EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0841*
SENATE BILL 841
Q5, R6, R2 4lr2251
CF 4lr2252
By: Senators Ready, Bailey, Carozza, Corderman, Folden, Gallion, Hershey,
Jennings, Mautz, McKay, Salling, Simonaire, and West
Introduced and read first time: February 2, 2024
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Transportation – Motor Fuel Tax Rates, Vehicle–Miles–Traveled Tax, and 2
Farebox Recovery Requirements 3
(Transportation Equity, Fairness, and Privacy Act of 2024) 4
FOR the purpose of repealing a requirement that certain motor fuel tax rates be adjusted 5
in future years based on growth in the Consumer Price Index for all urban 6
consumers; prohibiting the State or a local jurisdiction from imposing or levying a 7
vehicle–miles–traveled tax or certain other similar fees, tolls, or taxes; requiring that 8
the Maryland Transit Administration achieve a certain farebox recovery 9
requirement for certain transit services; requiring that the Administration increase 10
fares for certain transit services under certain circumstances; providing that the 11
Administration is not required to conduct certain public hearings before 12
implementing certain fare increases; prohibiting the State or a local jurisdiction from 13
requiring the installation of a device in or on a privately owned vehicle to facilitate 14
the reporting of vehicle miles traveled; and generally relating to fares, fees, and taxes 15
related to transportation. 16
BY repealing and reenacting, without amendments, 17
Article – Tax – General 18
Section 9–205 19
Annotated Code of Maryland 20
(2022 Replacement Volume and 2023 Supplement) 21
BY repealing and reenacting, with amendments, 22
Article – Tax – General 23
Section 9–305 24
Annotated Code of Maryland 25
(2022 Replacement Volume and 2023 Supplement) 26
BY adding to 27 2 SENATE BILL 841
Article – Tax – General 1
Section 9–401 to be under the new subtitle “Subtitle 4. Vehicle–Miles–Traveled 2
Tax – Prohibited” 3
Annotated Code of Maryland 4
(2022 Replacement Volume and 2023 Supplement) 5
BY repealing and reenacting, with amendments, 6
Article – Transportation 7
Section 7–208(b–1) and 7–506(a)(1) 8
Annotated Code of Maryland 9
(2020 Replacement Volume and 2023 Supplement) 10
BY adding to 11
Article – Transportation 12
Section 22–107 13
Annotated Code of Maryland 14
(2020 Replacement Volume and 2023 Supplement) 15
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17
Article – Tax – General 18
9–205. 19
(a) (1) The Comptroller may enter into reciprocal agreements on behalf of this 20
State, with the duly authorized representatives of any other state, that provide for: 21
(i) fuel tax registration of vehicles by motor carriers; 22
(ii) establishment of periodic fuel use reporting and fuel use tax 23
payment requirements by motor carriers; and 24
(iii) disbursement of money that is collected by the Comptroller and 25
is due to other states based on: 26
1. mileage travelled and fuel used in those states; and 27
2. the respective registration fees of those states. 28
(2) The Comptroller may not enter into any reciprocal agreement that 29
would affect: 30
(i) this State’s motor carrier tax rate; or 31
(ii) this State’s registration fee for motor carriers. 32
SENATE BILL 841 3
(b) In exercising the authority granted under subsection (a) of this section, the 1
Comptroller is expressly authorized to: 2
(1) enter into regional or national fuel use tax agreements; 3
(2) become a member of any regional or national conference, group, 4
compact, or similar organization of motor carrier fuel use tax administrators; and 5
(3) enforce the provisions set forth in any regional or national fuel use tax 6
agreements. 7
(c) The agreement provisions shall apply to the fuel use taxation, registration, 8
and reporting requirements of motor carriers subject to the provisions of the agreement 9
without reference to or application of any other statutes of this State. 10
9–305. 11
(a) Except as provided in subsection (b) of this section, the motor fuel tax rate is: 12
(1) 7 cents for each gallon of aviation gasoline; 13
(2) 23.5 cents for each gallon of gasoline other than aviation gasoline; 14
(3) 24.25 cents for each gallon of special fuel other than clean–burning fuel 15
or turbine fuel; 16
(4) 7 cents for each gallon of turbine fuel; and 17
(5) 23.5 cents for each gasoline–equivalent gallon of clean–burning fuel 18
except electricity. 19
(b) (1) The motor fuel tax rates specified in subsection (a)(2), (3), and (5) of this 20
section shall be increased on July 1, 2013, [and] July 1 [of each subsequent year], 2014, 21
JULY 1, 2015, JULY 1, 2016, JULY 1, 2017, JULY 1, 2018, JULY 1, 2019, JULY 1, 2020, 22
JULY 1, 2021, JULY 1, 2022, AND JULY 1, 2023, in accordance with this subsection. 23
(2) On or before June 1 [of each year], 2013, JUNE 1, 2014, JUNE 1, 24
2015, JUNE 1, 2016, JUNE 1, 2017, JUNE 1, 2018, JUNE 1, 2019, JUNE 1, 2020, JUNE 25
1, 2021, JUNE 1, 2022, AND JUNE 1, 2023, the Comptroller shall determine and 26
announce: 27
(i) the growth in the Consumer Price Index for all urban consumers 28
as determined by the Comptroller under paragraph (3) of this subsection; and 29
4 SENATE BILL 841
(ii) the motor fuel tax rates effective for the fiscal year beginning on 1
the following July 1 as determined by the Comptroller under paragraph (4) of this 2
subsection. 3
(3) (i) In this paragraph, “Consumer Price Index for all urban 4
consumers” means the index published monthly by the Bureau of Labor Statistics of the 5
U.S. Department of Labor that is the U.S. city average of all items in a basket of consumer 6
goods and services. 7
(ii) The percentage growth in the Consumer Price Index for all urban 8
consumers shall be determined by comparing the average of the index for the 12 months 9
ending on the preceding April 30 to the average of the index for the prior 12 months. 10
(4) Subject to paragraph (5) of this subsection, on July 1 [of each year], 11
2013, JULY 1, 2014, JULY 1, 2015, JULY 1, 2016, JULY 1, 2017, JULY 1, 2018, JULY 12
1, 2019, JULY 1, 2020, JULY 1, 2021, JULY 1, 2022, AND JULY 1, 2023, each motor fuel 13
tax rate specified in subsection (a)(2), (3), and (5) of this section shall be increased by the 14
amount, rounded to the nearest one–tenth of a cent, that equals the product of multiplying: 15
(i) the motor fuel tax rate in effect on the date of the Comptroller’s 16
announcement under paragraph (2) of this subsection; and 17
(ii) the percentage growth in the Consumer Price Index for all urban 18
consumers. 19
(5) (i) If there is a decline or no growth in the Consumer Price Index for 20
all urban consumers, the motor fuel tax rates shall remain unchanged. 21
(ii) Any increase in the motor fuel tax rates under paragraph (4) of 22
this subsection may not be greater than 8% of the motor fuel tax rate effective in the 23
previous year. 24
(6) The Comptroller shall require any person possessing tax–paid motor 25
fuel for sale at the start of business on the date of an increase in the motor fuel tax under 26
this subsection to compile and file an inventory of the motor fuel held at the close of 27
business on the immediately preceding date and remit within 30 days any additional motor 28
fuel tax that is due on the motor fuel. 29
SUBTITLE 4. VEHICLE–MILES–TRAVELED TAX – PROHIBITED. 30
9–401. 31
(A) SUBJECT TO SUBSECTION (B) OF THIS SECTION, THE STATE OR A LOCAL 32
JURISDICTION MAY NOT DIRECTLY OR INDIRECT LY, INCLUDING THROUGH A 33
THIRD–PARTY AGREEMENT OR A S PART OF A PILOT PR OGRAM OR STUDY , IMPOSE OR 34
LEVY: 35 SENATE BILL 841 5
(1) A VEHICLE–MILES–TRAVELED TAX ; 1
(2) A MILEAGE–BASED USER FEE ; 2
(3) A TOLL BASED ON GLOB AL POSITIONING SATEL LITE TRACKING ; 3
OR 4
(4) ANY OTHER SIMILAR FO RM OF TAX. 5
(B) NOTHING IN THIS SECTI ON SHALL BE CONSTRUE D TO PROHIBIT THE 6
COMPTROLLER FROM ENTE RING INTO AND THE STATE FROM ENFORCING AN 7
AGREEMENT IN ACCORDANCE WITH § 9–205 OF THIS TITLE. 8
Article – Transportation 9
7–208. 10
(b–1) (1) Subject to § 7–506 of this title and paragraph (2) of this subsection, ON 11
OR BEFORE JULY 1 EACH YEAR, the Administration shall set the fare prices and collect 12
other operating revenues IN AN AMOUNT SUFFICIENT TO ACHIEVE THE FAREB OX 13
RECOVERY REQUIREMENT ESTABLISHED IN PARAGRAPH (2) OF THIS SUBSECTION. 14
(2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , FOR 15
EACH FISCAL YEAR , THE ADMINISTRATION SHALL SEPARATELY RECOVER FROM 16
FARES AND OTHER OPER ATING REVENUES AT LE AST 35% OF THE TOTAL OPERATI NG 17
COSTS FOR: 18
1. THE ADMINISTRATION ’S BUS, LIGHT RAIL, AND 19
METRO SUBWAY SERVICES IN THE BALTIMORE REGION ; AND 20
2. ALL PASSENGER RAILROA D SERVICES UNDER THE 21
ADMINISTRATION ’S CONTROL. 22
(II) THE PERCENTAGE OF TOT AL OPERATING COSTS R EQUIRED 23
TO BE RECOVERED UNDE R SUBPARAGRAPH (I) OF THIS PARAGRAPH IS EQUAL TO: 24
1. FOR FISCAL YEAR 2025, 15%; 25
2. FOR FISCAL YEAR 2026, 20%; 26
3. FOR FISCAL YEAR 2027, 25%; 27
4. FOR FISCAL YEAR 2028, 30%; AND 28 6 SENATE BILL 841
5. FOR FISCAL YEAR 2029 AND EACH FISCAL YEAR 1
THEREAFTER , THE PERCENTAGE SPECI FIED IN SUBPARAGRAPH (I) OF THIS 2
PARAGRAPH . 3
[(2)] (3) The Administration may not reduce the level of services provided 4
by the Administration for the purpose of achieving a specific farebox recovery requirement. 5
(4) AN INCREASE IN THE ADMINISTRATION ’S FARE PRICES BY THE 6
MINIMUM AMOUNT REQUIRED UNDE R THIS SUBSECTION IS NOT SU BJECT TO THE 7
REQUIREMENTS OF § 7–506 OF THIS TITLE. 8
7–506. 9
(a) (1) Except as provided in subsection (b) of this section OR § 7–208(B–1)(4) 10
OF THIS TITLE, until a public hearing is held on the matter, the Administration may not: 11
(i) Fix or revise any fare or rate charged the general public; 12
(ii) Establish or abandon any bus or rail route listed on a published 13
timetable; 14
(iii) Change a bus or rail route alignment listed on a published 15
timetable, unless the change is needed because of temporary construction or changes in the 16
road network; 17
(iv) Reduce the frequency, number of days, or days of service for a 18
commuter bus or commuter rail route without substituting a comparable level of service, 19
unless the reduction is temporary or a result of: 20
1. A natural disaster; 21
2. Weather or other emergency conditions; 22
3. Schedule adjustments required by a third party that 23
operates service on the same right–of–way; or 24
4. Other circumstances beyond the control of the 25
Administration; or 26
(v) Establish or abandon a rail transit station. 27
22–107. 28
SENATE BILL 841 7
THE STATE OR A LOCAL JURI SDICTION MAY NOT REQ UIRE THE INSTALLATIO N 1
OF A DEVICE IN OR ON A PRIVATELY OWNED VE HICLE TO FACILITATE THE 2
REPORTING OF THE NUM BER OF VEHICLE MILES TRAVELED . 3
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 4
1, 2024. 5