Md. Code Regs. 18.03.01.02

Current through Register Vol. 51, No. 24, December 2, 2024

Section 18.03.01.02 - Depreciation

A. Term Defined. "Salvage value" means the value of personal property after all depreciation under this regulation has been applied.

B. In the assessment of all other personal property under Tax-Property Article, § 8-101(c)(7), Annotated Code of Maryland, a 10 percent rate of depreciation per year is applied to the original cost of most property. Exceptions to the 10 percent depreciation rate can be found in §C of this regulation. Personal property may be depreciated to its salvage value.

C. Depreciation Schedule. The following annual rates of depreciation shall be applied to the different types of personal property indicated:

(1) All personal property not otherwise listed in this depreciation schedule shall be depreciated at 10 percent per year;

(2) Except as provided in §C(10) of this regulation, long-lived electric generation machinery and equipment of nonutility entities that generate electricity for sale shall be depreciated at 3-1/3 percent per year;

(3) Vessels (over 100 feet) shall be depreciated at 5 percent per year;

(4) To be depreciated at 20 percent per year:

(a) Mobile telephones;

(b) Heavy equipment (tractors, bulldozers);

(c) Autos, trucks, and tractors not requiring registration;

(d) Radio and television transmitting equipment;

(e) Music boxes;

(f) Open-air theatre equipment (outdoor equipment, posts, speakers, signs);

(g) Motel and hotel furniture (rooms and lobby);

(h) Self-service laundry equipment;

(i) Theatre seats;

(j) Bowling alley equipment;

(k) Nursing home furniture, fixtures, and equipment (rooms and lobby);

(l) Car wash equipment;

(m) X-ray equipment, brain scanners, and MRI equipment;

(n) Photocopy equipment;

(o) Outdoor Christmas decorations;

(p) Hospital room furniture and equipment;

(q) Rental soda fountain equipment;

(r) Rental pagers;

(s) Model home furnishings;

(t) Stevedore equipment;

(u) Vending machines;

(v) Fax machines;

(w) Mainframe computers originally costing $500,000 or more;

(5) To be depreciated at 30 percent per year:

(a) Data processing equipment other than the type mentioned in §C(4) of this regulation;

(b) Computer software;

(6) Any of the following property owned by equipment rental companies shall be depreciated at 33-1/3 percent per year:

(a) Rental televisions;

(b) Rental stereo and radio equipment;

(c) Rental video cassette recorders and tapes;

(7) To be depreciated at 33-1/3 percent per year:

(a) Drapes and shades;

(b) Carpets;

(8) To be depreciated at 50 percent per year:

(a) Pinball machines;

(b) Video games;

(c) Rental tuxedos;

(d) Rental uniforms;

(9) Property determined by the Department to have an expected life in excess of 10 years at the time of acquisition shall be depreciated at an annual rate as determined by the Department; and

(10) Personal property of nonutility nuclear power plants shall be depreciated at annual rates as determined by the Department, consistent with licenses and license extensions.

Md. Code Regs. 18.03.01.02

Regulation .02A amended effective April 24, 2006 (33:8 Md. R. 734)
Regulation .02B amended effective January 1, 1997 (23:25 Md. R. 1786); April 29, 2002 (29:8 Md. R. 701); April 24, 2006 (33:8 Md. R. 734); amended effective 49:22 Md. R. 980, eff. 10/31/2022