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INTEREST PORTION OF BENEFIT ASSESSMENT CHARGES
Calendar 2006
The St. Mary’s County Metropolitan Commission has investigated IRS
Revenue Rule 75-455 and IRS Revenue Rule 9-201, and their applicability
to the benefit assessment charges paid by our customers. At issue is
whether the benefit assessment charge can be considered deductible for
Federal Income Tax purposes on schedule A of an itemized return.
After studying the question, the
Commission has concluded that it cannot make any representation that the
deduction is legal or appropriate, but rather can simply notify its
customers of the amount that is in question, i.e. the interest portion
of their benefit assessment payment. With this information, individual
customers should discuss this issue with their personal tax advisor for
possible incorporation into their annual tax return.
The following percentages should be used in calculating the possible
deductions:
| Billing Code** |
|
Percentage Of Total Paid In Year |
|
| 29 |
|
67.51% |
| 30 |
|
35.84% |
| 31 |
|
67.51% |
| 33 |
|
21.21% |
| 34 |
|
28.83% |
| 35 |
|
18.93% |
| 36 |
|
53.98% |
| 37 (Wicomico
Shores Only) |
|
40.66% |
| 37
(All Other Locations) |
|
34.71% |
| 38 |
|
20.55% |
| 39 |
|
38.44% |
| 51 |
|
57.98% |
| 53 |
|
5.39% |
| 54 (Wicomico
Shores Only) |
|
38.44% |
| 54
(All Other Locations) |
|
27.23% |
|
|
**The
billing code appears on the front of the monthly bill to the left of the
cost. Only these codes are to be used for Calculating the deduction.
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