Maryland 2025 Regular Session

Maryland House Bill HB695 Compare Versions

Only one version of the bill is available at this time.
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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *hb0695*
66
77 HOUSE BILL 695
88 Q5, R6, R2 5lr1775
99 HB 1025/24 – W&M & ENT
1010 By: Delegates M. Morgan, Arentz, Arikan, Chisholm, Fisher, Grammer, Howard,
1111 Hutchinson, Jacobs, Kipke, T. Morgan, Nawrocki, Otto, Pippy, Rose,
1212 Schmidt, Szeliga, and Valentine
1313 Introduced and read first time: January 24, 2025
1414 Assigned to: Ways and Means and Environment and Transportation
1515
1616 A BILL ENTITLED
1717
1818 AN ACT concerning 1
1919
2020 Repair the Transportation Trust Fund Act 2
2121
2222 FOR the purpose of repealing a requirement that certain motor fuel tax rates be adjusted 3
2323 in future years based on growth in the Consumer Price Index for All Urban 4
2424 Consumers; prohibiting the State or a local jurisdiction from imposing or levying a 5
2525 vehicle–miles–traveled tax or certain other similar fees, tolls, or taxes; requiring that 6
2626 the Maryland Transit Administration achieve a certain farebox recovery 7
2727 requirement for certain transit services; requiring that the Administration increase 8
2828 fares for certain transit services under certain circumstances; providing that the 9
2929 Administration is not required to conduct certain public hearings before 10
3030 implementing certain fare increases; prohibiting the State or a local jurisdiction from 11
3131 requiring the installation of a device in or on a privately owned vehicle to facilitate 12
3232 the reporting of vehicle miles traveled; and generally relating to fares, fees, and taxes 13
3333 related to transportation. 14
3434
3535 BY repealing and reenacting, without amendments, 15
3636 Article – Tax – General 16
3737 Section 9–205 17
3838 Annotated Code of Maryland 18
3939 (2022 Replacement Volume and 2024 Supplement) 19
4040
4141 BY repealing and reenacting, with amendments, 20
4242 Article – Tax – General 21
4343 Section 9–305 22
4444 Annotated Code of Maryland 23
4545 (2022 Replacement Volume and 2024 Supplement) 24
4646
4747 BY adding to 25
4848 Article – Tax – General 26 2 HOUSE BILL 695
4949
5050
5151 Section 9–401 to be under the new subtitle “Subtitle 4. Vehicle–Miles–Traveled 1
5252 Tax – Prohibited” 2
5353 Annotated Code of Maryland 3
5454 (2022 Replacement Volume and 2024 Supplement) 4
5555
5656 BY repealing and reenacting, with amendments, 5
5757 Article – Transportation 6
5858 Section 7–208(b–1) and 7–506(a)(1) 7
5959 Annotated Code of Maryland 8
6060 (2020 Replacement Volume and 2024 Supplement) 9
6161
6262 BY adding to 10
6363 Article – Transportation 11
6464 Section 22–107 12
6565 Annotated Code of Maryland 13
6666 (2020 Replacement Volume and 2024 Supplement) 14
6767
6868 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
6969 That the Laws of Maryland read as follows: 16
7070
7171 Article – Tax – General 17
7272
7373 9–205. 18
7474
7575 (a) (1) The Comptroller may enter into reciprocal agreements on behalf of this 19
7676 State, with the duly authorized representatives of any other state, that provide for: 20
7777
7878 (i) fuel tax registration of vehicles by motor carriers; 21
7979
8080 (ii) establishment of periodic fuel use reporting and fuel use tax 22
8181 payment requirements by motor carriers; and 23
8282
8383 (iii) disbursement of money that is collected by the Comptroller and 24
8484 is due to other states based on: 25
8585
8686 1. mileage travelled and fuel used in those states; and 26
8787
8888 2. the respective registration fees of those states. 27
8989
9090 (2) The Comptroller may not enter into any reciprocal agreement that 28
9191 would affect: 29
9292
9393 (i) this State’s motor carrier tax rate; or 30
9494
9595 (ii) this State’s registration fee for motor carriers. 31
9696 HOUSE BILL 695 3
9797
9898
9999 (b) In exercising the authority granted under subsection (a) of this section, the 1
100100 Comptroller is expressly authorized to: 2
101101
102102 (1) enter into regional or national fuel use tax agreements; 3
103103
104104 (2) become a member of any regional or national conference, group, 4
105105 compact, or similar organization of motor carrier fuel use tax administrators; and 5
106106
107107 (3) enforce the provisions set forth in any regional or national fuel use tax 6
108108 agreements. 7
109109
110110 (c) The agreement provisions shall apply to the fuel use taxation, registration, 8
111111 and reporting requirements of motor carriers subject to the provisions of the agreement 9
112112 without reference to or application of any other statutes of this State. 10
113113
114114 9–305. 11
115115
116116 (a) Except as provided in subsection (b) of this section, the motor fuel tax rate is: 12
117117
118118 (1) 7 cents for each gallon of aviation gasoline; 13
119119
120120 (2) 23.5 cents for each gallon of gasoline other than aviation gasoline; 14
121121
122122 (3) 24.25 cents for each gallon of special fuel other than clean–burning fuel 15
123123 or turbine fuel; 16
124124
125125 (4) 7 cents for each gallon of turbine fuel; and 17
126126
127127 (5) 23.5 cents for each gasoline–equivalent gallon of clean–burning fuel 18
128128 except electricity. 19
129129
130130 (b) (1) The motor fuel tax rates specified in subsection (a)(2), (3), and (5) of this 20
131131 section shall be increased on July 1, 2013, [and] July 1 [of each subsequent year], 2014, 21
132132 JULY 1, 2015, JULY 1, 2016, JULY 1, 2017, JULY 1, 2018, JULY 1, 2019, JULY 1, 2020, 22
133133 JULY 1, 2021, JULY 1, 2022, JULY 1, 2023, AND JULY 1, 2024, in accordance with this 23
134134 subsection. 24
135135
136136 (2) On or before June 1 [of each year], 2013, JUNE 1, 2014, JUNE 1, 25
137137 2015, JUNE 1, 2016, JUNE 1, 2017, JUNE 1, 2018, JUNE 1, 2019, JUNE 1, 2020, JUNE 26
138138 1, 2021, JUNE 1, 2022, JUNE 1, 2023, AND JUNE 1, 2024, the Comptroller shall 27
139139 determine and announce: 28
140140
141141 (i) the growth in the Consumer Price Index for all urban consumers 29
142142 as determined by the Comptroller under paragraph (3) of this subsection; and 30
143143 4 HOUSE BILL 695
144144
145145
146146 (ii) the motor fuel tax rates effective for the fiscal year beginning on 1
147147 the following July 1 as determined by the Comptroller under paragraph (4) of this 2
148148 subsection. 3
149149
150150 (3) (i) In this paragraph, “Consumer Price Index for all urban 4
151151 consumers” means the index published monthly by the Bureau of Labor Statistics of the 5
152152 U.S. Department of Labor that is the U.S. city average of all items in a basket of consumer 6
153153 goods and services. 7
154154
155155 (ii) The percentage growth in the Consumer Price Index for all urban 8
156156 consumers shall be determined by comparing the average of the index for the 12 months 9
157157 ending on the preceding April 30 to the average of the index for the prior 12 months. 10
158158
159159 (4) Subject to paragraph (5) of this subsection, on July 1 [of each year], 11
160160 2013, JULY 1, 2014, JULY 1, 2015, JULY 1, 2016, JULY 1, 2017, JULY 1, 2018, JULY 12
161161 1, 2019, JULY 1, 2020, JULY 1, 2021, JULY 1, 2022, JULY 1, 2023, AND JULY 1, 2024, 13
162162 each motor fuel tax rate specified in subsection (a)(2), (3), and (5) of this section shall be 14
163163 increased by the amount, rounded to the nearest one–tenth of a cent, that equals the 15
164164 product of multiplying: 16
165165
166166 (i) the motor fuel tax rate in effect on the date of the Comptroller’s 17
167167 announcement under paragraph (2) of this subsection; and 18
168168
169169 (ii) the percentage growth in the Consumer Price Index for all urban 19
170170 consumers. 20
171171
172172 (5) (i) If there is a decline or no growth in the Consumer Price Index for 21
173173 all urban consumers, the motor fuel tax rates shall remain unchanged. 22
174174
175175 (ii) Any increase in the motor fuel tax rates under paragraph (4) of 23
176176 this subsection may not be greater than 8% of the motor fuel tax rate effective in the 24
177177 previous year. 25
178178
179179 (6) The Comptroller shall require any person possessing tax–paid motor 26
180180 fuel for sale at the start of business on the date of an increase in the motor fuel tax under 27
181181 this subsection to compile and file an inventory of the motor fuel held at the close of 28
182182 business on the immediately preceding date and remit within 30 days any additional motor 29
183183 fuel tax that is due on the motor fuel. 30
184184
185185 SUBTITLE 4. VEHICLE–MILES–TRAVELED TAX – PROHIBITED. 31
186186
187187 9–401. 32
188188
189189 (A) SUBJECT TO SUBSECTION (B) OF THIS SECTION, THE STATE OR A LOCAL 33
190190 JURISDICTION MAY NOT DIRECTLY OR INDIRECT LY, INCLUDING THROUGH A 34 HOUSE BILL 695 5
191191
192192
193193 THIRD–PARTY AGREEMENT OR A S PART OF A PILOT PR OGRAM OR STUDY , IMPOSE OR 1
194194 LEVY: 2
195195
196196 (1) A VEHICLE–MILES–TRAVELED TAX ; 3
197197
198198 (2) A MILEAGE–BASED USER FEE ; 4
199199
200200 (3) A TOLL BASED ON GLOB AL POSITIONING SATEL LITE TRACKING ; 5
201201 OR 6
202202
203203 (4) ANY OTHER SIMILAR FO RM OF TAX. 7
204204
205205 (B) NOTHING IN THIS SECTI ON SHALL BE CONSTRUE D TO PROHIBIT THE 8
206206 COMPTROLLER FROM ENTE RING INTO AND THE STATE FROM ENFORCING AN 9
207207 AGREEMENT IN ACCORDA NCE WITH § 9–205 OF THIS TITLE. 10
208208
209209 Article – Transportation 11
210210
211211 7–208. 12
212212
213213 (b–1) (1) Subject to § 7–506 of this title and paragraph (2) of this subsection, ON 13
214214 OR BEFORE JULY 1 EACH YEAR, the Administration shall set the fare prices and collect 14
215215 other operating revenues IN AN AMOUNT SUFFICI ENT TO ACHIEVE THE F AREBOX 15
216216 RECOVERY REQUIREMENT ESTABLISHED IN PARAG RAPH (2) OF THIS SUBSECTION . 16
217217
218218 (2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , FOR 17
219219 EACH FISCAL YEAR , THE ADMINISTRATION SHALL SEPARATELY RECOVER FROM 18
220220 FARES AND OTHER OPER ATING REVENUES AT LE AST 35% OF THE TOTAL OPERATI NG 19
221221 COSTS FOR: 20
222222
223223 1. THE ADMINISTRATION ’S BUS, LIGHT RAIL, AND 21
224224 METRO SUBWAY SERVICES IN THE BALTIMORE REGION ; AND 22
225225
226226 2. ALL PASSENGER RAILROA D SERVICES UNDER THE 23
227227 ADMINISTRATION’S CONTROL. 24
228228
229229 (II) THE PERCENTAGE OF TOT AL OPERATING COSTS R EQUIRED 25
230230 TO BE RECOVERED UNDE R SUBPARAGRAPH (I) OF THIS PARAGRAPH IS EQUAL TO: 26
231231
232232 1. FOR FISCAL YEAR 2026, 15%; 27
233233
234234 2. FOR FISCAL YEAR 2027, 20%; 28
235235
236236 3. FOR FISCAL YEAR 2028, 25%; 29 6 HOUSE BILL 695
237237
238238
239239
240240 4. FOR FISCAL YEAR 2029, 30%; AND 1
241241
242242 5. FOR FISCAL YEAR 2030 AND EACH FISCAL YEAR 2
243243 THEREAFTER , THE PERCENTAGE SPECI FIED IN SUBPARAGRAPH (I) OF THIS 3
244244 PARAGRAPH . 4
245245
246246 [(2)] (3) The Administration may not reduce the level of services provided 5
247247 by the Administration for the purpose of achieving a specific farebox recovery requirement. 6
248248
249249 (4) AN INCREASE IN THE ADMINISTRATION ’S FARE PRICES BY THE 7
250250 MINIMUM AMOUNT REQUI RED UNDER THIS SUBSE CTION IS NOT SUB JECT TO THE 8
251251 REQUIREMENTS OF § 7–506 OF THIS TITLE. 9
252252
253253 7–506. 10
254254
255255 (a) (1) Except as provided in subsection (b) of this section OR § 7–208(B–1)(4) 11
256256 OF THIS TITLE, until a public hearing is held on the matter, the Administration may not: 12
257257
258258 (i) Fix or revise any fare or rate charged the general public; 13
259259
260260 (ii) Establish or abandon any bus or rail route listed on a published 14
261261 timetable; 15
262262
263263 (iii) Change a bus or rail route alignment listed on a published 16
264264 timetable, unless the change is needed because of temporary construction or changes in the 17
265265 road network; 18
266266
267267 (iv) Reduce the frequency, number of days, or days of service for a 19
268268 commuter bus or commuter rail route without substituting a comparable level of service, 20
269269 unless the reduction is temporary or a result of: 21
270270
271271 1. A natural disaster; 22
272272
273273 2. Weather or other emergency conditions; 23
274274
275275 3. Schedule adjustments required by a third party that 24
276276 operates service on the same right–of–way; or 25
277277
278278 4. Other circumstances beyond the control of the 26
279279 Administration; or 27
280280
281281 (v) Establish or abandon a rail transit station. 28
282282
283283 22–107. 29
284284 HOUSE BILL 695 7
285285
286286
287287 THE STATE OR A LOCAL JURI SDICTION MAY NOT REQ UIRE THE INSTALLATIO N 1
288288 OF A DEVICE IN OR ON A PRIVATELY OWNED VE HICLE TO FACILITATE THE 2
289289 REPORTING OF THE NUM BER OF VEHICLE MILES TRAVELED. 3
290290
291291 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 4
292292 1, 2025. 5
293293