[Adopted 4-14-1999 by Bill No. 1-99, effective 7-1-1999 (Ch. 182, Art. I, of the 1984 Code)]
Editor's Note: This bill repealed former Art. 1, Manufacturers Tax Exemption, adopted 4-7-1994 by Bill No. 2-94, effective 5-22-1994, as amended.
As used in this article, the following terms shall have the meanings indicated:
- AGGREGATE COST
- The total certified cost of manufacturing machinery and equipment purchased in any single fiscal year.
- CERTIFIED COST
- The actual cost of the manufacturing machinery and equipment certified by the owner to the County.
- Allegany County, Maryland.
- FISCAL YEAR
- The period starting July 1 in each year and ending the 30th day of June following.
- MANUFACTURING MACHINERY AND EQUIPMENT
- All machinery and equipment which, by acceptable and consistent accounting standards, is capitalized for the purpose of claiming depreciation and which is used in manufacturing, assembling, processing or refining products for sale or in the generation of electricity. It shall include all machinery and equipment used in any stage of such operations, from the handling of raw materials or components on the manufacturing site until the product is ready for delivery or storage. It shall also include capitalized replacement parts upon manufacturing machinery and equipment and the purchase of capitalized services for the assembly or fabrication of manufacturing machinery or replacement parts thereof. It shall not include machinery or equipment used in administration, managerial, sales and other nonoperational activities. It shall not include machinery or equipment used in the general construction industry, including residential, commercial and industrial construction machinery or equipment. The term also does not include any machinery or equipment used in the extraction and processing of minerals, metals or any earthen materials and/or by-products resulting from such extraction or processing. The term also does not include any personal property which, when installed, becomes a part of the real estate, nor does it include tools and appliances which are charged to expense accounts and/or are not capitalized. Specifically included, however, is any machinery, device or equipment which might normally be considered as a part of real estate, required to conform to air or water pollution standards, laws or regulations and to melting, smelting, heating, annealing or coke-oven furnaces.
- A person engaging in manufacturing activities in Allegany County, Maryland. An owner shall not include a person in actual possession or control under a lease or rental agreement; provided, however, that if such lease or rental agreement imposes upon the person in possession or control under such agreement the obligation to pay personal property tax, such person shall be determined an owner for such purposes hereof.
- Includes a corporation, partnership, association, joint venture or other business organization.
[Amended 4-13-2000 by Bill No. 1-00, effective 7-1-2000; 3-22-2001 by Bill No. 2-01, effective 7-1-2001; 3-28-2002 by Bill No. 1-02, effective 7-1-2002]
Subject to the provisions of § 7-225 of the Tax Property Article of the Annotated Code of Maryland, manufacturing personal property subject to the tax imposed by § 7-225 of the Tax Property Article of the Annotated Code of Maryland, shall be subject to the County property tax on 0% of its assessment.
Upon application by an owner of manufacturing machinery and equipment and subject to the provisions hereof, the County Commissioners of Allegany County are hereby empowered to grant a reduction equal to 100% of that portion of the assessment of manufacturing machinery and equipment in excess of $50,000 and to grant a credit against the present property taxes of the owner attributable to such property.
Application for exemption; annual report of subject property.
Any owner shall make application to the County on or before April 15 of the year following that in which the particular manufacturing property or equipment for which a reduction in the assessment is sought was acquired. Such application shall be on forms prepared by the Department of Finance of the County and shall contain a certification of the actual cost of the machinery and equipment. Any application submitted after the date, as aforesaid, shall not be considered.
Any owner who has received a reduction in assessment shall annually provide a report to the County, on forms prepared by the Department of Finance of the County, which shall contain a listing of all property subject to the reduction in assessment which has been disposed of during the prior calendar year and which shall provide any other information requested by the Department of Finance. Said annual report shall be filed on or before April 15, and failure to file the report in a timely manner shall result in penalties to the owner based upon a schedule to be determined from time to time by the County Commissioners, which penalties may include fines, a suspension in the reduction in assessment or cessation of the reduction in assessment.
Duration of exemption.
The reduction in assessment shall cease and determine upon the first of the following to occur:
At the end of 10 fiscal years beginning with the first fiscal year for which the reduction in assessment was granted.
The sale by the owner of the manufacturing machinery and equipment.
The discontinuation of use of the manufacturing machinery and equipment for a period of 120 days under such circumstances as to indicate to the County that the manufacturing machinery and equipment is no longer to be used in the manufacturing, assembling, processing or refining of products for sale.
The cessation of manufacturing by the owner in Allegany County.
The failure to pay all other taxes, real and personal, during any tax year in which the reduction in assessment is granted.
Upon the expiration, termination or cessation of any reduction in assessment previously granted, including, specifically, any reduction in assessment or exemption granted under any prior law, the property to which the exemption or reduction applied shall not again be eligible for a reduction in assessment thereunder. Any manufacturing machinery or equipment exempted from assessment or taxation under any prior law, which such exemption has not expired or otherwise terminated at the effective date hereof, shall be continued so except, subject to the provisions of Subsection B(1) above, for an additional three fiscal years from the fiscal year when the prior exemption would have otherwise expired.
Recapture of tax.
In the event that an owner ceases his manufacturing business in Allegany County during the period of the reduction in assessment, the County may compute the tax which would have been previously due and payable on the machinery and equipment as though no reduction in assessment had occurred for the tax year in which the owner ceases operations and for each of the two tax years prior thereto. Such amount shall be immediately due and payable to the County, and the County shall invoice owner in said amount. Interest shall accrue at the rate normally charged by the County for delinquent taxes commencing 30 days from the date of the invoice.
In the event that an owner does not pay all other taxes due the County for a tax year in which the reduction in assessment is granted or in the event that the owner ceases use of the machinery and equipment during the tax year or in the event that the reduction in assessment shall cease for failure to file the annual report or pay any penalties for failure to file the report in accordance with Subsection A(2), the County may compute the tax, which would have been payable on the machinery and equipment as though no reduction in assessment had occurred. Such amount shall be immediately due and payable to the County and the County shall invoice the owner in said amount. Interest shall accrue at the rate normally charged by the County for delinquent taxes, commencing 30 days from the date of the invoice.