Maryland Law Extends Trade-In Tax Credit To Automotive Leases
Marylanders who choose to lease, rather than purchase, a car may now receive a tax credit for the value of their trade in vehicle, under a law signed by Governor O"Malley and supported by the Maryland Automobile Dealers Association.
Annapolis, MD, June 03, 2008 --(PR.com)-- Maryland consumers who lease their cars can now enjoy a tax credit on their trade-in vehicles, under legislation signed into law recently by Governor Martin O’Malley and supported by the Maryland Automobile Dealers Association (MADA).
MADA president Peter Kitzmiller welcomed the news as good for consumers, as well as auto dealers: “We appreciate the efforts of the Governor and Legislature to create fairness and clarity for Maryland consumers. By treating leases the same as purchases for the purpose of the trade-in tax credit, car buyers will have greater leeway to pick the financing option that best meets their needs.”
During the 2007 special session of the Maryland General Assembly, MADA successfully lobbied lawmakers to exempt the value of a vehicle trade-in when calculating the sales tax on a car or truck purchase. During the first few months of implementing the law questions remained as to its applicability to vehicle lease transactions, which constitute a small but growing segment of the market.
The new law is retroactive back to January 1, 2008, meaning any customer that was charged the full tax liability despite possessing a trade-in vehicle may be eligible for a refund. Consumers who are entitled to a refund must contact their automotive dealer, who will apply to the Motor Vehicle Administration for the credit.
About the Maryland Automobile Dealers Association
Maryland Automobile Dealers Association (MADA) is a statewide association of 340 franchised new car and truck dealers managed by a Board of Directors, which consists of members representing districts throughout the State. MADA was founded in 1910 as a non-profit trade association for the purpose of: "facilitating the exchange of ideas among its members; to encourage sound business policies; to foster constructive motor vehicle legislation; to discourage destructive motor vehicle legislation, and to promote confidence, respect and good fellowship among all who are directly or indirectly engaged in the motor vehicle industry." For more information visit MADA online at www.mdauto.org.
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MADA president Peter Kitzmiller welcomed the news as good for consumers, as well as auto dealers: “We appreciate the efforts of the Governor and Legislature to create fairness and clarity for Maryland consumers. By treating leases the same as purchases for the purpose of the trade-in tax credit, car buyers will have greater leeway to pick the financing option that best meets their needs.”
During the 2007 special session of the Maryland General Assembly, MADA successfully lobbied lawmakers to exempt the value of a vehicle trade-in when calculating the sales tax on a car or truck purchase. During the first few months of implementing the law questions remained as to its applicability to vehicle lease transactions, which constitute a small but growing segment of the market.
The new law is retroactive back to January 1, 2008, meaning any customer that was charged the full tax liability despite possessing a trade-in vehicle may be eligible for a refund. Consumers who are entitled to a refund must contact their automotive dealer, who will apply to the Motor Vehicle Administration for the credit.
About the Maryland Automobile Dealers Association
Maryland Automobile Dealers Association (MADA) is a statewide association of 340 franchised new car and truck dealers managed by a Board of Directors, which consists of members representing districts throughout the State. MADA was founded in 1910 as a non-profit trade association for the purpose of: "facilitating the exchange of ideas among its members; to encourage sound business policies; to foster constructive motor vehicle legislation; to discourage destructive motor vehicle legislation, and to promote confidence, respect and good fellowship among all who are directly or indirectly engaged in the motor vehicle industry." For more information visit MADA online at www.mdauto.org.
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Contact
Maryland Automobile Dealers Association
Nancy Carr
410-971-0668
mdauto.org
Katie Jones
410-269-1710
Nancy Carr
410-971-0668
mdauto.org
Katie Jones
410-269-1710
Contact
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