What happened: Maryland lawmakers on April 7 approved legislation that would generate an estimated $500 million in new transportation revenue for fiscal year 2025-2026. Specifically, the plan calls for:
- Increasing vehicle excise tax and title fees;
- Establishing a new tire fee;
- Accelerating planned vehicle registration fee increases;
- Establishing a new rental vehicle excise tax; and
- Increasing vehicle emission inspection fees.
Why it matters: While Maryland lawmakers approved new revenue during the 2024 legislative session, the transportation agency was still projecting a significant shortfall, forcing the legislature to go back to the drawing board. The state is required to present a balanced budget, and without new revenue the Maryland Department of Transportation faced the prospect of delaying or cutting planned transportation improvements.
What’s next: Gov. Wes Moore (D), who has been supportive of plans to increase transportation revenue, is expected to approve the new transportation revenue.
View the ARTBA-TIAC State Legislation dashboard for live updates of transportation funding measures, follow the blog for new state and local developments, and join the 12th Annual National Workshop for State & Local Transportation Advocates to discuss these and future efforts to increase transportation funding.