Vehicle Laws - Transfer of Used Vehicles - Repeal of Notarized Bill of Sale Requirement
HB 251 amends Maryland’s vehicle title tax provisions to eliminate a specific documentation requirement for certain used-vehicle transfers. Under current law, when a privately sold used vehicle is priced far below the national publication value, the buyer could rely on a notarized bill of sale to prove the lower purchase price and have the excise tax calculated on that amount. The bill removes that notarized-bill-of-sale option and instead requires the Motor Vehicle Administration to use the national publication value in those cases.
The bill also streamlines the title-transfer process by reducing paperwork that applicants must submit to the Administration. It keeps the existing excise tax structure in place, including the general 6.5% tax rate, the minimum tax rules, and the special treatment for certain trailers, mopeds, scooters, and off-highway recreational vehicles. The act takes effect October 1, 2026.
HB 251 amends § 13-809 of the Transportation Article, changing how fair market value is determined for certain privately sold used vehicles and removing the statutory requirement that a notarized bill of sale be submitted to verify a low purchase price. As a result, the Maryland Vehicle Administration will no longer be required to accept that notarized document as proof for reduced valuation in the affected transactions, and the national publication value will control instead. The bill also simplifies the list of documents applicants must provide when titling or registering vehicles subject to the excise tax.
The available record suggests the bill was noncontroversial and received enough support to pass and be signed into law, with no recorded committee transcripts or vote breakdowns indicating organized opposition. Its purpose appears administrative and procedural rather than ideological, focusing on simplifying title-transfer paperwork and standardizing valuation rules. The absence of recorded debate or dissent suggests general acceptance of the change.
The main policy issue is the removal of the notarized bill of sale as a means of substantiating a lower used-vehicle purchase price. Supporters would likely view this as a paperwork reduction and a way to prevent valuation disputes or tax avoidance, while any critics would be concerned that it limits a buyer’s ability to prove an actual arm’s-length sale price when a vehicle is sold below book value. The bill does not change the tax rate itself, so contention centers on documentation and valuation methodology rather than tax levels.