​Tax-Property Article §8-105, authorizes the Department to collect income information from all income producing properties and provides that the Department may value income producing real property by using the capitalization of income method. Tax-Property Article §14-508 limits the capacity of the property owner to rely upon the capitalization of income approach in contesting an assessment whenever an income information request has been made but the owner has failed to provide the information in the appropriate way.

In order to preserve his or her unrestricted right of appeal, the owner of an income producing property must, upon request, complete an income and expense statement on a standard form provided by the Department, or otherwise submit the information in a format that is acceptable to the Department. The form is to be completed and returned to the Supervisor of Assessments by the May 15 preceding the date of finality. An extension of 30 days may be granted by the Supervisor for filing of the form. Completion of the form cannot be required and the penalty imposed from §14-508 cannot be enforced if the property owner is not properly notified. Such notices should be sent to the property owners no later than March 1 to allow the property owner time to complete the form and to return it to the Department by May 15. If this income and expense questionnaire is not sent to a property owner as provided in §8-105, then the Department is not able to invoke the provision of §14-508 in further assessment appeals.

If the property owner fails to file the form or to provide the most recent annual income and expense statement verified as to accuracy and completeness with the signature of the owner or an officer of the corporation or partnership, or fails to provide it at the first level of appeal, then the property owner may not use that data or any other capitalization of income method as an element of appeal beyond the first level.

This exclusionary rule does not, however, prevent the assessing authority from using the capitalization of income method in supporting an assessment in any appeal. That method could be based on either economic norms of income and expenses, or actual income and expense data for the subject property. Even when the property owner does properly submit income and expense data to the Department, the assessing authority is not strictly bound by that data in developing and defending an assessment.​​