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Dhillon Demands Maryland Refund $27 Fee Charged to Servicemembers

The Justice Department just sent a sharp wake-up call to Maryland that should make anyone who respects the rule of law — and who cares about military families — nod in agreement. Assistant Attorney General Harmeet K. Dhillon’s Civil Rights Division has flagged Maryland’s Motor Vehicle Administration over a small fee that, in practice, amounts to a double tax on servicemembers and their spouses. That’s not just bad policy; it’s likely illegal under the Servicemembers Civil Relief Act (SCRA).

DOJ’s move: a narrow, necessary fix for military families

What happened is straightforward and sensible. The DOJ’s Servicemembers and Veterans Initiative sent a formal letter to Secretary Kathryn B. Thomson and Motor Vehicle Administrator Christine E. Nizer, urging Maryland to stop collecting the $27 nonresident vehicle permit fee from military personnel and their spouses who keep vehicles registered in their home states while stationed in Maryland. The department asked the state to stop charging the fee, refund what was wrongly collected, and update MVA policies and training so this doesn’t keep happening. Translation: follow federal law or expect pushback.

The legal backbone: SCRA and Supreme Court precedent

The case isn’t built on feelings; it’s built on statute and precedent. The SCRA protects servicemembers from losing domicile status and from being taxed by a duty-station state for personal property when they’re in that state solely under military orders. The DOJ letter cites that statute and the Supreme Court’s interpretation in California v. Buzard — clear legal guardrails meant to keep states from nickeling and diming troops who are following orders. If Maryland’s MVA continues to impose this charge, it won’t be a moral failing alone — it will be a legal one.

Why Maryland should quit the games and do the right thing

Charging this nonresident permit fee to military families was never a brilliant revenue plan; it was a tone-deaf move that hits people already paying the price of service. Relocation for military duty is expensive. Servicemembers don’t need state bureaucrats inventing new taxes while they serve. Maryland should comply with the DOJ’s requests, issue refunds without new processing penalties, and fix its training materials. If the state fights this, expect a courtroom test that could have budget and reputational consequences — not to mention wasting taxpayer dollars on defending a weak legal position.

Conclusion: protect the troops, respect the law

This is a simple test of priorities. Will Maryland respect federal law and protect military families, or will it keep squeezing nickels from people who can’t pick their duty stations? Assistant Attorney General Dhillon did what she should: defended the SCRA and demanded relief. Now it’s on Secretary Thomson, Motor Vehicle Administrator Nizer, and Attorney General Anthony G. Brown to act. The right choice is clear; the honorable thing to do is obvious. Refund the fees, update the rules, and stop making life harder for the men and women who serve.

Written by Staff Reports

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