EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0144*
HOUSE BILL 144
Q5 2lr0913
HB 957/18 – W&M (PRE–FILED)
By: Delegates Morgan, Arentz, Arikan, Buckel, Clark, Cox, M. Fisher, Hartman,
Hornberger, Krebs, Reilly, Saab, Szeliga, and Thiam
Requested: October 22, 2021
Introduced and read first time: January 12, 2022
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Motor Fuel Tax Rates – Consumer Price Index Adjustment – Repeal 2
FOR the purpose of repealing a requirement that certain motor fuel tax rates be adjusted 3
in future years based on growth in the Consumer Price Index for All Urban 4
Consumers; and generally relating to motor fuel tax rates. 5
BY repealing and reenacting, with amendments, 6
Article – Tax – General 7
Section 9–305 8
Annotated Code of Maryland 9
(2016 Replacement Volume and 2021 Supplement) 10
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12
Article – Tax – General 13
9–305. 14
(a) Except as provided in subsection (b) of this section, the motor fuel tax rate is: 15
(1) 7 cents for each gallon of aviation gasoline; 16
(2) 23.5 cents for each gallon of gasoline other than aviation gasoline; 17
(3) 24.25 cents for each gallon of special fuel other than clean–burning fuel 18
or turbine fuel; 19
2 HOUSE BILL 144
(4) 7 cents for each gallon of turbine fuel; and 1
(5) 23.5 cents for each gasoline–equivalent gallon of clean–burning fuel 2
except electricity. 3
(b) (1) The motor fuel tax rates specified in subsection (a)(2), (3), and (5) of this 4
section shall be increased on July 1, 2013, [and] July 1 [of each subsequent year], 2014, 5
JULY 1, 2015, JULY 1, 2016, JULY 1, 2017, JULY 1, 2018, JULY 1, 2019, JULY 1, 2020, 6
AND JULY 1, 2021, in accordance with this subsection. 7
(2) On or before June 1 [of each year], 2013, JUNE 1, 2014, JUNE 1, 8
2015, JUNE 1, 2016, JUNE 1, 2017, JUNE 1, 2018, JUNE 1, 2019, JUNE 1, 2020, AND 9
JUNE 1, 2021, the Comptroller shall determine and announce: 10
(i) the growth in the Consumer Price Index for all urban consumers 11
as determined by the Comptroller under paragraph (3) of this subsection; and 12
(ii) the motor fuel tax rates effective for the fiscal year beginning on 13
the following July 1 as determined by the Comptroller under paragraph (4) of this 14
subsection. 15
(3) (i) In this paragraph, “Consumer Price Index for all urban 16
consumers” means the index published monthly by the Bureau of Labor Statistics of the 17
U.S. Department of Labor that is the U.S. city average of all items in a basket of consumer 18
goods and services. 19
(ii) The percentage growth in the Consumer Price Index for all urban 20
consumers shall be determined by comparing the average of the index for the 12 months 21
ending on the preceding April 30 to the average of the index for the prior 12 months. 22
(4) Subject to paragraph (5) of this subsection, on July 1 [of each year], 23
2013, JULY 1, 2014, JULY 1, 2015, JULY 1, 2016, JULY 1, 2017, JULY 1, 2018, JULY 24
1, 2019, JULY 1, 2020, AND JULY 1, 2021, each motor fuel tax rate specified in subsection 25
(a)(2), (3), and (5) of this section shall be increased by the amount, rounded to the nearest 26
one–tenth of a cent, that equals the product of multiplying: 27
(i) the motor fuel tax rate in effect on the date of the Comptroller’s 28
announcement under paragraph (2) of this subsection; and 29
(ii) the percentage growth in the Consumer Price Index for all urban 30
consumers. 31
(5) (i) If there is a decline or no growth in the Consumer Price Index for 32
all urban consumers, the motor fuel tax rates shall remain unchanged. 33
(ii) Any increase in the motor fuel tax rates under paragraph (4) of 34 HOUSE BILL 144 3
this subsection may not be greater than 8% of the motor fuel tax rate effective in the 1
previous year. 2
(6) The Comptroller shall require any person possessing tax–paid motor 3
fuel for sale at the start of business on the date of an increase in the motor fuel tax under 4
this subsection to compile and file an inventory of the motor fuel held at the close of 5
business on the immediately preceding date and remit within 30 days any additional motor 6
fuel tax that is due on the motor fuel. 7
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 8
1, 2022. 9