Maryland Increases Vehicle Registration Fees and Tobacco Taxes

  Annapolis  0 Comments
Maryland Increases Vehicle Registration Fees and Tobacco Taxes

Starting Monday, Maryland has implemented increased vehicle registration fees and tobacco taxes to fund transportation initiatives and educational improvements. The new legislation, approved by state lawmakers earlier this year, introduces new weight classes for vehicle registration, resulting in fee increases ranging from 60% to 75% depending on vehicle weight. For instance, passenger vehicles up to 3,500 pounds now incur a biennial fee of $221, up from $137 for vehicles up to 3,700 pounds. Additionally, a surcharge for emergency medical services has risen from $17 to $40 annually, and electric vehicle owners face new surcharges to compensate for the gas taxes they do not pay.

The legislation also includes various tobacco tax increases, such as an additional $1.25 per pack of cigarettes, raising the state’s tax on a 20-pack from $3.75 to $5. Taxes on other tobacco products, excluding cigars, have increased by 7% to 60% of the wholesale price, and the sales and use tax on electronic smoking devices has risen from 12% to 20%. These tobacco tax hikes are part of the funding strategy for the Blueprint for Maryland’s Future, a K-12 education initiative aimed at expanding early childhood education, raising teachers' salaries, and supporting struggling schools. Legislative analysts predict these measures will significantly bolster the Transportation Trust Fund, with projected revenues reaching $328 million by fiscal 2029.

Several other new laws have also taken effect in Maryland. The state has extended its smoking ban in public indoor areas to include vaping and enacted Governor Wes Moore’s ENOUGH Act to combat child poverty. Additionally, certain potentially traumatic activities during active shooter drills in schools have been prohibited, with local school systems now required to notify parents in advance. A workgroup has been reestablished to study and recommend improvements for pretrial home detention monitoring systems, and new permits will allow the delivery of alcoholic beverages from retail license holders.

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