Bill > HB1457

This bill introduces a new highway use fee system for alternative fuel, fuel-efficient, and plug-in electric drive vehicles in Maryland, replacing the previous annual surcharge for zero-emission and electric vehicles. Under the new legislation, owners of these vehicle types will be required to pay an annual highway use fee calculated based on estimated motor fuel taxes. The fee calculation involves estimating the average miles traveled by a Class A vehicle, determining fuel consumption, and applying the current motor fuel tax rate. Plug-in electric drive vehicles will be charged 85% of the estimated motor fuel taxes for a fuel-efficient vehicle, while alternative fuel and fuel-efficient vehicles will pay 85% of the difference between estimated motor fuel taxes for a standard fuel-efficient vehicle and their specific vehicle type. The bill also establishes a voluntary Mileage-Based User Fee Program that allows vehicle owners to opt into an alternative fee structure where they pay based on actual miles driven, with strict data privacy and tracking limitations. Vehicles owned by governmental entities, those registered under the International Registration Plan, autocycles, mopeds, motorcycles, and vehicles over 26,000 pounds are exempt from this fee. The new system will take effect on July 1, 2025, with annual updates to the highway use fee calculation.

Transportation and Infrastructure

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1457?ys=2025RS