Vessels Required to be Registered in Maryland
Your vessel, whether commercial or recreational, must be registered in Maryland if it is equipped with any kind of primary or auxiliary mechanical propulsion; if it is not currently documented with the U. S. Coast Guard; and if it is being used principally in Maryland. An owner of a federally documented vessel, though exempt from state numbering requirements, shall apply to the Maryland Department of Natural Resources for documented use decals, and is subject to the state excise tax requirements.

Registering Undocumented Vessels
All motorized vessels which are not documented must be registered and numbered in the state in which they are principally used. Principal use is defined as "in use the greatest percentage of time in a given calendar year". A vessel is considered to be in use whenever it is moving, anchored, tied up to any manner of dock, pier or buoy or is being held in readiness for use on a trailer or in any structure.

Registration costs $24.00, and is valid for the calendar year in which it is issued plus the subsequent calendar year. Vessels l6 feet in length or less, propelled by a motor of 7.5 horsepower or less, must be registered but are exempt from the fee.

At the time of title transfer, registration may be accomplished on the reverse side of the seller's title. Other than at time of titling, applications for registration (form DNR B-240) may be obtained from most marine dealers or the Department of Natural Resources at any Licensing & Registration Service Center. Applicants will receive a Certificate of Vessel Number (registration card) and a set of registration decals from the Department.

Titling
All vessels required to be registered in the state of Maryland require a title, similar to the one received for Maryland automobiles. No vessel will be registered nor will its registration be renewed unless it has a valid Certificate of Title. An assigned vessel number stays with the boat as long as it is titled and registered in Maryland. The number is never reassigned to another vessel.

The title will show the names of all owners of the vessel and records all security interests. Ownership of a vessel will not change until all owners sign on the reverse of the title.

Applying for a Title
For a new vessel, you must submit a completed Application for Maryland Certificates (DNR B-240), and the original Manufacturer's Certificate of Origin (CO) assigned by the dealer or manufacturer to the purchaser(s). If the total purchase price is not stated in the assignment, an original certified bill of sale must also be furnished.

For a used vessel titled in Maryland, you must submit the seller's original Maryland Certificate of Title assigned to the purchaser(s) and signed by all recorded owners/sellers. DNR Licensing Division will supply a form if the original title is missing. If the total purchase price is not stated in the assignment, an original certified bill of sale must also be furnished. If a lien/security interest is recorded on the seller's title, the original Notice of Security Interest with a properly executed release must be furnished.

For all other cases, such as a vessel with an out-of-state title or registration, contact any Licensing & Registration Service Center.

Transfer of Title
The assignment of title must be completed in full by the seller(s) and given to the new owner(s). In all cases, the date of sale and total sale price, including vessel, motor and accessories must be stated and all owners/sellers must sign. Do not include the price of the trailer, which must be registered with the Motor Vehicle Administration. Maryland registered vessels can only be transferred by assignment of the title. It is the seller's responsibility to complete the name(s) to whom the vessel is being sold or transferred, the date of sale and the total sale price.

Taxes and Titling Fees
The following taxes and title fees must accompany your application for title:

1. Excise tax equal to 5% of the total purchase price of the vessel, motor and accessories (excluding the trailer) or the current fair market value if the vessel was purchased more than three years ago. There is a deduction allowed for the value of a trade-in if the transaction is conducted through a licensed boat dealer and the title of the boatbeing traded is transferred to the licensed boat dealer. If you have paid excise tax on the vessel in another state and have proof of that payment, you may be eligible for a credit for those taxes.
2. $2.00 title fee.
3. $15.00 security interest filing fee, if a lien is to be recorded.

If more than 30 days have gone by since you purchased your vessel or brought it into Maryland, a penalty of 10% of the excise tax due and interest at the rate of 1.5% per month will be added to the total that must be paid. Make checks or money orders payable to the Department of Natural Resources, for the exact amount due.

Report of Sale of Vessels
Maryland law requires that the Department of Natural Resources be notified within 15 days when a vessel is sold, traded or transferred. The report of sale should include the new owner's name and address and the date of sale.

Registration Expiration and Renewal
Renewal applications will be mailed to all registered owners approximately 30 days before their Certificate of Vessel Number expires. Failure to receive a renewal application by mail is not a valid reason for failing to renew the registration. Renew your certificate early, by mail, to avoid last-minute delays!

Display of Numbers and Validation Decals
The vessel's number must be painted on or permanently attached to each side of the forward half of the vessel (the bow), and no other number may be displayed thereon. Vessel numbers must read from left to right. They must be plain, vertical block characters of good proportion, not less than 3 inches high. They must be of a contrasting color to the boat hull or background, and must be placed as high above the waterline as practical. Letters must be separated from numbers by hyphens or spaces. The registration decals set consists of two 3"x 3" decals. The 3"x 3" decals must be displayed within 3 inches of the vessel number, and may be placed in front of, behind, above or below the vessel number. This requirement also applies to the 3" round dealer-issued temporary decals. Vessels must display numbers and current valid decals and have registration card on board and available for inspection whenever the boat is in use.

Documented Vessels
Vessels documented by the U.S. Coast Guard are exempt from the vessel numbering provisions of the Maryland State Boat Act, however, they must comply with all other requirements and are subject to inspection by the Maryland Natural Resources Police.

A vessel is not federally documented until it has a valid document from the U. S. Coast Guard and has had it's official number carved into the main beam or a main structural member.

Application for documentation is not sufficient to exempt a vessel from State numbering and titling requirements. Therefore, until a vessel is actually documented as explained above, it must have a valid Certificate of Vessel Number and display numbers and registration decals if operated on Maryland waters.

A federally documented vessel used principally in Maryland for pleasure shall display State validation (use) decals on each side of the forward half of the vessel. The decals must be displayed in a conspicuous manner so they can be easily seen from a passing vessel.

The decals cost $10 and are valid for the calendar year in which they are issued plus the subsequent calendar year.

An excise tax equal to 5% of the fair market value is due to the Department of Natural Resources within 30 days of the transfer, trade, or sale of a documented vessel that is to be principally used in Maryland waters. A vessel is considered to be in use whenever it is moving, anchored, tied up to any manner of dock, pier or buoy or is being held in readiness for use on a trailer or in any structure.

A vessel owner applying for documented vessel use decals for the first time must show evidence that the Maryland tax was paid at the time of sale, or pay the appropriate tax, plus penalty and interest if required, before a decal will be issued. In addition, a copy of the official documentation papers issued in the owner's name is required as part of the first time application for documented vessel use decals.

Use decals are available, upon application, at any DNR Licensing & Registration Service Center. Owners with current decals will receive a renewal application approximately 30 days before the expiration date of the current decals. Further proof of tax payment is not required for renewal.

Renew your decals early, by mail, to avoid last-minute delays.

Report of Sale of Documented Vessels
Owners of a documented vessel must notify the Department within 30 days if the vessel is sold. The notification should include the name and address of the purchaser(s), date of sale and amount of sale.