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Maryland Sales Tax Exemption

Discussion in 'Gen 2 Prius Main Forum' started by XravenX, Apr 6, 2004.

  1. XravenX

    XravenX New Member

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    Since Maryland is trying to encourage people to reduce gas consumption and promote the enviroment they allow for a Prius to qualify for no Sales Tax.

    Has anyone benifited from this exemption? If so how did it work? Do you have to fill out forms or is it automatic? Also, does it work if I by the vehical out-of-state and move it to MD?

    It would be registered in MD.

    Danke!
     
  2. Danny

    Danny Admin/Founder
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    Sales tax laws are in effect for wherever the product (car) is going to be based (registered). So in your case you could buy the car in Idaho and not have to pay sales tax until you register it in your home state. And for you, since you're in MD, there is no sales tax, so you'd owe zippola except for property tax (I'm guessing, depends on locality I guess).

    There are quite a few MD owners here that can answer your other questions better.
     
  3. KathyY

    KathyY Member

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    We bought both our '02 and '04 here in Maryland. At the closing they just don't enter any sales tax on that line. At our dealer (Toyota of Glen Burnie) we walked out with real (not temporary) plates on the car. With the '02 it took him several tries to get the MVA computer to accept no tax but he got it done. Anyway, there was nothing for me to do. I would think that if you buy out of state it would be the same since the tax issue isn't until you register the vehicle.
     
  4. Raenstoirm

    Raenstoirm New Member

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    Hopefull I will be benefiting from that this month. Since I havent done it, I cant help ya! :roll:
     
  5. CHART

    CHART Member

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    I bought my car in WV but registered it in Maryland where I live. It took some talking to the MVA lady plus my wife showed her some printouts from the Maryland Enegery Administration explaining that state waives up to $1,500 in taxes if you buy a hybrid so the $1,300 that I would have owed on my $26,000 Prius made it look like it was tax free. She eventually hooked us up, and we skated, tax free!

    The link from the MEA is http://www.energy.state.md.us/programs/res...nincentives.htm (plus a nice picture of smilin' Bob!)

    Rick
    04 Salsa Red BC
    Mount Airy, Maryland
     
  6. newprius2004

    newprius2004 New Member

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    We own two Hybrids...one 2004 Prius purchased in Virginia and a 2004 Honda Civic purchased in Maryland. Dealers in Maryland are aware that the 5% Titling Tax is not applicable to Hybrid vehicles. I had to educate the Virginia dealer prior to submitting the proper paperwork to the DMV. We need all the help we can get living in this VERY high tax state.
    (The 5% tax is the same percentage as the sales tax; however it is appropriately called a titling tax not a sales tax)
     
  7. 8AA

    8AA Active Member

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    While there is a bill to extend the excise tax exemption ( http://mlis.state.md.us/2004rs/billfile/hb0821.htm ), it does not look like it's going to be passed. Therefore, you have until 30 June 2004 to get your car titled in Maryland, otherwise you will be paying the sales tax.