Maryland Considers Mileage-Based Fee to Replace Electric Vehicle Surcharge
Maryland lawmakers are evaluating a new bill, HB1457, that could institute a highway-use fee for drivers, potentially replacing the state’s present $125 annual surcharge for electric vehicles.
The proposed legislation hopes to address decreasing revenue from the fuel tax by implementing a Mileage-Based User Fee (MBUF) program. The bill is currently under consideration in the General Assembly, following a four-month pilot program. If passed, it would require drivers of vehicles achieving 25 miles per gallon or more to pay a highway-use fee in addition to the current fuel tax.
The fee would range from $5.83 to $182 annually, based on an average of 11,245 miles driven per year by Maryland motorists. Senator Justin Ready expressed opposition to the bill, stating his concern over mandatory vehicle miles traveled (VMT) taxes and government overreach in monitoring how much people drive, which he believes could potentially be abused.
“I strongly oppose mandatory vehicle miles traveled taxes,” Senator Justin Ready told FOX45. “I’ve sponsored SB557 which would prevent the state or local jurisdictions from doing them. I have always warned that a VMT in Maryland would not be in lieu of a gas tax but would be on top of. That’s because that’s what Maryland tends to do, is add taxes on top of other taxes – and that’s what HB1457 does for cars that get 25 miles to the gallon or higher. Also, I don’t want the government knowing how far or how much anyone is driving. I don’t think that’s any of the government’s business and could be abused in the future, used to “punish” people who drive “too much” in the eyes of a progressive Left government.”
Drivers can opt out of the highway-use fee by participating in the voluntary MBUF program. A similar model is already in place in Virginia, where drivers of fuel-efficient vehicles pay a highway-use fee ranging from $6 to $128 annually, according to The US Sun.
Officials estimate that 42% of Maryland’s passenger vehicles achieve 25 mpg or higher, potentially impacting a significant portion of the state’s drivers. Currently, four states offer a voluntary mileage-based user fee program, with approximately 30,000 drivers enrolled in Virginia, according to The US Sun.
The proposed changes aim to offer a sustained funding source for transportation projects as traditional fuel tax revenues decline, authorities claim.
