ANNAPOLIS, Md. – With just three days remaining in the legislative session, House and Senate leaders announced a compromise to the more than $63 billion budget that includes increased funding for transportation and education.
After several days of meetings, briefings and debates, fiscal leaders from both chambers agreed on several budget items including an increase of $1.25 per pack of cigarettes. The sales tax on e-cigarettes and vapes will also go up from 12 to 20 percent. Other tobacco products, excluding cigars, will be taxed at 60 percent, up from 53 percent. That money will go toward education expenses.
Both sides also agreed on an increase in fines for speeding in a work zone and fees on electric vehicles. Surcharges will be $125 to register a zero-emission vehicle and $100 for a plug-in electric vehicle. Those fees could bring in $5.4 million each year for the next five fiscal years, to the state’s transportation funding.
There will also be an increase in vehicle registration costs by $23 a year to fund Maryland’s shock trauma system which provides medical care for people seriously injured in gun violence, car crashes and other traumatic events.
The committee also agreed to move up to $275 million from the state’s Rainy Day Fund to support workers and businesses affected by the Francis Scott Key Bridge collapse last month.
While House and Senate leaders had different plans to tackle the state’s transportation and education costs, the deal they made will avoid large tax increases.
House leaders, who originally wanted to raise $1.2 billion in tax, fee and toll increases, say they still plan to keep pushing for substantial tax increases next year. Senate leaders argued that now is not the time to raise taxes on Maryland families still struggling from the pandemic.
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