Maryland Personal Property Return Checklist: What You Need to Know

Businesses operating in Maryland are required to file an Annual Personal Property Return with the Department of Assessments and Taxation (SDAT). This filing ensures that the state has an accurate record of the company’s tangible assets for property tax purposes. While the state provides official forms, many practitioners use tax software like UltraTax CS to streamline preparation and filing.

One common question tax professionals ask is whether Maryland requires a specific checklist format to accompany the return. The answer is no—Maryland does not mandate a separate checklist. Instead, businesses and tax preparers are expected to file the appropriate forms (Form 1, AT3-51, and others) with accurate asset and depreciation information. However, creating an internal checklist is highly recommended to avoid errors, missing data, or delays in processing.

Key Components of a Maryland Personal Property Tax Checklist

A comprehensive internal checklist should cover the following areas:

1. Entity Information

• Confirm legal business name, trade name (if applicable), and SDAT Department ID.
• Verify Federal Employer Identification Number (FEIN).
• Review registered address and contact information for accuracy.

2. Asset and Depreciation Data

• Ensure all assets include Book or Maryland (MD) depreciation treatment.
• If only Tax treatment was entered, copy data into Book or MD treatment.
• Confirm that UltraTax CS is set to transfer the correct treatment to the return.

3. Asset Associations

• Situs: Verify Maryland is selected for all reportable assets.
• Location: Enter the physical address of each property; each location generates a separate return.
• Personal Property Type (PPT – MD): Assign the correct section (A–G, manufacturing equipment, exempt, etc.).
• Balance Sheet Category (Form 4-MD): Classify assets as buildings, land, machinery, leasehold improvements, or other categories.

4. Required Forms

Depending on the business structure, prepare the applicable forms:

• Form 1 – Personal Property Return
• Form AT3-51 – Sole Proprietors and General Partnerships
• Form AT3-45 – Transfer, Sale, or Disposal of property
• Form AT3-73 – Application for Department ID
• Form 4-MD – Balance sheet reporting

5. Filing Deadlines

• Returns are due annually on April 15.
• Extensions may be requested electronically through SDAT’s portal.

Final Thoughts

While Maryland does not require a formal checklist, developing an internal one can significantly reduce filing errors and ensure compliance. Tax professionals using UltraTax CS can easily translate the software’s input requirements into a practical, step-by-step checklist for preparing Maryland Personal Property Returns.

Streamline your Maryland Personal Property Return process — contact Watter CPA today for expert guidance and to ensure accurate, timely filing!

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