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.
*sb0726*
SENATE BILL 726
R1 2lr1716
SB 362/21 – B&T CF HB 1187
By: Senators McCray, Edwards, Waldstreicher, Guzzone, Zucker, Sydnor, Smith,
Kramer, Klausmeier, Ready, Benson, Corderman, Gallion, Griffith, Hester,
Elfreth, Carter, Hayes, Beidle, Augustine, Hettleman, Young, Rosapepe,
Hershey, Ellis, Eckardt, and Kagan Kagan, Carozza, Jackson, and Salling
Introduced and read first time: February 7, 2022
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 25, 2022
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
Article – Tax – General 9
Section 2–614 10
Annotated Code of Maryland 11
(2016 Replacement Volume and 2021 Supplement) 12
BY repealing and reenacting, with amendments, 13
Article – Transportation 14
Section 8–402 and 8–403 15
Annotated Code of Maryland 16
(2020 Replacement Volume and 2021 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19 2 SENATE BILL 726
Article – Tax – General 1
2–614. 2
(a) (1) Except as provided in paragraph (2) of this subsection, after making the 3
distributions required under §§ 2–613 and 2–613.1 of this subtitle, the Comptroller shall 4
distribute monthly [17.2%] 20% of the remaining income tax revenue from corporations to 5
a special fund to be distributed as provided in subsection (b) of this section. 6
(2) The percent of the remaining income tax revenue from corporations 7
distributed to a special fund to be distributed as provided in subsection (b) of this section 8
shall be: 9
(i) [24%] 17.2% for the fiscal year beginning July 1, [2011] 2022; 10
(ii) [9.5%] 20% for the fiscal year beginning July 1, [2012] 2023; 11
[and] 12
(iii) 21% FOR THE FISCAL YEAR BEGINNING JULY 1, 2024; AND 13
(IV) [19.5%] 22% for each fiscal year beginning on or after July 1, 14
[2013] 2025, but before July 1, [2016] 2027. 15
(b) (1) (i) Except as provided in subparagraph (ii) of this paragraph, from 16
the special fund, the Comptroller shall distribute an amount equal to [17.2%] 20% of the 17
cost to administer the income tax on corporations to an administrative cost account. 18
(ii) The percent of the cost to administer the income tax on 19
corporations that is distributed to an administrative cost account shall be: 20
1. [24%] 17.2% for the fiscal year beginning July 1, [2011] 21
2022; 22
2. [9.5%] 20% for the fiscal year beginning July 1, [2012] 23
2023; [and] 24
3. 21% FOR THE FISCAL YEAR BEGINNING JULY 1, 2024; 25
AND 26
4. [19.5%] 22% for each fiscal year beginning on or after July 27
1, [2013] 2025, but before July 1, [2016] 2027. 28
(2) After making the distribution required under paragraph (1) of this 29
subsection, the Comptroller shall distribute the balance in the special fund to the Gasoline 30
and Motor Vehicle Revenue Account in the Transportation Trust Fund. 31 SENATE BILL 726 3
Article – Transportation 1
8–402. 2
(a) There is a Gasoline and Motor Vehicle Revenue Account in the Transportation 3
Trust Fund. 4
(b) All revenues collected from the following, after deductions provided by law, 5
shall be credited to the Gasoline and Motor Vehicle Revenue Account: 6
(1) All of the motor vehicle fuel tax; 7
(2) Except as otherwise provided by law, two–thirds of the vehicle titling 8
tax; 9
(3) Except for revenues collected under Title 13, Subtitle 9, Parts III and 10
IV of this article, vehicle registration fees; 11
(4) The revenue disbursed to this Account under § 2 –614 of the 12
Tax – General Article; and 13
(5) [80 percent] 80% of the funds distributed on short–term vehicle rentals 14
under § 2–1302.1 of the Tax – General Article to the Transportation Trust Fund from the 15
sales and use tax. 16
(c) [(1) For fiscal year 2019: 17
(i) 90.4% of the revenue credited to the Account may be used as 18
provided in § 3–216 of this article; and 19
(ii) The balance of the Account shall be used to pay the allocations of 20
highway user revenues provided by this subtitle to the counties, municipalities, and 21
Baltimore City. 22
(2)] For fiscal year 2020 and each fiscal year thereafter, revenue credited to 23
the Account shall be used as provided in § 3–216 of this article. 24
8–403. 25
(a) [Subject to §§ 3–307 and 3–308 of this article, for fiscal year 2019, from the 26
total highway user revenues: 27
(1) An amount equal to 7.7% of total highway user revenues shall be 28
distributed to Baltimore City in monthly installments; 29
4 SENATE BILL 726
(2) An amount shall be distributed to the counties at the times specified in 1
§ 8–407 of this subtitle, to be allocated as provided in § 8–404 of this subtitle, equal to 1.5% 2
of total highway user revenues; and 3
(3) An amount shall be distributed to the municipalities at the times 4
specified in § 8–407 of this subtitle, to be allocated as provided in § 8–405 of this subtitle, 5
equal to 0.4% of total highway user revenues. 6
(b) (1)] Subject to [paragraph (3) of this subsection] SUBSECTION (C) OF THIS 7
SECTION, for fiscal years 2020 through 2024 2023, capital grants shall be appropriated 8
from the Transportation Trust Fund as provided in § 3–216 of this article based on the 9
following calculations: 10
[(i)] (1) An amount equal to 8.3% of funds credited to the Gasoline 11
and Motor Vehicle Revenue Account shall be appropriated to Baltimore City; 12
[(ii)] (2) An amount equal to 3.2% of funds credited to the Gasoline 13
and Motor Vehicle Revenue Account shall be appropriated to the counties to be distributed 14
as provided in § 8–404 of this subtitle; and 15
[(iii)] (3) An amount equal to 2.0% of funds credited to the Gasoline 16
and Motor Vehicle Revenue Account shall be appropriated to the municipalities to be 17
distributed as provided in § 8–405 of this subtitle. 18
[(2)] (B) Subject to [paragraph (3) of this subsection] SUBSECTION (C) 19
OF THIS SECTION , for fiscal year 2025 and each fiscal year thereafter, capital grants shall 20
be appropriated from the Transportation Trust Fund as provided in § 3–216 of this article 21
based on the following calculations: 22
(1) FOR FISCAL YEAR 2024: 23
(I) AN AMOUNT EQUAL TO 9.5% OF FUNDS CREDITED TO TH E 24
GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE APPR OPRIATED TO 25
BALTIMORE CITY; 26
(II) AN AMOUNT EQUAL TO 3.7% OF FUNDS CREDITED TO THE 27
GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE APPR OPRIATED TO 28
THE COUNTIES TO BE D ISTRIBUTED AS PROVIDED IN § 8–404 OF THIS SUBTITLE; AND 29
(III) AN AMOUNT EQUAL TO 2.4% OF FUNDS CREDITED TO THE 30
GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE APPR OPRIATED TO 31
THE MUNICIPALITIES T O BE DISTRIBUTED AS PROVIDED IN § 8–405 OF THIS 32
SUBTITLE; 33
(2) FOR FISCAL YEAR 2025: 34 SENATE BILL 726 5
(I) AN AMOUNT EQUAL TO 11% OF FUNDS CREDITED TO THE 1
GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE APPR OPRIATED TO 2
BALTIMORE CITY; 3
(II) AN AMOUNT EQUAL TO 4.3% OF FUNDS CREDITED TO THE 4
GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE APPR OPRIATED TO 5
THE COUNTIES TO BE D ISTRIBUTED AS PROVID ED IN § 8–404 OF THIS SUBTITLE; AND 6
(III) AN AMOUNT EQUAL TO 2.7% OF FUNDS CREDITED TO THE 7
GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE APPR OPRIATED TO 8
THE MUNICIPA LITIES TO BE DISTRIB UTED AS PROVIDED IN § 8–405 OF THIS 9
SUBTITLE; 10
(3) FOR FISCAL YEAR 2026: 11
(I) AN AMOUNT EQUAL TO 12.2% OF FUNDS CREDITED TO THE 12
GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE APPR OPRIATED TO 13
BALTIMORE CITY; 14
(II) AN AMOUNT EQUAL TO 4.8% OF FUNDS CREDITED TO THE 15
GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE APPR OPRIATED TO 16
THE COUNTIES TO BE D ISTRIBUTED AS PROVID ED IN § 8–404 OF THIS SUBTITLE; AND 17
(III) AN AMOUNT EQUAL TO 3.0% OF FUNDS CREDITED TO THE 18
GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE APPR OPRIATED TO 19
THE MUNICIPALITIES T O BE DISTRIBUTED AS PROVIDED IN § 8–405 OF THIS 20
SUBTITLE; 21
(4) FOR FISCAL YEAR 2027: 22
(I) AN AMOUNT EQUAL TO 12.2% OF FUNDS CREDITED TO THE 23
GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE APPRO PRIATED TO 24
BALTIMORE CITY; 25
(II) AN AMOUNT EQUAL TO 4.8% OF FUNDS CREDITED TO THE 26
GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE APPR OPRIATED TO 27
THE COUNTIES TO BE D ISTRIBUTED AS PROVID ED IN § 8–404 OF THIS SUBTITLE; AND 28
(III) AN AMOUNT EQUAL TO 3.0% OF FUNDS CREDITED TO THE 29
GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT SHALL BE APPR OPRIATED TO 30
THE MUNICIPALITIES T O BE DISTRIBUTED AS PROVIDED IN § 8–405 OF THIS 31
SUBTITLE; AND 32
6 SENATE BILL 726
(5) FOR FISCAL YEAR 2028 AND EACH FISCAL YEAR THEREAFTER: 1
[(i)] (1) An amount equal to [7.7%] 12.1% 9.5% of funds credited 2
to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to Baltimore 3
City; 4
[(ii)] (2) An amount equal to [1.5%] 15.3% 3.7% of funds credited 5
to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to the counties 6
to be distributed as provided in § 8–404 of this subtitle; and 7
[(iii)] (3) An amount equal to [0.4%] 2.6% 2.4% of funds credited to 8
the Gasoline and Motor Vehicle Revenue Account shall be appropriated to the 9
municipalities to be distributed as provided in § 8–405 of this subtitle. 10
[(3)] (C) The capital grants made under this subtitle shall be appropriated 11
only if all debt service requirements and departmental operating expenses have been 12
funded and sufficient funds are available to fund the capital program. 13
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 14
1, 2022. 15
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.