HB695, titled the "Repair the Transportation Trust Fund Act," makes several changes to Maryland transportation-related tax and fare policy. First, it repeals the future annual inflation adjustment mechanism for certain motor fuel tax rates, ending the requirement that those rates continue to rise based on Consumer Price Index growth after the specified years in the bill. It also adds a new prohibition on vehicle-miles-traveled taxes and similar charges, barring the State or local governments from imposing mileage-based user fees, GPS-based tolls, or comparable taxes, including through third-party agreements or pilot programs.
The bill also changes how the Maryland Transit Administration (MTA) must set fares and recover operating costs. It requires the MTA to achieve a farebox recovery target for certain bus, light rail, metro subway, and passenger rail services, with a phased-in schedule beginning in fiscal 2026 and reaching 35% by fiscal 2030 and thereafter. The bill further allows fare increases needed to meet that minimum recovery requirement without the usual public hearing process, and it prohibits the MTA from reducing service levels solely to meet the target. Finally, it bars the State or local jurisdictions from requiring devices in privately owned vehicles to track or report miles traveled.
Impact
HB695 would amend the Tax-General and Transportation Articles of the Maryland Code by removing the CPI-based future escalation of certain motor fuel taxes, creating an express statutory ban on vehicle-miles-traveled taxation and related mileage-based fees, and adding a prohibition on mandatory in-vehicle tracking devices for mileage reporting. It would also impose new farebox recovery requirements on the Maryland Transit Administration and alter existing public hearing requirements for fare increases tied to those requirements. The bill would affect motorists, transit riders, the Comptroller, the MTA, and state and local governments considering road-use pricing or mileage-based revenue systems.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available context. Based on the bill text and title, the measure appears to be framed as a transportation funding and taxpayer-protection bill, with a focus on limiting new road-use taxes while increasing transit fare revenue expectations. The overall tone of the legislation is prescriptive and fiscally restrictive rather than exploratory.
Contention
The most likely points of contention are the bill’s prohibition on vehicle-miles-traveled taxes and similar road pricing mechanisms, which would limit future transportation funding options for the State and local governments. Another likely area of debate is the MTA farebox recovery mandate, especially the requirement to raise fares and the exemption from public hearing procedures for minimum required fare increases, which could draw concern from transit advocates and riders. Supporters would likely emphasize protecting drivers from new mileage-based taxes and pushing transit operations toward greater self-sufficiency, while opponents may argue the bill constrains long-term transportation finance and could increase costs for transit users.
Carry Over
Transportation - Motor Fuel Tax Rates, Vehicle-Miles-Traveled Tax, and Farebox Recovery Requirement (Transportation Equity, Fairness, and Privacy Act of 2024)