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Purchased last year (August) in DC, just moved to MD: do I pay sales tax?

Discussion in 'Model 3: Ordering, Production, Delivery' started by clydeiii, Apr 3, 2019.

  1. clydeiii

    clydeiii Member

    Joined:
    Aug 16, 2018
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    Location:
    Washington, DC
    I just moved in April 2019 from DC to MD and have owned a Model 3 since August 2018. I'm getting the sense from the MVA website that, because the car is less than 7 years old, I will have to pay MD sales tax (6%) on the car, even though I didn't buy it while living in MD. It appears that if I had paid taxes in DC, I would simply pay the difference, but since DC taxes hybrids at 0%, then I'll end up owing the entire 6%. Are there no tax breaks in MD for hybrids or EVs? Will I pay taxes on the current value of the car, or the price I purchased it for?


    Cite: New to Maryland Driver Licensing Information
     
  2. clydeiii

    clydeiii Member

    Joined:
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    Location:
    Washington, DC
  3. willow_hiller

    willow_hiller Active Member

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    I think only the MVA will be able to give you definitive answers. Their help line is 410-768-7000. They're actually pretty friendly and helpful; I called them last week with different questions about the tax rebate.

    We moved from VA to MD last year and ended up paying the difference in sales tax (2%, albeit on an ICE vehicle). The MVA might require you to pay the difference between tax paid and MD tax (6%), or they may require to you pay the difference between the prevailing DC tax and MD tax (which would be 0%).

    On the excise tax rebate, the eligibility criteria are a bit vague, but in the part that states "titled for the first time" I believe there's an implicit "in Maryland." When you officially move to Maryland, you will be titling the vehicle for the second time. But again, I would call the MVA. It wouldn't be fair for you to pay the full 6% excise tax and then not be eligible for the excise tax credit.

    Best of luck!
     
  4. willow_hiller

    willow_hiller Active Member

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    I'm curious if you were able to get a clear answer resolving this issue; after I recommended calling the MVA for being helpful, I got a series of very unhelpful representatives on subsequent calls :p Any update @clydeiii ?
     
  5. clydeiii

    clydeiii Member

    Joined:
    Aug 16, 2018
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    Location:
    Washington, DC
    I do have an update! I visited the MVA for a new tag and was only charged $235 for the license transfer. I didn't ask any more questions, for fear of disturbing the beehive.
     
    • Like x 3
  6. MacGreiner

    Joined:
    Oct 12, 2016
    Messages:
    995
    Location:
    MD
    Well done. We did something similar but from MN to MD - had to pay the difference. Not pleasant.
     

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