Maryland SB 125: Vehicle Laws - Transfer of Used Vehicles - Repeal of Notarized Bill of Sale Requirement

Bill Text

WES MOORE, Governor Ch. 119 
 
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Chapter 119 
(Senate Bill 125) 
 
AN ACT concerning 
 
Vehicle Laws – Transfer of Used Vehicles – Repeal of Notarized Bill of Sale 
Requirement 
 
FOR the purpose of repealing the requirement that a notarized bill of sale be submitted to 
the  Motor  Vehicle  Administration when  transferring  ownership  of  a certain used 
vehicle; and generally relating to the transfer of used vehicles. 
 
BY repealing and reenacting, with amendments, 
Article – Transportation 
Section 13–809 
Annotated Code of Maryland 
(2020 Replacement Volume and 2025 Supplement) 
 
 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 
That the Laws of Maryland read as follows: 
 
Article – Transportation 
 
13–809. 
 
 (a) (1) In this section the following words have the meanings indicated. 
 
  (2) “Fair market value” means: 
 
   (i) As to the sale of any new or used vehicle by a licensed dealer, the 
total purchase price, as certified by the dealer; 
 
   (ii) Except  as  provided  in  item  (iv)  of  this  paragraph,  as  to  a  used 
vehicle that is sold by any person other than a licensed dealer and that has a designated 
model year that is 7 years old or older, the greater of: 
 
    1. The total purchase price; or 
 
    2. $640; 
 
   (iii) Except as provided in item (iv) of this paragraph, as to any other 
used vehicle that is sold by any person other than a licensed dealer: 
 
    1. The total purchase price, if the total purchase price is less 
than $500 below the retail value of the vehicle as shown in a national publication of used 
car values adopted for use by the Department; or 

Ch. 119 2026 LAWS OF MARYLAND  
 
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    2. If the total purchase price is $500 or more below the retail 
value of the vehicle as shown in a national publication of used car values adopted for use 
by the Department[: 
 
    A. The  total  purchase  price,  if  verified  to  the  satisfaction  of 
the Administration by a notarized bill of sale submitted in accordance with subsection (d)(2) 
of this section; or 
 
    B. The  valuation  shown  in  the  national  publication of  used 
car values, if the Administration finds that the documentation submitted under subsection 
(d)(2) of this section fails to verify the total purchase price], THE VALUATION SHOWN IN 
THE NATIONAL PUBLICATION OF USED CAR VALUES; 
 
   (iv) As to a used trailer, a motor scooter, a moped, or an off–highway 
recreational vehicle that is sold by any person other than a licensed dealer, the greater of: 
 
    1. The total purchase price; or 
 
    2. $320; and 
 
   (v) In any other case, the valuation shown in a national publication 
of used car values adopted for use by the Department. 
 
  (3) (i) Subject to subparagraphs (ii) and (iii) of this paragraph, “total 
purchase price” means the price of a vehicle agreed on by the buyer and the seller, including 
any dealer processing charge, less an allowance for trade–in but with no allowance for other 
nonmonetary consideration. 
 
   (ii) As to a person trading in a nonleased vehicle to enter into a lease 
for a period of more than 180 consecutive days, “total purchase price” means the retail value 
of  the  vehicle  as  certified  by  the  dealer,  including  any  dealer  processing  charge,  less  an 
allowance  for  the  trade–in  of  the  nonleased  vehicle  but  with  no  allowance  for  other 
nonmonetary consideration. 
 
   (iii) As to a person trading in a leased vehicle to enter into another 
lease for a period of more than 180 consecutive days with a different leasing company or to 
purchase a vehicle, “total purchase price” means the retail value of the vehicle as certified 
by the dealer, including any dealer processing charge, less an allowance for the trade–in of 
the leased vehicle but with no allowance for other nonmonetary consideration. 
 
  (4) “Trailer” has the meaning stated in § 11–169 of this article. 
 
 (b) (1) Except  as  otherwise  provided  in  this  part,  in  addition  to  any  other 
charge required by the Maryland Vehicle Law, an excise tax is imposed: 
 

 WES MOORE, Governor Ch. 119 
 
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   (i) For each original and each subsequent certificate of title issued 
in this State for a motor vehicle, a trailer, a semitrailer, a moped, a motor scooter, or an 
off–highway recreational vehicle for which sales and use tax is not collected at the time of 
purchase; and 
 
   (ii) Except as provided in paragraph (2) of this subsection, for each 
motor vehicle, trailer, or semitrailer that is in interstate operation and registered under § 
13–109(c) or (d) of this title without a certificate of title. 
 
  (2) (i) An  excise  tax  of  $50 is  imposed  for  the  registration  of  a  trailer 
exempt from the titling requirement under § 13–102(12) of this title. 
 
   (ii) In  a  case  where  the  fair  market  value  as defined  in  subsection 
(a)(2)(iii)2A of this section applies, the excise tax imposed under this part may not be less 
than $