1366                               Laws of Maryland                          Ch. 534

is registered without delivering a certificate of title, as permitted by
section 3-109 (c).

(b)    If the motor vehicle for which a certificate of title is applied
was originally or formerly a vehicle not subject to the tax imposed
by this section, there shall be deducted from the tax imposed by this
section any amount previously paid by and collected from the present
owner as a retail sales tax on that vehicle, under the subtitle "Retail
Sales Tax Act," in Article 81 of this Code.

(c)    The department shall require every applicant to supply in-
formation as it deems necessary as to the time of purchase, the
purchase price and other information relative to the determination
of the fair market value. If the excise tax is based upon the purchase
price of a vehicle as required by the definition of "Fair Market
Value" in subtitle 1 of this article, the department shall require the
submission of a certified bill of sale.

(d)    The department shall remit all sums collected under the pro-
visions of this section to the State Treasurer, who shall transfer and
credit 25% thereof to the general funds of the state and shall then use
and apply the remainder thereof first, to the extent required for debt
service on any outstanding State Highway Construction Bonds and
shall transfer the balance thereof, if any, to the construction fund for
the State Roads Commission provided by section 3(e) of said Article
89B.

(e)    Certificates of title for all motor vehicles owned by the
United States and used in the investigation of any violation or sus-
pected violation of any law of the United States and for all motor
vehicles owned by the State of Maryland or any political subdivision
of the State and for fire engines and other fire department emergency
apparatus, including vehicles operated by or in connection with any
fire department, and for vehicles held for the use of the public and
owned by any bona fide unit of a national veterans' organization,
and for vehicles owned and used by any Maryland chapter of the
American Red Cross, and for ambulances, and rescue and other ve-
hicles owned and used for the benefit of the public by non-profit
rescue squads; and for all motor vehicles acquired for resale by any
registered dealer from non-residents who are from states whose laws
do not require title registration, and for all motor vehicles owned by
any foreign consular officer who is a national of the foreign state
appointing him and who is not engaged in any business, trade or
profession within the United States if there is in force and effect
a treaty between the United States and the foreign state which the
consul represents granting exemption from taxes on a reciprocal
basis, and for all school buses purchased by religious organizations,
AND ALL VEHICLES OWNED AND OPERATED BY THE CIVIL
AIR PATROL shall be exempt from the tax imposed by this section.

(f)    The department may issue certificates of title without pay-
ment of any excise tax to law enforcement agencies of the United
States, and any State or the District of Columbia, provided that the
state or District of Columbia reciprocates.

(g)    The department may determine the applicability of the
excise tax imposed under this section in the following cases: (i)
upon the issuance of temporary registration plates; (ii) vehicles
jointly owned and transferred to one name of either owner; (iii)
involuntary transfers resulting from divorce or separation proceed-