MACo: If Drivers Pay New Fees, Local Roads Should Benefit

On March 5, Executive Director Michael Sanderson gave in-person testimony on behalf of Kevin Kinnally to the Environment and Transportation Committee in support of HB 1374 – Alternative Fuel, Fuel-Efficient, and Electric Vehicles – Highway Use Fees with amendments.

This bill would revise how the State charges certain alternative vehicles for their use of public roads. Counties take no position on the reframing of the State-levied charge on alternative vehicles, but strongly urge the State to fairly direct the revenues from either the current fee or the revised fee as proposed in this bill, through the longstanding formula to share fuel tax revenues with local governments across the state.

As Maryland continues to adapt its transportation funding model to account for the growing number of alternative-fuel vehicles, policymakers are exploring new ways to ensure all drivers contribute to the upkeep of Maryland’s road network. Here, counties are urging lawmakers to ensure that any revenue generated runs through the longstanding Highway User Revenue (HUR) formula.

From MACo Testimony:

Since HB 1374 makes very plain that its user fees proposed for alternative vehicles are a practical proxy for the motor fuel tax, the longstanding policy for use of those funds should be properly honored. The State should direct these revenues the same way it does its motor fuel taxes — through the formula for Highway User Revenues — and properly share them with the local governments whose roads bear most of the wear and tear from the vehicles’ use. Any version of HB 1374 must include this equitable plan.

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