​1. The Real Property Commercial Area Supervisor unit will run a list of all properties coded for an income and expense questionnaire from the PROD database that are valued over $5,000,000 by February 1 of the year preceding the reassessment year for the appropriate group.

2. The Supervisor of Assessments or their designee will make a determination as to which properties should be sent an income questionnaire, subject to the penalty provisions referred to in Tax-Property Article § 8-105. The list of income producing properties valued in excess of $5,000,000 coded to receive an income and expense questionnaire is sent to the authorized vendor for certified mailing.  A statewide record of those properties is maintained by the Real Property Commercial Area Supervisor unit. The properties in the above designation will be sent income forms by certified mail, or, by email if so requested, by March 1.

3. A property should not be designated as being subject to the penalty if:

a) The property is predominately (more than eighty-five percent) owner occupied.

b) The property is subject to a long-term lease where the conditions of the lease arrangement are well documented in the property record file.

c) The property is in a bankruptcy situation, or where the operations are apparent and are so severely distressed that the income and expense information is deemed unnecessary as an indicator of the market value of the property.

d) The property is valued for more than $5 million but is operated as part of complex of properties that are treated and valued as a single entity, where a questionnaire has been sent to the owner of the whole complex. In such instances, the penalty should accrue against the value of the entire complex.

e) The property is newly constructed and the income and/or lease information for the property is not well developed, useful, or necessary for the valuation of property.

f) The property has recently sold. The buyer in this situation is not able to certify the accuracy of past operating summaries and may not even have access to such records.

g) Income and expense information for the property has been submitted in the same form to the Department during the past twelve months (prior to the March 1 mailing date), such that the current operations of the property are well defined.

4. Those designated income properties valued in excess of $5,000,000 but not responding by May 15, will be sent the form letter-headed "second notice", identified as Attachment #1 to this policy. This letter will be sent along with the appropriate income forms by certified mail, return receipt requested. The Department receives electronic verification of both mailings.  This second mailing shall be made as soon as possible after May 15.

5. On or around July 1, those designated properties valued in excess of $5,000,000 and not responding to the income request by the June 15th deadline, shall be penalized in accordance with Tax-Property Article, § 8-105. These properties shall be mailed the imposition of penalty form (Attachment #2) detailing the full amount of the penalty. This imposition of penalty notifies the owner of the 30-day appeal right granted in Tax-Property Article, § 14-506. Once the appeal period has ended, a copy of this notice or the final determination letter from an appeal (Attachment #3, 4, 5, or 6) will be sent to the County Tax Collector. 

6. The income data must be submitted on the S.D.A.T. form or in another form acceptable to the Department. Failure to do so constitutes violation of Tax-Property Article, § 8-105. If data is submitted timely, but found to be insufficient, the supervisor should contact the State Supervisor's office before imposing the penalty. 

7. The Supervisor of Assessments is authorized to waive the penalty "for good cause" where the property owner is late in filing the questionnaire. Such waivers must be approved in writing by the State Supervisor. Examples of good cause are found in COMAR 18.03.03.01.