Legislative leaders agreed to budget items that will increase taxes on cigarettes for education funding, as well as fee hikes on electric vehicles for transportation priorities. The cigarette tax of $1.25 per pack was approved by a conference committee of the House of Delegates Appropriations Committee and the Senate Budget and Taxation Committee yesterday afternoon, and is projected to bring in $86.2 million by fiscal year 2025 to help fund the ambitious Blueprint for Maryland’s Future education plan. A surcharge for EVs was also approved at a rate of $125 for the registration of a zero-emission vehicle, and $100 for a plug-in electric vehicle. Those fees are projected to add $5.4 million each year to the state’s transportation funding over the next five fiscal years.
Other budget matters: As the Chamber has advocated for, the conference committee agreed to remove worldwide combined reporting, a complex tax policy that shifts tax burdens between industries without raising net revenue over the long run. Additionally, they approved a transfer of up to $275 million from the state’s Rainy Day Fund to support the Maryland Protecting Opportunities and Regional Trade (PORT) Act, a legislative effort backed by Senate President Bill Ferguson and Senator Johnny Ray Salling of Baltimore County to support workers and businesses affected by the Key Bridge collapse. This year’s session is scheduled to conclude on Monday, April 8.
