A Maryland dealer resale title is a Maryland Certificate of Title that lists the dealer as the vehicle owner. It is issued only to a licensed vehicle dealer so that the dealer has a title to give to the customer when reselling the vehicle. In many cases, a used car obtained by a dealer comes with a title on which both Dealer's Reassignment sections have already been used.
The dealer resale title transaction is tax-exempt in the following situations:
- The vehicle is registered in a jurisdiction whose laws do not require titling; or,
- The vehicle is involuntarily transferred to a licensed dealer and the certificate of title is not available (i.e., repossession, court order, etc.); or,
- The vehicle is salvaged but has been restored by the licensed dealer and inspected in accordance with State law; or,
- The vehicle is acquired for resale and the dealer reassignment sections contained on the certificate of title have been used.
In all other situations, the dealer must pay excise tax!
How can my dealership obtain a Maryland dealer resale title?
You may apply in person at any of the MVA's full service branch offices, by mail to the MVA's Repossession/Resale Unit, or through an MVA licensed tag and title service. If you visit the Glen Burnie branch office, you should go to the dealer window.
Typically, the documents needed include:
- Proof of ownership - You can submit the vehicle's current title, which has been properly assigned to you. If the title is not available, you can submit as proof of ownership, a Maryland Security Interest Filing (SIF), a court order, proof that you have a mechanic's lien, a certificate of repossession, or a Certificate to Obtain a Title (US government form).
- Application form - If the vehicle's current title was issued in Maryland, use it as your application form by completing the section entitled Application for Title and Registration. If not, use the
Application for Certificate of Title.
- Odometer disclosure statement - If the vehicle has a Maryland title, the odometer reading can be recorded and attested to in the section entitled Assignment of Ownership. You can also submit the MVA's Odometer Disclosure Statement.
Under certain circumstances, additional information and/or forms may be required:
- Lien release - If the existing title indicates that a lien was placed against it, you must submit a lien release. For a vehicle that was titled in Maryland, this could be a properly completed and signed Maryland Security Interest Filing (SIF) or a signed letter from the lien holder specifically identifying the vehicle and stating that the lien has been released. If the vehicle is currently titled in another state, you may submit a signed letter of release from the lien holder or you may have the lien holder sign the title indicating that the lien has been released.
- Power of attorney - If someone other than the owner or officer of the dealership is signing the title application forms, this document is required.
- Certificate of Repossession - This form must be submitted by the repossessing lien holder for securing a repossessed certificate of title, or for conveyance of the ownership of a repossessed vehicle on a certificate of title.
The dealer resale title will be mailed to you unless the dealership is acting as a lien holder and the vehicle was repossessed. Repossession titles will be printed and issued the same day.
Do I need to pay excise tax if there is an error on the title and I have a letter of correction from the MVA?
Yes, unless the error on the title that is assigned to you was made by the MVA, you must pay excise tax when applying for a dealer resale title.
Note: On July 1, 2015 all businesses wishing to title a vehicle will be required to show proof of the legal existence of the business. The business will be given a number with a "Z" to identify it.
Fees:
- See title fee and excise tax for fee information.
- There is no excise tax charged in the following situations:
- The vehicle is registered in a jurisdiction whose laws do not require titling; or,
- The vehicle is involuntarily transferred to a licensed dealer and the certificate of title is not available (i.e., repossession, court order, mechanic's lien, etc); or,
- The vehicle is salvaged but has been restored by the licensed dealer and inspected in accordance with State law; or,
- The vehicle is acquired for resale and the dealer reassignment sections contained on the certificate of title have been used.
Contact Information:
MVA
Repossession/Resale Unit
6601 Ritchie Highway, N.E.
Glen Burnie, MD 21062
For Telephone Questions:
MVA Customer Service Center: 1-410-768-7000
TTY/Hearing Impaired: 1-301-729-4563
