Maryland Sales Tax

[MarvBear]

Information from NADA Title & Registration Textbook 2004

 

Maryland Sales and Use Tax Applicable to Registration

 

NONE- EXCISE TAX ONLY.

 

EXCISE TAX LAWS

 

Excise tax is collected at a rate of 5% of the fair market value defined in the law as follows:

 

1. In the case of a new or used car sold by a licensed dealer, the tax is based on the full purchase price as certified by the dealer with no allowance for down payment or trade-in.

2. When a used vehicle 7 years old or older is sold by someone other than a licensed dealer, the tax is based on the greater of the total purchase price or $500.00

3. When a used vehicle less than 7 years old is sold by someone other than a licensed dealer, the tax is based on the greater of the purchase (if verified by a notarized bill of sale stating the price and signed by all sellers and buyers) or $640.00. If a notarized bill of sale does not accompany the title the taxes are based on the greater of the purchase price or valuation shown in the publication of used car values adopted for use by the Department.

4. If a vehicle is titled or registered in another jurisdiction in the applicant’s name at the time of making application for Maryland Title, excise tax is 5% of the retail value of the vehicle as shown in a national publication of used car values adopted by the Department. An excise tax credit is applied if the applicant has not yet been a Maryland resident for more than 30 days and has paid sales or excise tax in another state. The excise tax imposed shall apply, but at a rate measured by the difference between the tax rate paid to the other State and the 5% Maryland tax rate. Minimum excise tax imposed shall be $100.00

 

A military person on active duty stationed in Maryland, an adjoining state or in the District of Columbia need not register his personal passenger vehicle in this state if the vehicle is registered in the state of his residence. However, if the military person chooses to title his vehicle in the state of Maryland he must pay excise tax.

 

Non-residents do not pay excise tax to Maryland if they take factory delivery of a new car in Maryland or purchase a vehicle from a Maryland dealer for registration in their home state. If a Maryland resident purchases a vehicle in another state and pays a sales or excise tax to that state, they WILL NOT RECEIVE CREDIT FOR THE TAXES PAID TO THE OTHER STATE. THE FULL AMOUNT OF EXCISE TAX MUST BE COLLECTION IN MARYLAND.

 

Note: Maryland dealer collects tax on passenger cars, multi-purpose vehicles, motorcycles and camping trailers sold by them, and deliver tax to the Administration at the time vehicle is titled. In all other cased the purchaser will pay tax to the Administration (MVA) at the time of titling.