Vehicle-Miles-Traveled Tax and Associated Mandated Devices - Prohibition (Transportation Freedom Act of 2025)
Summary
SB 557 prohibits Maryland and its local governments from imposing or levying a vehicle-miles-traveled (VMT) tax, mileage-based user fee, or similar charge based on GPS tracking or vehicle miles traveled. The bill also bars the State or a local jurisdiction from using third-party agreements, pilot programs, or studies to impose such a tax, and it specifically forbids requiring the installation of a device in a privately owned vehicle to report miles traveled.
The bill creates a new subtitle in the Tax-General Article titled “Vehicle-Miles-Traveled Tax – Prohibited” and adds a corresponding prohibition in the Transportation Article. It preserves existing authority for the Comptroller to enter into fuel-use tax agreements for motor carriers under § 9-205, making clear that those interstate fuel tax arrangements are not affected by the new ban. The bill takes effect October 1, 2025.
Impact
SB 557 would amend the Tax-General Article by adding § 9-401 and the Transportation Article by adding § 22-107, thereby limiting state and local taxing and transportation authorities from adopting road-use pricing systems tied to mileage or GPS-based tracking. It would prevent future VMT tax pilots, mileage-based user fees, and mandated in-vehicle tracking devices for private vehicles, while leaving intact the Comptroller’s existing authority to participate in motor carrier fuel tax reciprocity and related agreements under § 9-205.
Sentiment
The bill’s title and structure suggest a strong pro-motorist, anti-VMT-tax policy position, and the available context shows it was introduced by a group of senators likely aligned in support of that position. No committee transcripts or recorded votes are provided, so there is no direct evidence of debate or formal opposition in the supplied materials. Based on the bill text alone, the measure appears designed to preemptively block a policy approach that some lawmakers may view as intrusive or burdensome.
Contention
The main point of contention is likely whether Maryland should preserve the option to use mileage-based road pricing as a future transportation funding tool. Supporters of the bill would favor protecting privacy and preventing mandatory vehicle tracking, while opponents may argue that banning VMT taxes and related pilot programs restricts the State’s ability to explore alternative revenue sources for roads and transit. A secondary issue is the scope of the prohibition, which extends to indirect imposition through third-party agreements and studies, potentially limiting policy experimentation by state and local governments.