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SB 557

Relating to licensing by WV Board of Medicine

2025 Regular Session Introduced by Tom Takubo

Prohibits Maryland state/local VMT taxes, GPS-based tolls, mileage-based fees, and mandated vehicle-tracking devices; preserves interstate motor-carrier fuel-use agreements.

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Bill Summary · SB 557

SB 557 — Vehicle‑Miles‑Traveled Tax and Associated Mandated Devices Prohibition

Transportation Freedom Act of 2025

Purpose / Intent

To prohibit the State of Maryland and its local jurisdictions from adopting mileage‑based taxation or fees that rely on vehicle tracking and from mandating installation of devices in privately owned vehicles to report miles traveled. The bill aims to bar vehicle‑miles‑traveled (VMT) taxes, GPS‑based tolling or similar schemes — including when proposed via third‑party contracts, pilot programs, or studies.

Key provisions

  • Adds “Subtitle 4. Vehicle–Miles–Traveled Tax – Prohibited” to the Tax – General Article (proposed § 9‑401) and prohibits, directly or indirectly (including via third parties, pilots, or studies):
    • Any vehicle‑miles‑traveled tax;
    • Any mileage‑based user fee;
    • Any toll based on global positioning satellite (GPS) tracking;
    • Any other similar form of tax that is mileage‑/location‑based.
  • Adds § 22‑107 to the Transportation Article to prohibit the State or a local jurisdiction from requiring installation of a device in or on a privately owned vehicle to report vehicle miles traveled.
  • Clarifies exception: nothing in the prohibition prevents the Comptroller from entering into and the State from enforcing reciprocal interstate agreements relating to fuel use taxation, registration, and reporting by motor carriers under existing § 9‑205 (i.e., motor carrier fuel‑use agreements remain permitted).

Who would be affected

  • State and local governments and agencies (prohibits future implementation of VMT/GPS‑based taxes or mandated onboard devices).
  • Transportation authorities and tolling agencies (potentially affects design/collection methods for tolls).
  • Private drivers and vehicle owners (prohibits mandated tracking devices).
  • Third‑party vendors and researchers (prohibits contracted pilots/studies that implement VMT collection or device mandates).
  • Motor carriers: existing reciprocal fuel‑use and registration agreements administered by the Comptroller are preserved.

Fiscal/Policy impact

  • Fiscal note (Maryland Department of Legislative Services): no direct effect on State or local finances is expected; no small business effect identified.
  • Maryland Department of Transportation flagged uncertainty whether existing tolls/E‑ZPass transponders or tolling on the Intercounty Connector and I‑95 Express Lanes could fall under the prohibition; if so, the bill could limit the Maryland Transportation Authority’s ability to collect such tolls (not quantified in the fiscal note).

Procedural / Timeline highlights

  • Introduced: February 20, 2025 (read first time and assigned).
  • Hearing scheduled: March 6, 2025 at 1:00 p.m.
  • Effective date in bill: October 1, 2025.
  • Cross‑file / related: Designated cross file HB 1008; similar proposals appeared in prior sessions (e.g., SB 841 and HB 1025, 2024).

Notes / Considerations

  • The bill’s language broadly covers direct and indirect actions (including pilots and third‑party agreements), which could raise implementation or interpretation questions for existing tolling programs that use transponders or location data.
  • The explicit Comptroller exception preserves interstate commercial fuel‑use arrangements for motor carriers.

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

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