SB 362
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
Senate Bill 362 (Senator McCray)
Budget and Taxation Environment and Transportation
Transportation - Highway User Revenues - Distribution
This bill increases the share of funds from the Gasoline and Motor Vehicle Revenue
Account (GMVRA) that the Maryland Department of Transportation (MDOT) must
annually provide to local governments through capital transportation grants beginning in
fiscal 2025. The bill takes effect July 1, 2021.
Fiscal Summary
State Effect: Because MDOT’s capital program is fully subscribed, overall Transportation
Trust Fund (TTF) expenditures are not affected. However, over the five-year period
addressed in this fiscal and policy note, the bill requires MDOT to redirect $79.5 million
in FY 2025 and $80.1 million in FY 2026, as discussed below. Revenues are not affected.
Local Effect: Over the five-year period addressed in this fiscal and policy note, local
government revenues increase by an estimated $79.5 million in FY 2025 and $80.1 million
in FY 2026. Local expenditures are not directly affected.
Small Business Effect: None.
Analysis
Bill Summary: Exhibit 1 illustrates the bill’s effect on the percentage of
GMVRA revenues annually distributed to local governments beginning in fiscal 2025.
 Exhibit 1
Local Share of Highway User Revenues
Fiscal 2025 and Future Fiscal Years
Current Law Under the Bill
MDOT 90.4% MDOT 86.5%
Baltimore City 7.7% Baltimore City 8.3%
Counties 1.5% Counties 3.2%
Municipalities 0.4% Municipalities 2.0%
MDOT: Maryland Department of Transportation
Source: Department of Legislative Services
Current Law: TTF provides local transportation aid through GMVRA. Currently, the
revenues dedicated to the account include all or some portion of the motor vehicle fuel tax,
vehicle titling tax, vehicle registration fees, short-term vehicle rental tax, and State
corporate income tax.
Chapters 330 and 331 of 2018 altered the manner in which GMVRA revenues (commonly
known as highway user revenues) are shared with local governments, beginning in
fiscal 2020. Instead of directly sharing the revenue with local governments, the Acts
require 100% of the funds in GMVRA to be retained by TTF and distributed to local
governments through capital transportation grants. This change allows MDOT to issue
bonds backed by the GMVRA revenues that are ultimately issued to local governments;
MDOT was unable to do so prior to the enactment of Chapters 330 and 331.
Chapters 330 and 331 also increased the local government share of GMVRA revenues from
fiscal 2020 through 2024. Exhibit 2 shows the effect of Chapters 330 and 331 on the local
share of GMVRA revenues beginning in fiscal 2020. Beginning in fiscal 2025, the
percentage of revenues provided to local governments reverts back to the totals in place
before the enactment of Chapters 330 and 331; however, the revenues must continue to be
distributed as capital transportation grants.
SB 362/ Page 2
 Exhibit 2
Distribution of Highway User Revenues
Effect of Chapters 330 and 331 of 2018
Prior to FY 2020 FY 2020-2024 Beginning in FY 2025
MDOT 90.4% 86.5% 90.4%
Baltimore City 7.7% 8.3% 7.7%
Counties 1.5% 3.2% 1.5%
Municipalities 0.4% 2.0% 0.4%
MDOT: Maryland Department of Transportation
Source: Department of Legislative Services
State Fiscal Effect: Altering the GMVRA distribution formula beginning in fiscal 2025
decreases MDOT’s share of highway user revenues and increases the local jurisdictions’
share of highway user revenues. (As noted above, MDOT must provide the local share of
highway user revenues to local governments through capital transportation grants.)
Because MDOT’s capital program is fully subscribed, MDOT must redirect capital funding
from other projects to provide the additional revenues to local governments. Based on the
estimated funds credited to GMVRA, MDOT must redirect an estimated $79.5 million in
fiscal 2025 and $80.1 million in fiscal 2026 (totaling $159.6 million over the five-year
period addressed in this fiscal and policy note).
Local Fiscal Effect: Over the five-year period addressed in this fiscal and policy note,
local jurisdictions’ highway user revenues increase by an estimated $79.5 million in
fiscal 2025 and $80.1 million in fiscal 2026. The distribution of the increase among
Baltimore City, the counties, and municipalities is shown in Exhibit 3.
SB 362/ Page 3
 Exhibit 3
Projected Increase in Local Distribution of Highway User Revenues
Fiscal 2025 and 2026
($ in Millions)
FY 2025 FY 2026
Baltimore City $12.2 $12.3
Counties 34.6 34.9
Municipalities 32.6 32.9
Total $79.5 $80.1
Note: Totals may not sum due to rounding.
Source: Department of Legislative Services
Exhibit 4 shows the increase in highway user revenues distributed to localities and the
total amount of highway user revenues distributed to localities for fiscal 2022 through 2026
under the bill (by county).
SB 362/ Page 4
 Exhibit 4
Local Government Increase and Total – Highway User Revenues
Fiscal 2022-2026
($ in Millions)
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Increase Total Increase Total Increase Total Increase Total Increase Total
Allegany $0.0 $2.8 $0.0 $2.9 $0.0 $3.0 2.1 3.0 2.1 3.0
Anne Arundel 0.0 8.1 0.0 8.4 0.0 8.6 5.1 8.8 5.2 8.9
Baltimore City 0.0 156.3 0.0 162.0 0.0 165.8 12.2 169.2 12.3 170.4
Baltimore 0.0 8.9 0.0 9.2 0.0 9.4 5.1 9.6 5.1 9.7
Calvert 0.0 1.9 0.0 1.9 0.0 2.0 1.2 2.0 1.2 2.0
Caroline 0.0 1.6 0.0 1.6 0.0 1.6 1.1 1.7 1.1 1.7
Carroll 0.0 4.6 0.0 4.8 0.0 4.9 3.3 5.0 3.3 5.1
Cecil 0.0 2.5 0.0 2.6 0.0 2.7 1.8 2.7 1.8 2.7
Charles 0.0 2.8 0.0 2.9 0.0 2.9 1.8 3.0 1.8 3.0
Dorchester 0.0 1.8 0.0 1.8 0.0 1.9 1.3 1.9 1.3 1.9
Frederick 0.0 7.4 0.0 7.6 0.0 7.8 5.5 8.0 5.5 8.0
Garrett 0.0 1.7 0.0 1.8 0.0 1.8 1.2 1.9 1.2 1.9
Harford 0.0 4.8 0.0 4.9 0.0 5.1 3.2 5.2 3.3 5.2
Howard 0.0 3.6 0.0 3.7 0.0 3.8 2.1 3.9 2.1 3.9
Kent 0.0 0.9 0.0 0.9 0.0 0.9 0.6 1.0 0.6 1.0
Montgomery 0.0 14.1 0.0 14.7 0.0 15.0 9.9 15.3 10.0 15.4
Prince George’s 0.0 14.4 0.0 14.9 0.0 15.3 10.5 15.6 10.6 15.7
Queen Anne’s 0.0 1.5 0.0 1.5 0.0 1.5 0.9 1.6 0.9 1.6
Somerset 0.0 0.9 0.0 0.9 0.0 0.9 0.6 1.0 0.6 1.0
St. Mary’s 0.0 1.9 0.0 2.0 0.0 2.0 1.2 2.1 1.2 2.1
Talbot 0.0 1.8 0.0 1.9 0.0 1.9 1.4 1.9 1.4 2.0
Washington 0.0 4.3 0.0 4.4 0.0 4.6 3.2 4.6 3.2 4.7
Wicomico 0.0 3.5 0.0 3.6 0.0 3.7 2.6 3.8 2.7 3.8
Worcester 0.0 2.3 0.0 2.4 0.0 2.5 1.7 2.5 1.7 2.5
Total $0.0 $254.2 $0.0 $263.5 $0.0 $269.6 79.5 275.2 80.1 277.2
Notes: Totals may not sum due to rounding. Estimate assumes that highway road miles and vehicle registrations in fiscal 2022 remain constant through
fiscal 2026.
Source: Department of Legislative Services
SB 362/ Page 5
 Additional Information
Prior Introductions: None.
Designated Cross File: HB 649 (Delegate Anderton) - Environment and Transportation.
Information Source(s): Maryland Department of Transportation; Harford, Montgomery,
and Wicomico counties; Maryland Association of Counties; Maryland Municipal League;
Department of Legislative Services
Fiscal Note History: First Reader - January 29, 2021
rh/lgc Third Reader - March 24, 2021
Revised - Amendment(s) - March 24, 2021
Analysis by: Richard L. Duncan Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 362/ Page 6


Statutes affected:
Text - First - Transportation - Highway User Revenues - Revenue and Distribution: 8-402 Transportation, 8-403 Transportation, 8-407 Transportation
Text - Third - Transportation - Highway User Revenues - Distribution: 8-402 Transportation, 8-403 Transportation, 8-407 Transportation