On October 1, 2018, Maryland house bill 1065 will take effect and alter many aspects of being a title service agent in the state. One of these changes will affect the bond amount an agent must obtain. A title service agent must now submit a surety bond in the amount of $50,000. This is an increase from the previous amount of $25,000.
Once an individual applies for a title service agent license, they will be notified whether or not they are approved. Once approval is received, the applicant must file a surety bond worth $50,000 issued by a surety approved by the Motor Vehicle Administration.
Additional Changes Under House Bill 1065
Aside from changes to bond requirements, other aspects of being a title service agent are changing, especially pertaining to the requirements for documenting sales. Also, the changes help to clarify how the process should be done.
The amount that an agent may collect as a fee or tax per vehicle has been limited to $12 or 6% of the gross excise tax collected.
Records must now be kept documenting the amount of tax collected by an agent on each taxable sale. Also, all bills of sale, invoices, and other similar papers must be kept as copies for at least three years, unless the Administration says otherwise in writing. These records must be kept accessible to the viewing of any representatives from the Administration. Also, police officers may view the records should they request to see them.
If these files are found to be either inadequate or wrong, the Administration will evaluate and calculate the taxable sales. Once this is done, the Administration will inform the agent of the amount due. Then, if the agent fails to pay this within 10 days, the Administration may issue a charge. This charge will be equal to 25% of the original amount.
Need to increase your title service agent bond?
If you currently have a $25,000 title service agent bond or you are looking to become a title service agent in Maryland, the experts at SuretyBonds.com are here to help. Give us a call at 1 (800) 308-4358 to get answers to all your questions, as well as a free, no obligation quote on the surety bond you need.