Md. Code Regs. 18.10.01.01

Current through Register Vol. 51, No. 22, November 1, 2024

Section 18.10.01.01 - Procedure

A. In this regulation, "operating unit" has the meaning stated in Tax-Property Article, §l-101(y), Annotated Code of Maryland.

B. The Department considers the criteria in Tax-Property Article, §§l-101(ee) and 8-109(h), Annotated Code of Maryland, in determining whether a company should be classified as a public utility for property tax assessment purposes. A company that does not fully meet all of the criteria may still be classified as a public utility if the Department determines that the company predominantly meets the criteria.

C. The classification of property as public utility operating property will generally be determined by the ownership and use of the property as of January 1 preceding the taxable year.

D. If all personal property of a public utility operating unit is transferred between a utility and a nonutility entity on or after January 1, but before July 1, and is reported to the Department, then all of the transferred real and personal property will be reclassified and assessed to the transferee for the taxable year following the transfer. The report shall be filed under oath by the transferor or transferee with the Department by October 1 following the transfer, and include the following information:

(1) A description of the property transferred;

(2) The date and manner of transfer;

(3) The name and address of the transferee;

(4) The consideration, including separate allocation of consideration to real and personal property; and

(5) Any other information that the Department requires.

E. If a public utility operating unit transfers less than all of its personal property after January 1, but before July 1, and the transfer includes real property, then for the taxable year following the transfer the:

(1) Personal property will be assessed to the transferor;

(2) Real property will be assessed to the transferee; and

(3) Transferor must file a report with the Department within 30 days of the transfer including the information listed in §D of this regulation.

F. The Department may require nonutility entities to annually file reports of real and personal property used to generate electricity, and consider cost, income, and sales comparison indicators of value in valuing the property.

G. In determining the classification of utility operating property, multiple entities under commonly controlled management will generally be included in one public utility operating unit if an unregulated entity is receiving significant revenue or using a significant portion of its real and personal property in providing goods or services to the public utility.

Md. Code Regs. 18.10.01.01

Regulation .01 amended effective May 29, 2000 (27:10 Md. R. 968); October 2, 2000 (27:18 Md. R. 1729; amended effective 45:24 Md. R. 1162, eff. 12/6/2018