It is important that Section 4-401 of the Tax Property Article be thoroughly understood. This section permits the governing body in each county, the Chief Administrative Office in Montgomery County or the supervisor in Baltimore City to make all just allowances to the respective collectors for insolvencies and removals and for refunds of taxes made in accordance with the provision of law. These allowances or refunds in this connection do not require the Supervisor of Assessments to sign an order with the appropriate county official.

The attached Office of Comptroller form for the write off of uncollectible taxes should be used by county officials for the adjustment of state and county taxes.

Section 4-401(b) does not deal with the relationship between the collector and the taxpayer, but rather that it deals with the relationship between the collector and the government, state or local, to which the collector remits.

Supervisors of Assessments may only decrease an assessment pursuant to statutory authority. If an assessment was valid on an applicable date of finality and there is no statutory authority to change the assessment the Supervisor may not initiate or sign a decrease form. Should the county wish to adjust the taxes pursuant to section 4-401 they must use the attached form.

An example might be an individual firm's personal property assessment was certified correctly for a given year. Following the certification of the assessment the firm went out of business. The county has filed suit to collect the outstanding taxes but has been unable to locate the responsible party. Following extensive efforts to collect the tax, the county wants to "write off the uncollectible". This must be done on the Office of the Comptroller form. The Supervisor of Assessments does not have statutory authority to decrease the assessment.

Attachment 1 available from the Comptroller of the Treasury.​​