MARYLAND — An increasing number of Maryland residents are registering their vehicles in Virginia to bypass higher registration fees and sales taxes, creating a loophole that could cost Maryland millions each year. Virginia law allows non-residents to register vehicles there. A recent report from the Maryland Department of Transportation found that over 111,000 Virginia-registered vehicles have Maryland addresses.
The state estimates this practice results in an annual loss of $8 million to $12 million in registration fees. Worcester County Sheriff Matt Crisafulli said enforcement focuses on determining a driver’s primary residence based on factors such as school enrollment, voter registration, and where vehicles are kept. Maryland requires residents to register vehicles within 60 days of moving into the state, with penalties for noncompliance reaching up to $500 in fines.
