Some of those who are selling or buying vehicles in the state of Maryland need a Maryland bill of sale form to make the transaction. The motor vehicle bill of sale is a critical component of auto sales transactions in many U.S. states. It helps to show the state how much the vehicle was sold for in order to accommodate auto sales tax. It also helps to establish other aspects of the transaction and provides some data on the vehicle condition and identities involved, even if some of it is redundant.
Getting a Maryland Bill of Sale Form
Individuals can print bill of sale forms supplied by the Maryland state government from the Maryland DMV web page. The official form is known as a VR-181. This form is useful as a formal part of an auto sale that may or may not need to be notarized for the transaction.
What’s On the Maryland Bill of Sale
The Maryland bill of sale or VR-181 provides the year, make, model and VIN number for the vehicle, as well as the body style, at the top of the form. There’s also a section for an odometer reading to accurately record the mileage on the vehicle at the time of sale. The vehicle mileage will also be recorded on the title of the vehicle when the buyer transfers the title to his or her ownership.
The Maryland bill of sale form also includes the signatures and identities of the seller and of the buyer, as well as the date of the transaction. An additional space at the bottom of the form provides for additional formal representation for the buyer and the seller in a notary process.
When You Need a Maryland Bill of Sale
The state of Maryland requires a bill of sale form for vehicles that are seven years old or newer, and where the sale price is below blue book value for the vehicle. States look at sale prices for used vehicles in comparison to established Blue Book values to make sure that the buyer is paying sales tax on the full value of the vehicle as it is sold. Blue Book values used are those of the National Automotive Dealers Association or NADA. For these newer vehicles, the state will levy an excise tax of 6% according to the sales or blue book price.
Filling Out the Maryland Bill of Sale Form
Buyers and sellers can be aware that the notarization requirement applies to vehicles newer than seven years old. This makes a difference in how the form is filled out. For older cars not subject to notarization, some parts of the form may be irrelevant.
Using the Maryland Bill of Sale Form
The buyer should bring the bill of sale form with them to the Maryland state DMV as part of registering the vehicle. This form, along with the title, proof of insurance and other necessary documents will make the process for getting behind the wheel easier.