Surety bond requirement doubles for Maryland dealers

Maryland dealers, take note: As of October 1, the surety bond amount required for title services was increased from $25,000 to $50,000 per business.

 

A title service agent, who, on behalf of the Motor Vehicle Administration, collects and remits the vehicle excise tax imposed may keep the lesser of $12 per vehicle, or 0.6 percent of the gross excise tax that the agent collected.

 

If the title service fails to pay the appropriate excise tax for each title transaction, MVA may levy, in addition to the tax and assessment, a penalty equal to 25 percent of the tax due.

 

The changes and requirements came about from the Maryland General Assembly via HB 1065 Vehicle Laws – Title Service Agents.

 

Dealers with questions or concerns may contact the MVA at (410) 787-2950 or mvablcsd@mva.maryland.gov.

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