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Justice Department accuses Maryland DOT of double taxing military families

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BALTIMORE, Md. — The Justice Department has issued a letter urging the Maryland Department of Transportation to stop its efforts to collect nonresident vehicle permit fees from servicemembers and their spouses, which the Justice Department says violates the Servicemembers Civil Relief Act and left military families "effectively tax twice."

According to the Justice Department, Maryland's current policy requires military families across the state to register their vehicles in both their home state and in Maryland under a nonresident vehicle permit.

“Relocation for military service is already a costly endeavor,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “If a vehicle belonging to a servicemember or their spouse is registered in their home state, then that family has already paid their fair share. They should not also be required to pay additional taxes or fees in each state that they move to in compliance with military orders.”

The Department is asking that Maryland exempt both servicemembers and their spouses from the Motor Vehicle Administration's nonresident vehicle permit fees, refund the already collected funds, and update their policies so the charges don't return in the future.

Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil

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