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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0251*
HOUSE BILL 251
R4 6lr0156
(PRE–FILED) CF SB 125
By: Chair, Environment and Transportation Committee (By Request –
Departmental – Transportation)
Requested: September 26, 2025
Introduced and read first time: January 14, 2026
Assigned to: Environment and Transportation
Committee Report: Favorable
House action: Adopted
Read second time: March 3, 2026
CHAPTER ______
AN ACT concerning 1
Vehicle Laws – Transfer of Used Vehicles – Repeal of Notarized Bill of Sale 2
Requirement 3
FOR the purpose of repealing the requirement that a notarized bill of sale be submitted to 4
the Motor Vehicle Administration when transferring ownership of a certain used 5
vehicle; and generally relating to the transfer of used vehicles. 6
BY repealing and reenacting, with amendments, 7
Article – Transportation 8
Section 13–809 9
Annotated Code of Maryland 10
(2020 Replacement Volume and 2025 Supplement) 11
SECTION 1. BE IT ENACTED BY THE GENE RAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13
Article – Transportation 14
13–809. 15
(a) (1) In this section the following words have the meanings indicated. 16
(2) “Fair market value” means: 17
2 HOUSE BILL 251
(i) As to the sale of any new or used vehicle by a licensed dealer, the 1
total purchase price, as certified by the dealer; 2
(ii) Except as provided in item (iv) of this paragraph, as to a used 3
vehicle that is sold by any person other than a licensed dealer and that has a designated 4
model year that is 7 years old or older, the greater of: 5
1. The total purchase price; or 6
2. $640; 7
(iii) Except as provided in item (iv) of this paragraph, as to any other 8
used vehicle that is sold by any person other than a licensed dealer: 9
1. The total purchase price, if the total purchase price is less 10
than $500 below the retail value of the vehicle as shown in a national publication of used 11
car values adopted for use by the Department; or 12
2. If the total purchase price is $500 or more below the retail 13
value of the vehicle as shown in a national publication of used car values adopted for use 14
by the Department[: 15
A. The total purchase price, if verified to the satisfaction of 16
the Administration by a notarized bill of sale submitted in accordance with subsection (d)(2) 17
of this section; or 18
B. The valuation shown in the national publication of used 19
car values, if the Administration finds that the documentation submitted under subsection 20
(d)(2) of this section fails to verify the total pu rchase price], THE VALUATION SHOWN IN 21
THE NATIONAL PUBLICATION OF USED CAR VALUES; 22
(iv) As to a used trailer, a motor scooter, a moped, or an off–highway 23
recreational vehicle that is sold by any person other than a licensed dealer, the greater of: 24
1. The total purchase price; or 25
2. $320; and 26
(v) In any other case, the valuation shown in a national publication 27
of used car values adopted for use by the Department. 28
(3) (i) Subject to subparagraphs (ii) and (iii) of this paragraph, “total 29
purchase price” means the price of a vehicle agreed on by the buyer and the seller, including 30
any dealer processing charge, less an allowance for trade–in but with no allowance for other 31
nonmonetary consideration. 32
HOUSE BILL 251 3
(ii) As to a person trading in a nonleased vehicle to enter into a lease 1
for a period of more than 180 consecutive days, “total purchase price” means the retail value 2
of the vehicle as certified by the dealer, including any dealer processing charge, less an 3
allowance for the trade –in of the no nleased vehicle but with no allowance for other 4
nonmonetary consideration. 5
(iii) As to a person trading in a leased vehicle to enter into another 6
lease for a period of more than 180 consecutive days with a different leasing company or to 7
purchase a vehicle, “total purchase price” means the retail value of the vehicle as certified 8
by the dealer, including any dealer processing charge, less an allowance for the trade–in of 9
the leased vehicle but with no allowance for other nonmonetary consideration. 10
(4) “Trailer” has the meaning stated in § 11–169 of this article. 11
(b) (1) Except as otherwise provided in this part, in addition to any other 12
charge required by the Maryland Vehicle Law, an excise tax is imposed: 13
(i) For each original and each subseque nt certificate of title issued 14
in this State for a motor vehicle, a trailer, a semitrailer, a moped, a motor scooter, or an 15
off–highway recreational vehicle for which sales and use tax is not collected at the time of 16
purchase; and 17
(ii) Except as provided in paragraph (2) of this subsection, for each 18
motor vehicle, trailer, or semitrailer that is in interstate operation and registered under § 19
13–109(c) or (d) of this title without a certificate of title. 20
(2) (i) An excise tax of $50 is imposed for the registration of a trailer 21
exempt from the titling requirement under § 13–102(12) of this title. 22
(ii) In a case where the fair market value as defined in subsection 23
(a)(2)(iii)2A of this section applies, the excise tax imposed under this part may not b e less 24
than $32. 25
(3) A political subdivision of the State may not impose a sales tax, a use 26
tax, or excise tax on the issuance of a motor vehicle certificate of title. 27
(c) (1) Except as provided in subsection (b)(2) of this section, the tax imposed 28
by this section is: 29
(i) Except as provided in item (ii) of this paragraph, 6.5% of the fair 30
market value of the vehicle; or 31
(ii) For a rental vehicle, 3.5% of the fair market value of the vehicle. 32
(2) If the vehicle formerly was a vehicle exempt from the tax imposed by 33
this section, the tax shall be reduced by any amount previously paid by the present owner 34
as a sales and use tax on the vehicle under Title 11 of the Tax – General Article. 35
4 HOUSE BILL 251
(3) (i) If the vehicle was formerly titled and registered in another state 1
and the present owner has paid a sales or excise tax to that state at a rate less than that 2
imposed by this State, then the tax imposed shall apply but at a rate measured by the 3
difference only between the tax rate paid to the other state and the tax rate imposed by this 4
section, if the present owner has not been a Maryland resident for more than 60 days. 5
(ii) If the vehicle was formerly titled and registered in another state 6
and the present owner requests to transfer the vehicle in accordance with § 13–810(c)(1) of 7
this subtitle, the Administration shall change or correct the names contained in the 8
certificate of title: 9
1. At the time the excise tax that is credited or imposed 10
under this section is paid and a new title is issued; and 11
2. Without issuing multiple certificates of title or charging 12
additional fees. 13
(iii) Except as provided in subsection (b)(2) of this section, the 14
minimum tax imposed under this section shall be $100. 15
(d) Each applicant for a certificate of title or for registration under § 13–109(c) of 16
this title shall submit to the Administration[: 17
(1) The] THE information that the Administration considers necessary as 18
to: 19
[(i)] (1) The time of purchase of the vehicle; and 20
[(ii)] (2) The purchase price and other information relating to the 21
determination of the fair market value of the vehicle which may include, but is not limited 22
to: 23
[1.] (I) Canceled checks; 24
[2.] (II) Money order receipts; 25
[3.] (III) Loan documents; or 26
[4.] (IV) A written description of the vehicle’s condition [; 27
and]. 28
[(2) If the excise tax is based on the total purchase price of the vehicle as 29
provided in subsection (a)(2)(iii)2A of this section, a notarized bill of sale that: 30
(i) Is designed by, and obtained from, the Administration; 31
HOUSE BILL 251 5
(ii) Is signed by the buyer and the seller; and 1
(iii) Includes a statement explaining why the vehicle was sold at the 2
price stated in the bill of sale.] 3
(e) Any person who fails to pay the excise tax as required in this section is guilty 4
of a misdemeanor and on conviction is subject to a fine not exceeding $1,000. 5
(f) The Administration shall adopt regulations to implement the provisions of 6
this section. 7
SECTION 2. AND BE IT FURTHER ENACTED, That this Act sh all take effect 8
October 1, 2026. 9
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.