EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
Italics indicate opposite chamber/conference committee amendments.
*hb1187*
HOUSE BILL 1187
R1 (2lr2183)
ENROLLED BILL
— Environment and Transportation/Budget and Taxation —
Introduced by Delegates Anderton, Adams, Arentz, Boteler, Buckel, Cox, Crosby,
Feldmark, Fennell, Gilchrist, Griffith, Hartman, Holmes, Hornberger,
Howard, Jacobs, Jalisi, Kipke, Krebs, Lierman, Lisanti, Mangione,
McComas, McKay, Morgan, Novotny, Otto, Patterson, Reilly , Rose, Saab,
Sample–Hughes, Shoemaker, Thiam, and Wivell Wivell, Barve, Beitzel,
Boyce, Foley, Fraser–Hidalgo, Healey, R. Jones, Lehman, Love, Parrott,
Prettyman, Proctor, Ruth, Stein, Stewart, Terrasa, and Wells
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ____________________ ____ o’clock, ________M.
______________________________________________
Speaker.
CHAPTER ______
AN ACT concerning 1
Transportation – Highway User Revenues – Revenue and Distribution 2
FOR the purpose of altering the amount of income tax revenue from corporations that is 3
distributed to a certain fund each year; altering the amounts of certain capital grants 4
calculated based on highway user revenues that are required to be appropriated to 5
Baltimore City, counties, and municipalities in certain fiscal years; and generally 6
relating to revenue for and distributions of highway user revenues. 7
BY repealing and reenacting, with amendments, 8 2 HOUSE BILL 1187
Article – Tax – General 1
Section 2–614 2
Annotated Code of Maryland 3
(2016 Replacement Volume and 2021 Supplement) 4
BY repealing and reenacting, with amendments, 5
Article – Transportation 6
Section 8–402 and 8–403 7
Annotated Code of Maryland 8
(2020 Replacement Volume and 2021 Supplement) 9
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
That the Laws of Maryland read as follows: 11
Article – Tax – General 12
2–614. 13
(a) (1) Except as provided in paragraph (2) of this subsection, after making the 14
distributions required under §§ 2–613 and 2–613.1 of this subtitle, the Comptroller shall 15
distribute monthly [17.2%] 20% of the remaining income tax revenue from corporations to 16
a special fund to be distributed as provided in subsection (b) of this section. 17
(2) The percent of the remaining income tax revenue from corporations 18
distributed to a special fund to be distributed as provided in subsection (b) of this section 19
shall be: 20
(i) [24%] 17.2% for the fiscal year beginning July 1, [2011] 2022; 21
(ii) [9.5%] 20% for the fiscal year beginning July 1, [2012] 2023; 22
[and] 23
(iii) 21% FOR THE FISCAL YEAR BEGINNING JULY 1, 2024; AND 24
(IV) [19.5%] 22% for each fiscal year beginning on or after July 1, 25
[2013] 2025, but before July 1, [2016] 2027. 26
(b) (1) (i) Except as provided in subparagraph (ii) of this paragraph, from 27
the special fund, the Comptroller shall distribute an amount equal to [17.2%] 20% of the 28
cost to administer the income tax on corporations to an administrative cost account. 29
(ii) The percent of the cost to administer the income tax on 30
corporations that is distributed to an administrative cost account shall be: 31
1. [24%] 17.2% for the fiscal year beginning July 1, [2011] 32
2022; 33 HOUSE BILL 1187 3
2. [9.5%] 20% for the fiscal year beginning July 1, [2012] 1
2023; [and] 2
3. 21% FOR THE FISCAL YEAR BEGINNING JULY 1, 2024; 3
AND 4
4. [19.5%] 22% for each fiscal year beginning on or after July 5
1, [2013] 2025, but before July 1, [2016] 2027. 6
(2) After making the distribution required under paragraph (1) of this 7
subsection, the Comptroller shall distribute the balance in the special fund to the Gasoline 8
and Motor Vehicle Revenue Account in the Transportation Trust Fund. 9
Article – Transportation 10
8–402. 11
(a) There is a Gasoline and Motor Vehicle Revenue Account in the Transportation 12
Trust Fund. 13
(b) All revenues collected from the following, after deductions provided by law, 14
shall be credited to the Gasoline and Motor Vehicle Revenue Account: 15
(1) All of the motor vehicle fuel tax; 16
(2) Except as otherwise provided by law, two–thirds of the vehicle titling 17
tax; 18
(3) Except for revenues collected under Title 13, Subtitle 9, Parts III and 19
IV of this article, vehicle registration fees; 20
(4) The revenue disbursed to this Account under § 2 –614 of the 21
Tax – General Article; and 22
(5) [80 percent] 80% of the funds distributed on short–term vehicle rentals 23
under § 2–1302.1 of the Tax – General Article to the Transportation Trust Fund from the 24
sales and use tax. 25
(c) [(1) For fiscal year 2019: 26
(i) 90.4% of the revenue credited to the Account may be used as 27
provided in § 3–216 of this article; and 28
4 HOUSE BILL 1187
(ii) The balance of the Account shall be used to pay the allocations of 1
highway user revenues provided by this subtitle to the counties, municipalities, and 2
Baltimore City. 3
(2)] For fiscal year 2020 and each fiscal year thereafter, revenue credited to 4
the Account shall be used as provided in § 3–216 of this article. 5
8–403. 6
(a) [Subject to §§ 3–307 and 3–308 of this article, for fiscal year 2019, from the 7
total highway user revenues: 8
(1) An amount equal to 7.7% of total highway user revenues shall be 9
distributed to Baltimore City in monthly installments; 10
(2) An amount shall be distributed to the counties at the times specified in 11
§ 8–407 of this subtitle, to be allocated as provided in § 8–404 of this subtitle, equal to 1.5% 12
of total highway user revenues; and 13
(3) An amount shall be distributed to the municipalities at the times 14
specified in § 8–407 of this subtitle, to be allocated as provided in § 8–405 of this subtitle, 15
equal to 0.4% of total highway user revenues. 16
(b) (1)] Subject to [paragraph (3) of this subsection] SUBSECTION (C) OF THIS 17
SECTION, for fiscal years 2020 through 2024 2023, capital grants shall be appropriated 18
from the Transportation Trust Fund as provided in § 3–216 of this article based on the 19
following calculations: 20
[(i)] (1) An amount equal to 8.3% of funds credited to the Gasoline 21
and Motor Vehicle Revenue Account shall be appropriated to Baltimore City; 22
[(ii)] (2) An amount equal to 3.2% of funds credited to the Gasoline 23
and Motor Vehicle Revenue Account shall be appropriated to the counties to be distributed 24
as provided in § 8–404 of this subtitle; and 25
[(iii)] (3) An amount equal to 2.0% of funds credited to the Gasoline 26
and Motor Vehicle Revenue Account shall be appropriated to the municipalities to be 27
distributed as provided in § 8–405 of this subtitle. 28
[(2)] (B) Subject to [paragraph (3) of this subsection] SUBSECTION (C) 29
OF THIS SECTION , for fiscal year 2025 and each fiscal year thereafter, capital grants shall 30
be appropriated from the Transportation Trust Fund as provided in § 3–216 of this article 31
based on the following calculations: 32
(1) FOR FISCAL YEAR 2024: 33
HOUSE BILL 1187 5
(I) AN AMOUNT EQUAL TO 8.5% 9.5% OF FUNDS CREDITED TO 1
THE GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE 2
APPROPRIATED TO BALTIMORE CITY; 3
(II) AN AMOUNT EQUAL TO 3.3% 3.7% OF FUNDS CREDITED TO 4
THE GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE 5
APPROPRIATED TO THE COUNTIES TO BE DISTRIBUTED AS PROVIDED IN § 8–404 OF 6
THIS SUBTITLE; AND 7
(III) AN AMOUNT EQUAL TO 2.1% 2.4% OF FUNDS CREDITED TO 8
THE GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE 9
APPROPRIATED TO THE MUNICIPALITIES TO BE DISTRIBUTED AS PROVI DED IN § 10
8–405 OF THIS SUBTITLE ; 11
(2) FOR FISCAL YEAR 2025: 12
(I) AN AMOUNT EQUAL TO 8.8% 11% OF FUNDS CREDITED TO 13
THE GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE 14
APPROPRIATED TO BALTIMORE CITY; 15
(II) AN AMOUNT EQUAL TO 3.4% 4.3% OF FUNDS CREDITED TO 16
THE GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE 17
APPROPRIATED TO THE COUNTIES TO BE DISTR IBUTED AS PROVIDED I N § 8–404 OF 18
THIS SUBTITLE; AND 19
(III) AN AMOUNT EQUAL TO 2.2% 2.7% OF FUNDS CREDITED TO 20
THE GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHAL L BE 21
APPROPRIATED TO THE MUNICIPALITIES TO BE DISTRIBUTED AS PROVI DED IN § 22
8–405 OF THIS SUBTITLE ; 23
(3) FOR FISCAL YEAR 2026: 24
(I) AN AMOUNT EQUAL TO 9.1% 12.2% OF FUNDS CREDITED TO 25
THE GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE 26
APPROPRIATED TO BALTIMORE CITY; 27
(II) AN AMOUNT EQUAL TO 3.5% 4.8% OF FUNDS CREDITED TO 28
THE GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE 29
APPROPRIATED TO THE COUNTIES TO BE DISTR IBUTED AS PROVIDED I N § 8–404 OF 30
THIS SUBTITLE; AND 31
(III) AN AMOUNT EQUAL TO 2.3% 3.0% OF FUNDS CREDITED TO 32
THE GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE 33 6 HOUSE BILL 1187
APPROPRIATED TO THE MUNICIPALITIES TO BE DISTRIBUTED AS PROVI DED IN § 1
8–405 OF THIS SUBTITLE ; 2
(4) FOR FISCAL YEAR 2027: 3
(I) AN AMOUNT EQUAL TO 9.4% 12.2% OF FUNDS CREDITED TO 4
THE GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE 5
APPROPRIATED TO BALTIMORE CITY; 6
(II) AN AMOUNT EQUAL TO 3.6% 4.8% OF FUNDS CREDITED TO 7
THE GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE 8
APPROPRIATED TO THE COUNTIES TO BE DISTRIBUTED AS PROVI DED IN § 8–404 OF 9
THIS SUBTITLE; AND 10
(III) AN AMOUNT EQUAL TO 2.4% 3.0% OF FUNDS CREDITED TO 11
THE GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE 12
APPROPRIATED TO THE MUNICIPALITIES TO BE DISTRIBUTED AS PROVI DED IN § 13
8–405 OF THIS SUBTITLE; AND 14
(5) FOR FISCAL YEAR 2028 AND EACH FISCAL YEAR THEREAFTER : 15
[(i)] (1) An amount equal to [7.7% 9.5%] 12.1% of funds credited 16
to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to Baltimore 17
City; 18
[(ii)] (2) An amount equal to [1.5% 3.7%] 15.3% of funds credited 19
to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to the counties 20
to be distributed as provided in § 8–404 of this subtitle; and 21
[(iii)] (3) An amount equal to [0.4% 2.4%] 2.6% of funds credited 22
to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to the 23
municipalities to be distributed as provided in § 8–405 of this subtitle. 24
[(3)] (C) The capital grants made under this subtitle shall be appropriated 25
only if all debt service requirements and departmental operating expenses have been 26
funded and sufficient funds are available to fund the capital program. 27
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 28
1, 2022. 29