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

[clydeiii]

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

 

[clydeiii]

Subquestion: since, in the eyes of MD, I am "purchasing" this car in 2019, do I qualify for the MD excise tax credit of $3,000 in 2020? Titling - Excise Tax Credit for Plug-in Electric Vehicles

 

[willow_hiller]

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!

 

[willow_hiller]

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 Any update @clydeiii ?

 

[clydeiii]

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.

 

[MacGreiner]

Well done. We did something similar but from MN to MD - had to pay the difference. Not pleasant.