Maryland
Ditching the gas tax and charging per mile; Maryland testing new way to fund transportation needs
BALTIMORE — Faced with a $3.3 billion transportation budget shortfall, the Maryland Department of Transportation had to make tough funding choices. State leaders scrambled to balance the deficit by pausing certain improvement projects and raising registration fees. They’re also considering a new way of collecting revenue from drivers.
Earlier this year, MDOT, in partnership with The Eastern Transportation Coalition, launched a pilot program testing the mileage-based user fee (MBUF).
“So, it’s pretty simple in concept. If you use the roads, you pay for the roads. You use the roads more, you pay for the roads more, so it’s really creating that link between use and payment and getting away from the fuel tax as being the way we fund transportation,” said Trish Hendren, executive director for The Eastern Transportation Coalition (TETC).
As cars become more fuel efficient and drivers switch to electric vehicles, less gallons of fuel are being sold. In addition, the fuel tax rate in Maryland declined from 47 cents per gallon to 46.1 cents per gallon, due to an inflation adjustment. MDOT expects this to further impact the amount of fuel tax revenue generated adding that the fuel tax revenue is the “largest source of funding for transportation in Maryland, comprising nearly one-third of annual revenues to the Transportation Trust Fund. The Transportation Trust Fund funds the operation and maintenance of transit, road and bridge, port, and airport facilities across Maryland,” a MDOT spokesperson wrote in an email to WMAR-2 News Mallory Sofastaii.
“This is not a Maryland issue, this is a transportation issue that every state needs to really think about how we’re going to close that gap,” said Hendren.
Hendren’s coalition of 19 states plus D.C. was awarded federal grant money to explore the feasibility of the mileage-based user fee. In Maryland, around 150 drivers participated in the pilot program that ended on May 31. Drivers had their mileage tracked through odometer readings, a plug-in device, vehicle reporting data, or a phone app.
Hendren said the cost to drivers is comparable to the state’s fuel tax, which she said averages around $27 per month.
One concern they’ve received is how the fee might impact rural commuters.
“Right now, rural communities are actually paying more than some of their urban counterparts in fuel tax. And you’re thinking, why is that? It’s because a lot of those vehicles in rural communities, on average, are larger and a bit older. So right now, it’s not necessarily a fair situation. So, if we moved to a distance-based approach, what the data is showing us is that rural communities may pay less,” Hendren said.
The results of the pilot program are expected to be released in August.
Currently, four states have enacted legislation authorizing the collection of per-mile fees: Oregon, Utah, Virginia, and Hawaii. These are voluntary programs for drivers with fuel-efficient and/or alternative fuel vehicles. In exchange for paying by the mile, they’re exempt from paying an annual registration surcharge on their vehicles.
Meanwhile, Maryland has increased its registration fees by 64 percent from $135 to $221 for two years and a 73 percent increase for heavier vehicles upping the two-year rate from $187 to $323.
Maryland car owners will soon be forced to pay significantly higher registration fees
EV drivers will eventually have to pay an annual surcharge between $100 to $125, most likely starting July 1, 2025.
“The challenge with a flat fee is really about fairness, and we need to have that discussion in the transportation field with the general public, with elected officials. So, somebody only drives, I don’t know, a thousand miles a year, versus someone who’s driving 12,000 miles a year, but they’re paying the same annual flat fee. Is that how we want to fund transportation?” asked Hendren.
She understands it’s a challenging road ahead trying to navigate from a 100-year-old system, but she said her organization is focused on finding a fair and sustainable solution.
To see how much you’d pay under the mileage-based user fee model, TETC created an online calculator. Drivers input details about their car and how far they drive per month. It’ll then show the estimated difference between the fuel tax and MBUF.
And for answers to frequently asked questions on the MBUF, click here.
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No. 13 Maryland tops No. 17 Michigan 71-65, giving Michigan State at least share of Big Ten title – WTOP News
Derik Queen had 17 points and 12 rebounds, leading No. 13 Maryland to a 71-65 win over No. 17 Michigan on Wednesday night that gave No. 8 Michigan State at least a share of the Big Ten title.
AP Photo/Duane Burleson
AP Photo/Duane Burleson
AP Photo/Duane Burleson
AP Photo/Duane Burleson
AP Photo/Duane Burleson
AP Photo/Duane Burleson
ANN ARBOR, Mich. (AP) — Derik Queen had 17 points and 12 rebounds, leading No. 13 Maryland to a 71-65 win over No. 17 Michigan on Wednesday night that gave No. 8 Michigan State at least a share of the Big Ten title.
The Terrapins (23-7, 13-6) have won six of seven games, losing only to the Spartans on a buzzer-beating heave.
The Wolverines (22-8, 14-5) have lost two straight and three of their last four home games, falling out of first place in the conference.
Michigan State has a 1 1/2-game lead with two games left in the regular season. The Spartans, who are 15-3 in Big Ten play, visit Iowa on Thursday night before closing at home Sunday against rival Michigan.
Maryland took control by holding Michigan to a season-low 22 points in the first half while building an 11-point lead.
The Wolverines hurt their comeback chances with nine turnovers in the second half.
Rodney Rice scored 19 points and Selton Miguel had 17 for the Terrapins.
Vladislav Goldin and Danny Wolf each scored 20 points, and Tre Donaldson added 10 points and six assists for the Wolverines.
Takeaways
Maryland: Kevin Willard’s balanced squad is playing well at the right time, winning 10 of its last 11 to improve its seeding for the Big Ten and NCAA Tournaments.
Michigan: Dusty May’s team needed a win to guarantee it would be playing for a share of the Big Ten title Sunday against the Spartans.
Key moment
Wolf went 0 of 2 on free throws with 5:48 left, missing a chance to cut Michigan’s deficit to two points.
Key stat
Maryland scored 21 points off Michigan’s 16 turnovers.
Up next
On the final weekend of the regular season, Maryland hosts Northwestern on Saturday, and Michigan plays at Michigan State on Sunday.
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