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SB 1043

state agencies; payments; cryptocurrency

57th Legislature - Second Regular Session Introduced by Wendy Rogers

Imposes a 1% Transportation Trust Fund surcharge on sales and use taxes to fund Maryland's TTF, reshaping budget and financing toward capital projects, tolls, and P3s.

PASSED
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Bill Summary · SB 1043

SB 1043 — Transportation Trust Fund — Revenue and Distribution (Maryland Mobility Act of 2025)

Status: Introduced (first reading Feb 15, 2025) — Assigned to Senate Rules
Sponsor: Senator Melony G. Griffith (listed in file as “By: Senator Benson”); related/companion House bills: HB 4954, HB 959

Main purpose / intent

SB 1043 would (1) create a dedicated revenue stream for Maryland’s Transportation Trust Fund (TTF) by imposing a new sales/use “transportation trust fund surcharge,” and (2) change budget, planning, and financing rules for State transportation agencies to prioritize capital project match funding, expand financing options (including public‑private partnerships and toll revenues), and constrain certain operating growth.

Key provisions

  • New surcharge and revenue routing

    • Adds a Transportation Trust Fund surcharge to the State’s sales and use tax statutes.
    • Rate specified in the bill: 1% (see proposed Tax – General §11–104(l)).
    • Revenues from the surcharge are directed into the Transportation Trust Fund (see Tax – General §2–1303 amendment).

  • Budget and appropriation limits/requirements

    • For FY 2027 and each fiscal year thereafter, the Secretary of Transportation’s budget request may not include operating expenditures for the Maryland Transit Administration (MTA) and the State Highway Administration (SHA) that exceed the prior fiscal year’s amount plus 3%.
    • The Governor must include in the annual budget bill an appropriation equal to the State match required for any new capital project included in the current Consolidated Transportation Program (CTP) that is eligible for federal funding.

  • Project and planning definitions / assessments

    • Expands the definition of “transportation facilities project” to explicitly include projects in the Consolidated Transportation Program.
    • Requires the Maryland Transportation Authority (MdTA) to identify methods to use public‑private partnerships (P3s) and toll revenue to fund State transportation improvements.
    • Requires the MTA and the SHA to carry out assessments identifying needs—MTA as part of a specified assessment; SHA to assess its ongoing, unconstrained capital/maintenance needs.

  • Statutory housekeeping

    • Repeals and reenacts multiple Transportation Article sections and makes conforming changes in Tax – General to implement the new surcharge and distribution changes.

Who is affected

  • Maryland consumers and businesses: the surcharge (1%) would apply to retail sales and certain uses, increasing the effective sales/use tax on affected transactions.
  • Transportation agencies and modal administrations: MTA, SHA, MdTA, Department of Transportation (including modal budget line items), and the State’s obligations around federal matching funds.
  • WMATA: the bill requires specified appropriations for certain modal units and references the Washington Metropolitan Area Transit Authority in appropriation language.
  • State budget: a new dedicated revenue stream to the Transportation Trust Fund and new required appropriations for capital matches will affect the State’s fiscal plan and priorities.

Fiscal and policy implications (high‑level)

  • New, dedicated revenues for the TTF — likely a material revenue increase, though the bill text does not include an official revenue estimate in the provided excerpt.
  • Consumers/retailers face a higher tax burden on covered sales/uses (1% surcharge).
  • The 3% operating cap for MTA and SHA (starting FY2027) could constrain operating budget growth; requiring State match appropriations for new federally eligible CTP projects could improve ability to secure federal dollars but increases near‑term State outlays.
  • Directing MdTA to pursue P3 and tolling options signals an intention to expand non‑general‑fund financing of projects (could lead to new tolls or P3 deals).

Process / timeline

  • Introduced and read first time in the Senate on Feb 15, 2025; currently assigned to Senate Rules.
  • The bill text repeals and amends multiple Tax – General and Transportation Article sections to implement the surcharge, distribution routing, and administrative/operational changes.
  • Effective dates are not specified in the excerpt; implementation timing would depend on final bill language and enactment.

If you want, I can:
- Draft a short, plain‑language explainer for consumers (how much more tax they could pay and on what goods/services), or
- Identify likely annual revenue ranges using State sales tax base data (requires current sales/use tax receipts data).

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

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