House approves change to vehicle transfer rules; lawmakers debate tax effects on family gifts and notarized sales

Annapolis, March 19, 2026 — Lawmakers voted to approve a measure removing the notarized bill‑of‑sale requirement for used vehicle transfers and shifting excise‑tax valuation to a digital appraisal standard, prompting questions on tax liabilities for family gifts.

Opponents warned that eliminating the notarized bill of sale could allow the Motor Vehicle Administration (MVA) to set the taxable value of a vehicle without regard to a buyer‑seller statement. The minority leader said a notarized sale allowed purchasers to show the actual transaction price for excise‑tax calculation; without it, the MVA will rely on a valuation database.

Committee leaders and the bill sponsor described the change as a modernization requested by the MVA, not a new tax increase. The chair of the committee said the bill ‘‘does not change who has to pay the tax,’’ but it does change how the tax base is calculated (moving to an MVA valuation rather than a notarized bill of sale). Officials noted an existing administrative appeal process for valuation disputes.

Delegates asked whether family gifts would be subject to excise tax; the chair reiterated that current gift exemptions and procedures remain in place and that this bill changes the valuation method, not who pays the tax. Members also discussed enforcement and fraud concerns.

The House recorded roll‑call votes for the broader Senate third‑reading calendar during the session; Senate Bill 125 (repeal of notarized bill of sale) was debated on the floor and later recorded as passed on the roll call.

What happens next: With passage as recorded on the floor, the bill proceeds through enrollment and any cross‑chamber or executive steps required by session rules.