Legislative Update, Not Just for Maryland Dealers

Until the specific language was removed late on Friday, March 21st, the Maryland Budget Reconciliation and Financing Act of 2025 (MD HB 352/SB 321) threatened our very way of life… and almost no one knew about it.

Buried under the “Transportation Revenues” section on page 7 of 69 was a little-noticed line:

“Trade-in Allowance: Disallows, beginning June 1, 2025, the trade-in allowance under the vehicle excise tax if the purchase price of the vehicle exceeds $15,000.”

In 2024, the average sale price of pre-owned vehicles in Maryland was $15,715, according to the MD DOT Open Data Portal (updated 2/11/2025). If this crucial fact had not been caught by our Maryland lobbyist, John Fiastro, Jr., consumers would have lost their incentive to trade in vehicles.

No biggie, right?
Wrong. Very, very WRONG.

If consumers decide to skip trading in their vehicles (since there’s no tax credit involved), questions arise:

1. How many of the more than 100,000 vehicles that pass through just one auction each year would still be available?
2. How many MidAtlantic IADA dealers would miss the chance to bid on those clean, Maryland vehicles?
3. How many of those vehicles would not end up on your lots?
4. How would this impact inventory and sales at one of our favorite auctions, like Bel Air?

This emphasizes the importance for dealers to stay informed about local, state, and federal laws. Your local MidAtlantic IADA is your best resource.

The strength of our advocacy relies on the strength of our membership… that’s YOU! We need you to spread the word so that we can do the same. The more members we have, the more legislators take us seriously – and the more we are able to effect positive change on YOUR behalf in Delaware, Maryland and Pennsylvania.

*Through July 1st, 2025, any member referring five (5) new members to the Association will have their next year’s membership fee WAIVED!*

Stop by our table at Bel Air Auto Auction’s 78th Anniversary Sale on Thursday, April 10th. We’ll be happy to share more about MidAtlantic IADA membership, our experience with the Maryland House and Senate, and the other laws and policies that can affect you in very real ways.