Bill > HB846

This bill modifies Maryland's tax laws to expand the definition of taxable services to include various transportation-related services and adjust how the resulting tax revenue is distributed. Specifically, the bill adds ten new categories of transportation-related services to the definition of "taxable service," using the North American Industrial Classification System (NAICS) to define these services, which include areas like transportation equipment manufacturing, automotive repair, limousine services, motor vehicle towing, and transportation program administration. The Comptroller will be required to distribute the sales and use tax collected from these new transportation-related services directly to the Transportation Trust Fund. Importantly, this new revenue cannot be credited to the Gasoline and Motor Vehicle Revenue Account, which means these funds will be allocated differently than traditional transportation-related tax revenues. The bill builds upon existing provisions that already direct certain transportation-related tax revenues (like electric vehicle charging station taxes) to the Transportation Trust Fund. The changes will take effect on July 1, 2025, providing time for businesses and government agencies to prepare for the new tax classification and revenue distribution method.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0846?ys=2025RS