EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0925*
HOUSE BILL 925
Q5 4lr1843
By: Delegate Fair
Introduced and read first time: February 2, 2024
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Vehicle Excise Tax – Rate Increase 2
FOR the purpose of increasing the vehicle excise tax rate; and generally relating to the 3
vehicle excise tax. 4
BY repealing and reenacting, without amendments, 5
Article – Transportation 6
Section 13–809(b) 7
Annotated Code of Maryland 8
(2020 Replacement Volume and 2023 Supplement) 9
BY repealing and reenacting, with amendments, 10
Article – Transportation 11
Section 13–809(c) 12
Annotated Code of Maryland 13
(2020 Replacement Volume and 2023 Supplement) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Transportation 17
13–809. 18
(b) (1) Except as otherwise provided in this part, in addition to any other 19
charge required by the Maryland Vehicle Law, an excise tax is imposed: 20
(i) For each original and each subsequent certificate of title issued 21
in this State for a motor vehicle, a trailer, a semitrailer, a moped, a motor scooter, or an 22
off–highway recreational vehicle for which sales and use tax is not collected at the time of 23
purchase; and 24 2 HOUSE BILL 925
(ii) Except as provided in paragraph (2) of this subsection, for each 1
motor vehicle, trailer, or semitrailer that is in interstate operation and registered under § 2
13–109(c) or (d) of this title without a certificate of title. 3
(2) (i) An excise tax of $50 is imposed for the registration of a trailer 4
exempt from the titling requirement under § 13–102(12) of this title. 5
(ii) In a case where the fair market value as defined in subsection 6
(a)(2)(iii)2A of this section applies, the excise tax imposed under this part may not be less 7
than $32. 8
(3) A political subdivision of the State may not impose a sales tax, a use 9
tax, or excise tax on the issuance of a motor vehicle certificate of title. 10
(c) (1) Except as provided in subsection (b)(2) of this section, the tax imposed 11
by this section is [6 percent] 6.5% of the fair market value of the vehicle. 12
(2) If the vehicle formerly was a vehicle exempt from the tax imposed by 13
this section, the tax shall be reduced by any amount previously paid by the present owner 14
as a sales and use tax on the vehicle under Title 11 of the Tax – General Article. 15
(3) (i) If the vehicle was formerly titled and registered in another state 16
and the present owner has paid a sales or excise tax to that state at a rate less than that 17
imposed by this State, then the tax imposed shall apply but at a rate measured by the 18
difference only between the tax rate paid to the other state and the tax rate imposed by this 19
section, if the present owner has not been a Maryland resident for more than 60 days. 20
(ii) If the vehicle was formerly titled and registered in another state 21
and the present owner requests to transfer the vehicle in accordance with § 13–810(c)(1) of 22
this subtitle, the Administration shall change or correct the names contained in the 23
certificate of title: 24
1. At the time the excise tax that is credited or imposed 25
under this section is paid and a new title is issued; and 26
2. Without issuing multiple certificates of title or charging 27
additional fees. 28
(iii) Except as provided in subsection (b)(2) of this section, the 29
minimum tax imposed under this section shall be $100. 30
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 31
1, 2024. This Act shall be applicable to all certificates of title issued on or after July 1, 2024, 32
and to all motor vehicles, trailers, or semitrailers subject to the excise tax that are in 33
interstate operation and registered under § 13–109(c) or (d) of the Transportation Article 34
without a certificate of title on or after July 1, 2024. 35