Bill > SB374

This bill exempts rental vehicles from the vehicle excise tax, which is a tax imposed on the purchase of a vehicle based on its fair market value. Specifically, it amends existing law to remove language that imposed a 3.5% excise tax on rental vehicles and adds a new provision to Section 13-810 of the Transportation Article that explicitly lists "A RENTAL VEHICLE" as exempt from this excise tax. The bill also makes conforming changes to how excise tax revenue is credited to the Gasoline and Motor Vehicle Revenue Account by excluding revenue from the vehicle titling tax imposed on rental vehicles. This change is set to take effect on July 1, 2026.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0374?ys=2026RS