Virginia dealers reminded to pay full Maryland processing charges

Virginia dealers reminded to pay full Maryland processing charges

Virginia dealers are reminded that when they sell a vehicle to a Maryland resident, they must collect the six percent tax on the full processing charge the customer assumes, and that this 6% tax must be submitted to the Maryland MVA along with the excise tax on the vehicle.

Maryland MVA manager Brenda Scheydt sent a notice this week reminding Virginia dealers of this requirement in the wake of a recent Attorney General Advice of Counsel on the collection of excise tax by a Virginia dealer. She notes in her Bulletin that the freight charges and any aftermarket products authorized by the purchaser must be included in the taxable selling price of the vehicle.

Dealers with questions on this requirement are asked to contact MVAs Kevin Gamble at (410) 768-7035 or kgamble@mva.maryland.gov