Any applicable fees specified in this part for a certificate of title shall be paid to the Administration before issuance of the certificate.

Except as provided in subsection (b) of this section and § 13–805 of this subtitle, the fee for each certificate of title issued under this title is $200. The fee for each certificate of title issued for a rental vehicle is $100. The fee for each certificate of title issued for an off–highway recreational vehicle is $70. The fee for each certificate of title issued for a motor scooter or a moped is $40. The fee for each certificate of title issued for a trailer with a gross vehicle weight of 3,000 pounds or less is $100 if: The trailer is transferred to: A spouse, child, grandchild, parent, sibling, grandparent, father–in–law, mother–in–law, son–in–law, or daughter–in–law of the transferor; or A niece or nephew of the transferor if the transferor is at least 65 years of age at the time of the transfer; and No money or other valuable consideration is involved in the transfer. On the death of a joint owner of a vehicle, the Administration may not charge a fee for a new certificate of title issued for the vehicle to another joint owner who is the surviving spouse. On the death of a sole owner of a vehicle, the Administration may not charge a fee for a new certificate of title issued for the vehicle to a surviving spouse if ownership of the vehicle is transferred in accordance with § 13–114 of this title. The Administration may not charge a fee for a certificate of title issued for a vehicle that is transferred to a trust or from a trust to one or more beneficiaries in accordance with § 14.5–1001 of the Estates and Trusts Article.

For the purpose of enforcing Title 23 of this article (“Inspection of Used Vehicles and Warnings for Defective Equipment”), the Administration may retain and use an appropriate amount established by the Administration from each fee paid under § 13-802 of this subtitle for a certificate of title for a vehicle subject to inspection under Title 23 of this article.

For the issuance of a duplicate certificate of title, issued under § 13-111 of this title to replace a lost, stolen, or damaged certificate of title, the fee shall be established by the Administration.

The excise taxes imposed by this part for a vehicle shall be paid to the Administration: Before the issuance of a certificate of title for that vehicle; or As to a vehicle registered under § 13-109(c) of this title without a certificate of title, before the registration of that vehicle.

In this section the following words have the meanings indicated. “Fair market value” means: As to the sale of any new or used vehicle by a licensed dealer, the total purchase price, as certified by the dealer; Except as provided in item (iv) of this paragraph, as to a used vehicle that is sold by any person other than a licensed dealer and that has a designated model year that is 7 years old or older, the greater of: The total purchase price; or $640; Except as provided in item (iv) of this paragraph, as to any other used vehicle that is sold by any person other than a licensed dealer: The total purchase price, if the total purchase price is less than $500 below the retail value of the vehicle as shown in a national publication of used car values adopted for use by the Department; or If the total purchase price is $500 or more below the retail value of the vehicle as shown in a national publication of used car values adopted for use by the Department, the valuation shown in the national publication of used car values; As to a used trailer, a motor scooter, a moped, or an off–highway recreational vehicle that is sold by any person other than a licensed dealer, the greater of: The total purchase price; or $320; and In any other case, the valuation shown in a national publication of used car values adopted for use by the Department. Subject to subparagraphs (ii) and (iii) of this paragraph, “total purchase price” means the price of a vehicle agreed on by the buyer and the seller, including any dealer processing charge, less an allowance for trade–in but with no allowance for other nonmonetary consideration. As to a person trading in a nonleased vehicle to enter into a lease for a period of more than 180 consecutive days, “total purchase price” means the retail value of the vehicle as certified by the dealer, including any dealer processing charge, less an allowance for the trade–in of the nonleased vehicle but with no allowance for other nonmonetary consideration. As to a person trading in a leased vehicle to enter into another lease for a period of more than 180 consecutive days with a different leasing company or to purchase a vehicle, “total purchase price” means the retail value of the vehicle as certified by the dealer, including any dealer processing charge, less an allowance for the trade–in of the leased vehicle but with no allowance for other nonmonetary consideration. “Trailer” has the meaning stated in § 11–169 of this article. Except as otherwise provided in this part, in addition to any other charge required by the Maryland Vehicle Law, an excise tax is imposed: For each original and each subsequent certificate of title issued in this State for a motor vehicle, a trailer, a semitrailer, a moped, a motor scooter, or an off–highway recreational vehicle for which sales and use tax is not collected at the time of purchase; and Except as provided in paragraph (2) of this subsection, for each motor vehicle, trailer, or semitrailer that is in interstate operation and registered under § 13–109(c) or (d) of this title without a certificate of title. An excise tax of $50 is imposed for the registration of a trailer exempt from the titling requirement under § 13–102(12) of this title. In a case where the fair market value as defined in subsection (a)(2)(iii)2A of this section applies, the excise tax imposed under this part may not be less than $32. A political subdivision of the State may not impose a sales tax, a use tax, or excise tax on the issuance of a motor vehicle certificate of title. Except as provided in subsection (b)(2) of this section, the tax imposed by this section is: Except as provided in item (ii) of this paragraph, 6.5% of the fair market value of the vehicle; or For a rental vehicle, 3.5% of the fair market value of the vehicle. If the vehicle formerly was a vehicle exempt from the tax imposed by this section, the tax shall be reduced by any amount previously paid by the present owner as a sales and use tax on the vehicle under Title 11 of the Tax – General Article. If the vehicle was formerly titled and registered in another state and the present owner has paid a sales or excise tax to that state at a rate less than that imposed by this State, then the tax imposed shall apply but at a rate measured by the difference only between the tax rate paid to the other state and the tax rate imposed by this section, if the present owner has not been a Maryland resident for more than 60 days. If the vehicle was formerly titled and registered in another state and the present owner requests to transfer the vehicle in accordance with § 13–810(c)(1) of this subtitle, the Administration shall change or correct the names contained in the certificate of title: At the time the excise tax that is credited or imposed under this section is paid and a new title is issued; and Without issuing multiple certificates of title or charging additional fees. Except as provided in subsection (b)(2) of this section, the minimum tax imposed under this section shall be $100. Each applicant for a certificate of title or for registration under § 13–109(c) of this title shall submit to the Administration the information that the Administration considers necessary as to: The time of purchase of the vehicle; and The purchase price and other information relating to the determination of the fair market value of the vehicle which may include, but is not limited to: Canceled checks; Money order receipts; Loan documents; or A written description of the vehicle’s condition. Any person who fails to pay the excise tax as required in this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000. The Administration shall adopt regulations to implement the provisions of this section.

On issuance in this State of an original or subsequent certificate of title for a vehicle, the vehicle is exempt from the excise tax imposed by this part, if it is: A mobile home over 35 feet long; A vehicle owned by the United States and used in the investigation of any violation or suspected violation of any law of the United States; A vehicle owned or leased by this State or any political subdivision of this State; A fire engine or other fire department emergency apparatus, including any vehicle operated by or in connection with any fire department; An ambulance, rescue, or other vehicle owned and operated for the benefit of the public by a nonprofit rescue squad; A vehicle owned and operated by the Civil Air Patrol; A vehicle owned and held for the use of the public by a unit of a national veterans’ organization; A vehicle owned and operated by a Maryland chapter of the American Red Cross; A vehicle acquired by an insurance company as a result of a comprehensive or collision claim; A vehicle registered in a jurisdiction the laws of which do not require titling and acquired for resale by a licensed dealer; A vehicle that is involuntarily transferred to a licensed dealer and for which a certificate of title is not available; A school bus owned by a religious organization or a private school which is exempt from federal income tax under § 501(c)(3) of the Internal Revenue Code; A privately owned bus used only for operating the transportation system of any political subdivision in this State, if the bus is used for the transportation of the public on regular schedules and between fixed termini; A vehicle otherwise exempt from the excise tax by any other applicable law; A vehicle which is used regularly for the transportation of individuals with disabilities and owned by a nonprofit organization providing direct care services to individuals with disabilities which is licensed by the Maryland Department of Health and is wholly or partially funded by the State; A mobile hearing and vision screening vehicle owned and operated for the benefit of the public by a nonprofit civic organization; Registered under § 13–923 of this title; Registered under § 13–933 of this title; A salvage vehicle acquired by a licensed dealer that has been restored by the licensed dealer and that has been inspected under § 13–507(a)(2)(ii) of this title; A vehicle acquired for resale by a licensed dealer if the dealer reassignment sections contained on the certificate of title are exhausted; A Class M motor home or Class G travel trailer that is transferred or retitled in the dealership’s name under § 15–305(d)(2) of this article; A special purpose vehicle owned by a coal company if the vehicle is used: For transportation of workers, coal, or equipment used in the coal production process; and Exclusively in or on coal mining property; A vehicle which is used exclusively in the transportation of disabled or elderly persons, owned by a nonprofit organization, and in which the Maryland Transit Administration retains a security interest; A vehicle acquired by a religious, charitable, or volunteer organization exempt from taxation under § 501(c) of the Internal Revenue Code, the Department of Human Services, or a local department of social services for the purpose of transferring the vehicle to a Family Investment Program recipient or an individual certified by the Department of Human Services or a local department of social services as eligible for the transfer; A vehicle that is transferred to a trust or from a trust to one or more beneficiaries in accordance with § 14.5–1001 of the Estates and Trusts Article; or On or before December 31, 2026, a vehicle that: Was previously registered in the State; Was subsequently registered in another jurisdiction despite the owner of the vehicle continuing to be a resident of the State; and Is being registered in the State to comply with the requirements of § 13–402 of this title. The provisions of subsection (c)(1) and (3) of this section do not apply to the transfer of a vehicle if: The vehicle that is transferred was previously exempt under subsection (a)(17) or (18) of this section; and The transferee of the vehicle titles and registers the vehicle under any other section of this title. On transfer of a vehicle titled in this State and issuance of a subsequent certificate of title, the vehicle is exempt from the excise tax imposed by this part, if it is: A vehicle transferred to: A spouse, son, daughter, grandchild, parent, sister, brother, grandparent, father–in–law, mother–in–law, son–in–law, or daughter–in–law of the transferor, and no money or other valuable consideration is involved in the transfer; or A niece or nephew of the transferor if: The transferor is at least 65 years of age at the time of the transfer; and No money or other valuable consideration is involved in the transfer; A vehicle repossessed under a security agreement, unless the sale of the vehicle is required under the agreement; A vehicle transferred from an individual to a partnership, limited liability company, or corporation or from a partnership, limited liability company, or corporation to a subpartnership, subsidiary limited liability company, or subsidiary corporation, if the individual, partnership, limited liability company, or corporation is a partner, member, or principal stockholder of the newly formed partnership, subpartnership, limited liability company, subsidiary limited liability company, corporation, or subsidiary corporation, as the case may be; A vehicle transferred to a legal heir, legatee, or distributee; A vehicle involuntarily transferred as a result of divorce or separation proceedings; A vehicle that is jointly owned and transferred to the name of one of the owners, if the transferee can establish to the satisfaction of the Administration that the transferor did not pay any part of the original purchase price of the vehicle or any applicable taxes or fees for the vehicle; A vehicle transferred by a corporation to its stockholder or stockholders or by a limited liability company to its member or members as a liquidating distribution of tangible personal property where the vehicle or vehicles transferred are not a principal or substantial asset of the corporation or limited liability company as determined by the Administration; A vehicle transferred as a result of a reorganization within the meaning of § 368(a) of the Internal Revenue Code or a vehicle transferred as a result of a statutory merger or consolidation of a corporation and a limited liability company if no gain or loss is recognized as a result of the transaction under § 332 and § 721 of the Internal Revenue Code; A vehicle transferred to a Family Investment Program recipient or an individual certified by the Department of Human Services or a local department of social services as eligible for transfer of the vehicle that was exempted from the excise tax imposed by this part under subsection (a)(24) of this section; A vehicle transferred into a written inter vivos trust in which the transferor is the primary beneficiary; or A vehicle transferred to a lessee who exercises an option under a vehicle leasing agreement for an initial term of more than 180 consecutive days to purchase the leased vehicle at the end of the lease. The Administration may exempt from the excise tax imposed by this part any vehicle of a law enforcement agency of the United States or of any other state, if the United States or other state provides a reciprocal exemption for law enforcement vehicles of this State. If the owner of a vehicle that is exempt under subsection (a)(17) or (18) of this section from the vehicle excise tax subsequently registers the vehicle under any other section of this title, the owner shall pay the excise tax based on the fair market value of the vehicle at the time the exemption was initially granted. A vehicle is exempt from the excise tax imposed by this part on issuance of an original certificate of title if the vehicle: Is owned by an active service member or a service member who returns to the State from active duty; and Was formerly titled and registered in another state by the present owner of the vehicle. A vehicle owned by a licensed dealer is exempt from the excise tax imposed by this part if the vehicle is provided to a customer for use while the customer’s vehicle is not in use due to repair, maintenance, or other vehicle service performed by the dealer.

The excise tax imposed by this part also is imposed on the issuance by a dealer of a temporary registration plate, if the temporary registration plate is issued for a vehicle that previously was transferred to the dealer without complying with the applicable provisions of Subtitle 1 of this title on transfers to dealers.

Each dealer who collects any tax or fee required for titling a vehicle shall: Keep complete and accurate records of each taxable sale, together with a record of the tax collected on the sale; Keep copies of every invoice, bill of sale, and other pertinent documents and records, in the form that the Administration requires; and Preserve these records in original form for at least 3 years, unless the Administration consents in writing to their earlier destruction or, by order, requires that they be kept for a longer period. Each dealer who collects any tax or fee required for titling a vehicle shall, during business hours, allow any representative of the Administration and any police officer full access to records required to be kept under subsection (a) of this section. If the Administration finds that the records of a dealer are inadequate or incorrect and that the amount of excise tax collected for the Administration on these sales cannot be determined accurately from the records: The Administration shall determine the taxable sales of the dealer for the period involved and compute the tax from the best information available; and The determination and computation of the Administration are prima facie correct. If, under subsection (c) of this section, the Administration determines the sales of vehicles and computes the tax due, it shall: Levy an assessment against the dealer for the deficiency, interest, and penalties in the manner authorized in §§ 13–401, 13–601, and 13–701 of the Tax – General Article; and Notify the dealer of the tax due and of the amount of the deficiency assessment. If the dealer fails to pay the tax and assessment within 10 days after receiving the notice from the Administration, the Administration may levy, in addition to the tax and assessment, a penalty equal to 25 percent of the tax due. If a dealer fails to keep any records of sales of vehicles, the Administration may compute the tax due as provided in § 13–407 of the Tax – General Article. All amounts received from any dealer under this section shall be credited: First, to any penalty and interest accrued under this section; and Then, to the tax due.

If the Administration finds that any dealer or other person liable for the excise tax imposed by this part intends to depart from this State, remove his property from this State, conceal himself or his property in this State, or do anything else tending to prejudice or render wholly or partly ineffectual proceedings to collect the tax, the Administration may notify the person of its findings and demand an immediate return and immediate payment of the tax and any interest and penalty. If the amount of tax, interest, and penalty specified in the notice of jeopardy assessment is not paid within 10 days of the service of the notice, the Administration may bring any action that it considers advisable for the prompt collection of the tax. If, within 10 days of the service of the notice, the person liable for the tax files with the Administration satisfactory evidence that he is not in default in paying the tax or that he will duly return and pay the tax, then the tax is not payable before the time otherwise required by this part. However, in each case, the findings of the Administration as to the responsibility of the person liable for the tax are final and conclusive.

Except as provided in subsection (b) of this section, money collected under this part shall be deposited in the State Treasury and accounted for on the records of the Comptroller and transferred to the Transportation Trust Fund. Of the revenue from the excise tax imposed for each certificate of title issued for an off–highway recreational vehicle under § 13–809 of this subtitle, the Comptroller shall distribute to the Off–Highway Recreational Vehicle Trail Fund established under § 5–1011 of the Natural Resources Article: 25% in fiscal year 2019; and 50% in fiscal year 2020 and each year thereafter.

In this section the following words have the meanings indicated. “Autocycle” has the meaning stated in § 11–103.4 of this article. “Excise tax” means the tax imposed under § 13–809 of this subtitle. “Zero–emission plug–in electric drive vehicle” means a motor vehicle that: Is made by a manufacturer; Has a maximum speed capability of at least 55 miles per hour; and Is propelled by an electric motor that draws electricity from a battery that: Has a capacity of not less than 4 kilowatt–hours; and Is capable of being recharged from an external source of electricity. This section applies only to: A zero–emission plug–in electric drive vehicle that: Has not been modified from original manufacturer specifications; Is acquired for use or lease by the taxpayer and not for resale; Has a base purchase price not exceeding $50,000; Has a battery capacity of at least 5.0 kilowatt–hours; and Is purchased new and titled for the first time on or after July 1, 2023, but before July 1, 2027; and A fuel cell electric vehicle that: Has not been modified from original manufacturer specifications; Is acquired for use or lease by the taxpayer and not for resale; Has a base purchase price not exceeding $50,000; and Is purchased new and titled for the first time on or after July 1, 2023, but before July 1, 2027. Subject to available funding, an excise tax credit is allowed for a zero–emission plug–in electric drive vehicle or fuel cell electric vehicle. Subject to subsection (e) of this section, the credit allowed under this section shall equal: $3,000 for each zero–emission plug–in electric drive vehicle or fuel cell electric vehicle purchased; or $1,000 for each two–wheeled zero–emission electric motorcycle purchased; or $2,000 for each three–wheeled zero–emission electric motorcycle or autocycle purchased. The credit allowed under this section is limited to the acquisition of: One vehicle per individual; and 10 vehicles per business entity. A credit may not be claimed under this section: For a vehicle unless the vehicle is registered in the State; or Unless the manufacturer has already conformed to any applicable State or federal laws or regulations governing clean–fuel vehicle or electric vehicle purchases applicable during the calendar year in which the vehicle is titled. The Motor Vehicle Administration shall administer the credit under this section.

If the Administration determines that an overpayment has been made under this subtitle, the Administration may submit the overpayment and the supporting information, whether accompanied by a written claim or not, to the State Comptroller for refund to the person entitled to it. The Administration may refund the full or any portion of the excise taxes paid by a consumer for a motor vehicle, if the dealer, manufacturer, factory branch, or distributor, by voluntary agreement or subject to the provisions of § 14-1502 of the Commercial Law Article, refunds the full or any portion of the purchase price or accepts return of the motor vehicle.

In this section the following words have the meanings indicated. “Fuel economy” has the meaning stated in § 4064 of the Internal Revenue Code as determined and adjusted by the U.S. Environmental Protection Agency to account for the difference between controlled laboratory conditions and actual road driving. “Model type” and “model year” have the meaning stated in § 4064 of the Internal Revenue Code. “Passenger car” means a motor vehicle that may be registered as a Class A (passenger) vehicle or registered under § 13–937 of this title as a Class M (multipurpose) vehicle. In conjunction with the tax imposed under § 13–809 of this subtitle, a fuel efficiency surcharge or fuel efficiency credit shall be imposed under this section based on the fuel economy rating of the model type of the passenger car. Subject to paragraph (2) of this subsection, for new or used passenger cars with a model year of 1993 or 1994, a fuel efficiency surcharge of $100 shall be imposed on all such passenger cars that have a fuel economy rating that is less than 21 miles per gallon. This subparagraph does not apply to a passenger car registered under § 13–616 of this title. Subject to paragraph (2) of this subsection, for new or used passenger cars with a model year of 1995 or thereafter, a fuel efficiency surcharge shall be imposed on all such passenger cars that have a fuel economy rating that is less than 27 miles per gallon. The fuel efficiency surcharge shall be an amount equal to the product of multiplying: $50; and The nearest whole number of miles per gallon that the fuel economy rating of the model type of the automobile is less than 27 miles per gallon. The surcharge imposed under paragraph (1) of this subsection may not exceed an amount equal to 1% of the total purchase price of the passenger car as defined in § 13–809 of this subtitle. Subject to paragraph (4) of this subsection, for new or used passenger cars with a model year of 1993 or 1994, a fuel efficiency credit of $50 shall be granted for all passenger cars that have a fuel economy rating that is greater than 35 miles per gallon. Subject to paragraph (4) of this subsection, for new or used passenger cars with a model year of 1995 and thereafter, a fuel efficiency credit shall be granted for all passenger cars that have a fuel economy rating that is greater than 35 miles per gallon. The fuel efficiency credit shall be an amount equal to the product of multiplying: $50; and The nearest whole number of miles per gallon that the fuel economy rating of the model type of the automobile is greater than 35 miles per gallon. The credit granted under paragraph (3) of this subsection may not exceed an amount equal to 1% of the total purchase price of the passenger car as defined in § 13–809 of this subtitle. The proceeds collected under this section shall be deposited in the Transportation Trust Fund and, to the extent not required by any lawful pledge, covenant, dedication, or commitment for the annual debt service on bonds referred to in § 3–216(e) of this article, shall be disbursed in accordance with this section. The proceeds collected from the fuel efficiency surcharge imposed under this section shall be used to fund the fuel efficiency credits granted under this section. All remaining funds shall be used solely for transit purposes. A motor vehicle dealer shall prominently display on a vehicle offered for sale a notice on a form prescribed by the Administration to inform consumers of the fuel efficiency surcharge and fuel efficiency credit program. The notice shall state the provisions of this section applicable to the vehicle and shall be in substantially the following form: “For this vehicle, the fuel economy rating is __________. The fuel efficiency surcharge is __________ or the fuel efficiency credit is __________. A fuel efficiency surcharge or fuel efficiency credit is required to be applied to purchases of certain passenger cars based on the fuel economy rating of the motor vehicle. The fuel economy rating is determined by a weighted average of the urban and the highway mileage ratings as determined by the Environmental Protection Agency and published in the Environmental Protection Agency’s Gas Mileage Guide. A fuel efficiency surcharge shall be applied to all passenger cars with a fuel economy rating of less than _____ miles per gallon. The surcharge is __________ (as provided in § 13–818 of the Transportation Article). A fuel efficiency credit shall be applied to all passenger cars with a fuel economy rating of more than __________ miles per gallon. The credit is _____ (as provided in § 13–818 of the Transportation Article). The credit or surcharge on any vehicle may not be greater than an amount equal to 1% of the total purchase price of the vehicle.” The Administration may adopt regulations to implement and operate the fuel efficiency surcharge and credit program under this section. Revenue generated under this section is not subject to the distribution provisions of Title 8, Subtitle 4 of this article.