL
AND REFUND PROCEDURES ................................ 2-30
A.
[§ 2.34]
Introduction
................................................................ 2-30
B.
[§ 2.35]
Appeal
Procedure ....................................................... 2-30
C.
[§ 2.36]
Refund
Procedures ..................................................... 2-32
D.
[§ 2.37]
Petitions
for Declaratory Rulings and Petitions
Regarding Regulations ................................................. 2-32
VII.
[§ 2.38]
Boxing and Wrestling Tax ............................... 2-33
VIII.
APPENDIX ............................................................................ 2-34
A.
[§ 2.39]
Admissions
and Amusement Tax Notice to Comptroller
and Application for Exemption Form ST 602 ............ 2-34
B.
[§ 2.40]
Admissions
and Amusement Tax Report
Form ST 503 .............................................................. 2-36
C.
[§ 2.41]
Refund
Application Form ST 601 ............................ 2-37
D.
[§ 2.42]
Admissions
and Amusement Tax Bulletin 1‑85 .............. 2-38
E.
[§ 2.43]
Admissions
and Amusement Tax on Political
Fund-Raisers Tax Tip #33 ....................................... 2-39
F.
[§ 2.44]
Computing
Admissions and Amusement Tax
Tax Tip # 20 ............................................................... 2-41
G.
[§ 2.45]
Filling
Out the Admissions and Amusement Tax
Return Tax Tip # 21 ............................................... 2-43
H.
[§ 2.46]
Notice
to Taxpayers Remitting the Boxing and
Wrestling Tax ............................................................. 2-47
I.
[§ 2.47]
Admissions
and Amusement Tax at Recreational
Facilities Tax Tip #24 .............................................. 2-48
J.
[§ 2.48]
Frequently
Asked Questions About Admissions and
Amusement Taxes ...................................................... 2-50
K.
[§ 2.49]
Admissions
and Amusement Tax Rate Schedule ........... 2-52
Chapter Three
Alcohol and Tobacco Taxes
I.
[§ 3.1]
SCOPE OF CHAPTER ................................................... 3-5
II.
ALCOHOLIC
BEVERAGES TAX OVERVIEW .................... 3-5
A.
[§ 3.2]
Declaration
of Policy .................................................... 3-5
B.
[§ 3.3]
Statutory
Background ................................................... 3-6
C.
[§ 3.4]
Administration
and Procedure ........................................ 3-6
D.
[§ 3.5]
Enforcement
................................................................ 3-7
III.
ALCOHOLIC BEVERAGES TAX
IMPOSITION OF TAX ............................................................... 3-8
A.
[§ 3.6]
Definitions
.................................................................... 3-8
B.
[§ 3.7]
Alcoholic
Beverages that are Taxable ............................ 3-8
C.
Tax Rates .................................................................................... 3-9
1.
[§ 3.8]
Generally
.............................................................. 3-9
2.
[§ 3.9]
Distilled
Spirits ...................................................... 3-9
3.
[§ 3.10]
Wine
.................................................................... 3-9
4.
[§ 3.11]
Beer
..................................................................... 3-9
5.
[§ 3.12]
Comparative
Federal and Maryland Tax Rates ...... 3-10
D.
Events Creating Tax Liability ...................................................... 3-10
1.
[§ 3.13]
Distilled
Spirits ..................................................... 3-10
2.
[§ 3.14]
Wine
................................................................... 3-10
3.
[§ 3.15]
Beer
................................................................... 3-11
4.
[§ 3.16]
E,
F, and G Licenses (Water Vessels,
Railroads, and Airlines) ........................................ 3-11
E.
[§ 3.17]
Security
Requirements to Cover Tax Liability ............... 3-12
F.
[§ 3.18]
Political
Subdivision May Not Tax Alcoholic
Beverages .................................................................. 3-12
IV.
ALCOHOLIC BEVERAGES TAX DISTRIBUTION,
REFUNDS, RETURNS, AND APPEALS .................................. 3-13
A.
[§ 3.19]
Distribution
of Portions of the Tax to Counties .............. 3-13
B.
[§ 3.20]
Tax
Refunds ............................................................... 3-13
C.
[§ 3.21]
Records
and Returns ................................................... 3-14
D.
[§ 3.22]
Hearings
and Appeals ................................................. 3-15
V.
TOBACCO
TAXES INTRODUCTION ................................ 3-15
A.
[§ 3.23]
Statutory
Background .................................................. 3-15
B.
[§ 3.24]
Administration
and Procedure ...................................... 3-16
VI.
TOBACCO
TAXES IMPOSITION OF TAX ......................... 3-16
A.
[§ 3.25]
Cigarette
Defined ....................................................... 3-16
B.
[§ 3.26]
Tobacco
Products that are Taxable .............................. 3-16
C.
[§ 3.27]
Tax
Rate .................................................................... 3-17
D.
[§ 3.28]
Event
Creating Tax Liability ........................................ 3-18
E.
[§ 3.29]
Exemptions
from Taxation ........................................... 3-18
F.
[§ 3.30]
Payment
of Tax .......................................................... 3-19
G.
[§ 3.31]
Cigarette
Tax Stamp Revolving Credit Account ............ 3-20
VII.
TOBACCO TAXES REFUNDS, RETURNS,
AND APPEALS ..................................................................... 3-21
A.
[§ 3.32]
Tax
Refunds ............................................................... 3-21
B.
[§ 3.33]
Records
and Returns ................................................... 3-21
C.
[§ 3.34]
Hearings
and Appeals ................................................. 3-22
VIII.
APPENDIX ............................................................................ 3-23
A.
[§ 3.35]
Monthly
Excise Tax Return from Manufacturers and
Wholesalers of Distilled Spirits and Wine
Form COM/ATTD-034 ............................................... 3-23
B.
[§ 3.36]
Non‑Resident
Dealer Beer Tax Return
Form COM/ATTB-015 ............................................... 3-24
C.
[§ 3.37]
Non-Resident
Dealers Beer Deliveries into
Maryland Form COM-ATTB-015-1 ........................ 3-26
D.
[§ 3.38]
Maryland
Wholesalers Monthly Beer Report
Form COM/ATTB-037 ............................................... 3-28
E.
[§ 3.39]
Maryland
Wholesalers Report of Beer
Acquisitions Form COM/ATTB-037-5 ..................... 3-30
F.
[§ 3.40]
Brewery
Tax Return Form COM/ATTD-16 ............ 3-32
G.
[§ 3.41]
Monthly
Return By Class E, F & G
Form 173‑40 ............................................................... 3-34
H.
[§ 3.42]
Cigarette
Wholesalers Quarterly Report
Form COM/ATTB-608-3 ............................................ 3-35
I.
[§ 3.43]
Maryland
Cigarette Distributors Monthly Report
(Revised) Form 608‑1 ............................................. 3-37
J.
[§ 3.44]
Maryland
Cigarette Stamp Purchases and
Payments Form COT/ATTD-608-2 ......................... 3-39
K.
[§ 3.45]
COMAR
03.02.02.05 Cigarette Tax Stamps ................. 3-41
L.
[§ 3.46]
Physical
Inventory Schedule
Form COM/ATTD-602 ............................................... 3-43
M.
[§ 3.47]
Schedules
A through F .......................................... 3-44
N.
[§ 3.48]
Manufacturers
Monthly Sample Cigarette
Tax Return Form COM/ATTB-634 ......................... 3-50
O.
[§ 3.49]
Other
Tobacco Products (OTP) Tax Return
Wholesaler Form COT/ATTD-609 .......................... 3-52
P.
[§ 3.50]
Other
Tobacco Products (OTP) Tax Return
Retailer or Consumer Form COT/ATTD-610 ........... 3-54
Chapter Four
Corporate Income Tax
I.
[§ 4.1]
HISTORICAL BACKGROUND ..................................... 4-5
II.
[§ 4.2]
IMPOSITION OF TAX ................................................... 4-6
III.
MARYLAND
MODIFIED INCOME .......................................... 4-7
A.
[§ 4.3]
The
Doctrine of Conformity In General ..................... 4-7
B.
The Doctrine of Conformity Special Problems ......................... 4-12
1.
[§ 4.4]
Net
Operating Losses .......................................... 4-12
2.
[§ 4.5]
Consolidated
Returns ........................................... 4-16
C.
[§ 4.6]
Special
Federal Pass‑Through Entities .......................... 4-21
D.
Statutory Adjustments ................................................................. 4-25
1.
[§ 4.7]
Additions
............................................................. 4-25
2.
[§ 4.8]
Subtractions
........................................................ 4-28
IV.
EXEMPT
ENTITIES ................................................................. 4-36
A.
[§ 4.9]
Common
Trust Funds .................................................. 4-36
B.
[§ 4.10]
Organizations
Exempt from Federal Income Tax ........... 4-37
C.
[§ 4.11]
Financial
Institutions .................................................... 4-38
D.
[§ 4.12]
Insurance
Companies .................................................. 4-39
E.
[§ 4.13]
Partnerships
............................................................... 4-39
F.
[§ 4.14]
S
Corporations ............................................................ 4-41
G.
[§ 4.15]
Maryland
Limited Liability Companies .......................... 4-43
H.
[§ 4.16]
Collection
of Tax Attributable to Non-Resident
Partners and S Corporation Shareholders ...................... 4-44
I.
[§ 4.17]
Collection
of Tax Attributable to Non-Resident
Transferors of Maryland Real Property ........................ 4-51
V.
TAXATION OF CORPORATIONS CARRYING ON
MULTI‑STATE BUSINESS ...................................................... 4-54
A.
[§ 4.18]
General
Principles ....................................................... 4-54
B.
[§ 4.19]
Constitutional
Limitations ............................................. 4-56
C.
The Minimal Connection Requirement ......................................... 4-57
1.
[§ 4.20]
In
General ........................................................... 4-57
2.
[§ 4.21]
The
Federal Statutory Limitation ........................... 4-60
3.
[§ 4.22]
Special
Problem of Affiliated Corporations ............ 4-62
D.
[§ 4.23]
The
Non‑Discrimination Requirement ........................... 4-76
E.
[§ 4.24]
The
Fair Apportionment Requirement ........................... 4-78
F.
The Unitary Business Principle .................................................... 4-78
1.
[§ 4.25]
Federal
Interpretation ........................................... 4-78
2.
[§ 4.26]
Other
Maryland Cases on Unitary Business .......... 4-91
G.
Methods
of Determining the Part of Maryland Modified Income
Derived from or Reasonably Attributable to Trade or Business
Carried on in Maryland................................................. 4-96
1.
[§ 4.27]
Separate
Accounting Method ............................... 4-96
2.
[§ 4.28]
Three‑Factor
Method ........................................... 4-96
3.
[§ 4.29]
The
Comptrollers Discretionary Method ............. 4-106
4.
[§ 4.30]
Allocation
of Income of Banking
Institutions ......................................................... 4-109
5.
[§ 4.31]
Allocation
of Income of Motion Picture and
Television Film Producers and
Television Networks .......................................... 4-116
6.
[§ 4.32]
Special
Rule for Intercompany Interest
Income Received by Financial Institution
Holding Company .............................................. 4-119
7.
[§ 4.33]
Single
Sales Factor Apportionment for
Manufacturing Corporations ............................... 4-120
VI.
[§ 4.34]
CREDITS ................................................................ 4-123
VII.
[§ 4.35]
FILING AND PAYMENT REQUIREMENTS .......... 4-158
VIII.
APPENDIX .......................................................................... 4-163
A.
Taxation
of Corporate Entities Non-resident Partners,
Shareholders and Members ....................................................... 4-163
1.
[§ 4.36]
COMAR
03.04.02.04 Filing Composite
Return on Behalf of a Non-resident ..................... 4-163
2.
[§ 4.37]
Administrative
Release No. 6 Taxation of
Partnerships, S Corporations and Limited Liability
Companies Having Non-resident Partners,
Shareholders and Members ................................ 4-165
B.
[§ 4.38]
Tax
Status of Interest Received from Federal
State and Local Obligations Administrative
Release No. 13 ......................................................... 4-170
C.
[§ 4.39]
Corporation
Income Tax Return and Instructions
Form 500 .................................................................. 4-173
D.
[§ 4.40]
Maryland
Decoupling Modification
Form 500DM ............................................................ 4-175
E.
[§ 4.41]
Amended
Corporation Income Tax Return
Form 500X ............................................................... 4-177
F.
[§ 4.42]
Declaration
of Estimated Corporation Income Tax
Form 500D ............................................................... 4-181
G.
[§ 4.43]
Application
for Extension of Time to File Corporation
Income Tax Return Form 500E ............................ 4-183
H.
[§ 4.44]
Underpayment
of Estimated Corporation
Income Tax Form 500UP ..................................... 4-185
I.
[§ 4.45]
Business
Tax Credits and Instructions
Form 500CR ............................................................. 4-187
J.
[§ 4.46]
Pass-Through
Entity Income Tax Return
Form 510 .................................................................. 4-199
K.
[§ 4.47]
Declaration
of Estimated Pass-Through Entity
Non-Resident Tax Form 510D .............................. 4-205
L.
[§ 4.48]
Application
for Extension of Time to File Pass-Through
Entity Income Tax Return Form 510E .................... 4-207
Chapter Five
Maryland Death Taxes
I.
[§ 5.1]
INTRODUCTION .......................................................... 5-7
II.
MARYLAND
INHERITANCE TAX INTRODUCTION ........ 5-7
A.
[§ 5.2]
Historical
Background ................................................... 5-7
B.
[§ 5.3]
Constitutionality
.......................................................... 5-12
C.
[§ 5.4]
Overview
of Statute .................................................... 5-12
D.
[§ 5.5]
Overview
of Administrative Procedure ......................... 5-14
III.
MARYLAND INHERITANCE TAX TRANSFERS
SUBJECT TO TAX ................................................................... 5-17
A.
[§ 5.6]
General
Rule .............................................................. 5-17
B.
[§ 5.7]
Real
Property ............................................................. 5-19
C.
[§ 5.8]
Tangible
Personal Property .......................................... 5-20
D.
[§ 5.9]
Intangible
Personal Property ........................................ 5-20
E.
[§ 5.10]
Joint
Bank Accounts or Jointly Registered
Securities ................................................................... 5-21
F.
[§ 5.11]
Other
Joint Tenancy Property ...................................... 5-23
G.
[§ 5.12]
Death
Benefits ........................................................... 5-23
H.
[§ 5.13]
Transfers
in Contemplation of Death ............................ 5-24
I.
[§ 5.14]
Interests
Less Than Absolute General Rule ............. 5-26
J.
Interests
Less Than Absolute Types of Less Than
Absolute Interests ...................................................................... 5-27
1.
[§ 5.15]
Life
Estate .......................................................... 5-27
2.
[§ 5.16]
Remainder
or Reversionary Interest ...................... 5-28
3.
[§ 5.17]
Power
of Revocation ........................................... 5-28
4.
[§ 5.18]
Power
of Appointment ......................................... 5-28
K.
Miscellaneous Transfers ............................................................. 5-30
1.
[§ 5.19]
Income
of an Estate ............................................. 5-30
2.
[§ 5.20]
Payment
of Inheritance Taxes .............................. 5-30
3.
[§ 5.21]
Cancellation
of Indebtedness ................................ 5-32
4.
[§ 5.22]
Proceeds
of Lawsuit ............................................ 5-33
L.
Transfers by Non‑Resident Decedents ........................................ 5-33
1.
[§ 5.23]
General
Rule ....................................................... 5-33
2.
[§ 5.24]
Definition
of Resident and Non‑Resident
Decedent ............................................................ 5-34
3.
[§ 5.25]
Rate
of Tax ......................................................... 5-36
4.
[§ 5.26]
Property
Subject to Tax ....................................... 5-36
5.
[§ 5.27]
Reciprocity
.......................................................... 5-38
IV.
MARYLAND INHERITANCE TAX VALUATION OF
PROPERTY SUBJECT TO TAX .............................................. 5-39
A.
Introduction ................................................................................ 5-39
1.
[§ 5.28]
Clear
Value ......................................................... 5-39
2.
[§ 5.29]
Inventory
............................................................ 5-40
3.
[§ 5.30]
Appraisal
............................................................ 5-40
4.
[§ 5.31]
Supplemental
Inventory ........................................ 5-41
B.
Valuation of Interests Less Than Absolute ................................... 5-41
1.
[§ 5.32]
Formal
Administration .......................................... 5-41
2.
[§ 5.33]
No
Formal Administration .................................... 5-43
C.
[§ 5.34]
Real
Property that Qualifies as Farmland,
Woodland or National Register Property ....................... 5-44
D.
[§ 5.35]
Valuation
of Concurrent or Subsequent
Interests ..................................................................... 5-46
E.
[§ 5.36]
Deductions
................................................................. 5-52
V.
[§ 5.37]
Maryland Inheritance Tax Transfers
Not Subject to Taxation ............................... 5-53
VI.
MARYLAND INHERITANCE TAX FILING
REQUIREMENTS .................................................................. 5-58
A.
[§ 5.38]
Resident
Decedents .................................................... 5-58
B.
[§ 5.39]
Non‑Resident
Decedents ............................................. 5-59
VII.
MARYLAND INHERITANCE TAX PAYMENT AND
COLLECTION OF TAX ......................................................... 5-60
A.
Tax on Direct Descendants ...................................................... 5-60
1.
[§ 5.40]
Rate
of Tax ......................................................... 5-60
2.
[§ 5.41]
Payment
of Tax ................................................... 5-62
3.
[§ 5.42]
Collection
of Tax and Penalties ............................. 5-63
B.
Tax on Collateral Descendants ................................................. 5-64
1.
[§ 5.43]
Rate
of Tax ......................................................... 5-64
2.
[§ 5.44]
Payment
of the Tax ............................................. 5-65
3.
[§ 5.45]
Collection
of Tax and Penalties ............................. 5-65
C.
[§ 5.46]
Tax
on Non‑Resident Decedents ................................. 5-65
D.
[§ 5.47]
Alternate
Payment Schedule ........................................ 5-66
VIII.
MARYLAND INHERITANCE TAX APPEALS ................ 5-66
A.
[§ 5.48]
In
General .................................................................. 5-66
B.
[§ 5.49]
Appeal
from Orphans Court ....................................... 5-67
IX.
[§ 5.50]
MARYLAND INHERITANCE TAX
REFUND PROCEDURES ......................................... 5-67
X.
MARYLAND ESTATE TAX INTRODUCTION ............... 5-68
A
[§ 5.51]
Purpose
...................................................................... 5-68
B.
[§ 5.52]
Historical
Background ................................................. 5-68
C.
[§ 5.53]
Constitutionality
.......................................................... 5-70
XI.
[§ 5.54]
Maryland Estate Tax
Imposition of Tax .............................................. 5-70
A.
[§ 5.55]
In
General .................................................................. 5-72
B.
[§ 5.56]
Step
One: Determining the Maximum Available
Death Tax Credit ........................................................ 5-74
C.
[§ 5.57]
Step
Two: Apportioning the Death Tax Credit
between the Maryland and the Non-Maryland
Estates ....................................................................... 5-77
D.
[§ 5.58]
Step
Three: Reduce the Federal Credit by
Certain Other Tax Payments ....................................... 5-79
XII.
[§ 5.59]
MARYLAND ESTATE TAX EXEMPTIONS
FROM TAXATION ................................................... 5-82
XIII.
[§ 5.60]
MARYLAND ESTATE TAX FILING
REQUIREMENTS ..................................................... 5-83
XIV.
MARYLAND ESTATE TAX PAYMENT AND
COLLECTION OF TAX ......................................................... 5-86
A.
[§ 5.61]
In
General .................................................................. 5-86
B.
[§ 5.62]
Alternative
Payment Schedule ..................................... 5-86
C.
Uniform
Estate Tax Apportionment Act .................................... 5-88
1.
[§ 5.63]
Introduction
......................................................... 5-88
2.
[§ 5.64]
Historical
Background .......................................... 5-90
3.
[§ 5.65]
Persons
Among Whom the Tax is Apportioned ...... 5-91
4.
[§ 5.66]
Exemptions,
Deductions and Credits ..................... 5-92
5.
[§ 5.67]
Procedure
for Determining Apportionment ............ 5-93
6.
[§ 5.68]
Collection
and Payment ........................................ 5-94
7.
[§ 5.69]
Example
.............................................................. 5-96
8.
[§ 5.70]
Conclusion
.......................................................... 5-98
XV.
MARYLAND ESTATE TAX APPEALS AND REFUND .. 5-98
A.
[§ 5.71]
Additional
Assessment ................................................ 5-98
B.
[§ 5.72]
Refund
....................................................................... 5-99
XVI.
MARYLAND GENERATION‑SKIPPING
TRANSFER TAX ................................................................ 5-102
A.
[§ 5.73]
Introduction
.............................................................. 5-102
B.
[§ 5.74]
Imposition
of Tax ...................................................... 5-103
C.
[§ 5.75]
Exemption
from Taxation ........................................... 5-104
D.
[§ 5.76]
Filing
Requirements and Payment of Tax .................... 5-104
E.
Amended Returns and Refunds ................................................. 5-104
1.
[§ 5.77]
Additional
Assessment ....................................... 5-104
2.
[§ 5.78]
Refund
.............................................................. 5-105
F.
[§ 5.79]
Conclusion
................................................................ 5-105
XVII.
[§ 5.80]
Income Taxation of Estates ................. 5-105
XVIII.
[§ 5.81]
TAX ON COMMISSIONS OF PERSONAL
REPRESENTATIVES AND SPECIAL
......................................................................................................... ADMINISTRATORS 5-106
XIX.
APPENDIX ........................................................................ 5-106
A.
[§ 5.82]
Maryland
Estate Tax Return ...................................... 5-107
B.
[§ 5.83]
Application
for Refund of Maryland Estate Tax
to be Paid Directly to the Register of Wills .................. 5-134
C.
[§ 5.84]
Life
Table Table 90CM, Applicable after
April 30, 1999 ........................................................... 5-136
D.
[§ 5.85]
Table
S Based on Life Table 90CM Single
Life Remainder Factors, Applicable after
April 30, 1999 ........................................................... 5-137
E.
[§ 5.86]
Table
K Adjustment Factors for Annuities
Payable at the End of Each Interval ........................... 5-151
F.
[§ 5.87]
Table
B Annuity, Income, and Remainder
Interests for a Term Certain ...................................... 5-153
G.
[§ 5.88]
Table
U(1) Based on Life Table 90CM
Unitrust Single Life Remainder Factors
Applicable for Transfers after April 30, 1999 .............. 5-203
H.
[§ 5.89]
Table
F (2.2 22.0%) Factors for Computing
Adjusted Payout Rates for Unitrusts ........................... 5-216
I.
[§ 5.90]
26
U.S.C. § 2011 Credit for State Death Taxes ...... 5-266
Chapter Six
Taxes on
Financial Institutions
I.
INTRODUCTION
...................................................................... 6-5
A.
[§ 6.1]
Scope
of Chapter .......................................................... 6-5
B.
[§ 6.2]
Background
.................................................................. 6-7
II.
TAXES
ON FINANCIAL INSTITUTIONS ............................... 6-10
A.
[§ 6.3]
Introduction
................................................................ 6-10
1.
[§ 6.4]
General
Application of Tax ................................... 6-10
2.
[§ 6.5]
Overview
of Administration .................................. 6-10
B.
Imposition of the Tax .................................................................. 6-11
1
[§ 6.6]
Event
Creating Liability ........................................ 6-11
2.
[§ 6.7]
Institutions
Subject to Tax Generally ................. 6-11
3.
[§ 6.8]
Institutions
Subject to Tax Savings Bank ........... 6-12
4.
[§ 6.9]
Institutions
Subject to Tax International
Banking Facility ................................................... 6-12
5.
[§ 6.10]
Foreign
Stock Savings Banks ................................ 6-13
6.
[§ 6.11]
Federal
Constraints Constitutional
Jurisdictional Prerequisites .................................... 6-13
7.
[§ 6.12]
Federal
Constraints Constitutional Limits
on Taxation of Federal Instrumentalities ................ 6-13
8.
[§ 6.13]
Federal
Constraints Constitutional
Limits on Taxation of Federal Obligations .............. 6-15
9.
[§ 6.14]
Computation
Rate ........................................... 6-16
10.
[§ 6.15]
Computation
Taxable Net Earnings .................. 6-17
11.
[§ 6.16]
Computation
Allocation ................................... 6-24
12.
[§ 6.17]
Computation
Credit for Franchise Tax
Paid to Foreign Jurisdictions ................................. 6-25
13.
[§ 6.18]
Computation
Other Credits .............................. 6-25
C.
[§ 6.19]
Filing
Requirements ..................................................... 6-26
D.
Payment of the Tax .................................................................... 6-28
1.
[§ 6.20]
Estimated
Tax Payments ...................................... 6-28
2.
[§ 6.21]
With
the Return ................................................... 6-28
E.
[§ 6.22]
Collection,
Appeal and Refund Procedures ................... 6-29
III.
[§ 6.23]
THE SAVINGS AND LOAN ASSOCIATION
FRANCHISE TAX .................................................... 6-29
A.
Introduction ................................................................................ 6-29
1.
[§ 6.24]
General
Application of the Tax ............................. 6-29
2.
[§ 6.25]
Overview
of Administration .................................. 6-30
B.
Imposition of the Tax .................................................................. 6-31
1.
[§ 6.26]
Events
Creating Liability ...................................... 6-31
2.
[§ 6.27]
Institutions
Subject to Tax Generally ................. 6-31
3.
[§ 6.28]
Institutions
Subject to Tax Federal
Associations ........................................................ 6-31
4.
[§ 6.29]
Institutions
Subject to Tax Foreign
Associations ........................................................ 6-33
5.
[§ 6.30]
Computation
Rate ........................................... 6-33
6.
[§ 6.31]
Computation
Credit for Other Taxes ................ 6-34
C.
[§ 6.32]
Filing
Requirements ..................................................... 6-34
D.
[§ 6.33]
Payment
of Tax .......................................................... 6-34
E.
[§ 6.34]
Collection,
Appeal, and Refund Procedures .................. 6-34
IV.
APPENDIX
.............................................................................. 6-35
A.
[§ 6.35]
List
of Personnel Administering the Financial
Institution Franchise Tax ............................................. 6-35
B.
[§ 6.36]
Letter
of Feb. 18, 1970, from Joseph R. Raymond,
Assistant Attorney General, to Albert W. Ward,
Director, SDAT .......................................................... 6-36
C.
[§ 6.37]
Letter
of March 4, 1970, from Joseph R. Raymond,
Assistant Attorney General, to Albert W. Ward,
Director, SDAT .......................................................... 6-40
D.
[§ 6.38]
Letter
of Aug. 29, 1975, from Ward B. Coe, III,
Assistant Attorney General, to William H. Riley,
Director, SDAT .......................................................... 6-43
E.
[§ 6.39]
Form
No. SDAT 26 .................................................... 6-46
F.
[§ 6.40]
Application
for Extension of Time to File
Maryland Financial Franchise Tax Forms
SDAT 24 or SDAT 26 ................................................ 6-49
G .
[§ 6.41]
Form
No. SDAT 29EW .............................................. 6-50
H.
[§ 6.42]
List
of Personnel Administering the Savings and
Loan Association Franchise Tax .................................. 6-54
I.
[§ 6.43]
61
Opinion of the Attorney General 861 (1976) ............. 6-55
J.
[§ 6.44]
Form
No. OC K-8 ...................................................... 6-58
K.
[§ 6.45]
Form
No. SDAT 26X (Amendments to Form No.
SDAT 26) .................................................................. 6-60
L.
[§ 6.46]
COMAR
18.11.01 Tax Payment ............................. 6-62
Chapter Seven
Individual Income Tax
I.
INTRODUCTION
...................................................................... 7-9
A.
[§ 7.1]
Scope
of Chapter .......................................................... 7-9
B.
[§ 7.2]
Overview
of Statutory History ....................................... 7-9
II.
PERSONS
SUBJECT TO THE TAX ......................................... 7-11
A.
[§ 7.3]
In
General .................................................................. 7-11
B.
Residents 7-13
1.
[§ 7.4]
Domiciliaries
Change of Domicile .................... 7-13
2.
[§ 7.5]
Presence
in Maryland .......................................... 7-15
C.
[§ 7.6]
Fiduciaries
.................................................................. 7-16
D.
[§ 7.7]
Decedents
Estates ..................................................... 7-17
E.
Exempt Persons ......................................................................... 7-18
1.
[§ 7.8]
Partnerships
and Limited Liability Companies ........ 7-18
2.
[§ 7.9]
Aliens
................................................................. 7-19
3.
[§ 7.10]
Military
Personnel ................................................ 7-19
4.
[§ 7.11]
Other
Statutorily Exempt Entities .......................... 7-19
F.
[§ 7.12]
Non-Residents
............................................................ 7-20
III.
COMPUTATION
OF TAX ....................................................... 7-20
A.
[§ 7.13]
Rate
Structure ............................................................ 7-20
B.
Maryland Taxable Income .......................................................... 7-22
1.
[§ 7.14]
In
General ........................................................... 7-22
2.
[§ 7.15]
Modifications
Increasing Income
Subject to Tax ..................................................... 7-24
3.
[§ 7.16]
Modifications
Reducing Income
Subject to Tax ..................................................... 7-29
C.
[§ 7.17]
Non-Residents
Allocation of Income ....................... 7-36
D.
[§ 7.18]
Part‑year
Resident ...................................................... 7-38
E.
Deductions and Tax Preference Items ......................................... 7-39
1.
[§ 7.19]
Itemized
Deductions ............................................ 7-39
2.
[§ 7.20]
Standard
Deduction ............................................. 7-39
3.
[§ 7.21]
Tax
Preference Items .......................................... 7-40
F.
[§ 7.22]
Exemptions
................................................................. 7-40
G .
[§ 7.23]
Credits
....................................................................... 7-41
1.
[§ 7.24]
Residents
............................................................ 7-42
2.
[§ 7.25]
Non-Residents
and Part‑year Residents ................ 7-43
3.
[§ 7.26]
Credit
for Withholding .......................................... 7-44
4.
[§ 7.27]
Enterprise
Zone Credit ......................................... 7-44
5.
[§ 7.28]
Earned
Income Credit .......................................... 7-46
6.
[§ 7.29]
Installment
Sale of Property in Another State ........ 7-47
7.
[§ 7.30]
New
Job Creating Businesses .............................. 7-47
8.
[§ 7.31]
Wages,
Child Care, and Transportation for
Qualified Employees with Disabilities .................... 7-47
9.
[§ 7.32]
Credit
for Child and Dependent
Care Expenses .................................................... 7-47
10.
[§ 7.33]
Residential
Real Estate Property Tax Credit .......... 7-47
11.
[§ 7.34]
Long-Term
Care Credit ....................................... 7-47
H.
[§ 7.35]
County
Income Tax (Piggy‑Back) ................................ 7-48
I.
[§ 7.36]
Accounting
................................................................. 7-50
IV.
FILING
REQUIREMENTS ....................................................... 7-51
A.
Who Must File ........................................................................... 7-51
1.
[§ 7.37]
Individuals
........................................................... 7-51
2.
[§ 7.38]
Minors
and Disabled Persons ............................... 7-52
3.
[§ 7.39]
Decedents
Final Return ...................................... 7-52
4.
[§ 7.40]
Fiduciaries
........................................................... 7-53
5.
[§ 7.41]
Partnerships
and Limited Liability Companies ........ 7-53
B.
[§ 7.42]
Who
Must File Estimated Tax ...................................... 7-55
C.
[§ 7.43]
Time
for Filing ............................................................ 7-56
D.
[§ 7.44]
Time
for Filing Estimated Tax Declaration .................... 7-56
E.
[§ 7.45]
Time
for Filing Withholding Tax Returns by
Employers .................................................................. 7-57
F.
[§ 7.46]
Information
Returns .................................................... 7-58
V.
PAYMENT
AND COLLECTION OF TAX ............................... 7-58
A.
[§ 7.47]
In
General .................................................................. 7-58
B.
[§ 7.48]
Withholding
................................................................ 7-58
C.
[§ 7.49]
Procedures
................................................................. 7-60
VI.
Other Recently Enacted Legislation
Concerning Individual Income Taxes ..................... 7-60
A.
[§ 7.50]
Time
for Filing Refund Claim as a Result of
Successful Appeal ...................................................... 7-60
B.
[§ 7.51]
Assessment
Period for Additional Tax
Indicated by Amended Return ..................................... 7-61
C.
[§ 7.52]
Required
Withholding on Sale of Maryland
Property by Maryland Non-resident ............................. 7-61
D.
[§ 7.53]
Estimated
Payments Necessary to Avoid
Underpayment Tax Penalty ......................................... 7-61
E.
[§ 7.54]
Maryland
Jobs Creation Tax Credit .............................. 7-61
F.
[§ 7.55]
Maryland
Cancer Fund ................................................ 7-62
VII.
[§ 7.56]
AMERICAN JOBS CREATION ACT OF 2004 .......... 7-62
VIII.
APPENDIX ............................................................................ 7-62
A.
[§ 7.57]
Notice
of Memorandum Releases Superceded by
Administrative Releases .............................................. 7-63
B.
[§ 7.58]
New
and Revised Administrative Releases
Nos. 1 40 ................................................................ 7-65
1.
[§ 7.59]
Military
Personnel and Civilian Spouses both
Residents and Non-residents of Maryland
Administrative Release No. 1 ............................... 7-67
2.
[§ 7.60]
Interstate
Commerce Tax Act Domestic and
Foreign Corporations Nexus Requirements
Apportionment of Corporate Net Income
Administrative Release No. 2 ............................... 7-69
3.
[§ 7.61]
Non-resident
Credits and Reciprocal Income
Tax Agreements Administrative
Release No. 3 ..................................................... 7-72
4.
[§ 7.62]
Extension
of Time for Filing Maryland
Individual, Corporation, Partnership, Limited
Liability Company, Fiduciary Income Tax
Returns, and Estate Tax Returns
Administrative Release No. 4 .......................... 7-74
5.
[§ 7.63]
Mutual
Fund Distributions of Tax-Exempt
Interest and Capital Gains from State and
Local Organization
Administrative Release No. 5 ............................... 7-77
6.
[§ 7.64]
Taxation
of Partnerships, S Corporations and
Limited Liability Companies Having Non-Resident
Partners, Shareholders and Members
Administrative Release No. 6 ............................... 7-78
7.
[§ 7.65]
Some
Aspects of the Subtraction Modification
for Volunteer Travel Expense under
Section 10-207 of the Tax-General Article
Administrative Release No. 7 ............................... 7-83
8.
[§ 7.66]
Treatment
of Partners Share of Income, Gain or Loss, from a Partnership When the
Individual
Partner Establishes or Abandons Maryland
Residence Administrative Release No. 8 .......... 7-85
9.
[§ 7.67]
Portion
of Subpart F Income Which May Be
Subtracted from Corporation Taxable Income
Administrative Release No. 9 ............................... 7-86
10.
[§ 7.68]
Maryland
Taxation of Income from Ginnie Maes
Administrative Release No. 10 ......................... 7-87
11.
[§ 7.69]
Income
from Regulated Investment Companies
Which Invest in U.S. Government Obligations
and Income from Repurchase Agreement
Transactions Administrative Release No. 11 ..... 7-88
12.
[§ 7.70]
Apportionment
of Partnership Share of Income
by Corporate Partners Administrative
Release No. 12 .................................................... 7-89
13.
[§ 7.71]
Tax
Status of Interest Received From Federal,
State and Local Obligations
Administrative Release No. 13 ............................. 7-90
14.
[§ 7.72]
Interest
Rates for Refunds and Delinquent Taxes
Administrative Release No. 14 ......................... 7-93
15.
[§ 7.73]
Information
Reporting on Sales of Real Estate
Located in Maryland and Owned by Non-Residents
Administrative Release No. 15 ............................. 7-94
16.
[§ 7.74]
Fiduciaries,
Including Estates and Trusts
Administrative Release No. 16 ........................ 7-95
17.
[§ 7.75]
The
Revocation and Suspension of Licenses
Administrative Release No. 17
Rescinded 12/31/2001 ....................................... 7-98
18.
[§ 7.76]
Net
Operating Loss Modification
Administrative Release No. 18 ......................... 7-99
19.
[§ 7.77]
Taxability
of Foreign Sales Corporations
Administrative Release No. 19
Rescinded 8/31/2005......................................... 7-104
20.
[§ 7.78]
Income
Tax Refunds and Credits: Limitations
Administrative Release No. 20 ...................... 7-105
21.
[§ 7.79]
Income
Tax Treatment of Employee Contributions
under the Maryland Pension Pickup Program
Administrative Release No. 21 ....................... 7-108
22.
[§ 7.80]
Apportionment
of Income Airlines
Administrative Release No. 22 ....................... 7-113
23.
[§ 7.81]
Military
Retirement Income
Administrative Release No. 23 ....................... 7-115
24.
[§ 7.82]
Non-resident
Professional Athletes and
Entertainers Administrative
Release No. 24 .................................................. 7-116
25.
[§ 7.83]
Income
Tax Treatment of Limited Liability
Companies Administrative
Release No. 25 .................................................. 7-120
26.
[§ 7.84]
Procedures
for Computer-Printed Substitute
Forms Administrative Release No. 26 ............. 7-122
27.
[§ 7.85]
Work,
Not Welfare, Tax Incentive Act of 1995
with 1996, 1998 and 2000 Amendments
Administrative Release No. 27 ....................... 7-131
28.
[§ 7.86]
Credits
for Clean-Fuel Vehicles
Administrative Release No. 28
Rescinded 8/31/2005......................................... 7-135
29.
[§ 7.87]
Subtraction
Modification for Volunteer Fire,
Rescue or Emergency Medical Services Personnel
Administrative Release No. 29 ....................... 7-136
30.
[§ 7.88]
Maryland
Estate Tax
Administrative Release No. 30 ............................ 7-140
31.
[§ 7.89]
Subtraction
Modification for Volunteer
Police Officers Administrative
Release No. 31 .................................................. 7-144
32.
[§ 7.90]
Maryland
Prepaid College Trust and Maryland
College Investment Plan Tax Benefits
Administrative Release No. 32 ...................... 7-146
33.
[§ 7.91]
Tax
Credits for Hiring Individuals with
Disabilities Administrative
Release No. 33 .................................................. 7-151
34.
[§ 7.92]
Credit
Against Withholding Taxes for Tax-
Exempt Organizations
Administrative Release No. 34 ............................ 7-155
35.
[§ 7.93]
Subtraction
Modification for United States
Coast Guard Auxiliary Members
Administrative Release No. 35 ....................... 7-157
36.
[§ 7.94]
Tax
Credit for Cost of Providing Commuter
Benefits to Employees and the Commuter Benefits
Act of 2000 Administrative Release No. 36 .... 7-158
37.
[§ 7.95]
Domicile
and Residency Administrative
Release No. 37 .................................................. 7-161
38.
[§ 7.96]
Decoupling
from Federal Income Tax Laws
Administrative Release No. 38 ............................ 7-166
39.
[§ 7.97]
Long-Term
Employment of Qualified
Ex-Felons Tax Credit
Administrative Release No. 39 ............................ 7-170
40.
[§ 7.98]
Claim
of Right Administrative
Release No. 40 .................................................. 7-174
41.
[§ 7.99]
Maryland
Resident Income Tax Return
Form 502 ........................................................... 7-177
42.
[§ 7.100]
Maryland
Decoupling Modification
Form 502DM ..................................................... 7-179
43.
[§ 7.101]
Maryland
Subtraction for Contribution of
Art Work Form 502AC ................................. 7-181
44.
[§ 7.102]
Maryland
Subtraction for Income Derived
Within an Arts and Entertainment District
Form 502AE ...................................................... 7-183
45.
[§ 7.103]
Maryland
Income Tax Credits for
Individuals Form 502CR ................................ 7-185
46.
[§ 7.104]
Maryland
Personal Declaration of Estimated
Income Tax Form 502D ................................ 7-189
47.
[§ 7.105]
Maryland
Application for Extension of
Time to File Personal Income Tax Return
Form 502E ........................................................ 7-191
48.
[§ 7.106]
Maryland
Heritage Structure Rehabilitation
Tax Credit Form 502H .................................. 7-193
49.
[§ 7.107]
Injured
Spouse Claim Form
Form 502 INJ .................................................... 7-195
50.
[§ 7.108]
Computation
of Tax Preference Income
Form 502TP ...................................................... 7-197
51.
[§ 7.109]
Underpayment
of Estimated Maryland Income
Tax by Individuals Form 502UP ..................... 7-198
52.
[§ 7.110]
Maryland
Use of Vehicle for Charitable
Purposes Form 502V ..................................... 7-200
53.
[§ 7.111]
Amended
Maryland Tax Return
Form 502X ........................................................ 7-201
54
[§ 7.112]
Maryland
Resident Income Tax Return
Short Form 503 .................................................. 7-207
55.
[§ 7.113]
Instructions
for Maryland Resident Income
Tax Returns Forms 502 and 503 ..................... 7-209
56.
[§ 7.114]
Maryland
Fiduciary Income Tax Return
Form 504 ........................................................... 7-236
57.
[§ 7.115]
Maryland
Fiduciary Declaration of Estimated
Income Tax Form 504D ............................... 7-238
58.
[§ 7.116]
Maryland
Application for Extension to File
Fiduciary Income Tax Return
Form 504E ........................................................ 7-240
59.
[§ 7.117]
Underpayment
of Estimated Maryland Income
Tax by Fiduciaries Form 504UP ..................... 7-242
60.
[§ 7.118]
Instructions
for Maryland Fiduciary
Tax Return Form 504 .................................... 7-246
61.
[§ 7.119]
Maryland
Nonresident Income Tax Return
Form 505 ........................................................... 7-254
62.
[§ 7.120]
Maryland
Personal Declaration of Estimated
Income Tax Form 502D ................................ 7-256
63.
[§ 7.121]
Instructions
for Maryland Nonresident Income
Tax Return Form 505 .................................... 7-258
64.
[§ 7.122]
Maryland
Tax Return for Nonresidents Employed
in Maryland Who Reside in Jurisdictions of
Delaware, New York and Pennsylvania that Impose
Local Income or Earnings Tax on Maryland
Residents Form 515 ....................................... 7-274
65.
[§ 7.123]
Maryland
Income Tax Declaration for Electronic
Filing Form EL101 ......................................... 7-284
66.
[§ 7.124]
Maryland
Income Tax Payment Voucher for
Electronic Files Form EL102 .......................... 7-286
67.
[§ 7.125]
Maryland
Consumer Use Tax Return for
Out-of-State Purchases ...................................... 7-287
68.
[§ 7.126]
Employees
Maryland Withholding Exemption
Certificate Form MW 507 .............................. 7-288
69.
[§ 7.127]
Annuity
Sick Pay Request for Maryland Income
Tax Withholding Form MW 507P ................... 7-290
70.
[§ 7.128]
Marylands
Withholding Requirements for
Sales or Transfers of Real Property and Associated
Personal Property by Nonresidents, Including
Forms MW 506AE, MW 506R and
MW 506NRS .................................................... 7-293
71.
[§ 7.129]
Increase
in Withholding Rate for Sale of
Property by a Nonresident to 6.0%
Effective July 1, 2005 ......................................... 7-334
Chapter Eight
Taxation of Insurance Companies
I.
[§ 8.1]
INTRODUCTION OVERVIEW OF
STATUTORY BACKGROUND ................................. 8-5
II.
[§ 8.2]
IMPOSITION OF GROSS PREMIUM TAX ................ 8-5
III.
[§ 8.3]
ALLOCATION OF GROSS PREMIUM ...................... 8-6
IV.
CREDITS
AGAINST PREMIUM TAX ....................................... 8-8
A.
[§ 8.4]
Maryland
Domestics/Retaliatory Credit for
Assessments ................................................................ 8-8
B.
Other Premium Tax Credits .......................................................... 8-9
1.
[§ 8.5]
Maryland
Economic Development Tax Credits ........ 8-9
2.
[§ 8.6]
Tax
Credits for Neighborhood and Community
Assistance Contributions ...................................... 8-10
3.
[§ 8.7]
Wages
and Child Care ......................................... 8-10
4.
[§ 8.8]
Credits
for Certain Heritage Structures ................. 8-10
5.
[§ 8.9]
Tax
Credit for Job Creation .................................. 8-11
6.
[§ 8.10]
Tax
Credit for Wages, Child Care and
Transportation for Employees with
Disabilities ........................................................... 8-12
7.
[§ 8.11]
Credit
for New or Expanded Business
Premises ............................................................. 8-12
8.
[§ 8.12]
Tax
Credit for Employer Provided Long
Term Care Insurance ........................................... 8-12
9.
[§ 8.13]
Tax
Credit for Student Wages .............................. 8-12
10.
[§ 8.14]
Credit
for Employee Commuter Benefits ............... 8-13
V.
[§ 8.15]
Estimated Tax Payments ............................... 8-13
VI.
[§ 8.16]
Annual tax reTURN ......................................... 8-14
VII.
[§ 8.17]
Extension of Time ............................................. 8-15
VIII.
[§ 8.18]
Penalties and Interest .................................. 8-15
IX.
[§ 8.19]
Statute of Limitations/Assessment/
Appeal ................................................................... 8-15
X.
[§ 8.20]
Dissolution or Retirement of
Company ............................................................... 8-16
XI.
[§ 8.21]
Exemption From Municipal Tax .................. 8-16
XII.
[§ 8.22]
Exemption From Corporate
Income Tax .......................................................... 8-16
XIII.
[§ 8.23]
Appeals From Assessment ............................. 8-16
XIV.
[§ 8.24]
Maryland Automobile Insurance
Fund ....................................................................... 8-17
XV.
[§ 8.25]
WORKERS COMPENSATION ASSESSMENTS ..... 8-17
XVI.
[§ 8.26]
Guaranty Fund Assessments ....................... 8-18
XVII.
[§ 8.27]
Maryland Insurance ASSESSMENT
Fee ......................................................................... 8-18
XVIII.
[§ 8.28]
Insurance Fraud Prevention Fee ............ 8-18
XIX.
[§ 8.29]
Retaliatory Taxes ........................................... 8-18
A.
[§ 8.30]
Taxes
Included in Retaliatory Tax Base ....................... 8-19
B.
[§ 8.31]
Constitutional
Challenge .............................................. 8-20
XX.
SURPLUS LINES PREMIUM TAX ........................................ 8-22
A.
[§ 8.32]
Imposition
of the Tax Generally ............................... 8-22
B.
[§ 8.33]
Report
of Premium and Payment of Tax ...................... 8-22
XXI.
UNAUTHORIZED INSURERS .............................................. 8-23
A.
[§ 8.34]
Imposition
of the Tax Generally ............................... 8-23
B.
[§ 8.35]
Other
Penalties ........................................................... 8-23
XXII.
[§ 8.36]
Risk Retention Groups
Insurance Purchasing Groups
........................................................................................................... Registration Fees 8-24
XXIII.
APPENDIX ........................................................................ 8-25
A.
[§ 8.37]
Online
Filing ............................................................... 8-26
B.
[§ 8.38]
Quarterly
Declaration of Estimated Tax ....................... 8-29
C.
[§ 8.39]
Domestic
Life and/or Accident and Health
Insurance Companies .................................................. 8-30
D.
[§ 8.40]
Domestic
Fire, Casualty and/or Title Insurance
Companies ................................................................. 8-37
E.
[§ 8.41]
Foreign
Fire, Casualty and/or Title Insurance
Companies ................................................................. 8-43
F.
[§ 8.42]
Foreign
Life and/or Accident and Health
Insurance Companies Form 82C ............................. 8-56
G.
[§ 8.43]
Surplus
Lines Affidavit ................................................ 8-69
H.
[§ 8.44]
Surplus
Lines Additional/Return Affidavit ..................... 8-70
I.
[§ 8.45]
Semiannual
Surplus Lines Broker Gross
Premiums Receipt Tax Report ..................................... 8-71
J.
[§ 8.46]
Basis
for Computing Ocean Marine Profits Tax
Form MIA/P/609 ........................................................ 8-72
Chapter Nine
Taxes Imposed by Local Political Subdivisions
I.
[§ 9.1]
INTRODUCTION ....................................................... 9-5
II.
[§ 9.2]
PROVIDING FOR THE GENERAL WELFARE ......... 9-5
III.
HOTEL RENTAL TAX ............................................................ 9-8
A.
[§ 9.3]
Generally
..................................................................... 9-8
B.
[§ 9.4]
Payment
of the Tax .................................................... 9-10
C.
[§ 9.5]
Failure
to Pay Tax ...................................................... 9-11
D.
[§ 9.6]
Collection
................................................................... 9-11
E.
[§ 9.7]
Security
...................................................................... 9-12
IV.
MOBILE HOME AND TRAILER PARK TAXES .................. 9-12
A.
[§ 9.8]
Generally
.................................................................... 9-12
B.
[§ 9.9]
Charles
County ........................................................... 9-13
V.
[§ 9.10]
COAL TAXES ........................................................... 9-14
VI.
SALES
AND USE TAX ............................................................ 9-15
A.
[§ 9.11]
Generally
.................................................................... 9-15
B.
[§ 9.12]
Anne
Arundel County ................................................. 9-15
C.
[§ 9.13]
St.
Marys County ...................................................... 9-16
VII.
[§ 9.14]
LIMITATIONS ON AUTHORITY TO TAX
ADVERTISING ......................................................... 9-16
VIII.
TAX PROCEDURE ................................................................ 9-17
A.
[§ 9.15]
Collection
................................................................... 9-17
B.
[§ 9.16]
Priority
of Unpaid Taxes ............................................. 9-17
C.
[§ 9.17]
Refunds
..................................................................... 9-18
D.
[§ 9.18]
Crimes
and Offenses .................................................. 9-19
E.
[§ 9.19]
Limitations
.................................................................. 9-21
Chapter Ten
Motor Carrier Tax and Motor Fuel Tax
I.
[§ 10.1]
SCOPE OF CHAPTER .............................................. 10-5
II.
[§ 10.2]
MOTOR CARRIER TAX .......................................... 10-5
A
[§ 10.3]
Purpose
of the Tax ..................................................... 10-6
B.
[§ 10.4]
Statutory
History ......................................................... 10-6
C.
[§ 10.5]
Motor
Fuel Tax Division Regulation ............................. 10-6
D.
[§ 10.6]
Imposition
of the Tax .................................................. 10-6
E.
[§ 10.7]
Registration
Fee .......................................................... 10-7
F.
[§ 10.8]
Prior
Law on Registration ............................................ 10-8
G.
[§ 10.9]
Exemptions
from the Tax ............................................ 10-9
H.
[§ 10.10]
Filing
Requirements for the Tax ............................... 10-10
I.
[§ 10.11]
Payment
and Collection of the Tax ........................... 10-11
J.
[§ 10.12]
Refund
and Appeal Procedures ................................ 10-11
III.
MOTOR
FUEL TAX ............................................................... 10-12
A.
[§ 10.13]
Legislative
Purpose of Tax ........................................ 10-12
B.
[§ 10.14]
Statutory
History ....................................................... 10-12
C.
[§ 10.15]
Administration
and Application Generally ............... 10-12
D.
[§ 10.16]
Definition
of Terms ................................................... 10-13
E.
Imposition of the Tax ................................................................ 10-14
1.
[§ 10.17]
Generally
........................................................... 10-14
2.
[§ 10.18]
Discount
............................................................ 10-15
3.
[§ 10.19]
Shared
Discount and Recordkeeping .................. 10-15
F.
Exemptions and Exclusions ........................................................ 10-16
1.
[§ 10.20]
Distinction
Between Exemptions and
Exclusions ......................................................... 10-16
2.
[§ 10.21]
List
of Exemptions .......................................... 10-16
3.
[§ 10.22]
Other
Exemptions .............................................. 10-17
4.
[§ 10.23]
Statute
of Limitations ......................................... 10-19
G.
[§ 10.24]
Filing
Requirements ................................................... 10-19
H.
[§ 10.25]
Payment
and Collection ............................................. 10-21
I.
[§ 10.26]
Licensing
and Exemption Certificates ......................... 10-21
J.
[§ 10.27]
Refund
Procedures ................................................... 10-22
K.
[§ 10.28]
Appeal
Procedures .................................................... 10-23
IV.
APPENDIX
............................................................................. 10-24
A.
[§ 10.29]
Comptrollers
Business Tax Tip 23 What you
need to know about IFTA .......................................... 10-24
B.
IFTA Forms ............................................................................. 10-27
1.
[§ 10.30]
IFTA
License Application* COM/MFT-104 ............ 10-28
2.
[§ 10.31]
IFTA
Surety Bond COT/MFT-038 ........................ 10-31
3.
[§ 10.32]
IFTA
Quarterly Fuel Use Tax Report
IFTA-100-MN .......................................................... 10-32
4.
[§ 10.33]
IFTA
Quarterly Fuel Use Tax Schedule
IFTA-101-MN .......................................................... 10-34
C.
Maryland Forms ....................................................................... 10-38
1.
[§ 10.34]
Application
for Motor Fuel License
COM/MFT-046 ........................................................ 10-39
2.
[§ 10.35]
Application
for Annual Refund of Maryland
Motor Vehicle Fuel Tax PS-1920 .......................... 10-46
3.
[§ 10.36]
Dealer
Tax Return GTD 1 .................................... 10-47
4.
[§ 10.37]
Motor
Fuel Tax Schedule of Receipts
COM/MFTD-048 ...................................................... 10-48
5.
[§ 10.38]
Motor
Fuel Tax Schedule of Disbursements
COM/MFTD-049 ...................................................... 10-50
6.
[§ 10.39]
Dealer/Seller
Worksheet COM/MFTD-050 ............ 10-52
7.
[§ 10.40]
Recap
Co-Mingled Storage Special Fuels
COT/MFT-051 ......................................................... 10-53
8.
[§ 10.41]
Special
Fuel User/Seller Tax Return
GTD-300 .................................................................. 10-55
9.
[§ 10.42]
Schedule
of Receipts COM/MFT-015 .................... 10-56
10.
[§ 10.43]
Schedule
of Disbursements COM/MFT-016 ........... 10-58
11.
[§ 10.44]
Special
Fuel User Worksheet
COM/MFT-019 ........................................................ 10-60
12.
[§ 10.45]
Special
Fuel Farm User Worksheet
COM/MFT-020 ........................................................ 10-61
13.
[§ 10.46]
Refund
Claim Motor Fuel Tax GTD 106 ........... 10-62
14.
[§ 10.47]
Fuel
Tax Refund Questionnaire
COT/RAD-028 ......................................................... 10-63
15.
[§ 10.48]
Motor
Fuel Tax Refund/Power Take-Off Units
GT 101-MV .............................................................. 10-65
16.
[§ 10.49]
Motor
Fuel Exports COT/RAD-079 ....................... 10-72
17.
[§ 10.50]
Statement
of Sales and/or Transfers
Outside of Maryland COT/RAD-080 ..................... 10-73
18.
[§ 10.51]
Certificate
of Verification of Out-of-State
Shipments COT/RAD-081 .................................... 10-75
19.
[§ 10.52]
U.S.
Government Refund Authorization
COT/RAD-091 ......................................................... 10-76
20.
[§ 10.53]
Aviation
Fuel Tax Refund Statement
GT 101-AV .............................................................. 10-77
21.
[§ 10.54]
Surety
Bond for Motor Fuel Dealer, User, or
Seller COT/MFT-008 ........................................... 10-78
22.
[§ 10.55]
Application
for Special Fuel Tax Exemption
Certificate COT/MFT-047 .................................... 10-79
23.
[§ 10.56]
Application
for Annual Renewal of
Special Fuel Tax Exemption COT/MFT-022 ........... 10-81
24.
[§ 10.57]
Application
for Inspection and Sale of Motor
Fuel COM/MFT-023 ............................................. 10-83
25.
[§ 10.58]
Application
for Petroleum Transporter
Registration COM/MFT-044 ................................. 10-85
26.
[§ 10.59]
Movement
of Petroleum Products (Petroleum
Transporter Report) COM/MFT-045 ..................... 10-87
27.
[§ 10.60]
Application
for Wholesale Purchaser/Consumer Motor
Fuel Inspection and Testing COT/MFT-105 ........... 10-89
28.
[§ 10.61]
Individual
Vehicle Mileage Report .............................. 10-91
29.
[§ 10.62]
Payment
Voucher and Instructions for IFTA Returns
Filed Electronically IFTA-100-V ............................ 10-92
Chapter Eleven
Motor Vehicle Titling Tax and Vessel Excise Tax
Part 1: Introduction
I.
INTRODUCTION
AND SCOPE ............................................... 11-7
A.
[§ 11.1]
The
Motor Vehicle Titling Tax and the Vessel
Excise Tax ................................................................. 11-7
B.
[§ 11.2]
Scope
of Chapter ........................................................ 11-7
Part
2: Motor Vehicle Titling Tax
II.
[§ 11.3]
THE MOTOR VEHICLE TITLING TAX
GENERALLY ........................................................... 11-7
III.
IMPOSITION OF THE MOTOR VEHICLE TITLING TAX ...... 11-8
A.
[§ 11.4]
Applicability
................................................................ 11-8
B.
[§ 11.5]
Fair
Market Value ...................................................... 11-8
C.
[§ 11.6]
Certificate
of Title Generally ................................... 11-9
D.
[§ 11.7]
Certificate
of Title New Ownership ......................... 11-9
E.
[§ 11.8]
Certificate
of Title Relocation to Maryland ............... 11-9
F.
[§ 11.9]
Definition
of Motor Vehicle .................................... 11-10
G .
[§ 11.10]
Registration
of a Motor Vehicle Without a
Certificate of Title ..................................................... 11-10
H.
[§ 11.11]
Gas
Guzzler Tax ....................................................... 11-11
IV.
EXEMPTIONS FROM THE MOTOR VEHICLE
TITLING TAX ........................................................................ 11-11
A.
[§ 11.12]
Generally
................................................................ 11-11
B.
Exemption
Upon Issuance of an Original or Subsequent
Certificate of Title .................................................................... 11-12
1.
[§ 11.13]
Vehicles
Owned by Public or Charitable
Organizations ..................................................... 11-12
2.
[§ 11.14]
Privately
Owned Bus ......................................... 11-13
3.
[§ 11.15]
Other
Vehicles .................................................. 11-13
4.
[§ 11.16]
Exemptions
Required by Federal Law ................. 11-13
C.
Exemption
Upon Transfer and Subsequent Issuance of
Certificate of Title .................................................................... 11-14
1.
[§ 11.17]
Generally
........................................................... 11-14
2.
[§ 11.18]
Family
Transaction ............................................. 11-14
3.
[§ 11.19]
Repossessed
Vehicles ........................................ 11-14
4.
[§ 11.20]
Certain
Transfers By or To a Corporation or
Partnership ........................................................ 11-14
5.
[§ 11.21]
Familial
Dispositions ........................................... 11-15
6.
[§ 11.22]
Vehicles
of Law Enforcement Agencies ............. 11-16
D.
Vehicles
Exempted from the Certificate of Title Requirement ...... 11-16
1.
[§ 11.23]
Generally
........................................................... 11-16
2.
[§ 11.24]
New
Vehicle Owned by a Manufacturer or
Dealer and Held for Sale .................................... 11-16
3.
[§ 11.25]
New
Vehicle Used by Manufacturer Only
for Testing ......................................................... 11-17
4.
[§ 11.26]
Transfers
Between Dealers or Dismantlers ......... 11-17
5.
[§ 11.27]
Transfers
of New Vehicles to Dealers ................ 11-18
6.
[§ 11.28]
Transfers
of Two‑stage Vehicles ........................ 11-18
7.
[§ 11.29]
Transfers
by Auto Wrecker to Another
Auto Wrecker or Dealer .................................... 11-19
8.
[§ 11.30]
Vehicle
Owned by Non-resident ......................... 11-19
9.
[§ 11.31]
Vehicle
in Which Interest Has Passed to
Secured Party Upon Default by Owner ............... 11-21
10.
[§ 11.32]
Other
Titling Exemptions .................................... 11-21
V.
MOTOR VEHICLE TITLING TAX FILING
REQUIREMENTS ................................................................... 11-22
A.
[§ 11.33]
Application
for Certificate of Title ............................ 11-22
B.
[§ 11.34]
Fraud
in Making the Application ............................... 11-23
C.
[§ 11.35]
Effect
of Failure to Apply for Certificate of Title ....... 11-23
VI.
PAYMENT AND COLLECTION OF THE MOTOR
VEHICLE TITLING TAX ....................................................... 11-24
A.
[§ 11.36]
Generally
.................................................................. 11-24
B.
[§ 11.37]
Collection
by Dealers ................................................ 11-24
C.
[§ 11.38]
Recordkeeping
Requirements for Dealers ................... 11-25
D.
[§ 11.39]
Deficiency
Assessment for Taxes Due ....................... 11-25
E.
[§ 11.40]
Jeopardy
Assessment ................................................ 11-26
VII.
MOTOR VEHICLE TITLING TAX REFUNDS,
APPEALS AND INJUNCTIONS .......................................... 11-27
A.
[§ 11.41]
Refund
Procedures ................................................... 11-27
B.
[§ 11.42]
Appeal
to the Maryland Tax Court ............................. 11-27
C.
[§ 11.43]
Injunction
and Declaratory Judgment .......................... 11-28
Part
3: Vessel Excise Tax
VIII.
[§ 11.44]
VESSEL EXCISE TAX GENERALLY .............. 11-28
IX.
HISTORY AND DEVELOPMENT OF THE MARYLAND
STATE BOAT ACT ............................................................... 11-30
A.
[§ 11.45]
The
Origins of the State Boat Act .............................. 11-30
B.
[§ 11.46]
Numbering
Vessels Under the State Boat Act ............ 11-31
C.
[§ 11.47]
Exemptions
from the Numbering Requirement ............ 11-31
D.
[§ 11.48]
The
Certificate of Title Requirements ......................... 11-32
X.
IMPOSITION
OF THE VESSEL EXCISE TAX ....................... 11-34
A.
[§ 11.49]
Generally
.................................................................. 11-34
B.
[§ 11.50]
Levy
Upon Title Issuance .......................................... 11-34
C.
[§ 11.51]
Levy
Upon Vessel Sales in Maryland ......................... 11-35
D.
[§ 11.52]
Levy
Upon Possession of Vessel ............................... 11-37
E.
[§ 11.53]
Reciprocity
............................................................... 11-39
XI.
EXEMPTIONS
FROM THE VESSEL EXCISE TAX ............... 11-40
A.
[§ 11.54]
Generally
.................................................................. 11-40
B.
[§ 11.55]
Commercial
Fishing and Fishing Guide Vessels ........... 11-41
C.
[§ 11.56]
Constitutional
Exemption ............................................ 11-42
XII.
[§ 11.57]
FAIR MARKET VALUE OF THE VESSEL ............ 11-43
XIII.
COLLECTION AND REMITTANCE OF VESSEL
EXCISE TAX ........................................................................ 11-45
A.
[§ 11.58]
Collection
of the Tax ................................................. 11-45
B.
[§ 11.59]
Penalties
for Failure to Collect Tax ............................. 11-46
C.
[§ 11.60]
Disposition
of Funds Collected ................................... 11-46
XIV.
VESSEL EXCISE TAX REFUNDS AND PENALTIES
.... 11-47
A.
[§ 11.61]
Refunds
and Procedures ............................................ 11-47
B.
[§ 11.62]
Penalties
................................................................... 11-47
Part
4: Appendix
XV.
APPENDIX .......................................................................... 11-48
A.
[§ 11.63]
Application
for Certificate of Title .............................. 11-49
B.
[§ 11.64]
Temporary
Inspection Waiver .................................... 11-51
C.
[§ 11.65]
Instructions
for Transferring Ownership of a
Decedents Vehicle ................................................... 11-52
D.
[§ 11.66]
Bill
of Sale ................................................................ 11-67
E.
[§ 11.67]
Bill
of Sale for a Vessel DNR B-118 ..................... 11-68
F.
[§ 11.68]
Application
for Boat Title, Registration, etc.
DNR B-240 .............................................................. 11-69
G.
[§ 11.69]
Assignment
of Title/Dealers Reassignment of
Title/Purchasers Application ..................................... 11-71
H.
[§ 11.70]
60-Day
Temporary Certificate of Vessel Number
DNR B-107-A .......................................................... 11-72
I.
[§ 11.71]
Application for Vessel Registration Renewal
Only DNR B-201 ................................................. 11-73
J.
[§ 11.72]
Application
for Replacement or Corrected
Certificate of Title or Registration and Replacement
of Decal DNR B-108 ........................................... 11-74
K.
[§ 11.73]
Certificate
of State of Principal Use
DNR B-110 .............................................................. 11-76
L.
[§ 11.74]
Gift
or Transfer Certification DNR B-105 .............. 11-78
M.
[§ 11.75]
Security
Interest Filing Statement DNR B-208 ....... 11-79
N.
[§ 11.76]
Licensing
and Registration Service Request for
Copy of Record DNR B-150 ................................. 11-81
Chapter Twelve
Taxes on Natural Resources
I.
[§ 12.1]
INTRODUCTION ..................................................... 12-5
II.
IMPOSITION OF THE SHELLFISH TAXES .......................... 12-6
A.
[§ 12.2]
Oyster
Inspection Tax ................................................. 12-6
B.
[§ 12.3]
Oyster
Severance Tax ................................................ 12-7
C.
[§ 12.4]
Oyster
Fishing License Fees and Surcharge .................. 12-7
D.
[§ 12.5]
Hard
Shell Clam Tax ................................................... 12-8
E.
[§ 12.6]
Soft
Shell Clam Tax .................................................... 12-8
F.
[§ 12.7]
Clam
Fishing License .................................................. 12-8
Iii.
IMPOSITION OF THE COAL MINE RECLAMATION
SURCHARGE AND DEEP MINED COAL SURCHARGE .... 12-8
A.
[§ 12.8]
Coal
Mine Reclamation Surcharge ............................... 12-8
B.
[§ 12.9]
Deep
Mined Coal Surcharge ........................................ 12-9
iv.
EXEMPTIONS ..................................................................... 12-10
A.
[§ 12.10]
Shellfish
Taxes .......................................................... 12-10
B.
[§ 12.11]
Coal
Surcharges ........................................................ 12-10
V.
FILING OF RETURNS ......................................................... 12-10
A.
[§ 12.12]
Shellfish
Taxes .......................................................... 12-10
B.
[§ 12.13]
Coal
Surcharges ........................................................ 12-10
VI.
[§ 12.14]
REFUNDS ............................................................... 12-11
VII.
PENALTIES ......................................................................... 12-11
A.
[§ 12.15]
Shellfish
Taxes ......................................................... 12-11
B.
[§ 12.16]
Coal
Surcharges ....................................................... 12-12
VIII.
APPENDIX .......................................................................... 12-13
A.
[§ 12.17]
Oyster
Export Certificate/Shellfish Tax Report ........... 12-14
B.
[§ 12.18]
Shellfish
Buy Ticket ................................................. 12-15
Chapter Thirteen
Sales and Use Tax
I.
INTRODUCTION .................................................................. 13-7
A.
[§ 13.1]
Background
................................................................ 13-7
B.
[§ 13.2]
Nature
of Sales and Use Taxes ................................... 13-7
C.
[§ 13.3]
Constitutionality
.......................................................... 13-8
II.
SALES AND USE TAX DEFINITIONS ................................. 13-8
A.
[§ 13.4]
Generally
.................................................................... 13-8
B.
[§ 13.5]
Sale
........................................................................... 13-8
C.
[§ 13.6]
Sale
for Use ............................................................... 13-9
D.
Tangible Personal Property ..................................................... 13-10
1.
[§ 13.7]
Generally
........................................................... 13-10
2.
[§ 13.8]
Real
Property .................................................... 13-10
3.
[§ 13.9]
Intangibles
......................................................... 13-12
4.
[§ 13.10]
Lodging
............................................................. 13-13
E.
Retail Sale ............................................................................. 13-13
1.
[§ 13.11]
Taxable
Service, Defined ................................... 13-13
2.
[§ 13.12]
Exclusions
Generally ..................................... 13-16
3.
[§ 13.13]
Exclusions
Sales for Resale ........................... 13-17
4.
[§ 13.14]
Exclusions
Sales for Use or Incorporation ....... 13-17
5.
[§ 13.15]
Exclusions/Exemptions
Sales for
Consumption ...................................................... 13-19
6.
[§ 13.16]
Construction
Materials ....................................... 13-20
7.
[§ 13.17]
Utilities
.............................................................. 13-21
8.
[§ 13.18]
Tools,
Tooling, Machinery, Equipment, etc. .......... 13-22
F.
Taxable Price ........................................................................... 13-23
1.
[§ 13.19]
Generally
........................................................... 13-23
2.
[§ 13.20]
Exclusions
Generally ..................................... 13-24
3.
[§ 13.21]
Exclusions
Installation Labor .......................... 13-25
4.
[§ 13.22]
Exclusions
Professional Services .................... 13-25
5.
[§ 13.23]
Exclusions
Interest or Finance Charges .......... 13-26
6.
[§ 13.24]
Exclusions
Delivery Charges .......................... 13-26
7.
[§ 13.25]
Exclusions
Taxes .......................................... 13-26
8.
[§ 13.26]
Exclusions
Certain Gratuities .......................... 13-27
9.
[§ 13.27]
Exclusions
Services for the Operation of
Recording Studio Equipment ............................... 13-27
III.
RATE OF TAX ..................................................................... 13-27
A.
[§ 13.28]
Generally
.................................................................. 13-27
B.
[§ 13.29]
Short‑Term
Vehicle Rental ........................................ 13-28
C.
[§ 13.30]
Vending
Machine Sales ............................................. 13-29
D.
[§ 13.31]
Mobile
Home Sales ................................................... 13-29
E.
[§ 13.32]
1977
Rate Increase ................................................... 13-30
F.
[§ 13.33]
Special
Use Tax On Electricity .................................. 13-30
G.
[§ 13.34]
Previous
Special Tax Rates ....................................... 13-30
V.
EXEMPTIONS
........................................................................ 13-30
A.
[§ 13.35]
Generally
.................................................................. 13-30
B.
[§ 13.36]
Sales
to the State of Maryland or Its Political
Subdivisions .............................................................. 13-31
C.
[§ 13.37]
Agricultural
Purposes and Products ............................ 13-31
D.
[§ 13.38]
Casual
and Isolated Sales and Capital Transactions ..... 13-32
E.
[§ 13.39]
Cylinder
Demurrage Charges ..................................... 13-33
F.
[§ 13.40]
Direct
Mail Advertising and Mail Order Catalogues ..... 13-33
G.
[§ 13.41]
Exempt
Organizations ................................................ 13-34
H.
[§ 13.42]
Film
Production Activity ............................................ 13-36
I.
[§ 13.43]
Flags
........................................................................ 13-37
J.
[§ 13.44]
Food
......................................................................... 13-37
K.
[§ 13.45]
Gas,
Electricity, Steam, Oil, and Coal .......................... 13-39
L.
[§ 13.46]
Interstate
or Foreign Commerce or Use in
Another State ........................................................... 13-40
M.
Machinery and Equipment ......................................................... 13-41
1.
[§ 13.47]
Machinery,
Equipment, and Tools Used in a
Production Activity (Manufacturing
Machinery) Defined .................................... 13-41
2.
[§ 13.48]
Scope
of the Exemption ...................................... 13-41
3.
[§ 13.49]
Use
of Manufacturing Machinery for
Operational Purposes ......................................... 13-42
4.
[§ 13.50]
Equipment
Required for Digital
Broadcasting ..................................................... 13-43
5.
[§ 13.51]
Other
Related Exemptions .................................. 13-43
N.
[§ 13.52]
Medicine
and Medical Supplies .................................. 13-44
O.
[§ 13.53]
Mining
Purpose ......................................................... 13-45
P.
[§ 13.54]
Non-Resident
Property .............................................. 13-45
Q.
[§ 13.55]
Precious
Metal Bullion and Coins ............................... 13-45
R.
Printing Use and Publications .................................................... 13-46
1.
[§ 13.56]
Printing
............................................................ 13-46
2.
[§ 13.57]
Publications
...................................................... 13-46
S.
[§ 13.58]
Property
Purchased to be Incorporated into
Realty in Another State ............................................. 13-47
T.
[§ 13.59]
Property
Purchased for Storage in Maryland ............... 13-48
U.
[§ 13.60]
Property
Purchased for Viewing in Other States ......... 13-49
V.
[§ 13.61]
Research
and Development ....................................... 13-49
W.
[§ 13.62]
Seafood
Harvesting Purposes .................................... 13-49
X.
[§ 13.63]
Multifuel
Pellet Stoves ............................................... 13-50
Y.
Services 13-50
1.
[§ 13.64]
Personal,
Professional, or Insurance
Services ............................................................ 13-50
2.
[§ 13.65]
Custom
Computer Software Services .................. 13-51
3.
[§ 13.66]
Prepaid
Telephone Calling Arrangements ............ 13-52
Z.
Double Taxation ....................................................................... 13-52
1.
[§ 13.67]
Subject
to Another Tax ...................................... 13-52
2.
[§ 13.68]
Use
by Person Paying Sales and Use Tax to
Another Jurisdiction ........................................... 13-53
AA.
[§ 13.69]
Testing Equipment .................................................. 13-54
BB.
[§ 13.70]
Transportation Services ........................................... 13-54
CC.
[§ 13.71]
Water .................................................................... 13-54
VI.
SPECIAL SITUATIONS TEMPORARY EXEMPTIONS .... 13-55
A.
[§ 13.72]
Clean
Energy Incentive Act ....................................... 13-55
B.
[§ 13.73]
Tax-Free
Week ........................................................ 13-55
VI.
[§ 13.74]
TAX COMPUTATION AND STATEMENT ............ 13-56
VII.
[§ 13.75]
SEPARATE STATEMENT OF TAX ..................... 13-56
VIII.
[§ 13.76]
DEPRECIATION ALLOWANCE ......................... 13-56
IX.
TAX
COLLECTION ............................................................... 13-57
A.
[§ 13.77]
Vendors
Liability ...................................................... 13-57
B.
[§ 13.78]
Streamlined
Sales and Use Tax Agreement ................ 13-61
C.
Collection Exceptions ................................................................ 13-62
1.
[§ 13.79]
Prepayment
of Tax ............................................ 13-62
2.
[§ 13.80]
Direct
Payment Permits ..................................... 13-62
3.
[§ 13.81]
Sales
for Resale ................................................. 13-63
D.
[§ 13.82]
Returns
.................................................................... 13-64
E.
[§ 13.83]
Records
.................................................................... 13-66
F.
[§ 13.84]
Bulk
Sales ................................................................ 13-66
G.
[§ 13.85]
Payment
of Tax ........................................................ 13-67
H.
[§ 13.86]
License
to Collect the Tax ......................................... 13-69
I.
[§ 13.87]
Period
of Limitations ................................................. 13-70
X.
REFUNDS
.............................................................................. 13-71
A.
[§ 13.88]
Generally
.................................................................. 13-71
B.
[§ 13.89]
Cancelled
and Returned Sales .................................... 13-72
C.
[§ 13.90]
Bad
Debts ................................................................ 13-72
D.
[§ 13.91]
Credits
for Overpayments .......................................... 13-73
E.
Applications
for Revision of Assessments and Review of
Denial of Claims for Refund ...................................................... 13-73
1.
[§ 13.92]
Generally
........................................................... 13-73
2.
[§ 13.93]
Correction
of Erroneous Assessments ................. 13-73
3.
[§ 13.94]
Appeals
to Maryland Tax Court .......................... 13-74
4.
[§ 13.95]
Judicial
Review .................................................. 13-74
XI.
[§ 13.96]
PENALTIES ............................................................ 13-74
XII.
[§ 13.97]
CRIMES AND OFFENSES ................................... 13-75
XIII.
GENERAL POWERS OF THE COMPTROLLER ................ 13-76
A.
[§ 13.98]
Generally
.................................................................. 13-76
B.
[§ 13.99]
Declaratory
Rulings and Petitions for Promulgation,
Amendment, or Repeal of Regulations ........................ 13-77
C.
[§ 13.100]
Confidential Information .......................................... 13-78
XIV.
APPENDIX .......................................................................... 13-79
A.
Sales and Use Tax Facts ........................................................... 13-80
1.
[§ 13.101]
July,
2005 June, 2006 ....................................... 13-80
2.
[§ 13.102]
Maryland
Sales and Use Tax Chart ..................... 13-82
B.
Tax Tips 13-84
1.
[§ 13.103]
Business
Tax Tip #1 Preparing
Your Return ...................................................... 13-84
2.
[§ 13.104]
Business
Tax Tip #2 Recordkeeping ............... 13-86
3.
[§ 13.105]
Business
Tax Tip #3 Out‑of‑State
Purchases ......................................................... 13-89
4.
[§ 13.106]
Business
Tax Tip #4 Sales for Resale ............. 13-91
5.
[§ 13.107]
Business
Tax Tip #5 Sales of Food ................. 13-94
6.
[§ 13.108]
Business
Tax Tip #6 Exemption
Certificates ........................................................ 13-97
7.
[§ 13.109]
Business
Tax Tip #7 Repairs to Personal
Property .......................................................... 13-101
8.
[§ 13.110]
Business
Tax Tip #8 Computing
the
Tax ............................................................ 13-104
9.
[§ 13.111]
Business
Tax Tip #9 Production Activity
Exemptions ...................................................... 13-108
10.
[§ 13.112]
Business
Tax Tip #10 Delinquent Tax
Collections ....................................................... 13-113
11.
[§ 13.113]
Business
Tax Tip #11 Agricultural
Exemptions ...................................................... 13-116
12.
[§ 13.114]
Business
Tax Tip #12 Fabrication
Labor .............................................................. 13-119
13.
[§ 13.115]
Business
Tax Tip #13 Opening a New
Business in Maryland ....................................... 13-122
14.
[§ 13.116]
Business
Tax Tip #14 Flea Market Sales
are Subject to Tax ............................................ 13-126
15.
[§ 13.117]
Business
Tax Tip #15 Direct Debit and
Business Taxes ................................................ 13-129
16.
[§ 13.118]
Business
Tax Tip #16 Maryland Tire
Recycling Fee .................................................. 13-132
17.
[§ 13.119]
Business
Tax Tip #17 Maryland Tire Fee
Report ............................................................. 13-136
18.
[§ 13.120]
Business
Tax Tip #18 Contractors ................ 13-138
19.
[§ 13.121]
Business
Tax Tip #19 Reporting
Unclaimed Property ......................................... 13-144
20.
[§ 13.122]
Business
Tax Tip #23 What You Need to Know
About International Fuel Tax Agreement ........... 13-147
21.
[§ 13.123]
Business
Tax Tip #27 Mail Order &
Internet Sales of Alcoholic Beverages ............... 13-150
22.
[§ 13.124]
Business
Tax Tip # 40 What You Need to
Know About Fuel Inspections ........................... 13-153
23.
[§ 13.125]
Business
Tax Tip #58 Offer in Compromise
Tax Liability Resolution Program ....................... 13-156
24.
[§ 13.126]
Purchases
for Resale Refund by Fax
COM/ST-212 ................................................... 13-159
25.
[§ 13.127]
Request
a Hearing ........................................... 13-161
26.
[§ 13.128]
Rights
Regarding Appeal .................................. 13-162
27.
[§ 13.129]
Rights
Regarding Refunds ................................ 13-163
28.
[§ 13.130]
Filing
Your Sales and Use Tax Return ............... 13-164
29.
[§ 13.131]
Online
Verification of Maryland Tax
Account Numbers ............................................ 13-165
30.
[§ 13.132]
Active
Tax Exemption Card Datatbase
Instructions ...................................................... 13-167
31.
[§ 13.133]
Maryland
Sales and Use Tax Bulletin 97-1
Taxability of Medical Equipment ....................... 13-168
31.
[§ 13.134]
Sales
and Use Tax Refund Application
COM/ST 205 ................................................... 13-171
33.
[§ 13.135]
Tax
Bulletin 01-3 2001 Changes in the
Sales and Use Tax Law ................................... 13-172
34.
[§ 13.136]
Tax
Bulletin 02-1 2002 Changes in the
Sales and Use Tax Law ................................... 13-173
Chapter Fourteen
Unemployment Insurance Taxes
I.
INTRODUCTION
..................................................................... 14-5
A.
[§ 14.1]
Overview
................................................................... 14-5
B.
[§ 14.2]
Scope
......................................................................... 14-5
II.
[§ 14.3]
STATUTORY AND REGULATORY STRUCTURE . 14-5
III.
COVERAGE
............................................................................. 14-7
A.
[§ 14.4]
Gener