EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*sb0557*
SENATE BILL 557
Q5, R6 5lr3115
SB 331/20 – B&T CF 5lr1866
By: Senators Ready, Bailey, Carozza, Corderman, Gallion, Folden, Hershey,
Jennings, and McKay
Introduced and read first time: January 23, 2025
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Vehicle–Miles–Traveled Tax and Associated Mandated Devices – Prohibition 2
(Transportation Freedom Act of 2025) 3
FOR the purpose of prohibiting the State or a local jurisdiction from imposing or levying a 4
vehicle–miles–traveled tax or certain other similar fees, tolls, or taxes; prohibiting 5
the State or a local jurisdiction from requiring the installation of a device in or on a 6
privately owned vehicle to facilitate the reporting of vehicle miles traveled; and 7
generally relating to a prohibition against a vehicle–miles–traveled tax and 8
associated mandated devices. 9
BY repealing and reenacting, without amendments, 10
Article – Tax – General 11
Section 9–205 12
Annotated Code of Maryland 13
(2022 Replacement Volume and 2024 Supplement) 14
BY adding to 15
Article – Tax – General 16
Section 9–401 to be under the new subtitle “Subtitle 4. Vehicle–Miles–Traveled 17
Tax – Prohibited” 18
Annotated Code of Maryland 19
(2022 Replacement Volume and 2024 Supplement) 20
BY adding to 21
Article – Transportation 22
Section 22–107 23
Annotated Code of Maryland 24
(2020 Replacement Volume and 2024 Supplement) 25
2 SENATE BILL 557
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Tax – General 3
9–205. 4
(a) (1) The Comptroller may enter into reciprocal agreements on behalf of this 5
State, with the duly authorized representatives of any other state, that provide for: 6
(i) fuel tax registration of vehicles by motor carriers; 7
(ii) establishment of periodic fuel use reporting and fuel use tax 8
payment requirements by motor carriers; and 9
(iii) disbursement of money that is collected by the Comptroller and 10
is due to other states based on: 11
1. mileage travelled and fuel used in those states; and 12
2. the respective registration fees of those states. 13
(2) The Comptroller may not enter into any reciprocal agreement that 14
would affect: 15
(i) this State’s motor carrier tax rate; or 16
(ii) this State’s registration fee for motor carriers. 17
(b) In exercising the authority granted under subsection (a) of this section, the 18
Comptroller is expressly authorized to: 19
(1) enter into regional or national fuel use tax agreements; 20
(2) become a member of any regional or national conference, group, 21
compact, or similar organization of motor carrier fuel use tax administrators; and 22
(3) enforce the provisions set forth in any regional or national fuel use tax 23
agreements. 24
(c) The agreement provisions shall apply to the fuel use taxation, registration, 25
and reporting requirements of motor carriers subject to the provisions of the agreement 26
without reference to or application of any other statutes of this State. 27
SUBTITLE 4. VEHICLE–MILES–TRAVELED TAX – PROHIBITED. 28
9–401. 29 SENATE BILL 557 3
(A) SUBJECT TO SUBSECTION (B) OF THIS SECTION, THE STATE OR A LOCAL 1
JURISDICTION MAY NOT DIRECTLY OR INDIRECT LY, INCLUDING THROUGH A 2
THIRD–PARTY AGREEMENT OR A S PART OF A PILOT PR OGRAM OR STUDY , IMPOSE OR 3
LEVY: 4
(1) A VEHICLE–MILES–TRAVELED TAX ; 5
(2) A MILEAGE–BASED USER FEE ; 6
(3) A TOLL BASED ON GLOB AL POSITIONING SATEL LITE TRACKING ; 7
OR 8
(4) ANY OTHER SIMILAR FO RM OF TAX. 9
(B) NOTHING IN THIS SECTI ON SHALL BE CONSTRUE D TO PROHIBIT THE 10
COMPTROLLER FROM ENTERING INTO A ND THE STATE FROM ENFORCING AN 11
AGREEMENT IN ACCORDA NCE WITH § 9–205 OF THIS TITLE. 12
Article – Transportation 13
22–107. 14
THE STATE OR A LOCAL JURI SDICTION MAY NOT REQ UIRE THE INSTALLATIO N 15
OF A DEVICE IN OR ON A PRIVATELY OWNED VE HICLE TO FACILITATE THE 16
REPORTING OF THE NUM BER OF VEHICLE MILES TRAVELED. 17
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 18
October 1, 2025. 19