LAWRENCE J. HOGAN, JR., Governor Ch. 2
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Chapter 2
(Senate Bill 1010)
AN ACT concerning
Motor Fuel Taxes – Tax–Free Period
FOR the purpose of providing that, for a certain period of time, certain motor fuel taxes
that would otherwise be imposed shall not apply; requiring the Comptroller to
announce the motor fuel tax–free period; providing that, for a certain period of time,
certain motor fuel taxes that would otherwise be imposed do not apply; requiring the
Comptroller to pay a refund advance of motor fuel tax to qualifying retailers under
certain circumstances; requiring a qualifying retailer to pay certain motor fuel tax
to the Comptroller within a certain time after the expiration of the tax–free period;
authorizing the Comptroller to suspend certain licenses of a qualifying retailer under
certain circumstances; requiring motor carriers to calculate and remit motor carrier
tax in a certain manner; and generally relating to motor fuel taxes.
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That:
(a) Notwithstanding any other provision of law, there shall be a 30–day tax–free
period, beginning on the effective date of this Act, during which the motor fuel tax imposed
under Title 9 of the Tax – General Article on each gallon of gasoline other than aviation
gasoline, each gallon of special fuel other than clean–burning fuel or turbine fuel, and each
gasoline equivalent gallon of clean–burning fuel except electricity may not apply.
(b) The Comptroller shall announce the motor fuel tax–free period established
under subsection (a) of this section.
(c) It is the intent of the General Assembly that the motor fuel tax–free period
established under subsection (a) of this section shall be reflected in sales to consumers of
gasoline, special fuel other than clean–burning fuel or turbine fuel, and gasoline equivalent
gallon of clean–burning fuel except electricity.
(a) (1) In this section the following words have the meanings indicated.
(2) “Qualifying fuels” means gasoline other than aviation gasoline, each
gallon of special fuel other than clean–burning fuel or turbine fuel, and each gasoline gallon
equivalent of clean–burning fuel except electricity.
(3) “Qualifying retailers” means sellers of qualifying fuels to end–use
consumers.
(b) Notwithstanding any other provision of law, there shall be a 30–day tax–free
period, beginning on the effective date of this Act, during which the motor fuel tax imposed Ch. 2 2022 LAWS OF MARYLAND
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under Title 9, Subtitle 3 of the Tax – General Article does not apply to qualifying fuels sold
by qualifying retailers.
(c) The Comptroller shall announce the motor fuel tax–free period established
under subsection (b) of this section.
(d) It is the intent of the General Assembly that the motor fuel tax–free period
shall be reflected in full on sales to end–use consumers of qualifying fuels.
(e) Sales of qualifying fuels made to qualifying retailers or end–use consumers for
delivery during the motor fuel tax–free period may not include the motor fuel tax imposed
under Title 9, Subtitle 3 of the Tax – General Article.
(f) (1) Qualifying retailers may receive a refund advance for the motor fuel tax
previously paid to suppliers on purchases of qualifying fuels.
(2) To receive a refund advance, a qualifying retailer must submit to the
Comptroller, in the manner specified by the Comptroller, an accounting of qualifying fuels,
in gallons, held for sale on the qualifying retailer’s premises on the effective date of this
Act.
(3) The Comptroller shall issue to each qualifying retailer a refund advance
equal to the total gallons of qualifying fuel reported under paragraph (2) of this subsection
multiplied by the applicable tax per gallon.
(g) (1) Within 30 days after the expiration of the motor fuel tax–free period, a
qualifying retailer shall report to the Comptroller, in the manner specified by the
Comptroller, an accounting of qualifying fuels, in gallons, held for sale on the qualifying
retailer’s premises at midnight on the 30th calendar day after the effective date of this Act.
(2) With the report required under paragraph (1) of this subsection, a
qualifying retailer shall remit to the Comptroller payment equal to the total gallons of
qualifying fuel reported under paragraph (1) of this subsection multiplied by the applicable
tax per gallon.
(h) At the Comptroller’s discretion and notwithstanding any other provision of
law, a qualifying retailer’s failure to accurately report its gallons of qualifying fuel under
subsections (f) and (g) of this section, or failure to make payment in full as required under
subsection (g) of this section, may result in suspension of a qualifying retailer’s business
license or sales and use tax license in the State.
(i) Notwithstanding any other provision of law, motor carriers subject to the tax
imposed under Title 9, Subtitle 2 of the Tax – General Article shall calculate and remit the
motor carrier tax owed for any reporting period including the motor fuel tax–free period in
the manner prescribed by the Comptroller.
LAWRENCE J. HOGAN, JR., Governor Ch. 2
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(j) End–use consumers of qualifying fuels do not have any right of refund from
the State for any motor fuel tax paid in error during the motor fuel tax–free period.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act is an eme rgency
measure, is necessary for the immediate preservation of the public health or safety, has
been passed by a yea and nay vote supported by three–fifths of all the members elected to
each of the two Houses of the General Assembly, and shall take effect from the date it is
enacted.
Approved by the Governor, March 18, 2022.