1 | 1 | | |
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2 | 2 | | |
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3 | 3 | | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. |
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4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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5 | 5 | | *hb0695* |
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6 | 6 | | |
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7 | 7 | | HOUSE BILL 695 |
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8 | 8 | | Q5, R6, R2 5lr1775 |
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9 | 9 | | HB 1025/24 – W&M & ENT |
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10 | 10 | | By: Delegates M. Morgan, Arentz, Arikan, Chisholm, Fisher, Grammer, Howard, |
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11 | 11 | | Hutchinson, Jacobs, Kipke, T. Morgan, Nawrocki, Otto, Pippy, Rose, |
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12 | 12 | | Schmidt, Szeliga, and Valentine |
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13 | 13 | | Introduced and read first time: January 24, 2025 |
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14 | 14 | | Assigned to: Ways and Means and Environment and Transportation |
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15 | 15 | | |
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16 | 16 | | A BILL ENTITLED |
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17 | 17 | | |
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18 | 18 | | AN ACT concerning 1 |
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19 | 19 | | |
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20 | 20 | | Repair the Transportation Trust Fund Act 2 |
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21 | 21 | | |
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22 | 22 | | FOR the purpose of repealing a requirement that certain motor fuel tax rates be adjusted 3 |
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23 | 23 | | in future years based on growth in the Consumer Price Index for All Urban 4 |
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24 | 24 | | Consumers; prohibiting the State or a local jurisdiction from imposing or levying a 5 |
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25 | 25 | | vehicle–miles–traveled tax or certain other similar fees, tolls, or taxes; requiring that 6 |
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26 | 26 | | the Maryland Transit Administration achieve a certain farebox recovery 7 |
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27 | 27 | | requirement for certain transit services; requiring that the Administration increase 8 |
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28 | 28 | | fares for certain transit services under certain circumstances; providing that the 9 |
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29 | 29 | | Administration is not required to conduct certain public hearings before 10 |
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30 | 30 | | implementing certain fare increases; prohibiting the State or a local jurisdiction from 11 |
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31 | 31 | | requiring the installation of a device in or on a privately owned vehicle to facilitate 12 |
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32 | 32 | | the reporting of vehicle miles traveled; and generally relating to fares, fees, and taxes 13 |
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33 | 33 | | related to transportation. 14 |
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34 | 34 | | |
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35 | 35 | | BY repealing and reenacting, without amendments, 15 |
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36 | 36 | | Article – Tax – General 16 |
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37 | 37 | | Section 9–205 17 |
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38 | 38 | | Annotated Code of Maryland 18 |
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39 | 39 | | (2022 Replacement Volume and 2024 Supplement) 19 |
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40 | 40 | | |
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41 | 41 | | BY repealing and reenacting, with amendments, 20 |
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42 | 42 | | Article – Tax – General 21 |
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43 | 43 | | Section 9–305 22 |
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44 | 44 | | Annotated Code of Maryland 23 |
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45 | 45 | | (2022 Replacement Volume and 2024 Supplement) 24 |
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46 | 46 | | |
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47 | 47 | | BY adding to 25 |
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48 | 48 | | Article – Tax – General 26 2 HOUSE BILL 695 |
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49 | 49 | | |
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50 | 50 | | |
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51 | 51 | | Section 9–401 to be under the new subtitle “Subtitle 4. Vehicle–Miles–Traveled 1 |
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52 | 52 | | Tax – Prohibited” 2 |
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53 | 53 | | Annotated Code of Maryland 3 |
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54 | 54 | | (2022 Replacement Volume and 2024 Supplement) 4 |
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55 | 55 | | |
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56 | 56 | | BY repealing and reenacting, with amendments, 5 |
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57 | 57 | | Article – Transportation 6 |
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58 | 58 | | Section 7–208(b–1) and 7–506(a)(1) 7 |
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59 | 59 | | Annotated Code of Maryland 8 |
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60 | 60 | | (2020 Replacement Volume and 2024 Supplement) 9 |
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61 | 61 | | |
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62 | 62 | | BY adding to 10 |
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63 | 63 | | Article – Transportation 11 |
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64 | 64 | | Section 22–107 12 |
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65 | 65 | | Annotated Code of Maryland 13 |
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66 | 66 | | (2020 Replacement Volume and 2024 Supplement) 14 |
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67 | 67 | | |
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68 | 68 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15 |
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69 | 69 | | That the Laws of Maryland read as follows: 16 |
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70 | 70 | | |
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71 | 71 | | Article – Tax – General 17 |
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72 | 72 | | |
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73 | 73 | | 9–205. 18 |
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74 | 74 | | |
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75 | 75 | | (a) (1) The Comptroller may enter into reciprocal agreements on behalf of this 19 |
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76 | 76 | | State, with the duly authorized representatives of any other state, that provide for: 20 |
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77 | 77 | | |
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78 | 78 | | (i) fuel tax registration of vehicles by motor carriers; 21 |
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79 | 79 | | |
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80 | 80 | | (ii) establishment of periodic fuel use reporting and fuel use tax 22 |
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81 | 81 | | payment requirements by motor carriers; and 23 |
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82 | 82 | | |
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83 | 83 | | (iii) disbursement of money that is collected by the Comptroller and 24 |
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84 | 84 | | is due to other states based on: 25 |
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85 | 85 | | |
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86 | 86 | | 1. mileage travelled and fuel used in those states; and 26 |
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87 | 87 | | |
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88 | 88 | | 2. the respective registration fees of those states. 27 |
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89 | 89 | | |
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90 | 90 | | (2) The Comptroller may not enter into any reciprocal agreement that 28 |
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91 | 91 | | would affect: 29 |
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92 | 92 | | |
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93 | 93 | | (i) this State’s motor carrier tax rate; or 30 |
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94 | 94 | | |
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95 | 95 | | (ii) this State’s registration fee for motor carriers. 31 |
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96 | 96 | | HOUSE BILL 695 3 |
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97 | 97 | | |
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98 | 98 | | |
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99 | 99 | | (b) In exercising the authority granted under subsection (a) of this section, the 1 |
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100 | 100 | | Comptroller is expressly authorized to: 2 |
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101 | 101 | | |
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102 | 102 | | (1) enter into regional or national fuel use tax agreements; 3 |
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103 | 103 | | |
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104 | 104 | | (2) become a member of any regional or national conference, group, 4 |
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105 | 105 | | compact, or similar organization of motor carrier fuel use tax administrators; and 5 |
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106 | 106 | | |
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107 | 107 | | (3) enforce the provisions set forth in any regional or national fuel use tax 6 |
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108 | 108 | | agreements. 7 |
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109 | 109 | | |
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110 | 110 | | (c) The agreement provisions shall apply to the fuel use taxation, registration, 8 |
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111 | 111 | | and reporting requirements of motor carriers subject to the provisions of the agreement 9 |
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112 | 112 | | without reference to or application of any other statutes of this State. 10 |
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113 | 113 | | |
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114 | 114 | | 9–305. 11 |
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115 | 115 | | |
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116 | 116 | | (a) Except as provided in subsection (b) of this section, the motor fuel tax rate is: 12 |
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117 | 117 | | |
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118 | 118 | | (1) 7 cents for each gallon of aviation gasoline; 13 |
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119 | 119 | | |
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120 | 120 | | (2) 23.5 cents for each gallon of gasoline other than aviation gasoline; 14 |
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121 | 121 | | |
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122 | 122 | | (3) 24.25 cents for each gallon of special fuel other than clean–burning fuel 15 |
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123 | 123 | | or turbine fuel; 16 |
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124 | 124 | | |
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125 | 125 | | (4) 7 cents for each gallon of turbine fuel; and 17 |
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126 | 126 | | |
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127 | 127 | | (5) 23.5 cents for each gasoline–equivalent gallon of clean–burning fuel 18 |
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128 | 128 | | except electricity. 19 |
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129 | 129 | | |
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130 | 130 | | (b) (1) The motor fuel tax rates specified in subsection (a)(2), (3), and (5) of this 20 |
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131 | 131 | | section shall be increased on July 1, 2013, [and] July 1 [of each subsequent year], 2014, 21 |
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132 | 132 | | JULY 1, 2015, JULY 1, 2016, JULY 1, 2017, JULY 1, 2018, JULY 1, 2019, JULY 1, 2020, 22 |
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133 | 133 | | JULY 1, 2021, JULY 1, 2022, JULY 1, 2023, AND JULY 1, 2024, in accordance with this 23 |
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134 | 134 | | subsection. 24 |
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135 | 135 | | |
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136 | 136 | | (2) On or before June 1 [of each year], 2013, JUNE 1, 2014, JUNE 1, 25 |
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137 | 137 | | 2015, JUNE 1, 2016, JUNE 1, 2017, JUNE 1, 2018, JUNE 1, 2019, JUNE 1, 2020, JUNE 26 |
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138 | 138 | | 1, 2021, JUNE 1, 2022, JUNE 1, 2023, AND JUNE 1, 2024, the Comptroller shall 27 |
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139 | 139 | | determine and announce: 28 |
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140 | 140 | | |
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141 | 141 | | (i) the growth in the Consumer Price Index for all urban consumers 29 |
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142 | 142 | | as determined by the Comptroller under paragraph (3) of this subsection; and 30 |
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143 | 143 | | 4 HOUSE BILL 695 |
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144 | 144 | | |
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145 | 145 | | |
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146 | 146 | | (ii) the motor fuel tax rates effective for the fiscal year beginning on 1 |
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147 | 147 | | the following July 1 as determined by the Comptroller under paragraph (4) of this 2 |
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148 | 148 | | subsection. 3 |
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149 | 149 | | |
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150 | 150 | | (3) (i) In this paragraph, “Consumer Price Index for all urban 4 |
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151 | 151 | | consumers” means the index published monthly by the Bureau of Labor Statistics of the 5 |
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152 | 152 | | U.S. Department of Labor that is the U.S. city average of all items in a basket of consumer 6 |
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153 | 153 | | goods and services. 7 |
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154 | 154 | | |
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155 | 155 | | (ii) The percentage growth in the Consumer Price Index for all urban 8 |
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156 | 156 | | consumers shall be determined by comparing the average of the index for the 12 months 9 |
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157 | 157 | | ending on the preceding April 30 to the average of the index for the prior 12 months. 10 |
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158 | 158 | | |
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159 | 159 | | (4) Subject to paragraph (5) of this subsection, on July 1 [of each year], 11 |
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160 | 160 | | 2013, JULY 1, 2014, JULY 1, 2015, JULY 1, 2016, JULY 1, 2017, JULY 1, 2018, JULY 12 |
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161 | 161 | | 1, 2019, JULY 1, 2020, JULY 1, 2021, JULY 1, 2022, JULY 1, 2023, AND JULY 1, 2024, 13 |
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162 | 162 | | each motor fuel tax rate specified in subsection (a)(2), (3), and (5) of this section shall be 14 |
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163 | 163 | | increased by the amount, rounded to the nearest one–tenth of a cent, that equals the 15 |
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164 | 164 | | product of multiplying: 16 |
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165 | 165 | | |
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166 | 166 | | (i) the motor fuel tax rate in effect on the date of the Comptroller’s 17 |
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167 | 167 | | announcement under paragraph (2) of this subsection; and 18 |
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168 | 168 | | |
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169 | 169 | | (ii) the percentage growth in the Consumer Price Index for all urban 19 |
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170 | 170 | | consumers. 20 |
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171 | 171 | | |
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172 | 172 | | (5) (i) If there is a decline or no growth in the Consumer Price Index for 21 |
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173 | 173 | | all urban consumers, the motor fuel tax rates shall remain unchanged. 22 |
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174 | 174 | | |
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175 | 175 | | (ii) Any increase in the motor fuel tax rates under paragraph (4) of 23 |
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176 | 176 | | this subsection may not be greater than 8% of the motor fuel tax rate effective in the 24 |
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177 | 177 | | previous year. 25 |
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178 | 178 | | |
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179 | 179 | | (6) The Comptroller shall require any person possessing tax–paid motor 26 |
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180 | 180 | | fuel for sale at the start of business on the date of an increase in the motor fuel tax under 27 |
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181 | 181 | | this subsection to compile and file an inventory of the motor fuel held at the close of 28 |
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182 | 182 | | business on the immediately preceding date and remit within 30 days any additional motor 29 |
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183 | 183 | | fuel tax that is due on the motor fuel. 30 |
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184 | 184 | | |
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185 | 185 | | SUBTITLE 4. VEHICLE–MILES–TRAVELED TAX – PROHIBITED. 31 |
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186 | 186 | | |
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187 | 187 | | 9–401. 32 |
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188 | 188 | | |
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189 | 189 | | (A) SUBJECT TO SUBSECTION (B) OF THIS SECTION, THE STATE OR A LOCAL 33 |
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190 | 190 | | JURISDICTION MAY NOT DIRECTLY OR INDIRECT LY, INCLUDING THROUGH A 34 HOUSE BILL 695 5 |
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191 | 191 | | |
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192 | 192 | | |
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193 | 193 | | THIRD–PARTY AGREEMENT OR A S PART OF A PILOT PR OGRAM OR STUDY , IMPOSE OR 1 |
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194 | 194 | | LEVY: 2 |
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195 | 195 | | |
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196 | 196 | | (1) A VEHICLE–MILES–TRAVELED TAX ; 3 |
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197 | 197 | | |
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198 | 198 | | (2) A MILEAGE–BASED USER FEE ; 4 |
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199 | 199 | | |
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200 | 200 | | (3) A TOLL BASED ON GLOB AL POSITIONING SATEL LITE TRACKING ; 5 |
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201 | 201 | | OR 6 |
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202 | 202 | | |
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203 | 203 | | (4) ANY OTHER SIMILAR FO RM OF TAX. 7 |
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204 | 204 | | |
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205 | 205 | | (B) NOTHING IN THIS SECTI ON SHALL BE CONSTRUE D TO PROHIBIT THE 8 |
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206 | 206 | | COMPTROLLER FROM ENTE RING INTO AND THE STATE FROM ENFORCING AN 9 |
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207 | 207 | | AGREEMENT IN ACCORDA NCE WITH § 9–205 OF THIS TITLE. 10 |
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208 | 208 | | |
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209 | 209 | | Article – Transportation 11 |
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210 | 210 | | |
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211 | 211 | | 7–208. 12 |
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212 | 212 | | |
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213 | 213 | | (b–1) (1) Subject to § 7–506 of this title and paragraph (2) of this subsection, ON 13 |
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214 | 214 | | OR BEFORE JULY 1 EACH YEAR, the Administration shall set the fare prices and collect 14 |
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215 | 215 | | other operating revenues IN AN AMOUNT SUFFICI ENT TO ACHIEVE THE F AREBOX 15 |
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216 | 216 | | RECOVERY REQUIREMENT ESTABLISHED IN PARAG RAPH (2) OF THIS SUBSECTION . 16 |
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217 | 217 | | |
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218 | 218 | | (2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , FOR 17 |
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219 | 219 | | EACH FISCAL YEAR , THE ADMINISTRATION SHALL SEPARATELY RECOVER FROM 18 |
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220 | 220 | | FARES AND OTHER OPER ATING REVENUES AT LE AST 35% OF THE TOTAL OPERATI NG 19 |
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221 | 221 | | COSTS FOR: 20 |
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222 | 222 | | |
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223 | 223 | | 1. THE ADMINISTRATION ’S BUS, LIGHT RAIL, AND 21 |
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224 | 224 | | METRO SUBWAY SERVICES IN THE BALTIMORE REGION ; AND 22 |
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225 | 225 | | |
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226 | 226 | | 2. ALL PASSENGER RAILROA D SERVICES UNDER THE 23 |
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227 | 227 | | ADMINISTRATION’S CONTROL. 24 |
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228 | 228 | | |
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229 | 229 | | (II) THE PERCENTAGE OF TOT AL OPERATING COSTS R EQUIRED 25 |
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230 | 230 | | TO BE RECOVERED UNDE R SUBPARAGRAPH (I) OF THIS PARAGRAPH IS EQUAL TO: 26 |
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231 | 231 | | |
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232 | 232 | | 1. FOR FISCAL YEAR 2026, 15%; 27 |
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233 | 233 | | |
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234 | 234 | | 2. FOR FISCAL YEAR 2027, 20%; 28 |
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235 | 235 | | |
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236 | 236 | | 3. FOR FISCAL YEAR 2028, 25%; 29 6 HOUSE BILL 695 |
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237 | 237 | | |
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238 | 238 | | |
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239 | 239 | | |
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240 | 240 | | 4. FOR FISCAL YEAR 2029, 30%; AND 1 |
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241 | 241 | | |
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242 | 242 | | 5. FOR FISCAL YEAR 2030 AND EACH FISCAL YEAR 2 |
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243 | 243 | | THEREAFTER , THE PERCENTAGE SPECI FIED IN SUBPARAGRAPH (I) OF THIS 3 |
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244 | 244 | | PARAGRAPH . 4 |
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245 | 245 | | |
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246 | 246 | | [(2)] (3) The Administration may not reduce the level of services provided 5 |
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247 | 247 | | by the Administration for the purpose of achieving a specific farebox recovery requirement. 6 |
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248 | 248 | | |
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249 | 249 | | (4) AN INCREASE IN THE ADMINISTRATION ’S FARE PRICES BY THE 7 |
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250 | 250 | | MINIMUM AMOUNT REQUI RED UNDER THIS SUBSE CTION IS NOT SUB JECT TO THE 8 |
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251 | 251 | | REQUIREMENTS OF § 7–506 OF THIS TITLE. 9 |
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252 | 252 | | |
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253 | 253 | | 7–506. 10 |
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254 | 254 | | |
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255 | 255 | | (a) (1) Except as provided in subsection (b) of this section OR § 7–208(B–1)(4) 11 |
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256 | 256 | | OF THIS TITLE, until a public hearing is held on the matter, the Administration may not: 12 |
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257 | 257 | | |
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258 | 258 | | (i) Fix or revise any fare or rate charged the general public; 13 |
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259 | 259 | | |
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260 | 260 | | (ii) Establish or abandon any bus or rail route listed on a published 14 |
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261 | 261 | | timetable; 15 |
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262 | 262 | | |
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263 | 263 | | (iii) Change a bus or rail route alignment listed on a published 16 |
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264 | 264 | | timetable, unless the change is needed because of temporary construction or changes in the 17 |
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265 | 265 | | road network; 18 |
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266 | 266 | | |
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267 | 267 | | (iv) Reduce the frequency, number of days, or days of service for a 19 |
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268 | 268 | | commuter bus or commuter rail route without substituting a comparable level of service, 20 |
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269 | 269 | | unless the reduction is temporary or a result of: 21 |
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270 | 270 | | |
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271 | 271 | | 1. A natural disaster; 22 |
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272 | 272 | | |
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273 | 273 | | 2. Weather or other emergency conditions; 23 |
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274 | 274 | | |
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275 | 275 | | 3. Schedule adjustments required by a third party that 24 |
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276 | 276 | | operates service on the same right–of–way; or 25 |
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277 | 277 | | |
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278 | 278 | | 4. Other circumstances beyond the control of the 26 |
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279 | 279 | | Administration; or 27 |
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280 | 280 | | |
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281 | 281 | | (v) Establish or abandon a rail transit station. 28 |
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282 | 282 | | |
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283 | 283 | | 22–107. 29 |
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284 | 284 | | HOUSE BILL 695 7 |
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285 | 285 | | |
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286 | 286 | | |
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287 | 287 | | THE STATE OR A LOCAL JURI SDICTION MAY NOT REQ UIRE THE INSTALLATIO N 1 |
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288 | 288 | | OF A DEVICE IN OR ON A PRIVATELY OWNED VE HICLE TO FACILITATE THE 2 |
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289 | 289 | | REPORTING OF THE NUM BER OF VEHICLE MILES TRAVELED. 3 |
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290 | 290 | | |
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291 | 291 | | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 4 |
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292 | 292 | | 1, 2025. 5 |
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293 | 293 | | |
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