Vehicle Laws - Transfer of Used Vehicles - Repeal of Notarized Bill of Sale Requirement
Summary
HB251 amends Maryland’s vehicle titling and excise tax law to remove a specific documentation requirement for certain used-vehicle transfers. Under current law, when a privately sold used vehicle is priced significantly below the retail value listed in a national used-car publication, the Motor Vehicle Administration could require a notarized bill of sale to verify the lower purchase price. This bill repeals that notarized bill of sale requirement and instead directs the Administration to rely on the valuation shown in the national publication when the reported sale price is far below market value.
The bill also revises the information applicants must submit when titling or registering a vehicle so that the statute no longer lists a notarized bill of sale as a required document. Other parts of the excise tax framework remain in place, including the general 6.5% tax rate, minimum tax provisions, and rules for determining fair market value for different types of vehicles. The act takes effect October 1, 2026.
Impact
HB251 changes Section 13-809 of the Transportation Article by eliminating the notarized bill of sale as a statutory verification tool for low-price private used-vehicle sales. In practical terms, this reduces paperwork for buyers and sellers and narrows the Motor Vehicle Administration’s ability to accept a notarized bill of sale to support a lower declared purchase price. The bill leaves the excise tax structure intact but makes the national used-car valuation the controlling measure in the affected circumstance, which may increase taxable value in some transactions where the sale price is well below published retail value.
Sentiment
The bill appears to have been broadly supported and noncontroversial. It passed the House 128-0 and the Senate 39-0, indicating unanimous approval in both chambers. No committee transcripts were provided, but the voting record suggests the measure was viewed as a straightforward administrative simplification rather than a contested policy change.
Contention
There is little evidence of major opposition in the available record. The only substantive policy issue apparent from the text is the tradeoff between reducing documentation burdens for vehicle owners and preserving a mechanism to substantiate unusually low sale prices for tax purposes. Any concern would likely come from those who favor stronger verification against undervaluation, while supporters would emphasize reduced paperwork and simpler titling transactions. The unanimous votes suggest these concerns did not generate meaningful legislative conflict.