In a major victory for Maryland dealers, Governor Robert L. Ehrlich Jr. announced last week that he will not raise the vehicle excise tax or gas tax. Instead, he proposed raising $250 million for the Transportation Trust Fund through a variety of increased fees and fines, including a sharp increase in registration fees and higher fines for drunk driving and moving violations.
The governorês plan calls for vehicle registration fees to increase $23.50 a year for cars and $36 a year for trucks, or from $81 to $128 every two years for most cars and from $108 to $180 for large cars and light trucks. Moving violations would carry a $50 surcharge and a conviction for drunk driving an extra $200.
Although vehicle registration fee increases are not welcomed news, MNCTDA and WANADA consider the governorês change of heart on increasing the titling tax from 5% to 6% a tremendous victory for dealers statewide who showered the governor and his staff with scores of e-mails and letters protesting an increase in the titling tax.
Dealers are reminded that these measures must still work their way through the Maryland legislature and are a long way from final. All will be apprised of further developments.
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