Reminder: Maryland Excise Tax Vendor Discount Repealed as of June 1

As of June 1, Maryland is eliminating a small excise tax vendor discount for dealers, but the adjustment only impacts cars sold on that date or later.

There had been questions about whether the elimination of $12-per-car discount would be in place for sales that had been finalized before June 1, but where the excise tax had not yet been paid before that date. The state has provided additional guidance that the credit will only be eliminated for sales that occur on June 1 or later, irrespective of when excise taxes on earlier sales are paid.

WANADA would like to remind Maryland dealers that the state has also raised the cap on the dealer processing charge from $300 to $500, and that new limit can be imposed on new car sales beginning on July 1. The $500 cap will be the maximum charge allowed by law; each dealer can make their own determination as to what amount, if any, to charge based on their own circumstances.

The language addressing the new excise tax provisions is located in Section 13–812 (a) of the 2020 Maryland state budget. The processing charge cap language is covered in Section 15–311(b)(3).

If you have any questions about these changes, please contact Joe Koch, WANADA’s Vice President of Operations, at

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