EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0695*
HOUSE BILL 695
Q5, R6, R2 5lr1775
HB 1025/24 – W&M & ENT
By: Delegates M. Morgan, Arentz, Arikan, Chisholm, Fisher, Grammer, Howard,
Hutchinson, Jacobs, Kipke, T. Morgan, Nawrocki, Otto, Pippy, Rose,
Schmidt, Szeliga, and Valentine
Introduced and read first time: January 24, 2025
Assigned to: Ways and Means and Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Repair the Transportation Trust Fund Act 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; prohibiting the State or a local jurisdiction from imposing or levying a 5
vehicle–miles–traveled tax or certain other similar fees, tolls, or taxes; requiring that 6
the Maryland Transit Administration achieve a certain farebox recovery 7
requirement for certain transit services; requiring that the Administration increase 8
fares for certain transit services under certain circumstances; providing that the 9
Administration is not required to conduct certain public hearings before 10
implementing certain fare increases; prohibiting the State or a local jurisdiction from 11
requiring the installation of a device in or on a privately owned vehicle to facilitate 12
the reporting of vehicle miles traveled; and generally relating to fares, fees, and taxes 13
related to transportation. 14
BY repealing and reenacting, without amendments, 15
Article – Tax – General 16
Section 9–205 17
Annotated Code of Maryland 18
(2022 Replacement Volume and 2024 Supplement) 19
BY repealing and reenacting, with amendments, 20
Article – Tax – General 21
Section 9–305 22
Annotated Code of Maryland 23
(2022 Replacement Volume and 2024 Supplement) 24
BY adding to 25
Article – Tax – General 26 2 HOUSE BILL 695
Section 9–401 to be under the new subtitle “Subtitle 4. Vehicle–Miles–Traveled 1
Tax – Prohibited” 2
Annotated Code of Maryland 3
(2022 Replacement Volume and 2024 Supplement) 4
BY repealing and reenacting, with amendments, 5
Article – Transportation 6
Section 7–208(b–1) and 7–506(a)(1) 7
Annotated Code of Maryland 8
(2020 Replacement Volume and 2024 Supplement) 9
BY adding to 10
Article – Transportation 11
Section 22–107 12
Annotated Code of Maryland 13
(2020 Replacement Volume and 2024 Supplement) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Tax – General 17
9–205. 18
(a) (1) The Comptroller may enter into reciprocal agreements on behalf of this 19
State, with the duly authorized representatives of any other state, that provide for: 20
(i) fuel tax registration of vehicles by motor carriers; 21
(ii) establishment of periodic fuel use reporting and fuel use tax 22
payment requirements by motor carriers; and 23
(iii) disbursement of money that is collected by the Comptroller and 24
is due to other states based on: 25
1. mileage travelled and fuel used in those states; and 26
2. the respective registration fees of those states. 27
(2) The Comptroller may not enter into any reciprocal agreement that 28
would affect: 29
(i) this State’s motor carrier tax rate; or 30
(ii) this State’s registration fee for motor carriers. 31
HOUSE BILL 695 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, JULY 1, 2023, AND JULY 1, 2024, in accordance with this 23
subsection. 24
(2) On or before June 1 [of each year], 2013, JUNE 1, 2014, JUNE 1, 25
2015, JUNE 1, 2016, JUNE 1, 2017, JUNE 1, 2018, JUNE 1, 2019, JUNE 1, 2020, JUNE 26
1, 2021, JUNE 1, 2022, JUNE 1, 2023, AND JUNE 1, 2024, the Comptroller shall 27
determine and announce: 28
(i) the growth in the Consumer Price Index for all urban consumers 29
as determined by the Comptroller under paragraph (3) of this subsection; and 30
4 HOUSE BILL 695
(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, JULY 1, 2023, AND JULY 1, 2024, 13
each motor fuel tax rate specified in subsection (a)(2), (3), and (5) of this section shall be 14
increased by the amount, rounded to the nearest one–tenth of a cent, that equals the 15
product of multiplying: 16
(i) the motor fuel tax rate in effect on the date of the Comptroller’s 17
announcement under paragraph (2) of this subsection; and 18
(ii) the percentage growth in the Consumer Price Index for all urban 19
consumers. 20
(5) (i) If there is a decline or no growth in the Consumer Price Index for 21
all urban consumers, the motor fuel tax rates shall remain unchanged. 22
(ii) Any increase in the motor fuel tax rates under paragraph (4) of 23
this subsection may not be greater than 8% of the motor fuel tax rate effective in the 24
previous year. 25
(6) The Comptroller shall require any person possessing tax–paid motor 26
fuel for sale at the start of business on the date of an increase in the motor fuel tax under 27
this subsection to compile and file an inventory of the motor fuel held at the close of 28
business on the immediately preceding date and remit within 30 days any additional motor 29
fuel tax that is due on the motor fuel. 30
SUBTITLE 4. VEHICLE–MILES–TRAVELED TAX – PROHIBITED. 31
9–401. 32
(A) SUBJECT TO SUBSECTION (B) OF THIS SECTION, THE STATE OR A LOCAL 33
JURISDICTION MAY NOT DIRECTLY OR INDIRECT LY, INCLUDING THROUGH A 34 HOUSE BILL 695 5
THIRD–PARTY AGREEMENT OR A S PART OF A PILOT PR OGRAM OR STUDY , IMPOSE OR 1
LEVY: 2
(1) A VEHICLE–MILES–TRAVELED TAX ; 3
(2) A MILEAGE–BASED USER FEE ; 4
(3) A TOLL BASED ON GLOB AL POSITIONING SATEL LITE TRACKING ; 5
OR 6
(4) ANY OTHER SIMILAR FO RM OF TAX. 7
(B) NOTHING IN THIS SECTI ON SHALL BE CONSTRUE D TO PROHIBIT THE 8
COMPTROLLER FROM ENTE RING INTO AND THE STATE FROM ENFORCING AN 9
AGREEMENT IN ACCORDA NCE WITH § 9–205 OF THIS TITLE. 10
Article – Transportation 11
7–208. 12
(b–1) (1) Subject to § 7–506 of this title and paragraph (2) of this subsection, ON 13
OR BEFORE JULY 1 EACH YEAR, the Administration shall set the fare prices and collect 14
other operating revenues IN AN AMOUNT SUFFICI ENT TO ACHIEVE THE F AREBOX 15
RECOVERY REQUIREMENT ESTABLISHED IN PARAG RAPH (2) OF THIS SUBSECTION . 16
(2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , FOR 17
EACH FISCAL YEAR , THE ADMINISTRATION SHALL SEPARATELY RECOVER FROM 18
FARES AND OTHER OPER ATING REVENUES AT LE AST 35% OF THE TOTAL OPERATI NG 19
COSTS FOR: 20
1. THE ADMINISTRATION ’S BUS, LIGHT RAIL, AND 21
METRO SUBWAY SERVICES IN THE BALTIMORE REGION ; AND 22
2. ALL PASSENGER RAILROA D SERVICES UNDER THE 23
ADMINISTRATION’S CONTROL. 24
(II) THE PERCENTAGE OF TOT AL OPERATING COSTS R EQUIRED 25
TO BE RECOVERED UNDE R SUBPARAGRAPH (I) OF THIS PARAGRAPH IS EQUAL TO: 26
1. FOR FISCAL YEAR 2026, 15%; 27
2. FOR FISCAL YEAR 2027, 20%; 28
3. FOR FISCAL YEAR 2028, 25%; 29 6 HOUSE BILL 695
4. FOR FISCAL YEAR 2029, 30%; AND 1
5. FOR FISCAL YEAR 2030 AND EACH FISCAL YEAR 2
THEREAFTER , THE PERCENTAGE SPECI FIED IN SUBPARAGRAPH (I) OF THIS 3
PARAGRAPH . 4
[(2)] (3) The Administration may not reduce the level of services provided 5
by the Administration for the purpose of achieving a specific farebox recovery requirement. 6
(4) AN INCREASE IN THE ADMINISTRATION ’S FARE PRICES BY THE 7
MINIMUM AMOUNT REQUI RED UNDER THIS SUBSE CTION IS NOT SUB JECT TO THE 8
REQUIREMENTS OF § 7–506 OF THIS TITLE. 9
7–506. 10
(a) (1) Except as provided in subsection (b) of this section OR § 7–208(B–1)(4) 11
OF THIS TITLE, until a public hearing is held on the matter, the Administration may not: 12
(i) Fix or revise any fare or rate charged the general public; 13
(ii) Establish or abandon any bus or rail route listed on a published 14
timetable; 15
(iii) Change a bus or rail route alignment listed on a published 16
timetable, unless the change is needed because of temporary construction or changes in the 17
road network; 18
(iv) Reduce the frequency, number of days, or days of service for a 19
commuter bus or commuter rail route without substituting a comparable level of service, 20
unless the reduction is temporary or a result of: 21
1. A natural disaster; 22
2. Weather or other emergency conditions; 23
3. Schedule adjustments required by a third party that 24
operates service on the same right–of–way; or 25
4. Other circumstances beyond the control of the 26
Administration; or 27
(v) Establish or abandon a rail transit station. 28
22–107. 29
HOUSE BILL 695 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, 2025. 5