Bill > HB898

This bill modifies Maryland's vehicle excise tax by repealing the current exemption for rental vehicles and introducing a specific tax rate for such vehicles. Under the new law, rental vehicles will be subject to a 3.5% excise tax on their fair market value, whereas previously they were completely exempt from the tax. The bill maintains the existing 6% tax rate for other types of vehicles, with a minimum tax of $100. The change is part of the state's transportation tax code and is designed to generate additional revenue by eliminating the tax exemption for rental vehicle businesses. The new tax provision will take effect on July 1, 2025, giving rental car companies and the state's vehicle registration administration time to prepare for the implementation of this new tax requirement. The bill ensures that the tax calculation will still allow for credits or adjustments based on previous sales and use tax payments, maintaining fairness in the taxation process.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0898?ys=2025RS