[RP TownTalk] Tax Day Examination of Conscience

[Gerard Kiernan]

Dear Town Talkers,

I hope that everyone has filed their tax returns or applied for an
extension.

Why an examination of conscience?

Over the last year, a number of folks in town, through various
communications venues, have made references to their own or other home-based
businesses.

If you file a Schedule C with your federal return and list the location of
the business as being in Maryland, and more particularly Riverdale Park, the
proprietor is required by state law to have the business registered with the
Department of Assessments and Taxation.  If the business owns any equipment,
that equipment may be subject to tangible property tax at the county and
municipal level. The DAT requires the filing of a separate annual tax return
for tangible property.

The Town of Riverdale Park requires every business operating in the town to
have a town business license.  The County may also require a license.  The
only exception to the requirement for a town business license is if the
person is licensed by the state in one of the categories of learned
professional.  To the best of my knowledge, this includes Doctors, Dentists,
Lawyers, Accountants (CPA), Engineers, and Architects.

Why am I familiar with this arcane material?  Because I have paid tangible
property tax to the town and the county every year since 1991 for my
engineering practice.  When I started in 1991, the county told me that I
didn't need a county license.  I did get and hold a town business license
for several years until the Town's attorney explained that I was covered by
my state P.E. license.

Again, why am I asking you and your neighbors to examine your consciences on
this issue?  The town receives a listing of all entities filing returns with
the DAT.  Many of our residents already do the right thing. It is easy to
review the list and realize that people are missing from the list.

I prefer gentle hints to seeing people embarrassed in public by being cited
for a code violation..

Please do the right thing!

Gerry Kiernan
Ward 5 Councilmember
Member, Finance Committee