Bill > HB695

This bill makes several key changes to Maryland's tax and transportation regulations. First, it repeals the existing requirement that motor fuel tax rates be automatically adjusted each year based on the Consumer Price Index (CPI), which previously allowed for incremental increases up to 8% annually. The bill specifically eliminates these automatic annual increases through 2024. Additionally, the legislation prohibits the state and local jurisdictions from implementing a vehicle-miles-traveled (VMT) tax, mileage-based user fees, GPS-tracking tolls, or similar taxation methods. The bill also introduces new requirements for the Maryland Transit Administration (MTA), mandating that it gradually increase its farebox recovery rate - the percentage of operating costs covered by passenger fares - from 15% in fiscal year 2026 to 35% by fiscal year 2030 for bus, light rail, metro subway, and passenger railroad services in the Baltimore region. Importantly, the MTA is explicitly prohibited from reducing service levels to achieve these farebox recovery targets. The bill is set to take effect on June 1, 2025, providing a clear timeline for implementation of these transportation and tax policy changes.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0695?ys=2025RS