OK, formerly a DE resident that has now moved to MD. Explain this ridicuous car registration excise tax to me. (North Beach: sales)

[fibonacci]

This is what is confusing me:

If the vehicle has been recently purchased, the 6% excise tax is based on the greater of the total purchase price verified by a notarized MVA Bill of Sale (form VR-181), signed by both the buyer(s) and the seller(s) in which the actual price paid for the vehicle is stated or $640. In other cases, the total purchase price or the valuation shown in a national publication of used car values adopted for use by the Administration will be used to establish the tax. There is an addition or subtraction for high or low mileage. On vehicles seven years old and older, the tax is based on the greater of the purchase price or the minimum book value of $640.

I have a 2007 sedan with nearly 160k miles. I originally paid $20k for it brand new in DE with 0% tax. The car is basically now worth $1500-2000 with all of the miles, dings, and dents it has. So you're telling me I have to pay 6% tax on the $20k? Seems ludicrous to pay an amount in tax as the car is now worth just to register my car. I mean I've had this thing paid off for nearly 6 years and was a DE resident for a long time before I ever envisioned myself of having to move to MD. I might as well sell this POS if I'm going to get robbed that much just to register my damn car. If I'm going to pay 6% of $20k, I want my car to at least be worth $20k at this moment in time.

Or is there some other rate that's going to be used on a car nearly 10 years old?

[Anywherebutheregirl]

I think that's if you recently bought your car. If you get your car from a relative, you have the option of putting "gift" as the price so you don't have to pay sales tax. Maryland MVA isn't so bad, I can't imagine having to pay tax in the scenario you suggested. Look for a different rule about transferring your registration- not one on purchase price.

[bufflove]

Originally Posted by fibonacci

This is what is confusing me:





I have a 2007 sedan with nearly 160k miles. I originally paid $20k for it brand new in DE with 0% tax. The car is basically now worth $1500-2000 with all of the miles, dings, and dents it has. So you're telling me I have to pay 6% tax on the $20k? Seems ludicrous to pay an amount in tax as the car is now worth just to register my car. I mean I've had this thing paid off for nearly 6 years and was a DE resident for a long time before I ever envisioned myself of having to move to MD. I might as well sell this POS if I'm going to get robbed that much just to register my damn car. If I'm going to pay 6% of $20k, I want my car to at least be worth $20k at this moment in time.

Or is there some other rate that's going to be used on a car nearly 10 years old?

Doesn't what you quote say that the sales price only matters "[i]f the vehicle has been recently purchased?" I'm 99.9% sure they'll just KBB the car and charge you 6% on whatever the median value is. So if KBB says it's $2K then you'll pay $120.

[North Beach Person]

Originally Posted by bufflove

Doesn't what you quote say that the sales price only matters "[i]f the vehicle has been recently purchased?" I'm 99.9% sure they'll just KBB the car and charge you 6% on whatever the median value is. So if KBB says it's $2K then you'll pay $120.

You'll pay the tax on what you paid for it so the above. The "family transfer exemption" does not apply to cars brought in from outside Maryland.

[MidValleyDad]

It has been more than a few years since I brought a car into Maryland but back then a car that I already owned was taxed on the curerent value, not the purchase price. Purchase price only comes into play on 'Recently Purchased' cars. So if you have owned it since it was new in 2007 I believe they will base the tax on the current blue book value of the car

[North Beach Person]

Originally Posted by MidValleyDad

It has been more than a few years since I brought a car into Maryland but back then a car that I already owned was taxed on the curerent value, not the purchase price. Purchase price only comes into play on 'Recently Purchased' cars. So if you have owned it since it was new in 2007 I believe they will base the tax on the current blue book value of the car

Originally Posted by North Beach Person

You'll pay the tax on what you paid for it so the above. The "family transfer exemption" does not apply to cars brought in from outside Maryland.

I was assuming he just bought the car used. The excise tax is on current value.

[seanlax]

Yeah this is basically to stop people from dodging paying sales tax on buying a vehicle out-of-state. You don't even come close to applying. If you move to MD and want to buy a car, you are going to pay a 6% sales tax on it, no matter where you end up purchasing it.

I bought my car in PA recently, and they included the excise tax I would be facing into my loan. That way the tax is basically just looped into my monthly payments.