Maryland House Democrats on Friday morning unveiled a state budget plan that raises several taxes and fees. That’s in direct contrast to the Senate proposal which didn’t, and largely followed what Governor Wes Moore sent lawakers.
The Senate passed its version by unanimous vote Thursday. It hewed mostly to what Governor Wes Moore proposed at the beginning of this year’s legislative session, a time when he said he had a ‘very high bar’ for any tax increases he would accept. Appearing on WYPR’s Midday earlier this week, Moore said he ‘didn’t see the need’ to raise taxes this year, instead relying on reserve funds to balance the budget.
Friday morning House leaders put out their spending plan, full of various tax and fee hikes to fund future transportation projects. It also embraces internet gambling for money for the Blueprint For Maryland’s Future, an education spending formula for the rest of the decade. House Speaker Adrienne Jones (D-Baltimore County) says Maryland can’t ignore taxes anymore.
“At this point, we know what the solution is, and it is time we just say it. The answer is revenues,” Jones said at a press conference in Annapolis Friday. The plan should hit the House floor later that day. House Democratic leader Marc Korman (D-Montgomery) then outlined the tax and fee hikes included in the spending proposal that would go to transportation:
- Toll hikes, which Korman says have not gone up in ten years in Maryland
- Raising the vehicle excise tax from 6% to 6.5%
- Modifying the vehicle excise tax trade-in exemption, allowing it only for when a vehicle is traded-in for a zero-emission vehicle or hybrid. Korman says neighboring Washington D.C. and Virginia already have similar rules.
- Adding a $125 surcharge for zero-emission vehicles. Korman says with more such vehicles on the roads, there are fewer drivers paying gas taxes, which he says for the average driver in Maryland is about $250 a year. The new surcharge is half that.
- Adding new weight classifications in the vehicle registration process. Heavier vehicles put more strain on roads according to Korman, who argues they should pay more. Depending on size, annual registration would go up anywhere from $10 to $90.
- A statewide ride-hailing fee of 75-cents. There is already such a fee in many parts of Maryland for services like Uber and Lyft. This would apply everywhere.
Negotiations between the Senate and House can now begin, with both chambers needing to pass an agreed upon plan by April 1, just over two weeks away. Senate President Bill Ferguson offered this glimpse of his thoughts on tax hikes at his weekly press conference Friday. “When it comes to income and sales tax…no. I don’t think there’s much room for compromise.”
