Article - Tax - Property
(a) (1) Except for land that is actively devoted to farm or agricultural use, the supervisor:
(i) may value income producing real property by using the capitalization of income method or any other appropriate method of valuing the real property; and
(ii) shall consider an income method in valuing income producing commercial real property.
(2) For income producing single-family residential real property, the supervisor may value the property by using the same methods that are used for single-family residential real property that is owner-occupied.
(3) In determining the value of commercial real property developed under § 42 of the Internal Revenue Code, the supervisor:
(i) shall consider the impact of applicable rent restrictions, affordability requirements, or any other related restrictions required by § 42 of the Internal Revenue Code and any other federal, State, or local programs;
(ii) may not consider income tax credits under § 42 of the Internal Revenue Code as income attributable to the real property; and
(iii) may consider the replacement cost approach only if the value produced by the replacement cost approach is less than the value produced by the income approach for the property and it is reflective of the value of the real property.
(b) (1) The supervisor shall notify each owner of income producing real property to submit, under oath, on or before May 15 of each year, a current:
(i) income and expense statement for the real property, on the form that the Department requires; or
(ii) annual income and expense statement in another form that is acceptable to the Department.
(2) For income producing real property that has a value in excess of $5,000,000 as listed on the assessment roll, the supervisor shall designate properties for which the owner must provide income and expense information or be subject to a penalty under subsection (e) of this section for failure to provide the information.
(3) For income producing real property that is designated under paragraph (2) of this subsection, the supervisor shall:
(i) include in the notice a statement that a penalty may be assessed under subsection (e) of this section if the owner of real property valued at over $5,000,000 fails to file the income and expense information required under this subsection; and
(ii) send the notice to the owner as determined from the assessment rolls or the owner’s registered agent by:
1. first–class certified mail; or
2. e–mail, if within the past 3 years the recipient has provided to the Department an e–mail address and requested to receive the notices by e–mail.
(c) (1) For income producing real property that has a value in excess of $5,000,000 as listed on the assessment roll that is designated under subsection (b)(2) of this section, if the income and expense statement required under subsection (b) of this section is not received by May 15, the Department shall notify the owner that the statement has not been received and that if the statement is still not received by June 15, the penalty specified in subsection (e) of this section will be assessed.
(2) The Department shall send the notice required under paragraph (1) of this subsection to the owner by:
(i) first–class certified mail; or
(ii) e–mail, if within the past 3 years the recipient has provided to the Department an e–mail address and requested to receive the notices by e–mail.
(3) For property other than the property described in paragraph (1) of this subsection, upon request, an extension of up to 30 days may be granted by the supervisor for the filing required by subsection (b) of this section.
(d) The supervisor is not required to accept the expenses or depreciation claimed by the owner and may use other methods to determine these amounts.
(e) (1) This subsection applies only to income producing real property that has a value in excess of $5,000,000 as listed on the assessment roll that is designated under subsection (b)(2) of this section.
(2) If an owner of income producing real property fails to submit income and expense information as required by subsection (b) of this section, by June 15, the supervisor shall assess on the owner of the real property a penalty of $100 per day up to a maximum equal to 0.1% of the value of the property listed on the assessment roll.
(3) The supervisor shall notify the collector of the county in which the property is located of assessment of a penalty.
(4) The collector shall collect the penalty imposed under this subsection and shall remit the penalty to the State Comptroller.
(5) The penalty imposed under this subsection may be waived by the supervisor for good cause.
(6) If the penalty imposed under this subsection is a direct “pass-through” to a lessee, the lessee shall have a right to recover that amount from the owner.
(f) When requested by the supervisor for valuation purposes, an officer or employee of any county or municipal corporation may provide to the supervisor the amount of income or any particulars disclosed in any tax return filed with the county or municipal corporation.