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Maryland Taxes Rental Motorcycles


 Dream of renting a motorcycle? Remember to figure in sales tax in Maryland.

Ever rent a motorcycle? It’s fun, if a bit daunting for neophytes. And in Maryland, it’s now also taxable.

Maryland lawmakers have decided that certain motorcycles should be included “in the definition of ‘short-term vehicle rental’ for purposes of determining the sales and use tax rate….”

HB 523, which was approved by Governor Martin O’Malley (D) on May 16, 2013, adds “motorcycle” to its list of taxable short-term vehicle rentals. Under the bill, motorcycles rented “for a taxable price of $2 or more” must be taxed at the rate of … 23 cents for each exact multiple of $2.”

The “part of $2 in excess of an exact multiple of $2” is taxed at a rate of:

  • 1 cent if the excess over an exact multiple of $2 is between 1 cent and 9 cents;
  • 2 cents if the excess over an exact multiple of $2 is between 9 cents and 18 cents;
  • 3 cents if the excess over an exact multiple of $2 is between 18 cents and 27 cents; and so on until we get to
  • 23 cents if the excess over an exact multiple of $2 is at least $1.92 but less than $2.00.

Really?

Really.

Anyone interested in learning the complete breakdown should peruse Maryland HB 523.

Automation is easier. Really.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.