MD DMV Vehicle Registration and Title 3

Question 1

What excise tax rate does Maryland charge when titling a vehicle?

Accepted Answer

6% of the vehicle's value

Answer

Maryland charges a 6% excise tax based on the vehicle's value or purchase price when it is titled.

Question 2

If there is a loan on a Maryland vehicle, what appears on the title record?

Accepted Answer

A lien recorded in favor of the lender

Answer

When a vehicle is financed, the lender's lien is recorded on the title until the loan is satisfied.

Question 3

What must you do with your Maryland license plates when you cancel your insurance and stop driving the vehicle?

Accepted Answer

Return the plates to the MVA

Answer

Plates must be returned to the MVA before canceling insurance to avoid fines and suspension.

Question 4

What can happen if you cancel your vehicle insurance in Maryland without returning your plates?

Accepted Answer

You face uninsured motorist penalty fees and possible registration suspension

Answer

Maryland assesses uninsured motorist penalties and may suspend the registration when insurance lapses on plated vehicles.

Question 5

A Maryland resident buys a car from a dealer. Who typically submits the title and registration paperwork?

Accepted Answer

The dealer, as a licensed titling agent

Answer

Licensed Maryland dealers usually process the title and registration paperwork on the buyer's behalf.

(MD DMV) Maryland Department of Motor Vehicle Practice Test