Domestic Partner Inheritance Tax Exemption for Real Property

I found this great FAQ guide (opens as a .pdf) from the Howard County Register of Wills, Byron E. MacFarlane, titled Domestic Partner Inheritance Tax Exemption for Real Property. This guide is very useful for anyone couple who is neither married nor in a civil union but owns a primary residence in joint tenancy.

Federal Challenge Filed by Pit Bull Owner

From the Baltimore Sun: Maryland pit bull ruling is challenged in federal court

Online Sales Tax

 I am frequently asked by small business owners what their responsibility is as to collecting sales tax from purchases generated by their websites. An online presence is different from a bricks and mortar storefront, and business owners may suddenly find themselves fulfilling orders for customers located across the country.

The short answer to this question is that if your business has a physical presence in a state, then you must collect local and state sales tax for that location. Examples of physical presences are an actual store, office, or warehouse. If your business does not have a physical presence in a state, then you do not have to collect sales tax for that state.

This rule is based on Quill v. North Dakota, a Supreme Court case that said mail-order businesses cannot be required to collect sales tax in a state unless the business has a physical presence there, as the burden on the sellers to comply with all state and local tax jurisdictions is too complex to manage and would strain interstate commerce. 504 US 298 (1992).

That being said, tax laws change all the time. If you are a small business owner looking to establish an online storefront, you should consult with your state's revenue agency to determine if you do have what is considered a physical presence. Additionally, the U.S. Small Business Administration is a great resource for answering questions about online payment services and sales.

Strict Liability for Pit Bulls - Part Two

On August 21, 2012, the Maryland Court of Appeals issued an Order relating to a Motion for Reconsideration (.pdf) filed in Tracey v. Solesky, the case decided earlier this year that held that strict liability exists for the owners of pit bulls and 'cross-bred pit bulls' and their landlords. Subsequently, Tracey filed a Motion for Reconsideration asking the Court to review their decision with regards to the inclusion of cross-bred pit bulls. The Court's order amends the earlier Opinion by deleting any reference to cross-breds, pit bull mix, or cross-bred pit bull mix.

The Humane Society has set up a helpline for Maryland families at 1-855-633-6471 (1-855-MDDOGS1).  Additionally, they have included on their website an information sheet (.pdf) for landlords and property owners. 

Happy Labor Day!

Our office will be closed Monday, September 3, 2012. We will reopen during normal business hours on Tuesday, September 4, 2012. We wish everyone a happy and safe Labor Day!

Symphony Woods On Hold?

From the Baltimore Sun: CA weighs putting Symphony Woods Project on Hold

Pet Trusts in Maryland

I grew up in a veritable zoo. My family included dogs, cats, parrots, lizards, frogs, turtles, fish, and hermit crabs. My parents spare no expense when it comes to their pets, and the care of the menagerie trumped everything else. My mother's mantra is "Animals can't care for themselves" - which is very true, especially if something happens to the pet owner. My mother has always maintained a list of people to call in the event that she and my father pass away. This list includes various breeders, family members, friends, aviaries and wildlife preserves in whom my mother has faith to take care of her furry, feathered and scaly friends. Recently, I have been giving a lot of thought to care for Bandit, the dog my husband and I adopted last fall, should something happen to us.

Fortunately, in 2009, Maryland enacted a 'pet trust' law to allow pet owners a formal mechanism to provide for their pets after the owner's incapacitation or death. The trust can be created for the benefit of an animal alive during the lifetime of the settlor. The trust terminates with the death of the animal (or the death of the last remaining animal if the trust provides for multiple pets). The trust may be enforced by a person appointed by the trust or by the court if the trust does not appoint someone. Further, a person with an interest in the welfare of the animal can petition the court to appoint a person to enforce the trust. In the trust, settlor's can provide express instruction for distribution of trust funds after the passing of their pet. If the funds of the trust are not used in full, the remaining funds can be distributed to the settlor or the settlor's successors. MD Estates & Trust Section 14-112.

Generally, a pet trust consists of a trustee and a caregiver. The caregiver provides the daily care for the pet, while the trustee oversees the handling of the trust to ensure the caregiver's compliance with the terms of the trust. Pet trusts allow the pet owner to have control over the care of their pet. Rather than rely on the goodwill of those tasked with caring for an orphaned pet, the trust can designate the standard of care for the pet. Trusts can direct veterinary care, diet, boarding, and the general standard of living to be maintained for the benefit of the pet. Additionally, the trust can provide compensation to the trustee and the caregiver.