Unpaid Taxes Could Lead to a Driver’s License Suspension in Maryland

can you renew your license if you owe taxes

Millions of drivers in the United States have had their licenses suspended for non-traffic related matters. According to The Washington Post, approximately 7 million people have had their driver’s licenses suspended for failing to pay traffic tickets and court fees. Another reason many individuals might face license suspension in Maryland is because they owe taxes to the state.

What do taxes have to do with driving in Maryland?

Maryland is one of several states that will suspend your driver’s license and vehicle registration if you fail to pay taxes to the State of Maryland. The state has the authority to place a hold on a Maryland driver’s license as an incentive to get them to pay off their tax debts.

The Maryland Motor Vehicle Administration (MVA) works with the State Comptroller’s Office to prevent delinquent taxpayers from renewing their licenses and vehicle registration. In Maryland, the MVA is the statewide licensing authority and may suspend the renewal of these documents until the individual who owes taxes has taken steps to pay them back, either by enrolling in a payment plan or paying what he owes up front.

While this line of reasoning may seem counterintuitive, many states do withhold driver’s licenses for non-traffic related issues, which can often deprive individuals of their only source of income which they need to pay back court debts. Other common reasons for license suspension that have little to do with a driver’s competence behind the wheel include:

  • Defaulting on student loans
  • Failing to pay child support
  • Failing to pay traffic tickets
  • Failing to pay court fees associated with a criminal offense
  • and failing to show up in court.

In many cases, individuals with a suspended license find they have no choice but to keep driving. Before you consider driving on a suspended license, talk to a suspended license lawyer in Baltimore and surrounding areas to discuss ways you might be able to regain your driving privilege. As a criminal offense, driving on a suspended license can lead to even more fees and hardships that an attorney may be able to help you avoid.

Do I have to pay back all my taxes to get my license back?

The short answer to this is simply “No.” The Comptroller’s Office may instruct the MVA to renew an individual’s driver’s license after he or she has agreed to pay back at least partial taxes.

If your license has been suspended due to unpaid taxes, showing the state your willingness to pay back your debt often goes a long way. Typically, you can enroll in a payment plan that allows you to pay back taxes in regular installments. Once you enter this payment plan, the MVA may lift the license suspension.

Working with a Baltimore Suspended License Lawyer

No matter the reason for the suspension of your Maryland driver’s license, you should first speak to an experienced and determined suspended license lawyer who serves Baltimore and nearby locations about your situation. An attorney like Hillel Traub may be able to negotiate with the MVA to have your license reinstated.

Hillel Traub of The Law Office of Hillel Traub has served Maryland residents for more than 20 years. As a former Maryland Assistant Attorney General for the MVA, Mr. Traub has insider knowledge that may be advantageous to your license suspension case. Call (410) 580-1100 or complete our contact form for a free consultation.

Frequently Asked Questions About Unpaid Taxes Resulting in License Suspension

Can you lose your driver’s license for not paying taxes?

Maryland will suspend your driver’s license and vehicle registration if you fail to pay state taxes. The Maryland government has the authority to place a hold on a Maryland driver’s license as an incentive to get the driver to pay off their tax debts.

What is the tax payment plan in Maryland?

If your Maryland license was suspended for not paying taxes, you don’t have to pay all your overdue taxes to get your license back. In Maryland, you can renew your driver’s license after agreeing to pay back at least partial taxes. You can enroll in a payment plan that allows you to pay back taxes in regular installments.

What is the Maryland car tax?

In Maryland, an excise tax is charged on the basis of 6% of the vehicle’s book value or 6% of the purchase price on the notarized “Bill of Sale” for a vehicle that’s 7 years old or newer. For older vehicles, the tax is calculated on the purchase price.

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