LEGAL ENTITY ANNUAL REPORT/PERSONAL PROPERTY RETURN
(Form 1)

Frequent Filing Mistakes

            Avoid these common errors to help ensure the efficient filing and processing of your personal property return! 

Location Reporting Errors 

ý  Not providing a breakdown of property by multiple locations. 

ý  Inaccurate or missing address information, especially regarding towns. 

ý  Reporting the mailing address instead of the actual property location in Section II, A of Form 1. 

ý  Reporting property not located in Maryland.  

Property Reporting Errors 

ý  Property reported in wrong depreciation category. 

ý  Failure to report commercial inventory. 

ý  Reporting certain exempt registered vehicles as taxable under line item 1 or 6 on Form 1.  Some registered vehicles are taxable, such as those with interchangeable registrations. 

ý  Failure to meet the September 1st  deadline for manufacturing applications. 

ý  Failure to notify the Department by October 1st when a transfer/sale/disposal of all personal property occurs between January 1st  and June 30th.  Sometimes assessments are made after the date of transfer.
 

Annual Report and Other Errors 

ý  Filing under the wrong Department ID#, especially after a merger, dissolution or when several entities under the same management or ownership are involved. 

ý  Filing fee check missing, made out for incorrect amount, or made out to the Comptroller. 

ý  Attempting to pre-pay an anticipated late filing penalty.   These penalties are billed at the time the assessment is made.  

ý  Returns not signed by officer/principal. 

ý  Officers/directors names omitted from corporate return. 

ý  Incorrect page 1 information (old address, wrong officers/directors, etc.), especially when software is used to prepare the return. 

ý  Remitting property tax payments to the Department instead of the county/town finance offices that generated the bill.