Maryland’s Tax and Fee Increases Won’t Affect Everyone, Will You Pay?

maryland chamber of commerce logo

The Maryland General Assembly passed a budget this session that raises approximately $340 million in additional revenue for transportation and education programs. But not every Marylander will foot the bill. Most of the increases come in the form of vehicle-related fees and fines for drivers, which will be used to pay for trauma care and transportation projects. A chunk of new tax money for education will largely come from tobacco users.

Maryland drivers: All drivers who register a vehicle in Maryland will pay an additional $23 surcharge each year ($46 every two years) when their registration comes due. Registration fees will also be rising, and higher-weighted vehicles will pay more in the form of a user fee. Shoppers looking for a new car in the state should keep their eyes open for a negotiable $800 dealer processing charge on their bill of sale — a fee that was previously capped at $500. Owners of plug-in electric vehicles will pay an additional $125 surcharge every two years when they renew registration, while plug-in hybrid drivers will pay a $100 surcharge.

Read more