Maryland Aviation Administration and Local Governments - Transportation Network Services - Prohibition on Taxes, Fees, and Charges

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1622*

HOUSE BILL 1622
Q7, C5, R2 6lr3721

By: Delegate Grammer
Introduced and read first time: February 21, 2026
Assigned to: Rules and Executive Nominations

A BILL ENTITLED

AN ACT concerning 1

Maryland Aviation Administration and Local Governments – Transportation 2
Network Services – Prohibition on Taxes, Fees, and Charges 3

FOR the purpose of repealing certain provisions of law authorizing a county or muni cipal 4
corporation to impose certain assessments on transportation network services; 5
prohibiting a county or municipal corporation from imposing an assessment, a tax, a 6
fee, or a charge on transportation network services; repealing the Transportation 7
Network Assessment Fund; applying certain provisions of law to the administration 8
and enforcement of transportation network company impact fees; requiring the 9
Comptroller to enforce provisions of law regarding transportation network company 10
impact fees; prohibiting the Maryland Aviation Administration from fixing any 11
charges, rentals, or fees on the privilege of providing transportation network services 12
at an airport or a facility; prohibiting certain political subdivisions from fixing any 13
charges, rentals, or fees for the use of an airport or a facility to provide transportation 14
network services; and generally relating to taxes, fees, and other charges on 15
transportation network services. 16

BY repealing and reenacting, without amendments, 17
Article – Public Utilities 18
Section 10–101(a) and (n) and 10–408(a)(1) and (3) and (b)(1) 19
Annotated Code of Maryland 20
(2025 Replacement Volume and 2025 Supplement) 21

BY repealing and reenacting, with amendments, 22
Article – Public Utilities 23
Section 10–404(h)(2) and 10–408(e) 24
Annotated Code of Maryland 25
(2025 Replacement Volume and 2025 Supplement) 26

BY repealing 27
Article – Public Utilities 28
2 HOUSE BILL 1622

Section 10–406, 10–407, and 10–408(h) 1
Annotated Code of Maryland 2
(2025 Replacement Volume and 2025 Supplement) 3

BY adding to 4
Article – Public Utilities 5
Section 10–406 and 10–408(h) 6
Annotated Code of Maryland 7
(2025 Replacement Volume and 2025 Supplement) 8

BY repealing and reenacting, with amendments, 9
Article – Transportation 10
Section 5–408 and 5–418 11
Annotated Code of Maryland 12
(2020 Replacement Volume and 2025 Supplement) 13

BY renumbering 14
Article – Public Utilities 15
Section 10–408 16
to be Section 10–407 17
Annotated Code of Maryland 18
(2025 Replacement Volume and 2025 Supplement) 19

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21

Article – Public Utilities 22

10–101. 23

(a) In this title the following words have the meanings indicated. 24

(n) (1) “Transportation network services” means the activities of an operator 25
during: 26

(i) transportation network coverage period one, during which the 27
operator is logged onto and ready to accept a prearranged ride request made through a 28
transportation network company’s digital network application; 29

(ii) transportation network coverage period two, during which the 30
operator accepts a ride request from a passenger that is prearranged through a 31
transportation network company’s digital network application, and is traveling to a 32
predetermined location to pick up the passenger; and 33

(iii) transportation network coverage period three, during which the 34
operator transports the passenger and continuing until the passenger departs the motor 35
vehicle. 36
HOUSE BILL 1622 3

(2) “Transportation network services” does not include: 1

(i) providing taxicab services, sedan services, or limousine services; 2

(ii) any shared expense carpool arrangement or service or other type 3
of arrangement or service in which a driver receives a fee that does not exceed the driver’s 4
costs associated with providing a ride; or 5

(iii) transportation services that a nonprofit organization provides 6
through the use of a volunteer driver and the volunteer driver’s personal vehicle. 7

10–404. 8

(h) (2) The Commission may not disclose records or information provided to 9
the Commission under this section to any person unless: 10

(i) the disclosure is required by court order or order of the Maryland 11
Tax Court; OR 12

(ii) the disclosure is made in accordance with § 10 –119.3 of the 13
Family Law Article[; or 14

(iii) the disclosure is to the Comptroller under § 10 –406(g)(5) of this 15
subtitle]. 16

[10–406. 17

(a) (1) In this section the following words have the meanings indicated. 18

(2) “Assessment” means a charge imposed by a local jurisdiction on each 19
transportation network servic e that includes a passenger trip during transportation 20
network coverage period three as described in § 10–101(n)(1)(iii) of this title. 21

(3) “Exempt jurisdiction” means a county or municipal corporation that 22
imposed a tax, fee, or charge on for –hire transportation services provided on a per ride or 23
per passenger basis in that county or municipal corporation on or before January 1, 2015. 24

(b) (1) Except as provided in paragraph (2) of this subsection, this section does 25
not limit the authority of an exempt jurisdiction to impose an assessment, a tax, a fee, or a 26
charge on for–hire transportation services, including transportation network services. 27

(2) An exempt jurisdiction may not impose more than one assessment or 28
similar charge on a transportation network service. 29

(c) (1) In accordance with subsections (d) and (e) of this section, a county or 30
municipal corporation may impose an assessment under this section. 31
4 HOUSE BILL 1622

(2) Except in an exempt jurisdiction, an assessment by a county or 1
municipal corporation authorized by this section may not exceed 25 cents per trip. 2

(3) (i) Except as provided in subsection (e)(5) of this section, an 3
assessment may not be imposed on a transportation network service by both a county and 4
a municipal corporation. 5

(ii) If b oth a county and a municipal corporation impose an 6
assessment on a transportation network service in accordance with subsection (e)(5) of this 7
section, the sum of the assessments imposed by both jurisdictions may not exceed 25 cents 8
per trip. 9

(4) The re venue generated from an assessment authorized under this 10
section shall be used for transportation purposes. 11

(d) (1) This subsection applies to a county or municipal corporation that 12
licensed or regulated taxicab services on or before January 1, 2015, eit her directly or 13
through the Commission as provided in § 10–202 of this title. 14

(2) (i) A county, in accordance with subparagraph (ii) of this paragraph, 15
or a municipal corporation may impose an assessment on trips that originate in the county 16
or municipal corporation. 17

(ii) A county authorized to impose an assessment under this 18
subsection: 19

1. may impose an assessment on trips that originate in any 20
area of the county; but 21

2. may not impose an assessment in a municipal corporation 22
that is authorized to impose an assessment under this subsection. 23

(3) If a county or municipal corporation authorized to impose an 24
assessment under this subsection has not authorized an assessment on trips that originate 25
in the county or municipal corporation by July 1, 2016, the county or municipal corporation 26
is subject to subsection (e) of this section. 27

(4) (i) If a county authorized to impose an assessment under this 28
subsection plans to impose an assessment under this section, the county shall notify the 29
municipal corporations in the county of the county’s intent to impose an assessment. 30

(ii) If a municipal corporation authorized to impose an assessment 31
under this subsection plans to impose an assessment under this section, the municipal 32
corporation sh all notify the county of the municipal corporation’s intent to impose an 33
assessment. 34

HOUSE BILL 1622 5

(e) (1) This subsection applies to a county or municipal corporation that: 1

(i) is not authorized to impose an assessment under subsection (d) 2
of this section; or 3

(ii) 1. is authorized to impose an assessment under subsection 4
(d) of this section; but 5

2. has not authorized an assessment by July 1, 2016. 6

(2) In accordance with paragraph (3) of this subsection and subsections (f) 7
and (g) of this section, a cou nty or municipal corporation may impose an assessment on 8
trips that originate in the county or municipal corporation. 9

(3) (i) Except as provided under subparagraph (ii) of this paragraph: 10

1. a municipal corporation has priority over the county where 11
the municipal corporation is located to impose an assessment on trips that originate in the 12
municipal corporation; and 13

2. the county may not impose an assessment on trips that 14
originate in the municipal corporation. 15

(ii) A county has priority over a municipal corporation to impose an 16
assessment on trips that originate in the municipal corporation, and the municipal 17
corporation may not impose an assessment on trips that originate in the municipal 18
corporation, if: 19

1. the county has authorized an assessment on trips that 20
originate in the county under subsection (d) of this section by July 1, 2016; and 21

2. the municipal corporation is not authorized to impose an 22
assessment on trips that originate in the municipal corporation under subsection (d) of this 23
section. 24

(iii) A municipal corporation that is not authorized to impose an 25
assessment on trips that originate in the municipal corporation under subsection (d) of this 26
section and that is located in a county that is authorized to impose an assessment on trips 27
that originate in the county under subsection (d) of this section may impose an assessment 28
on trips that originate in the municipal corporation under this subsection after July 1, 2016, 29
if the county has not authorized an assessment on trips that originate in the county by July 30
1, 2016. 31

(4) (i) Before a county may impose an assessment on trips that 32
originate in a municipal corporation under this subsection, the county shall: 33

6 HOUSE BILL 1622

1. notify the municipal corporation of the county’s intent to 1
impose an assessment on transportation network services that originate in the municipal 2
corporation; and 3

2. provide the municipal corporation reasonable time to pass 4
an ordinance authorizing the imposition of an assessment. 5

(ii) Before a municipal corporation may impose an assessment on 6
trips that originate in the municipal corporation under this subsection, the municipal 7
corporation shall: 8

1. notify the county of the municipal corporation’s intent to 9
impose an assessment; and 10

2. if the county imposes an assessment, provide the county 11
reasonable time to notify the Comptroller before the municipal corporation’s assessment 12
becomes effective. 13

(5) (i) Notwithstanding paragraph (4) of this subsection and subject to 14
subparagraph (iii) of this paragraph, both a county and a municipal corporation authorized 15
to impose an assessment under this subsection may impose an assessment on a 16
transportation network service if the county and the municipal corporation enter into an 17
agreement: 18

1. to share revenues; and 19

2. that specifies the allocation of the revenues. 20

(ii) A county and a municipal corporation that enter into an 21
agreement under this paragraph to impose an assessment on a transportation network 22
service by both jurisdictions shall provide a copy of the agreement to the Comptroller. 23

(iii) If both a county and a municipal corporation impose an 24
assessment on a transportation network service under this paragraph, the sum of the 25
assessments imposed by both jurisdictions may not exceed the amount under subsection 26
(c)(3)(ii) of this section. 27

(f) (1) At least 120 days before an assessment is to take effect, a county or 28
municipal corporation that intends to impose an assessment shall notify the Comptroller: 29

(i) of the amount of the assessment; 30

(ii) of the effective date of the assessment; and 31

(iii) that the notice required under subsection (e)(4) of this section 32
was provided to the county or municipal corporation. 33

HOUSE BILL 1622 7

(2) A county or municipal corporation that imposes an assessment shall 1
notify the Comptroller at least 120 days before any change in an assessment is to take 2
effect: 3

(i) of the amount of the new assessment; 4

(ii) of the effective date of the new assessment; and 5

(iii) that the notice required un der subsection (e)(4) of this section 6
was provided to the county or municipal corporation. 7

(g) (1) This subsection governs the collection, remittance, accounting, and use 8
of revenues from assessments imposed by a county or municipal corporation under thi s 9
section. 10

(2) A transportation network company shall: 11

(i) collect assessments on behalf of an operator who accepts a 12
request for a ride made through the transportation network company’s digital network; 13

(ii) collect any assessment, fee, charge, or tax imposed by an exempt 14
jurisdiction on a transportation network service; and 15

(iii) submit to the Comptroller no later than 30 days after the end of 16
a calendar quarter, or as otherwise specified by the Comptroller in regulations: 17

1. the asses sments and other revenues collected by the 18
transportation network company on behalf of the transportation network operators; 19

2. the allocation of the assessments and other revenues 20
attributable to each county or municipal corporation that has imposed an assessment based 21
on where the trip originated; and 22

3. under oath, a certification that it has submitted the correct 23
amount of assessments and revenues. 24

(3) (i) Subject to subparagraph (ii) of this paragraph, from the 25
assessments and revenues imposed by counties and municipal corporations, the 26
Comptroller shall distribute each quarter the amount necessary to administer the 27
assessments to an administrative cost account. 28

(ii) The amount distributed to the administrative cost account may 29
not exceed 5% of the revenue from the assessments and other revenue. 30

(4) After making the distribution required by paragraph (3) of this 31
subsection, within 45 days of the end of each calendar quarter, the Comptroller shall 32
distribute the remaining revenue to: 33
8 HOUSE BILL 1622

(i) the county or municipal corporation that is the source of the 1
revenue; or 2

(ii) at the discretion of the Comptroller, the county that is the source 3
of the revenue for the county to distribute to the source of revenue in the county or 4
municipal corporation. 5

(5) The Commission shall disclose: 6

(i) on the request of the Comptroller, records or information that 7
relate to the collection, remittance, accounting of revenues from assessments, or the 8
enforcement of the obligations under this section that are: 9

1. provided to the Commission under this subtitle; or 10

2. created, issued, or maintained by the Commission in the 11
course of administering this subtitle; and 12

(ii) records or information required by court order or order of the 13
Maryland Tax Court. 14

(6) (i) 1. The Comptroller may review or inspect each year, at a 15
transportation network company’s place of business or a mutually agreed location, records 16
necessary to ensure that the transportation network company has remitted to the 17
Comptroller the correct revenues and allocations. 18

2. Nothing in this subparagraph is intended to limit the 19
period covered by the Comptroller’s review or inspection, which may include more than 1 20
year. 21

(ii) Records or information provided to the Compt roller by a 22
transportation network company under this subsection are not subject to release under the 23
Maryland Public Information Act. 24

(iii) The Comptroller may not disclose records or information 25
provided by a transportation network company unless the disclosure is required by court 26
order or order of the Maryland Tax Court. 27

(iv) On notice that a person is seeking records or information under 28
subparagraph (iii) of this paragraph, the Comptroller shall promptly notify the 29
transportation network company before disclosing the information. 30

(v) The Comptroller may disclose records or information provided by 31
the Commission or a transportation network company to: 32

1. the Maryland Tax Court; 33
HOUSE BILL 1622 9

2. a legal representative of the State, to review the 1
assessment information about a transportation network company: 2

A. that applies for review under Title 13 under the Tax – 3
General Article; 4

B. that appeals from a determination under Title 13 of the 5
Tax – General Article; or 6

C. against which a n action to recover an assessment, an 7
interest, or a penalty is pending or will be initiated under Title 13 of the Tax – General 8
Article; or 9

3. any license –issuing authority of the State required by 10
State law to verify through the Comptroller that: 11

A. an applicant has paid all undisputed taxes and 12
unemployment insurance contributions payable to the Comptroller or the Secretary of 13
Labor; or 14

B. the applicant has provided for payment in a manner 15
satisfactory to the unit responsible for collection. 16

(vi) 1. Records or information disclosed under subparagraph (v)2 17
or 3 of this paragraph are not subject to release under the Maryland Public Information 18
Act. 19

2. A person that receives records or information under 20
subparagraph (v)2 or 3 of this paragraph may not disclose the records or information unless 21
the disclosure is required by court order or order of the Maryland Tax Court. 22

3. On notice that a third party is seeking records or 23
information under subsubparagraph 2 of this subparagraph, the person that receives 24
records or information under subparagraph (v)2 or 3 of this paragraph shall promptly notify 25
the transportation network company before disclosing the information. 26

(7) (i) Except to the extent of any inconsistency with this section, the 27
provisions of Title 13 of the Tax – General Article that apply to the sales and use tax shall 28
govern the administration, collection, enforcement, and appeals of the revenues from 29
assessments under this section. 30

(ii) The limitations governing the sales and use tax under § 13–1102 31
of the Tax – General Article apply to the assessments imposed under this section. 32

10 HOUSE BILL 1622

(8) The Comptroller may adopt regulations or other requirements or 1
procedures to carry out the provisions of this section, includi ng requirements and 2
procedures regarding the administration, collection, and enforcement of the assessment. 3

(h) The Comptroller shall enforce this section and § 10–407 of this subtitle.] 4

10–406. 5

A COUNTY OR MUNICIPAL CORPORATION MAY NOT IMPOSE AN ASSESSMENT, 6
A TAX, A FEE, OR A CHARGE ON TRANSPORTATION NETWORK SERVICES. 7

[10–407. 8

(a) There is a Transportation Network Assessment Fund. 9

(b) The Fund consists of assessment revenues submitted to the Comptroller from 10
transportation network companies under § 10–406(g) of this subtitle. 11

(c) The purpose of the Fund is to: 12

(1) receive assessment revenues submitted from transportation network 13
companies; and 14

(2) disburse assessment revenues to the appropriate counties and 15
municipalities in accordance with this subsection. 16

(d) (1) The Comptroller shall: 17

(i) deposit in the Fund assessment revenues received from 18
transportation network companies; and 19

(ii) disburse trip assessment revenues to the appropriate counties 20
and municipalities. 21

(2) The Treasurer is the custodian of the Fund. 22

(e) (1) The Fund is a continuing, nonlapsing fund that is not subject to § 23
7–302 of the State Finance and Procurement Article, and may not be deemed a part of the 24
General Fund of the State. 25

(2) No part of the Fund may revert or be credited to: 26

(i) the General Fund of the State; or 27

(ii) a special fund of the State.] 28

HOUSE BILL 1622 11

10–408. 1

(a) (1) In this section the following words have the meanings indicated. 2

(3) “Transportation network company impact fee” me ans the fee imposed 3
by the State under this section on each transportation network service that includes a 4
passenger trip during transportation network coverage period three as described in § 5
10–101(n)(1)(iii) of this title. 6

(b) (1) There is a transport ation network company impact fee on passenger 7
trips that originate in the State. 8

(e) (1) Except as otherwise provided in this section, the audit, assessment, 9
liability for payment, refund, penalty, interest, enforcement, collection remedies, appeal, 10
and administrative provisions [that are applicable to an assessment imposed under § 11
10–406 of this subtitle ] OF TITLE 13 OF THE TAX – GENERAL ARTICLE THAT APPLY 12
TO THE SALES AND USE TAX apply to the transportation network company impact fee. 13

(2) THE LIMITATIONS GOVERNING THE SALES AND USE TAX UNDER § 14
13–1102 OF THE TAX – GENERAL ARTICLE APPLY TO THE TRANSPORTATION 15
NETWORK COMPANY IMPACT FEE. 16

[(h) This section may not be construed to have any effect on an assessment 17
imposed under § 10–406 of this subtitle.] 18

(H) THE COMPTROLLER SHALL ENFORCE THIS SECTION. 19

Article – Transportation 20

5–408. 21

(a) In its operation of an airport, airport facility, or air navigation facility owned 22
or controlled by this State, the Administration, with the approval of the Secretary and 23
subject to the direction of the Commission, may contract, lease, or otherwise arrange with 24
any person to: 25

(1) Provide the person with services furnished by the Administration or its 26
agents at the airport or facility; or 27

(2) Grant to the person the privilege of: 28

(i) Using or improving for commercial purposes any part of the 29
airport or facility; or 30

(ii) Supplying services, facilities, goods, commodities, or other things 31
at the airport or facility. 32
12 HOUSE BILL 1622

(b) (1) (I) For the privileges g ranted, the Administration may establish , 1
SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, any terms and conditions and 2
fix any charges, rentals, or fees that: 3

[(i)] 1. Are reasonable and uniform for the same class of privilege 4
or service; 5

[(ii)] 2. Are established with due regard to the property and 6
improvements used and the expenses of operation to this State; and 7

[(iii)] 3. Do not deprive the public of its rightful, equal, and 8
uniform use of any part of the airport or facility. 9

(II) THE ADMINISTRATION MAY NO T FIX ANY CHARGES , 10
RENTALS, OR FEES ON THE PRIVILEGE OF PROVIDING TRANSPORTATION NETWORK 11
SERVICES, AS DEFINED IN § 10–101 OF THE PUBLIC UTILITIES ARTICLE, AT THE 12
AIRPORT OR FACILITY. 13

(2) The Administration shall monitor the charges, fees, or prices of any 14
goods or services offered to the public by persons granted the privilege under this section. 15
Every contract, lease, or other arrangement shall provide that charges, fees, or prices: 16

(i) May not be increased without the p rior approval of the 17
Administration; and 18

(ii) Are to be reasonable. In determining reasonableness the 19
Administration shall consider the charges, fees, or prices for the same goods or services at 20
comparable airports. 21

(3) The Administration shall: 22

(i) Monitor the employment practices under Title 20, Subtitle 6 of 23
the State Government Article of persons granted privileges under this section; and 24

(ii) Refer for investigation all alleged violations of § 20 –606 of the 25
State Government Article to th e Commission on Civil Rights, the Equal Employment 26
Opportunity Commission, or any appropriate State or federal administrative body. 27

(c) (1) In this subsection, “commercial activity” means the sale, 28
merchandising, marketing, or promotion of any goods or services. 29

(2) Commercial activity is permitted at an airport operated by the 30
Administration only when expressly authorized by and in a manner prescribed by the 31
Administration. 32

HOUSE BILL 1622 13

5–418. 1

(a) (1) Any political subdivision that acquires, leases, controls, o r sets apart 2
any property for an airport, airport facility, or air navigation facility may: 3

[(1)] (I) Establish and operate the airport or facility; 4

[(2)] (II) Lease or grant to any person, on the terms and conditions it 5
considers proper, any right or interest in the airport or facility; 6

[(3)] (III) [Fix] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, FIX 7
any charges, rentals, or fees for the use of the airport or facility and for any right or interest 8
granted to any person under this section; and 9

[(4)] (IV) Delegate any of its powers under this section to any suitable 10
officer or agency of the political subdivision and, for this purpose, create any new agency or 11
unit. 12

(2) A POLITICAL SUBDIVISION MAY NOT FIX ANY CHARGES, RENTALS, 13
OR FEES FOR THE USE OF THE AIRPORT OR FACILITY TO PROVIDE TRANSPORTATION 14
NETWORK SERVICES, AS DEFINED IN § 10–101 OF THE PUBLIC UTILITIES ARTICLE. 15

(b) The costs and expenses incurred in connection with any act performed under 16
this section shall be the responsibility of the political subdivision. 17

SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 10–408 of Article – 18
Public Utilities of the Annotated Code of Maryland be renumbered to be Section(s) 10–407. 19

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 20
1, 2026. 21