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HB 1374

Alternative Fuel, Fuel-Efficient, and Electric Vehicles - Highway Use Fees

2026 Regular Session Introduced by Jared Solomon

Maryland bill creates highway use fees for electric and fuel-efficient vehicles to replace declining gas tax revenue as vehicle electrification increases.

Hearing 3/05 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · HB 1374

Legislative bill overview

HB 1374 establishes highway use fees for alternative fuel vehicles, fuel-efficient vehicles, and electric vehicles in Maryland. The bill aims to replace or supplement traditional gas tax revenue as more drivers transition to vehicles that consume less or no gasoline, ensuring roads and infrastructure maintenance remain adequately funded.

Why is this important

As vehicle fleets electrify and fuel efficiency improves, Maryland's gas tax revenue—the primary funding source for road maintenance and transportation infrastructure—will decline. This bill addresses a genuine fiscal challenge: ensuring highway maintenance funding doesn't collapse as the state meets climate and efficiency goals. The structure of these fees will significantly affect EV adoption rates and which vehicle owners bear the cost burden.

Potential points of contention

  • Regressive impact: Fees on electric and fuel-efficient vehicles may disproportionately burden lower-income drivers who cannot afford newer, more efficient vehicles, while wealthier drivers of older gas guzzlers pay less per mile driven
  • Fee structure and fairness: Determining appropriate fee levels is contentious—too high discourages EV adoption and conflicts with climate policy; too low fails to replace gas tax revenue fairly
  • Double taxation perception: EV owners may view this as unfair since they already pay upfront premiums for efficient vehicles and benefit society through reduced emissions
  • Interstate competitiveness: Maryland's fees could disadvantage in-state EV purchases compared to neighboring states with lower or no such fees

Compiled from official sources — confirm details with the bill’s official record.

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