Hi Mahonj, I have an 85 Targa and lived in Frederick MD and I took my cat off years ago and also replaced it with a euro by pass pipe with a O2 bung. I added a Dansk sport muffler and the car sounds and performs better, at least to me. Got MD Historic tags and never had any issues at all! Good luck!
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Tony
U.S. Army retired.
1985 Targa
1985 318i (gone) 
02 Protege5 gone to my son!
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