In This Issue
- Some In-Person DMV Services Resume Around the Region
- Masks Required in the D.C. Area as Region Begins to Re-Open
- Reminder: Md. Excise Tax Vendor Discount for Dealers Has Expired
- Franchised Dealer in N.Y. Pays $1.5M to Settle Anti-Discrimination Suit
|
|
 |
The motor vehicle departments in D.C., Maryland, and Virginia have expanded their in-person services across the Washington region, following the introduction of first-phase re-opening plans.
There will not be a resumption in dealer walk-in services, and dealers are encouraged to continue availing themselves of the
DC DMV's online services
where possible. Please review
the DMV's latest update
for more information about best practices for getting dealer transactions processed in an expedited a fashion as possible.
In Virginia, the commonwealth has re-opened several DMV locations in Northern Virginia for in-person services on a by-appointment basis. Those locations include centers in Leesburg, Alexandria, Tysons Corner, and Manassas. You can view the full list of open locations, and their hours of operations,
at this link
.
Read More
|
|
|
|
|
|
|
As of Monday, every county in the D.C. region has moved to some type of a “stage one” reopening, though the provisions vary by locality, as do the impacts to various businesses.
In Maryland, every county in the state besides Montgomery, Prince George’s, and Baltimore City, has now implemented Gov. Larry Hogan’s
“stage one” order
as it was
written on May 15
, according to the state’s
re-opening status
page. On Monday,
Anne Arundel
, and Howard counties fully implemented stage one, which allows retailers to operate at 50 percent of their maximum capacity. Charles and
Frederick
counties moved to stage one last Friday.
On Monday, Montgomery and Prince George’s counties did allow some resumption of previously-shuttered businesses, including curbside-facing retailers, manufacturing, non-essential medical procedures, and outside dining. As of now, the previously-existing mandates on patron capacity for indoor retailers that Maryland has deemed essential (including car dealerships and service areas) do remain in effect.
You can view Montgomery County’s guidelines for phase one on their
Reopening Montgomery website
. Prince George’s County published an outline of their modified stage one in County Executive Angela Alsobrooks’
latest newsletter
.
Across the region, one consistent requirement is a mandate patrons and employees of all businesses to wear cloth face coverings while patronizing indoor retailers, or, at minimum, while working in a public-facing setting. Masks have been required for both patrons and employees in
D.C
. and the
Maryland suburbs
for a while, but Virginia just instituted
a mask mandate
last Friday, which will be enforced by the state Department of Health.
Read More
|
|
|
As of Monday, Maryland has eliminated a small excise tax vendor discount for dealers, but the adjustment only impacts cars sold today or later. As of June 1, dealers will no longer be able to retain a $12-per-car state fee (or 0.6 percent of the total state excise tax collected, whichever is lower), as outlined in the
2020 state budget
.
Beginning with sales that were completed on June 1 or later, dealers must remit the full 6 percent Maryland excise tax to the state government. You can view the language on page 61 of the budget, which modifies Section 13-812 of state law; the language pertaining to the vendor discount is in part (a), which is being eliminated from the state code.
Please update your dealer management systems to reflect this change in the tax code as soon as possible.
There had previously been questions about whether the elimination of the discount would be in place for sales that had been finalized before June 1, but where the excise tax had not yet been paid before that date. The state has provided additional guidance that the allowance will only be eliminated for sales that occur today or later, irrespective of when excise taxes on earlier sales are paid.
Read More
|
|
|
The Federal Trade Commission
announced last week
that a franchised auto dealer in New York had agreed to pay $1.5 million to settle charges that they discriminated against Black and Latino car buyers, among other “illegal business practices.” The dealership will also be required to establish a fair lending program and to limit the amount of additional interest charges they can pass on to buyers.
You may view the federal government’s full complaint against Bronx Honda
at this link
. You may also view a statement from FTC commissioner Rohit Chopra regarding the settlement and the evidence-gathering process
here
.
According to the FTC’s press release announcing the settlement, the franchised dealership committed several illegal advertising and sales violations, including changing agreed-upon sales prices in the middle of a sale, double-charging customers for taxes and fees, and failing to honor published sale prices.
The FTC, in conjunction with the Bronx District Attorney’s Office, also alleges that the dealership’s owners instructed sales personnel to specifically charge higher fees and financing charges to Black and Latino buyers, while explicitly not doing the same to white customers.
The accusations follow in the wake of a
Justice Department lawsuit
, filed last fall, that accused a used car dealership in Glen Burnie of committing unlawful lending discrimination against Black customers.
|
|
|
|
|
|
|
|
