Maryland Gov. Robert Ehrlich Jr. announced Feb. 13 his plan to pump new money into transportation projects.
Ehrlich, a Republican, said his proposal would provide an additional $320 million a year for the state’s depleted Transportation Trust Fund, which has been hit by rising costs and diversions of money to balance the state budget, according to a statement.
The revenue plan avoids fuel or titling tax hikes but increases the cost of buying or registering a vehicle. Higher fines on drunken drivers and those who commit a moving violation would also be a component of the plan.
Other revenue would come from unspecified fees, money shifted from the state’s general fund and revised estimates of returns from current taxes.
The largest component of the package – HB19 – would be an increase in registration fees, which are expected to bring in $150 million in additional funds each year. The surcharge amount would be determined by the cost of the vehicle but would not be computed as a percentage.
Democrats were quick to label the registration fee a “car tax,” but Ehrlich said that argument was “silly even for them.”
“People understand fees. They understand the difference between fees and taxes,” he told The Baltimore Sun.
Senate President Thomas V. Mike Miller said he would have preferred to see an increase in the state’s 23.5-cents-a-gallon fuel tax.
“It’s an honest tax. It’s up front, and it taxes people who move through our state,” the Democratic leader told the newspaper.