If you have recently registered a car in Maryland or are running a business and wondering whether vehicle ownership results in a personal property tax, you are not alone. It is a very common area of confusion—yet the answer is actually very simple.
It should be noted that Maryland does not charge a vehicle property tax in the way some other states might. It is true that you may need to pay taxes related to your vehicle. However, these are not classified as part of the Maryland personal property tax system.
Instead of property tax, Maryland simply imposes a one-time excise tax once a vehicle is titled. Such taxation is handled by the Maryland Motor Vehicle Administration (MVA), not the Department of Assessments and Taxation.
Responsibilities can be outlined as below:
These fees are part of owning or transferring a vehicle—not related to business asset taxation.
Even if the vehicle is leveraged for business purposes, it is not included in the Maryland SDAT personal property return. This return only covers tangible personal property as presented below:
The business personal property tax Maryland enforces specifically excludes vehicles—whether leased or purchased as well as company-owned.
If you are worried about vehicle tax in Maryland influencing the annual Maryland business tax filing, you can rest easy. It should be recognized that the vehicle-related fees are separate and collected by the MVA. Businesses still should manage their SDAT obligations—but cars and trucks or motorcycles don’t belong on that form.
If you are still unsure, contact Watter CPA today for professional aid.
