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Maryland lawmakers consider toll increases, retail delivery fees to make up for transportation deficit

Ft. McHenry tunnel toll
Posted at 12:57 PM, Mar 07, 2024

ANNAPOLIS, Md. — It's been a decade since Maryland drivers have experienced a rise in tolls.

That reprieve could come to an end if a pair of Democratic lawmakers have their way in this year's General Assembly.

Maryland's Department of Transportation is experiencing a more than $2 billion deficit that's expected to last over the next six years.

In January the Maryland Commission on Transportation Revenue and Infrastructure Needs issued a report with recommendations on how to make up for some of the debt.

One option would be to add a new registration fee for electric and/or plug-in hybrid vehicles.

Another suggestion could result in higher registration fees for all drivers.

The commission also recommended thattoll rates be adjusted, including on out-of-state E-Z Passes.

State Senator Guy Guzzone and Delegate Marc Korman have teamed up to introduce a trio of bills that could potentially address all three recommendations.

Guzzone is sponsoring Senate Bill 1065 that would establish an annual $100 surcharge for all electric vehicles, on top of required registration fees. The idea behind the bill is that electric vehicle owners do no contribute to fuel taxes, creating millions in lost revenue for the state.

According to the bill's fiscal and policy note, state revenue could increase by at least $7 million in fiscal year 2025 and to $9.4 million in following years.

Korman is tackling the toll rate recommendation by introducing the Maryland Toll Rate Reform Act of 2024 (House Bill 1070).

Although he does not specify in the bill how much tolls would rise, Korman says it would be at a "near optimal toll rate” providing at least 95 percent of the maximum revenue possible.

"While a precise estimate cannot be reliably made at this time, as it ultimately depends on how toll rates are increased and discount rates are determined by MDTA, revenues are anticipated to increase by hundreds of millions of dollars annually," the bill's fiscal note states.

House Bill 1215, also sponsored by Korman, would generate more money for the transportation department by tacking on a fifty-cent fee for retail deliveries, including for giant corporations like UPS and Amazon.

"The retail delivery fee and related requirements apply only to (1) a vendor that made retail sales totaling at least $500,000 in the previous or current calendar year or (2) a marketplace facilitator that facilitated retail sales of marketplace sellers totaling at least $100,000 in the previous or current calendar year," the bill'sfiscal note reads.

Fees would not be assessed on curbside pickup orders. Additionally, the bill would charge only once per transaction, regardless of how many items or shipments are in the order.

Each of the three proposals have passed a first reading, and have been referred to committee.