Regulation .06 Applying the Trade-in Allowance.
Regulation .06 Applying the Trade-in Allowance.LinkCopy Citation
A.
When applying a trade-in allowance to the certified selling price to determine the taxable price of the vehicle purchased, the dealer shall complete one of the following forms:
(1)
Application for Certificate of Title (VR-5);
(2)
Maryland Dealers Reassignment (VR-182);
(3)
Dealers Reassignment on the reverse side of the Maryland Certificate of Title (VR-2);
(4)
The Dealer's or Auto Wreckers Re-Assignment on the reverse side of the Maryland Salvage Certificate (VR-108); or
(5)
The Dealer's Reassignment on the reverse side of the Maryland Notice of Security Interest Filing (VR-2), if the dealer is selling a repossessed vehicle.
B.
When applying a trade-in allowance, a dealer shall:
(1)
Complete the Maryland Dealer's Certification portion of the application for title; or
(2)
Provide an original bill of sale showing the certified selling price and amount of the trade-in allowance.
C.
The dealer shall determine and enter on the Maryland Dealer's Certification portion of the application for title:
(1)
The certified selling price;
(2)
The trade-in allowance;
(3)
The taxable price of the vehicle by deducting the amount of the trade-in allowance from the certified selling price;
(4)
The gross tax remitted by calculating the applicable excise tax rate times the taxable price; and
(5)
For licensed Maryland dealers, the net tax remitted by:
(a)
Multiplying 0.6 percent times the gross tax remitted up to $12; and
(b)
Subtracting the result from the gross tax collected.
D.
When the trade-in allowance is equal to, or higher than, the total purchase price, the excise tax shall be $0.
E.
When the excise tax is exempt under Transportation Article, §13-810, Annotated Code of Maryland, or calculated as $0 as set forth in §D of this regulation, no additional allowance or refund shall be given to the purchaser of the vehicle.
F.
When a certificate of title or a dealer reassignment is submitted without the required Maryland Dealer's Certification showing the trade-in allowance information on the form, a dealer shall submit with the certificate of title or a dealer reassignment:
(1)
A completed Application for Certificate of Title (VR-5) containing the required certification; or
(2)
An original bill of sale showing the:
(a)
Purchase price and the amount of trade-in allowance;
(b)
Vehicle identification number of the trade-in vehicle; and
(c)
State in which the trade-in vehicle was last titled.