MD Dealers Gain Net-Of-Trade in Special Session

MD Dealers Gain Net-Of-Trade in Special Session

In one of the most successful lobbying and grassroots efforts by any business group in the recently concluded Special Session of the Maryland General Assembly, MADA and WANADA succeeded in their number one goal to secure the net-of-trade, or –trade difference,” in legislation increasing the vehicle title tax from 5% to 6%. Maryland Dealers also scored an important win in the Special Session by defeating a proposed tax on vehicle repair labor.

When the session ended sine die at 2:34 a.m. last Monday morning, final compromises and adjustments had been made to the $1.4 billion in annual tax increases proposed by Gov. Martin OêMalley and approved by the General Assembly.

Through MADAês website, Maryland dealers and their employees participated in a massive grassroots effort that produced more than 7,000 calls, emails and letters to legislators. This effort bolstered the on-the-ground lobbying efforts from MADA, WANADA and individual dealers.

–The two sister associations worked hand-in-hand in the halls of the General Assembly to make their case to legislators and the governor,” said WANADA Public Affairs Director Steven Arabia. –Maryland dealers in the Washington region who are both WANADA and MADA members played a pivotal role in communicating dealer group goals to key lawmakers from Montgomery and Prince Georgeês Counties, many of whom hold leadership positions in the General Assembly.”

When all was said and done after only a few weeks, the governor and legislature accepted the trade difference provision in the Special Session. On other tax fronts, legislators moderated an increase in the state’s top income rate to 5.5% from its current rate of 4.75%. Gov. O’Malley had proposed 6.5%, and the House plan included a top rate of 5.75 percent. The new top rate was a major concern for leaders in Montgomery County, which is home to more high-end earners than any other Maryland jurisdiction.

The dealer cause was greatly assisted by Sen. James DeGrange of Glen Burnie, who successfully championed the full trade difference in the Senate Budget Committee and House/Senate conference committee. The tax bills squeaked through the Senate by narrow margins, and the House version of the title tax increase would have capped the trade difference at 50%.

There were tradeoffs, however. To get the full trade difference, dealers did not oppose an increase in the title certificate fee from $23 to $50. And like all businesses in Maryland, dealers will pay higher corporate income taxes, 8.25%, up from 7%. The original House bill had called for an increase to 8.75% which got reduced.

MADA and WANADA staff along with Maryland dealer leaders Dave Williams of Williams Automotive in Elkton, Sam Weaver of Chevy Chase Cars in Bethesda, Paul Sheehy of Sheehy of Upper Marlboro and George Doetsch of Apple Ford in Columbia, effectively interacted with lawmakers, persuading them ultimately to adopt the trade difference as part of the increase in title tax.

WANADA and MADA thank all the dealers and their employees who took the time to help push the dealer group package through this very intense and contentious Special Session. Michael Johansen and Larry Levitan of Rifkin, Livingston Levitan and Silver also were key players in this tax session success. The regular session of the General Assembly will convene in January.