I am getting ready to register and get my sticker for my Buddy 50 that I bought in Maryland (where I live). I paid the MD 6% Sales tax at the dealer and have been informed that I may still owe an Excise Tax when I register? According to the MVA website it seems that if I show I paid the Sales tax I should be off the hook on the Excise Tax. Anyone have any insight on this?
Thanks in advance.
Excise Tax in Maryland
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tomster
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viney266
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thumper650
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Not sure about MD, but here in MA, sales tax and excise tax are completely separate.
Sales tax is paid at the time of sale, or when you register it. Excise tax is charged by the city/town you register the car/motorcycle in annually, based on value. Here it never goes down below 10% of the original price when new.
It's usually not that expensive.
Under 50cc's like your Buddy and don't pay excise, since they're considered a "moped" here.
I think the confusion is that you would have to pay the sales tax at the DMV, but you already paid it at the dealer. Make sure you have proof so you don't pay twice.
Sales tax is paid at the time of sale, or when you register it. Excise tax is charged by the city/town you register the car/motorcycle in annually, based on value. Here it never goes down below 10% of the original price when new.
It's usually not that expensive.
Under 50cc's like your Buddy and don't pay excise, since they're considered a "moped" here.
I think the confusion is that you would have to pay the sales tax at the DMV, but you already paid it at the dealer. Make sure you have proof so you don't pay twice.