MARYLAND - A growing number of Maryland residents are registering their vehicles in Virginia to take advantage of lower fees — an illegal loophole that officials say is potentially costing Maryland millions in lost revenue.
Virginia law allows non-residents to register vehicles in the state, and according to a report from the Maryland Department of Transportation, more than 111,000 Virginia vehicle owners or co-owners have a listed Maryland addresses. The report estimates Maryland loses between around $8 million and $12 million annually in registration fees alone due to the practice.
Jim Nock, an insurance agent with Farmers Insurance in Salisbury, said the trend has been building for some time.
“It started a year or so ago — a lot of people going down to Virginia, getting Virginia tags so they could avoid Maryland sales taxes and Maryland tag fees because they were more expensive than Virginia,” Nock said.
Nock added that Maryland has begun enforcing the law more aggressively.
“Maryland decided to crack down on that, and they are pulling people over that have Virginia tags and checking their addresses,” he said. “And if they're in Maryland, they confiscate the tag and require them to go get Maryland plates and pay Maryland tax.”
Worcester County Sheriff Matt Crisafulli said his department encounters the issue regularly, especially among people who own property in both states.
“The law looks at it as what is your primary domicile? Where do you send your kids to school? Where are you registered and where do you vote? Where do you park your vehicle?” Crisafulli said.
While registering in Virginia might seem like a quick way to save money, Crisafulli warned that it can come at a price.
“You have 60 days to register your vehicle in the state of Maryland if you're moving from another state,” he said. “Failure to do so can result in fines that can lead up to potentially $500 from failing to register your vehicle in our state.”