​Pursuant to the recent Berman case, the present status of Maryland law is as follows: "The leasehold interest of the tenant is not subject to taxation in Maryland." 1/ Therefore, the Department must now reverse its long standing administrative practice to be in compliance with the law as interpreted by the Court of Special Appeals.

Only the fee owner's interest (the leased fee which is the right to collect the contract rent plus the reversion) is to be valued for tax purposes. Consequently, the contract rent should be used in lieu of economic rent where there is a long term lease, normally five years or more.

Supervisors should maintain a list of properties so valued which indicates the difference between economic and contract rent, and the resulting difference in value

1/ Supervisor of Assessments of Prince George's County v. Melvin J. Berman, et al., 81 Md. App. 675, 685, 569 A.2d 706 (1990); See also, Supervisor v. Ort Children Trust Four, 294 Md. 195, 448 A.2d 947 (1982); and Tax -Property Article, Section 6-102(a).​​