In a move set to impact vehicle owners across Maryland, House Bill 352, known as the Budget Reconciliation and Financing Act (BRFA) of 2025, introduces several significant changes to vehicle registration fees, excise taxes, and eligibility requirements for historic vehicles. Effective July 1, 2025, these adjustments are designed to streamline fiscal operations and ensure equitable cost recovery for the Maryland Motor Vehicle Administration (MVA).
Key Changes Under HB 352 can be seen below:
Vehicle Registration Fees: The bill revises registration fees for various vehicle classes. Notably, owners of Class A and M vehicles weighing over 3,700 pounds and Class E trucks weighing over 5,000 pounds will see adjusted rates. Additionally, rental vehicles across Classes A, D, E, F, G, and M will be subject to new fee structures. These updates reflect the state’s efforts to align registration costs more closely with vehicle weight and usage.
Historic Vehicle Definition: Significant changes are also made to the classification of historic vehicles. Previously defined as vehicles at least 20 years old, the new definition now includes only those from the model year 1999 or older. Consequently, vehicles from model years 2000 to 2005, previously classified as historic, must switch to standard registration. These vehicles will also need to comply with Vehicle Emissions Inspection Program (VEIP) requirements and may require a safety inspection if no current record exists.
Excise Tax Adjustments: The excise tax percentage for rental vehicles is set at 3.5%, whereas non-rental vehicles will see their rate adjusted to 6.5%. The minimum excise tax remains based on a $640 purchase price. For transactions finalized in June 2025, non-rental vehicles will incur a 6.0% tax, while rental vehicles remain exempt. However, starting July 2025, the new rates will apply.
Certificate of Title Fees: The fees for obtaining a certificate of title are also revised. The cost for most vehicles increases to $200, while rental vehicles are set at $100. Off-highway recreational vehicles will incur a $70 fee, motor scooters and mopeds at $40, and trailers weighing under 3,000 pounds transferred to eligible family members at no cost will be $100.
Implementation and Compliance: The MVA will implement these changes starting July 1, 2025. Registration fees will correspond to the vehicle’s registration month. For new registrations, vehicles acquired in July will attract the adjusted fees. Similarly, renewal registrations will be subject to the new rates if they expire after July 2025.
For ERT vendors, the transition is seamless, as the MVA’s system updates will automatically incorporate the new fees into each transaction. With these changes looming, vehicle owners and stakeholders are encouraged to familiarize themselves with the new requirements. The MVA has made resources available, including virtual town hall recordings, to help the public understand and adapt to these updates.
For more detailed fee structures and additional information, visit the MVA’s official bulletin regarding the updates here.