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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0288*
SENATE BILL 288
R1 6lr1815
CF 6lr2089
By: Senator McCray
Introduced and read first time: January 21, 2026
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Transportation – Highway User Revenues Capital Grants – Calculation 2
FOR the purpose of altering the amounts of certain capital grants calculated based on 3
highway user revenues that are required to be appropriated to Baltimor e City, 4
counties, and municipalities in certain fiscal years; and generally relating to the 5
distribution of highway user revenues. 6
BY repealing and reenacting, without amendments, 7
Article – Transportation 8
Section 8–402 9
Annotated Code of Maryland 10
(2020 Replacement Volume and 2025 Supplement) 11
BY repealing and reenacting, with amendments, 12
Article – Transportation 13
Section 8–403 14
Annotated Code of Maryland 15
(2020 Replacement Volume and 2025 Supplement) 16
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMB LY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18
Article – Transportation 19
8–402. 20
(a) There is a Gasoline and Motor Vehicle Revenue Account in the Transportation 21
Trust Fund. 22
(b) All revenues collected from the following, after deductions provided by law, 23
shall be credited to the Gasoline and Motor Vehicle Revenue Account: 24
2 SENATE BILL 288
(1) All of the motor vehicle fuel tax; 1
(2) Except as otherwise provided by law, two –thirds of the revenue from 2
the vehicle titling tax, excluding revenue attributable to: 3
(i) A vehicle titling tax rate in excess of 6%; or 4
(ii) The vehicle titling tax imposed on rental vehicles under § 5
13–809(c)(1)(ii) of this article; 6
(3) Except for revenues collected under Title 13, Subtitle 9, Parts III and 7
IV of this article, vehicle registration fees; 8
(4) The revenue disbursed to this Account under § 2 –614 of the 9
Tax – General Article; and 10
(5) 80% of the funds distributed on short –term vehicle rentals under § 11
2–1302.1 of the Tax – General Article to the Transportation Trust Fund from the sales and 12
use tax. 13
(c) For fiscal year 2020 and each fiscal year thereafter, revenue credited to the 14
Account shall be used as provided in § 3–216 of this article. 15
8–403. 16
(a) Subject to subsection (c) of this section, for f iscal years 2020 through 2023, 17
capital grants shall be appropriated from the Transportation Trust Fund as provided in § 18
3–216 of this article based on the following calculations: 19
(1) An amount equal to 8.3% of funds credited to the Gasoline and Motor 20
Vehicle Revenue Account shall be appropriated to Baltimore City; 21
(2) An amount equal to 3.2% of funds credited to the Gasoline and Motor 22
Vehicle Revenue Account shall be appropriated to the counties to be distributed as provided 23
in § 8–404 of this subtitle; and 24
(3) An amount equal to 2.0% of funds credited to the Gasoline and Motor 25
Vehicle Revenue Account shall be appropriated to the municipalities to be distributed as 26
provided in § 8–405 of this subtitle. 27
(b) Subject to subsection (c) of this section , capital grants shall be appropriated 28
from the Transportation Trust Fund as provided in § 3 –216 of this article based on the 29
following calculations: 30
(1) For fiscal year 2024: 31
SENATE BILL 288 3
(i) An amount equal to 9.5% of funds credited to the Gasoline and 1
Motor Vehicle Revenue Account shall be appropriated to Baltimore City; 2
(ii) An amount equal to 3.7% of funds credited to the Gasoline and 3
Motor Vehicle Revenue Account shall be appropriated to the counties to be distributed as 4
provided in § 8–404 of this subtitle; and 5
(iii) An amount equal to 2.4% of funds credited to the Gasoline and 6
Motor Vehicle Revenue Account shall be appropriated to the municipalities to be 7
distributed as provided in § 8–405 of this subtitle; 8
(2) For fiscal year 2025: 9
(i) An amount equal to 11% of funds credited to the Gasoline and 10
Motor Vehicle Revenue Account shall be appropriated to Baltimore City; 11
(ii) An amount equal to 4.3% of funds credited to the Gasoline and 12
Motor Vehicle Revenue Account shall be appropriated t o the counties to be distributed as 13
provided in § 8–404 of this subtitle; and 14
(iii) An amount equal to 2.7% of funds credited to the Gasoline and 15
Motor Vehicle Revenue Account shall be appropriated to the municipalities to be 16
distributed as provided in § 8–405 of this subtitle; 17
(3) For fiscal year 2026: 18
(i) An amount equal to 12.2% of funds credited to the Gasoline and 19
Motor Vehicle Revenue Account shall be appropriated to Baltimore City; 20
(ii) An amount equal to 4.8% of funds credited to the Gasoline and 21
Motor Vehicle Revenue Account shall be appropriated to the counties to be distributed as 22
provided in § 8–404 of this subtitle; and 23
(iii) An amount equal to 3.0% of funds credited to the Gasoline and 24
Motor Vehicle Revenue Account shall be a ppropriated to the municipalities to be 25
distributed as provided in § 8–405 of this subtitle; AND 26
(4) For fiscal year 2027 AND EACH FISCAL YEAR THEREAFTER: 27
(i) An amount equal to 12.2% of funds credited to the Gasoline and 28
Motor Vehicle Revenue Account shall be appropriated to Baltimore City; 29
(ii) An amount equal to [4.8%] 15.2% of funds credited to the 30
Gasoline and Motor Vehicle Revenue Account shall be appropriated to the counties to be 31
distributed as provided in § 8–404 of this subtitle; and 32
4 SENATE BILL 288
(iii) An amount equal to 3.0% of funds credited to the Gasoline and 1
Motor Vehicle Revenue Account shall be appropriated to the municipalities to be 2
distributed as provided in § 8–405 of this subtitle[; and 3
(5) For fiscal year 2028 and each fiscal year thereafter: 4
(i) An amount equal to 9.5% of funds credited to the Gasoline and 5
Motor Vehicle Revenue Account shall be appropriated to Baltimore City; 6
(ii) An amount equal to 3.7% of funds credited to the Gasoline and 7
Motor Vehicle Revenue Account shall be appropriated to the counties to be distributed as 8
provided in § 8–404 of this subtitle; and 9
(iii) An amount equal to 2.4% of funds credited to the Gasoline and 10
Motor Vehicle Revenue Account shall be appropriated to the municipalities to be 11
distributed as provided in § 8–405 of this subtitle]. 12
(c) The capital grants made under this subtitle shall be appropriated only if all 13
debt service requirements and departmental operating expenses have been funded and 14
sufficient funds are available to fund the capital program. 15
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 16
1, 2026. 17