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Business Taxes

Keeping track of business taxes is a big part of any business. Learn more about the business taxes in Maryland and Montgomery County. As always, businesses are advised to check with an attorney and an accountant to ensure they understand all tax liablities. 

Maryland Business Taxes

Filing and paying business taxes can be complicated. The following information is provided to help you get started – be sure to consult with an attorney and a certified public accountant to ensure you are meeting all of your tax obligations. 

Businesses should review information from the  Maryland Comptroller's Office which administers several types of business taxes. Please click on one of the following tax categories listed below to obtain detailed information regarding each tax type in addition to important regulations

Business Personal Property Taxes

In many Maryland jurisdictions, businesses are taxed on business-owned personal property such as furniture, fixtures, office and industrial equipment, machinery, tools, supplies, inventory and any other property not classified as real property. Most businesses must file a  Business Personal Property Return annually on April 15 whether they own property or not. The minimum fee to file the return is $300 per year. Businesses are automatically registered when they are formed and file articles of organization/incorporation with the State. A personal property tax bill is issued after the return is reviewed by the State of Maryland. The tax is paid through the Montgomery County Department of Finance

Sole Proprietorships or General Partnerships

Sole proprietorships or  general partnerships must obtain a Tax ID Number through  Maryland Business Express so that their business personal property can be properly assessed.

Montgomery County Business Taxes

In additon to the  Business Personal Property Tax, the Montgomery County Department of Finance administers taxes that are imposed on certain types of businesses, including the  Bag Tax Program that applies to most retail establishments in Montgomery County. Information about the Montgomery County Bag Tax is available from the  Department of Environmental Protection.  

The Department of Finance also manages targeted  Tax Credit Programs that apply to specific types of business activities and are desgined to spur economic activity in the County. 

Development Impact Taxes

Tax set by the Montgomery County Council and assessed on new residential and commercial buildings and additions to commercial buildings in the county. The Development Impact Tax funds (in part) improvements necessary to support increased transportation and education capacity created by development .

The Department of Permitting Services is charged with collection of Development Impact Taxes which are due before a building permit is issued.

Excise Taxes

Taxes imposed on the manufacture and distribution of certain consumer goods (in Montgomery County: Electronic Cigarettes, Fuel Energy, Room Rental (transient), Telephone). 

Transfer & Recordation Taxes

Taxes that apply to the transfer of real property.