Town of Rising Sun - Stop Sign Monitoring Systems - Authorization of Pilot Program
HB1370 creates three new regional transportation authorities in Maryland: one for the Baltimore Region, one for the Capital Region, and one for Southern Maryland. Each authority is given responsibility to prepare and implement a regional transportation plan, prioritize and oversee transportation projects of regional significance, coordinate with state and local transportation agencies, and advocate for regional transportation needs before state and federal governments. The bill also authorizes each authority to accept grants and other assistance, employ staff and experts, and issue bonds, notes, or other obligations backed by dedicated revenue streams.
To fund these authorities, the bill imposes new regional transportation authority surcharges on retail sales and use transactions at a rate of 0.5%, a transportation authority hotel surcharge at a rate of 1%, and a transportation authority transfer tax surcharge of 0.15% on transfers of nonresidential property. The bill directs most of the surcharge revenue to newly created special, nonlapsing regional transportation funds, with the remainder distributed to counties and municipalities in the affected regions for transportation purposes only. It also exempts these regional transportation funds from the general rule that net interest on State money goes to the General Fund, and requires interest earnings to remain in the funds.
The bill would amend the Tax-General and Tax-Property Articles to define the three regions, impose and distribute the new surcharges, and restrict local governments receiving distributions to transportation uses. It would also add a new Title 10.5 to the Transportation Article establishing the authorities, their membership structures, powers, reporting requirements, and financing mechanisms. The bill applies the transfer-tax surcharge provisions to instruments recorded or filed on or after October 1, 2025, and the act as a whole takes effect October 1, 2025.
Because the bill text is focused on regional transportation governance and financing, its practical impact would be to create a new layer of regional planning and revenue collection for transportation projects in the three named regions, while shifting some tax revenue away from the General Fund and toward dedicated transportation accounts. It would also give the new authorities significant discretion over project prioritization, funding recommendations, and bond financing, subject to state budget procedures and consultation requirements.
No committee transcript or vote history was provided, so there is no recorded discussion to gauge support or opposition. Based on the bill text alone, the measure appears to be a major transportation funding and governance proposal, and likely to draw interest from local governments, transportation planners, property owners, businesses subject to the new surcharges, and residents in the affected regions.
HB1370 would amend Maryland tax and transportation law to create three new regional transportation authorities and dedicated special funds for the Baltimore Region, Capital Region, and Southern Maryland. It adds new sales/use, hotel, and nonresidential property transfer tax surcharges in those regions, directs the resulting revenues into regional transportation funds and local distributions, and authorizes the authorities to issue revenue-backed bonds for transportation projects. It also exempts the regional transportation funds from the general interest-crediting rule and limits local distributions to transportation purposes, thereby creating a dedicated regional financing structure within the State’s tax and transportation code.
No committee testimony or vote record was provided, so there is no documented public sentiment in the supplied materials. From the bill text, the proposal is structured as a comprehensive regional transportation investment and governance measure, suggesting an intent to build support around transportation funding needs, regional planning, and project delivery. At the same time, the creation of new surcharges and transfer-tax add-ons indicates the bill would likely generate scrutiny from taxpayers, businesses, and local governments affected by the new revenue streams.
The main points of contention likely concern the new tax burdens and the allocation of revenue. The bill imposes a 0.5% regional sales/use surcharge, a 1% hotel surcharge, and a 0.15% transfer-tax surcharge on nonresidential property, which could draw opposition from consumers, hospitality interests, and commercial real estate stakeholders. Another likely issue is governance: the bill creates new authorities with substantial power over regional transportation priorities, bond issuance, and project selection, which may raise concerns about regional control, accountability, and overlap with existing state and local transportation agencies. Local governments may also scrutinize the requirement that distributed revenues be used only for transportation purposes and the diversion of revenue away from the General Fund.