MNCTDA and WANADA are reminding all Maryland dealers that the new increase in registration fees will go into effect on July 1st. The registration fee for passenger vehicles increases from an annual charge of $27 to $50.50. For vehicles weighing over 3,700 pounds the annual registration fee increases from $40.50 to $76.50. Dealership computer vendors have been informed about the new fee increases so that dealership systems will be updated for the July 1st enactment.
The second adjustment that is being made to dealership computer systems before July 1st pertains to the excise tax vendor credit, according to MNCTDA. For the last two years, dealers were allowed to retain .6% of the 5% excise tax for collecting the tax on behalf of the state. This vendor credit reduction expires June 30th, so dealers will be allowed to retain 1.2% of the 5% excise tax again starting on July 1st. However, the tax levied on dealership parts falls into the general tax category, and the vendor allowance is being kept at .6 percent for a few more years.
As a safeguard, please make sure your computer systems have been effectively updated to report these new laws. If they have not, please contact your computer vendor immediately.
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