BALTIMORE — Maryland drivers using Virginia tags to save on registration are receiving MVA notices to register in-state or face penalties, as a new proposal in the General Assembly aims to crack down further.
The loophole has existed for years, allowing Maryland drivers to pay around $35 a year for registration in Virginia compared to about $125 in Maryland. The MVA says more than 73,000 vehicles are currently doing this.
"This loophole has real consequences. First on the fiscal side, Maryland loses up to $12 million annually in registration revenue to support the Transportation Trust Fund, funds critically needed for road maintenance and safety programs," Baltimore City Police Lieutenant Colonel Derek Loeffler said during a recent bill hearing.
Officials say the issue goes beyond lost revenue. In Baltimore City, drivers with Virginia tags were involved in 47% of non-fatal crashes and 10% of fatal crashes between 2023 and 2024. These drivers also tend to have more unpaid tickets, with 81% having outstanding parking violations compared to 23% of vehicles with Maryland tags.
"This problem is continuing to exist in Baltimore City and across the state and we’ve actually seen an increase in the issue overall," said Nina Themelis, director of the Baltimore City Mayor's Office of Government Relations.
In January, the state sent warning letters to 58,000 drivers, giving them 30 days to register in Maryland or face enforcement.
Christopher Sherman is a Maryland resident who received a notice for two cars he has registered in Virginia. He keeps the vehicles at his mother's home in Virginia, only drives them when he visits, and plans to eventually move back.
"So basically they’re just sitting," Christopher Sherman said.
"Every time they get inspected, they have less than, they travel less than 300 miles a year. So they just basically sit there. I just keep them because they're my dad's cars," Sherman said.
Despite explaining the sentimental and historic value of the cars to the MVA, Sherman was told he must register them in Maryland or transfer ownership.
"Actually where I live there's a couple of people that have Virginia plates, and I know they live here in Maryland, so I understand, I understand where you're coming from with that. So I have nothing against the policy whatsoever, but I think they should make some type of exceptions," Sherman said.
Currently, state law requires Maryland residents to title and register their vehicles with the MVA within 60 days of moving to the state, with certain exceptions, including students and active-duty military personnel. Drivers with those exceptions should obtain and display non-resident permits issued by the MVA.
Lawmakers are looking to go even further to close the loophole. Senate Bill 111/House Bill 212 would require drivers with out-of-state tags to register in Maryland within 60 days or face daily fines and possible civil action.
The MVA can issue fines up to $500 for improper registration and relies on local police to help enforce the rules. Last year, Baltimore Police issued nearly 11,000 citations to Maryland drivers with Virginia tags.
The MVA anticipates sending out more letter campaigns to educate drivers about registration requirements and says it will work with customers individually to address questions about specific circumstances. Information on the state's registration requirements and current exceptions can be found here.
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